The government of Rivers State has been dragged before a High
Court of the Federal Capital Territory (FCT), over an alleged debt
of N25 billion owed to an accounting firm, regarding the Paris Club
refund by the federal government.
![image](/2020/10/lawreport.jpg")
The claimants, J.O. Atunbi (trading under the name and style of
J. O. Atunbi and Associates and Mauritz Walton Nigeria Limited, in
the suit said the debt arose from the failure of the Rivers State
Government to pay the agreed 18% of the sum of N143 billion, as
consultancy fees for its role in the federal government’s refund of
excess deductions in the Paris Club loans.
![image](/2021/01/payne-alex.jpg")
Defendants in the suit with number FCT/HC/CV/374/2021 are Rivers
State Government and its Attorney General and Commissioner for
Justice.
According to the claimants who are a chartered accountant and
renders financial services for corporate and governmental entities,
particularly in the area of international business and management
consultancy and debt management and recovery, the Rivers Government
had engaged them sometimes in March 2014, “as consultants for the
propose of forensic analysis and reconciliation of the deductions
and consequential recovery of the excess debits/deductions which
appeared to have been made against the first defendant by the
federal government”.
Claimants said defendants in the engagement letter agreed to pay
them 18% of all monies recovered/paid from/by the federal
government upon reconciliation and agreement on the exact excess
debits.
They added that following the agreement they intensified their
engagement with the federal government and discovered that the
Rivers Government had between June 1995 and March 2002 suffered
excess deductions regarding its external loans/debt repayment in
the total sum of $462,593,183:07, which sum they therefore demanded
to be refunded to the 1st defendant.
In a 33 paragraph statement of claim by the Chief Executive
Officer of Mauritz Walton Nigeria Limited, claimants said they
continued interfacing with the federal government on behalf of
their clients into the administration of President Muhammadu
Buhari, which in 2016 agreed to commence with payment of 50% of the
outstanding excess deductions to Rivers and other states with
similar situation.
“The federal government through its relevant agencies made good
its word and paid to the 1st defendant in/by three installments
between December 2016 and September 2018, or thereabouts, the Naira
equivalent of the sum of $296,014,055 being the sum of
N90,839,170,683:84, based on the said approximate exchange rate of
N305/310 to $1”, he said.
“Notwithstanding it’s receipt and enjoyment of the refund of
excess debits on its foreign loans account by the claimants’
intervention in the circumstances, the first defendant has
refused/neglected/failed to pay the claimants the agreed 18%
thereof in full or in part, despite several requests and and
seemingly unfruitful meetings between the Rivers State Government
and Dr Mauritz Ibe over a period of 30 months.
“The defendants still persisted in their failure/refusal to pay
and finding the situation inexplicable and intolerable the
claimants accordingly instructed their legal practitioners who by a
letter to the Governor of Rivers State dated January 2019 demanded
for the payment of the agreed consultancy fee”, Dr Ibe claimed.
He added that following the failure of the defendants to respond
to their solicitor’s letter, they engaged a set of senior lawyers
to continue to discuss with the Rivers Government, demanding for
payment of their consultancy fee or for a meeting of the parties
for a resolution of the matter.
Claimants said convinced that the defendants had no defence to
their claims and seeing no other option, they decided upon
initiating the suit.
Apart from the N25 billion they are asking the court to order
the defendants to pay them, they are also seeking an interest rate
of 20% per annum from November 2018 until judgment and thereafter
at the rate of 10% per annum until full and final payment of the
N25 billion debt.
Claimants is further asking the court for cost of N400 million
or as may be assessed against the defendants.
The government of Rivers State has been dragged before a High
Court of the Federal Capital Territory (FCT), over an alleged debt
of N25 billion owed to an accounting firm, regarding the Paris Club
refund by the federal government.
The claimants, J.O. Atunbi (trading under the name and style of
J. O. Atunbi and Associates and Mauritz Walton Nigeria Limited, in
the suit said the debt arose from the failure of the Rivers State
Government to pay the agreed 18% of the sum of N143 billion, as
consultancy fees for its role in the federal government’s refund of
excess deductions in the Paris Club loans.
Defendants in the suit with number FCT/HC/CV/374/2021 are Rivers
State Government and its Attorney General and Commissioner for
Justice.
According to the claimants who are a chartered accountant and
renders financial services for corporate and governmental entities,
particularly in the area of international business and management
consultancy and debt management and recovery, the Rivers Government
had engaged them sometimes in March 2014, “as consultants for the
propose of forensic analysis and reconciliation of the deductions
and consequential recovery of the excess debits/deductions which
appeared to have been made against the first defendant by the
federal government”.
Claimants said defendants in the engagement letter agreed to pay
them 18% of all monies recovered/paid from/by the federal
government upon reconciliation and agreement on the exact excess
debits.
They added that following the agreement they intensified their
engagement with the federal government and discovered that the
Rivers Government had between June 1995 and March 2002 suffered
excess deductions regarding its external loans/debt repayment in
the total sum of $462,593,183:07, which sum they therefore demanded
to be refunded to the 1st defendant.
In a 33 paragraph statement of claim by the Chief Executive
Officer of Mauritz Walton Nigeria Limited, claimants said they
continued interfacing with the federal government on behalf of
their clients into the administration of President Muhammadu
Buhari, which in 2016 agreed to commence with payment of 50% of the
outstanding excess deductions to Rivers and other states with
similar situation.
“The federal government through its relevant agencies made good
its word and paid to the 1st defendant in/by three installments
between December 2016 and September 2018, or thereabouts, the Naira
equivalent of the sum of $296,014,055 being the sum of
N90,839,170,683:84, based on the said approximate exchange rate of
N305/310 to $1”, he said.
“Notwithstanding it’s receipt and enjoyment of the refund of
excess debits on its foreign loans account by the claimants’
intervention in the circumstances, the first defendant has
refused/neglected/failed to pay the claimants the agreed 18%
thereof in full or in part, despite several requests and and
seemingly unfruitful meetings between the Rivers State Government
and Dr Mauritz Ibe over a period of 30 months.
“The defendants still persisted in their failure/refusal to pay
and finding the situation inexplicable and intolerable the
claimants accordingly instructed their legal practitioners who by a
letter to the Governor of Rivers State dated January 2019 demanded
for the payment of the agreed consultancy fee”, Dr Ibe claimed.
He added that following the failure of the defendants to respond
to their solicitor’s letter, they engaged a set of senior lawyers
to continue to discuss with the Rivers Government, demanding for
payment of their consultancy fee or for a meeting of the parties
for a resolution of the matter.
Claimants said convinced that the defendants had no defence to
their claims and seeing no other option, they decided upon
initiating the suit.
Apart from the N25 billion they are asking the court to order
the defendants to pay them, they are also seeking an interest rate
of 20% per annum from November 2018 until judgment and thereafter
at the rate of 10% per annum until full and final payment of the
N25 billion debt.
Claimants is further asking the court for cost of N400 million
or as may be assessed against the defendants.