Falana to Sue FG over 3.5bn World Bank, AfDB Loans
Tasks gov to recover $66.5bn recoverable loans, revenues
Gboyega Akinsanmi
A human rights lawyer, Mr. Femi Falana, yesterday said he would sue the federal government over its insistence on borrowing a whopping sum of $3.5 billion from the World Bank and the African Development Bank (AfDB).
Falana, a Senior Advocate of Nigeria (SAN), said he would initiate legal proceedings with a view to compelling the federal government to recover over $66.5 billion recoverable loans, royalties, levies and revenues it was currently being owed.
He threatened legal action in a short statement he personally signed and made available to THISDAY yesterday alongside a letter addressed to the Minister of Finance, Mrs. Kemi Adeosun, over the federal government’s plan to borrow $3.5 billion to fund 2016 budget.
As contained in his statement, Falana said since the federal government “have not deemed it fit to react to the serious issues raised in the letter, kindly be informed that we shall commence legal proceedings not later than February 29, 2015.”
The senior advocate added that he would initiate legal action with a view to compelling the federal government “to recover the said loans, royalties, levies and other recoverable revenues of not less than $66.5 billion.”
In the letter he addressed to the minister on February 5, Falana listed recoverable revenues, loans, royalties and levies, which he said, different banks, oil firms and pampered members of the ruling class were owing the federal government.
He cited five cycles of independent audit reports of the National Extractive Industries Transparency Initiative (NEITI), which he said, put the country’s potential recoverable revenues payable to the Federation Account at $20.22 billion.
He added that the potential recoverable revenues “are said to have arisen from underpayment or underassessment of taxes, royalties, levies and rents,” which according to him, the Minister of State for Budget and National Planning, Mrs. Zainab Ahmed, could provide more information on.
He, also, cited the sum of $7 billion, which the Central Bank of Nigeria (CBN) apportioned “to 14 Nigerian banks to “manage” out of the nation’s external reserves on October 4, 2006. The amount involved represented 18.39 per cent of the total external reserves at the material time.
“Following the crisis of global capitalism, which occurred in 2008, the CBN gave a bailout of $4 billion (N600 billion) to the commercial banks in the country. The CBN has not deemed it fit to ask for the refund of the total sum of $11 billion injected into the banking system in the space of two years.”
Falana cited the sum of $9.6 billion deducted tax benefits from joint venture partners on major capital projects and the legacy OPA/SWAP oil contracts, which the Presidency announced that it had commenced the process of recovering it.
The senior advocate referred to a statement of the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami that the federal government had concluded arrangements to recover an additional $750 million from the loot of the late Head of State, Gen. Sani Abacha.
He mentioned the ongoing probe into the affairs of the Asset Management Corporation of Nigeria (AMCON) by the Senate, which according to him, revealed that the corporation had accumulated over $25 billion (about N5 trillion) debts as against its Act which put the debt ceiling at N800 billion.
He cited a statement credited to the corporation’s Managing Director, Mr. Ahmed Kuru that most of the debtors of AMCON “are big men who fly in private jets, live in big mansions and they have taken money and they are not paying back.”
On these grounds, Falana argued that the hapless Nigerian people “should not be made to pay for the gross mismanagement of the national economy by the federal government and the profligacy of the pampered members of the ruling class.
“Instead of taking a loan of $2.5 billion with dangerous conditionalities from the World Bank, the Federal Government should recover the aforesaid loans and revenues of not less than $66.5 billion with the assistance of the anti-graft agencies.”
The senior advocate acknowledged the concerted efforts, which he said, had been made to recover the looted wealth of the country through the anti-graft agencies and the Arms Procurement Panel.
He therefore asked the administration of President Muhammadu Buhari “to embark on the immediate recovery of the aforesaid loans and accrued revenues with a view to financing the 2016 budget and the infrastructural development of the nation.”