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Court grants SERAP permission for judicial review of spending of Paris Club refunds

by Our Reporter

There is prospect Nigerians keen about knowing how exactly their governors
spent Paris club refunds disbursement may soon have some answers, as a
Federal High Court sitting in Ikoyi, Lagos last Friday granted
Socio-Economic Rights and Accountability Project (SERAP) leave “to apply
for judicial relief and to seek an order of mandamus directing and/or
compelling the government to publish details of spending of
N388.304billion London Paris Club Loan refunds allegedly diverted and
mismanaged by 35 States.”

Justice Muslim Hassan ruled that SERAP could proceed with the legal
challenge to unravel how exactly 35 states spent Paris Club loan refunds.
Justice Hassan while granting leave stressed that it was important for the
authorities “to come and tell us how they spent our money.”
The order granting leave by the court followed the hearing of an argument
in court on exparte motion by SERAP counsel Ms Bamisope Ibidolapo.
The order by Justice Hassan has now cleared the way for SERAP to advance
its case against the Federal Government and state governors. The motion on
notice is set for Wednesday 14 September 2017 for the hearing of argument
on why the government should not be directed and compelled to public
details of projects on which the Paris Club loan refunds were spent.
It would be recalled that in the suit number FCH/CS/523/17 filed in April
sought “an order to compel the Accountant General of the Federation Alh.
Ahmed Idris, to compile and pass on to the Attorney-General of the
Federation and Minister of Justice, Abubabar Malami, SAN, information
relating to the release and spending of N388.304billion London Paris Club
Loan refunds to the states.”

SERAP is also seeking an order “for the Attorney-General of the Federation
to use the information on the spending by the 35 states to initiate legal
action against the States that allegedly diverted and mismanaged the funds
with a view to compelling the states to widely publish, including on a
dedicated website, details of spending of the funds by them.”

The suit read in part: “The orders sought are necessary to know exactly
what happened to the Paris Club refunds, and the release of the
information including on a dedicated website would be deemed incidental to
the power of the federal government to achieve effective implementation of
anticorruption legislation, and will not amount to interference with
activities within the states involved.”

“The Applicant argues that allegations of corruption and mismanagement of
N388.304 billion London Paris Club loan refunds by states have undermined
the human dignity of workers and pensioners facing difficult circumstances
that deprive them of their capacity to fully realize their internationally
recognized economic and social rights.”
“The allegations of corruption in the spending of the London Paris Club
loan refunds have also exacerbated poverty, social exclusion, and violated
the government’s obligation to use its maximum available resources to
fully realize the right of all persons especially workers and pensioners
who are the most vulnerable sectors of the population.”

“The Federal Government has a constitutional and statutory obligation to
contribute to the eradication of corrupt practices and abuse of power,
ensure proper organization and maintenance of all information in its
custody in a manner that facilitates public access to such information,
and make readily this available to applicants whenever it is sought.”

“Since the receipt of SERAP’s letter dated 17th March, 2017, and up till
the filing of this suit, the government has so far failed, refused and/ or
neglected to pass on to the Attorney-General of the Federation and
Minister of Justice, information relating to the release and spending of
N388.304billion London Paris Club Loan refunds to 35 States by the Federal
Government for appropriate legal action against the states.”

SERAP is seeking the following reliefs:

A DECLARATION that the failure of the Respondent to urgently compile and
pass on to the Attorney-General of the Federation and Minister of Justice,
information relating to the release and spending of N388.304billion London
Paris Club Loan refunds to 35 States by the Federal Government, so that
the Attorney-General of the Federation can take steps to initiate legal
action against the States that allegedly diverted and mismanaged the funds
with a view to compelling the states to widely publish, including on a
dedicated website, details of spending of the funds by them is
unconstitutional and unlawful as it contradicts and in conflict with the
duties and obligations of the Respondent under the Constitution of the
Federal Republic of Nigeria, 1999 (as amended), the Corrupt Practices and
Other Related Offences Act 2000 and the Freedom of Information Act 2011.

AN ORDER OF MANDAMUS compelling the Respondent to urgently compile and
pass on to the Attorney-General of the Federation and Minister of Justice,
information relating to the release and spending of N388.304billion London
Paris Club Loan refunds to 35 States by the Federal Government, so that
the Attorney-General of the Federation can take steps to initiate legal
action against the States that allegedly diverted and mismanaged the funds
with a view to compelling the states to widely publish, including on a
dedicated website, details of spending of the funds by them.

“Unless the reliefs sought are granted, the Respondent will not
immediately compile and pass on information to the Attorney General of the
Federation regarding the release and spending of the London Paris Club
Loan refunds to enable him take steps to pursue appropriate legal action
against states that allegedly diverted and mismanaged the loan refunds.”

It would be recalled that the Federal Government released N388.304billion
of the N522.74 billion to 35 states as refunds of over-deductions on
London-Paris Club loans. The amounts received by the states are as
follows: Akwa Ibom N14.5bn; Bayelsa N14.5bn; Delta N14.5bn; Kaduna
N14.3bn; Katsina N14,5bn; Lagos N14.5bn; Rivers N14.5bn; and Borno
N13,654138,849.49.

Others are: Imo 13bn; Jigawa 13.2bn; Niger N13.4bn; Bauchi N12.7bn and
Benue N12.7bn, Anambra N11.3bn; Cross River N11.3bn8; Edo N11.3bn; Kebbi
N11bn; Kogi N11.2bn; Osun N11.7bn; Sokoto N11.9bn; Abia N10.6bn; Ogun
N10.6bn; Plateau N10.4bn; Yobe N10bn; and Zamfara N10bn. Other states are:
Adamawa N4.8bn; Ebonyi N3.3bn; Ekiti N8.8bn; Enugu N9.9bn; Gombe N8.3bn;
Kwara N5.4bn; Nasarawa N8.4bn; Ondo N6.5bn; Oyo N7.2bn and Taraba N4.2bn.

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