Governors, ALGON Protest Planned Deduction Of $318m

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*Finance Minister Asked Not To Issue Promissory Note For
Disowned Legal Fees

The request for the deduction of $318 million from the
Federation Account as legal fees to a judgment creditor has set
governors on a collision course with the Federal Government.

The money is to be deducted over a 10-year period, from the
account of the 774 Local Government Areas.

Those making the request have asked Finance, Budget and Planning
Minister Mrs Zainab Ahmed to issue a promissory note pending the
determination of legal issues surrounding the controversial
issue.

The judgment creditor, Dr. Ted Iseghohi Edwards’ claimed,
through his counsel, Ikechukwu Ezechukwu (SAN), that he got a
Garnishee Order absolute attaching funds of Local Governments in
the custody of the Central Bank of Nigeria (CBN).

He said he rendered Legal and consultancy fees to the 774 local
government councils in getting refunds of First Line Charge/ Paris
Club Deductions.

According to him, he offered the services through a mandate from
the late Chairman of Board of Trustees of the Association of Local
Government of Nigeria (ALGON), U.K Ibrahim.

He said the Garnishee Order followed the decisions of both the
FCT High Court and the Federal High Court which entered judgments
in his favour for the sum of $318million (N152, 640,000,000)

He said the Federal Government has agreed to pay less than the
full judgment debt.

He claimed that President Muhammadu Buhari had since December
2020, approved the payment of the $318million through the issuance
of a Promissory Note because the country is in financial
straits.

The deduction of the N152.6billion will be made from the
accounts for the next ten (10) years.

But the governors and ALGON have asked the Minister to stay
action on the promissory notes pending the determination of all
legal issues on the judgment debt.

In a March 29th, 2021 to the President, ALGON said it never gave
Dr. Ted Iseghohi Edwards, any engagement or instruction or power of
attorney to represent it.

It also said no local government in the country gave any mandate
to Dr. Ted Iseghohi Edwards.

The governors on Monday took up the battle against the release
of the money.

Acting under the auspices of the Nigeria Governors Forum (NGF),
the governors said whatever affected local governments has
implications for states by virtue of Section 162(5) of the 1999
Constitution.

The NGF’s counsel, Femi Falana (SAN) in an April 19 letter to
the Minister said: “The Nigeria Governors’ Forum (NGF) has engaged
our services to’ challenge the decisions of the Court relating to
or connected with payments of Legal and Consultancy fees arising
from London Club Debt, Buy Back and London Club Debt Exit Payment,
which is the fulcrum of the judgment of the Federal High Court,
Abuja in Suit No: FHC/ABJ/CS/130/13 — LINAS INTERNATIONAL LIMITED &
ORS.V. THE FEDERAL GOVERNMENT OF NIGERIA & ORS.

“As you already know, the claim of Dr. Ted Iseghoni Edwards
arose from legal services he allegedly rendered to the Association
of Local Governments of Nigeria (ALGON).

“Consequently, we have prepared all the Court processes
challenging the judgments of Courts and seeking for Stay of
execution and/or injunction pending appeal.

“We have been unable to file due to the ongoing strike by the
Judiciary Staff Union of Nigeria (JUSUN), which has occasioned a
complete shut-down of our Courts. Find attached herewith copies of
the processes already prepared and awaiting the re-opening of the
Courts for filing.

“Our attention has been drawn to a letter from the firm of
Ikechukwu Ezechukwu, SAN & Co dated 8” April, 2021 urging you to
issue promissory notes to Dr. Ted Iseghoni Edwards.

“We respectfully urge you not to accede to the request because
these promissory notes are to be deducted from the accounts of the
States for the next ten (10) years. It is therefore expedient to
await the outcome of legal steps being taken by the States as
represented by the NGF.

“Section 162(5) of the 1999 Constitution of the Federal Republic
of Nigeria (as amended) mandates any amount standing to the credit
of local governments to be paid directly to the states for the
benefit of their local government councils. The states therefore
have a responsibility to ensure that funds standing to the credit
of the local government councils are protected as custodians of
such funds.

“We need to inform you of your sacred duty of staying action on
this matter in view of the injunctive reliefs sought in the
processes to be filed in Court on these matters.

“While extending the assurances of our highest regard, we hope
that you will exercise restraint by resisting any urge to issue
promissory notes to anyone (including Dr. Ted Iseghohi Edwards, Mr.
Ned Munir Nwoko, Panic Alert Security Systems, Dr. George Uboh,
Riok Nigeria Ltd, Prince Orji Nwafor-Orizu & Barrister Bello
Olaitan Busayo) pending the determination of these actions by the
Court.”

In an April 8th 2021 letter to the Minister of Finance, Mr.
Ikechukwu Ezechukwu, (SAN), who is the counsel to Dr. Ted Iseghohi
Edwards demanded issuance of the promissory notes to his
client.

The letter reads in part: “We are counsels to Dr. Ted Iseghohi
Edwards (Judgment Creditor) herein referred to as our client.

“Our client got a Garnishee Order absolute attaching the funds
belonging to Local Governments in the custody of the Central Bank
of Nigeria in satisfaction of a Judgment debt as per Judgments of
both the FCT High Court and the Federal High Court of Nigeria which
entered Judgment in favour of our client for the sum of
$318,000,000.00.

“At the instance of the Federal Government, this Judgment was
compromised to the effect that the Federal Government agree to pay
less than the full Judgment debt. Mr. President has since December
2020 approved the payment of this sum through issuance to our
client a Promissory Note because the Country is in financial
straits.

“Since the approval of Mr. President, you, as the Minister
responsible for carrying out the Presidential approval, have
refused to carry out your official reasonability as a Public
Officer hiding under the cloak of awaiting for consent and
responses of the judgment debtors.

“We hereby demand on behalf of our client your immediate
compliance with the Presidential approval and effect the
satisfaction of our compromised Judgment debt by issuing our client
with Promissory Notes as proved.

TAKE NOTICE that in the light of the Attorney-General’s press
conference on Tuesday 6th day of April 2021 debunking all
allegation in the social media concerning the judgment debt, we
shall after seven (7) days of the date of the receipt of this
letter by your ministry you failed, refuse or neglect to comply
with the presidential directive, our client will have no choice
than to seek remedy in the Court claiming his entire judgment debt
and 10% interest per month until the liquidation thereof.“

The letter to the Minister was copied the Director-General Debt
Management Office (DMO) on April 8th, 2021.

The letter to the DMO reads “We act for Dr. Ted Iseghohi
Edwards. Find enclosed a letter we wrote on behalf of our client to
the Hon. Minister of Finance and copied to the Hon. Attorney
General of Federation.”

In a March 29th letter to the President, ALGON said it was
opposed to the payment of the N152.6billion to Ted Iseghohi
Edwards.

It also said it did not enter into any consultancy or legal
engagement with Dr. Ted Iseghohi Edwards.

It said: “There is no evidence anywhere the Local Governments
engaged Ted Edwards to recover Paris Club Refunds on their behalf.
No engagement or instruction letter, power of attorney or letter of
authority was issued by a single local government to him.

”We must make it abundantly clear that any payment to Dr. Ted
Iseghohi Edwards by the Federal Ministry of Finance, Budget and
National Planning from the Local Governments’ Allocations without
the consent or authority of any Local Government Councils will be
an illegality and a clear violation of the principle of tier
autonomy over government funds enshrined in the constitution and
recognized by the Supreme Court.

“It could also open a floodgate of claims by local governments
across the country against the Federal Ministry of Finance and any
other Ministry or Agency that facilitates such illegal and
fraudulent payment.