EXCLUSIVE: Aondoakaa, ex-AGF, agrees to testify against Nigeria in $2.3bn Mambilla arbitration

Michael Aondoakaa, former attorney-general of the federation (AGF) and minister of justice, has agreed to testify against Nigeria in the ongoing arbitration at the International Chamber of Commerce (ICC), Paris, France, TheCable understands.

Sunrise Power, a company promoted by Leno Adesanya, had, on October 10, 2017, started arbitration against Nigeria at the ICC seeking a $2.354 billion award for “breach of contract” in relation to a 2003 agreement to construct the 3,050MW plant in Mambilla, Taraba state, on a “build, operate and transfer” (BOT) basis.

The Nigerian government has maintained that Olu Agunloye, then minister of power, acted outside of his powers when he awarded his contract.

Nigeria is also alleging fraud and corruption in the award and in the subsequent settlement agreements reached in an attempt to settle the dispute.

Agunloye is currently on trial in Nigeria for his alleged role in the contract saga. He denies all allegations.

AONDOAKAA VS NIGERIA

Now, Aondoakaa, a senior lawyer who was AGF from July 2007 to February 2010, has been enlisted by Sunrise to argue that the contract was valid — in order to boost the company’s chances of winning in arbitration.

Aondoakaa was a member of the Federal Executive Council (FEC) under President Umaru Musa Yar’Adua when the ill-fated gas processing agreement was signed with P&ID, leading to an arbitration fine of over $11 billion fine on Nigeria. It was eventually quashed by a British court.

An Aondoakaa associate told TheCable that the former minister of justice is working closely with Adesanya’s legal team in the arbitration and Nigerian matters.

Sunrise is hoping to use his testimony to counter that of the government officials, including some ministers in President Buhari’s cabinet who are testifying in favour of Nigeria.

Meanwhile, Adesanya has also filed a human rights case against the Economic and Financial Crimes Commission (EFCC) after he and Agunloye were charged to court.

Adesanya is being represented by Mohammed Seidu Diri, a senior lawyer who served as special assistant to Aondoakaa when he was AGF. Diri was also a director of public prosecution (DPP) at the federal ministry of justice.

A similar case filed by Agunloye against the government of Nigeria has since been dismissed.

DENIED BY TWO FORMER PRESIDENTS

Two former presidents have denied the validity of the contract and settlement agreements.

In an interview with TheCable, former President Olusegun Obasanjo challenged Agunloye to tell Nigerians where he derived the authority to award a $6 billion contract to Sunrise from.

“When I was president, no minister had the power to approve more than N25 million without express presidential consent. It was impossible for Agunloye to commit my government to a $6 billion project without my permission and I did not give him any permission,” Obasanjo told TheCable.

Agunloye later issued a statement insisting that he had Obasanjo’s approval — although it turned out it was a letter of comfort his principal approved to be issued to Sunrise and not a go-ahead to award the contract.

Buhari also denied authorising the settlement entered into with Sunrise by Abubakar Malami, his AGF.

“While I understood that my ministers of justice, power and water resources were approached by Sunrise and were engaging with various stakeholders that were involved in the project to resolve the issues blocking the project’s implementation, at no time did I specifically instruct them to enter into and conclude any settlement agreement with Sunrise Power and Transmission Company Limited,” Buhari wrote in a letter to Lafeef Fagbemi, the current AGF, in February this year.

“Indeed, when the proposed settlement agreement and addendum were presented to me for my consideration and approval on 20th April 2020, I refused to approve the settlement deal because I was convinced that there was no basis for Sunrise’s claim.”

Malami has yet to dispute Buhari’s claim.