Former Attorney-General of the Federation and Minister of Justice, Abubakar Malami, has denied an International Chamber of Commerce arbitration tribunal's finding that a corrupt deal was reached between him and Leno Adesanya, promoter of Sunrise Power and Transmission Company Limited. The finding relates to a proposed $200 million settlement linked to the Mambilla Hydroelectric Power Project. Malami's statement was issued by his Special Assistant on Media, Mohammed Bello Doka.
The ICC tribunal, in its final award delivered in Paris on September 16, found that a "corrupt deal" had been reached between Malami and Adesanya in relation to a settlement agreement and an addendum that could have exposed Nigeria to as much as $400 million. The dispute centred on a settlement agreement signed on January 2, 2020, under which the Federal Government was to pay Sunrise $200 million. An addendum signed on March 25, 2020, introduced an additional $200 million default sanction.
The tribunal ultimately held that the agreements were not binding on the Federal Government because they lacked the required presidential approval. It also concluded that the agreements were products of corruption and therefore unenforceable under Nigerian public policy. However, Malami welcomed the tribunal's rejection of Sunrise Power's claims against the Federal Government, noting that Nigeria was ordered to be reimbursed for legal costs incurred during the arbitration.
Malami explained that the Mambilla dispute had existed for more than a decade before he became Attorney-General and had passed through several administrations and government officials. The dispute originated in 2003, and previous Attorneys-General, including Michael Aondoakaa, had been involved in attempts to resolve it. The Federal Government had also entered into a General Project Execution Agreement involving Sunrise Power and Sinohydro in November 2012.
Malami's involvement followed a presidential directive issued in April 2016 concerning the resolution of disputes surrounding the project. As the country's chief law officer, his responsibility was to advise the Federal Government on its legal exposure and possible options for resolving the dispute. The unresolved arbitration had become an obstacle to financing discussions for the Mambilla project, including negotiations involving China Exim Bank.
Malami acknowledged that former President Muhammadu Buhari eventually refused to approve the $200 million settlement. A handwritten note dated April 20, 2020, showed that Buhari stated the Federal Government did not have $200 million to pay Sunrise. A subsequent request for approval made in January 2021 was also rejected by Buhari. Malami said he did not instruct that Sunrise be paid after the president rejected the settlement.
The tribunal reached a different conclusion concerning Malami's conduct after Buhari's refusal, finding that interactions between Malami and Adesanya were inconsistent with the official positions they were expected to represent. Malami, however, rejected the allegation of a corrupt agreement and said there was no evidence that he received money or any financial benefit from Sunrise, Adesanya or any connected entity.
Key points
- The ICC tribunal found a "corrupt deal" between Malami and Adesanya.
- Malami denied the corruption allegation and welcomed the rejection of Sunrise Power's claims.
- The Mambilla project dates back to 2003, with a build-operate-transfer contract awarded to Sunrise Power for the development of a 3,050-megawatt hydropower plant.
