Former president Olusegun Obasanjo has informed the federal government that he is ready to testify for Nigeria “in any forum” over the disputed Mambilla power contract, TheCable can report.

Sunrise Power is in arbitration with Nigeria at the International Chamber of Commerce (ICC), Paris, France, alleging a breach of contract.

The company said it was awarded a $6 billion build, operate and transfer (BOT) contract in May 2003 by the Obasanjo administration but that the federal government repudiated the agreement.

Sunrise is asking for a compensation of $2.3 billion, claiming it had spent millions of dollars on financial and legal consultants before the contract was jettisoned.

In its defence at the arbitration, Nigeria is alleging fraud and corruption of public officials in the award of the contract — similar to the P&ID case in which a UK court nullified an $11 billion award against the country for similar reasons.

The Economic and Financial Crimes Commission (EFCC) has reportedly uncovered serious issues of fraud and has filed charges against suspects.

In a recent interview with TheCable, former President Olusegun Obasanjo had challenged Olu Agunloye, who was minister of power at the time, to tell Nigerians where he derived the authority to award a $6 billion contract to Sunrise.

Agunloye issued a statement, insisting that he had Obasanjo’s approval.

TheCable understands that Lateef Fagbemi, the attorney-general of the federation, thereafter wrote to Obasanjo seeking information on various claims made by Agunloye and Sunrise on the Mambilla project.


‘LETTER OF COMFORT’

In documents seen by TheCable, the late Olusegun Agagu, Agunloye’s predecessor, had written to Obasanjo on November 20, 2002 seeking approval to invite Tafag Nigeria Ltd and Sunrise for detailed negotiations for the construction of the power station.

On November 28, 2002, Obasanjo gave the minister the go-ahead to invite the two companies and added: “Please give the two the same parameter i.e. part participation not more than 25% higher than prevailing tariff of the thermal plant.”

However, on April 7, 2003, Agunloye, who had by now become minister of power with Agagu having resigned to contest for governorship in Ondo state, wrote to Obasanjo, asking him to recall his earlier approval for the invitation of “Messrs Tafag Nig. Ltd, Sunrise Power Ltd and Lemna International for further negotiations”.

Instructively, Lemna International was not mentioned anywhere in the previous memos.

Agunloye thereafter sought Obasanjo’s approval to issue a “letter of comfort” to Sunrise for a BOT contract.

A letter of comfort, also called “letter of intent”, indicates an initial willingness to enter into a contractual obligation without a legally enforceable contract.

In his reaction to Agunloye’s request, Obasanjo said he had no objection but asked him “to bring a memo to Council to include comparison with coal-fired plant for 4000MW to 5000MW”.


NO COMPLAINCE

In his letter to Fagbemi, Obasanjo said: “What is abundantly clear is that at no time did Dr Agunloye comply with the foregoing directive by bringing a memo to Council to include the [stated] comparison; nor can my directive be stretched to be inclusive of any approval to award any contract to Sunrise Power and Transmission Company Limited or any other person.

“In any event, my directive as stated above cannot by any stretch of imagination reasonably be extended to mean that issuing “a letter of comfort” translates to an award of contract.

“It is therefore clear that at no time was any contract awarded to Sunrise Power by anyone in my Administration.”

Agunloye wrote a letter of award to Sunrise on May 22, 2003 — a day after the federal executive contract stepped down his memo seeking the approval to go ahead.

Obasanjo maintained that no minister had the authority to commit Nigeria to beyond N25 million without express presidential consent when he was in office.

He assured Fagbemi of his “continued commitment” to assist the government “by shedding more light on these matters as may be required of me. In particular, the embarrassment to Nigeria caused by these acts of fraud, deceit and malfeasance of Dr. Agunloye and others of his ilk does no good to Nigeria or Nigerians. I have therefore resolved to make myself available to testify in Arbitration or any forum should you consider it necessary in our national interest”.

In fact, I wish to say with all humility and respect that all the things credited to the former President in the extensive interview in The Cable News are not correct. Take for instance, The Cable News quoted Pa Obasanjo as saying: “…When I was in office, Leno Adesanya, the promoter of Sunrise Power, ran away from Nigeria. I would have jailed him.” This is far from being correct because Mr. Leno Adesanya was virtually always in the Aso Rock Villa during Chief Obasanjo’s presidency. As a matter of fact, the same president and Mr. Adesanya sat together on the high table in Aso Rock as Baba Oko and Baba Iyawo respectively at the wedding of the president’s son and Mr. Adesanya’s niece in 2002.

I followed due process and got all necessary approvals for the BOT contract award to Sunrise on 22 May 2003 and there are records to show that the former President Obasanjo propelled the processes from the beginning in 2000 to the end in May 2003. In fact, Sunrise started Mambilla project three years before I became Minister of Power and had arranged meetings with Chinese Companies and Chinese President in China in which three Power Ministers and the then President Obasanjo attended between 2000 and 2002 before I was appointed Minister of Power. On the very day (28 Nov 2002), that I resumed office as Minister of Power, Pa Obasanjo himself, in a formal letter, handed me his presidential approval on the Sunrise proposal with an instruction that Sunrise be invited “for the final negotiations for the execution of the Mambilla Power Project.”

NO ONE QUERIED ME FOR 20 YEARS

The following played out after I had ceased to be a minister from 29 May 2003.

It turned out that (a) Between 2003 to 2007, President Obasanjo was attempting to invalidate the Sunrise May 2003 BOT contract on Mambilla Project; and (b) Between 2007 to 2015, the Yar’Adua and Jonathan presidencies recognised the Mambilla Project as a BOT contract validly awarded in May 2003, cancelled the component of it awarded as a procurement contract by President Obasanjo on the 28 May 2007 at $1.46 billion, and signed a fresh agreement on the Mambilla Hydropower Project in 2012 with Sunrise and (c) Between 2015 to 2023, the then President Buhari cancelled and re-awarded the Mambilla Power Project, and was making and breaching own Agreements with Sunrise.

In all of these, spanning 20 (twenty) years, none of the Presidents (Chief Olusegun Obasanjo, Malam Musa Yar’Adua, Dr. Goodluck Jonathan or Gen. Muhammadu Buhari) asked me or questioned me about issuing any unauthorised Mambilla contract. This is because all the Nigerian Presidents, including Chief Obasanjo, were aware that I did nothing wrong.

Ikaeniyan0:
Nice one from OBJ

favor914:
Self Righteous Criminal, ITT, International Thief Thief, International rogue.

Ikaeniyan0:
He's doing the right thing on this issue.

Pakute:

Which right thing is he doing?, baba just dey save face. EFCC has declared Agunloye wanted which means Tinubu has already dusted baba's file, OBJ know say Tinubu no go look e face when security go come embarrass am for Ota, that is why e dey try submit himself jejely. All enemies of Tinubu must collect.

Pakute:

Which right thing is he doing?, baba just dey save face. EFCC has declared Agunloye wanted which means Tinubu has already dusted baba's file, OBJ know say Tinubu no go look e face when security go come embarrass am for Ota, that is why e dey try submit himself jejely. All enemies of Tinubu must collect.