Former Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN, has denied allegations that he entered into a corrupt arrangement with Sunrise Power and Transmission Company Limited promoter, Leno Adesanya, over the controversial Mambilla Hydroelectric Power Project settlement.
Malami, through his Special Assistant on Media, Mohammed Bello Doka, said the findings contained in the arbitral award on the dispute should not be equated with a criminal conviction, insisting that the matter was determined through commercial arbitration.
He also welcomed Nigeria's successful defence against Sunrise's claims, saying the outcome protected the country from potentially substantial financial liability.
The statement followed widespread reports on the 616-page award issued in the arbitration involving Nigeria and Sunrise.
It said the award contained serious findings concerning the proposed settlement and its addendum, presidential approval, communications between Malami and Adesanya, and an alleged corrupt arrangement.
Malami, however, said the findings must be examined in the context of the complete documentary and evidentiary record rather than isolated excerpts circulating in the media.
“A comprehensive response to every finding attributed to the tribunal will therefore follow a careful examination of the complete award and the underlying records,” the statement said.
According to the former minister, the dispute over Sunrise's involvement in the Mambilla project was already more than a decade old when he became Attorney-General.
The statement traced the controversy to 2003, when Sunrise became involved in the proposed hydroelectric project, adding that subsequent contractual decisions generated litigation and competing claims under previous administrations.
It said former Attorney-General Michael Aondoakaa had reviewed the dispute before Malami's tenure and recommended an amicable resolution after concluding that Sunrise had not been properly disengaged before another contractor was brought into the project.
It also cited a General Project Execution Agreement involving Sunrise and Sinohydro entered into by the Federal Government in November 2012.
Malami's office therefore argued that he neither originated the dispute nor introduced Sunrise into the Mambilla project, but inherited an unresolved contractual controversy.
The statement said Malami's involvement followed a presidential directive communicated by the Chief of Staff to former President Muhammadu Buhari in April 2016 concerning the resolution of outstanding disputes and competing interests around the project.
As Attorney-General, Malami was responsible for advising the government on its legal exposure and possible options for resolving the dispute, it said.
The statement further linked the dispute to efforts to secure financing for the Mambilla project, saying the unresolved arbitration was regarded as an obstacle to discussions involving China Exim Bank.
It added that the issue featured in discussions on September 5, 2019, between Buhari and Yang Jiechi, then Special Representative of Chinese President Xi Jinping.
On the proposed settlement, Malami's office said Sunrise initially demanded $500 million in full and final settlement during negotiations in London in November 2019.
Federal Government representatives reportedly countered with $100 million, before $200 million emerged as the negotiated figure.
The former Attorney-General's office said the settlement discussions were based on the need to resolve Sunrise's multibillion-dollar claims, ongoing litigation and financing difficulties affecting the Mambilla project.
It stressed, however, that the appropriateness of the final terms should be assessed independently on the basis of the evidence.
The statement also acknowledged that Buhari did not approve the $200 million payment.
It said the former president, on April 20, 2020, indicated that the Federal Government did not have $200 million to pay Sunrise, with Malami communicating the decision to the company on April 22.
A further request for approval in January 2021 was also unsuccessful, with Buhari reportedly writing “Not approved”.
According to Malami's office, his subsequent actions are important to the assessment of his role because he instructed the Federal Government's lawyers to oppose Sunrise's attempt to enforce the settlement after the company claimed that Nigeria had defaulted.
The statement said the instruction was aimed at preserving the Federal Government's legal position after the presidential rejection of the payment.
On the corruption allegation, Malami categorically denied that he acted pursuant to an agreement to obtain personal financial benefit.
He said the allegation should be tested against the full evidentiary record, including whether any money or other benefit from Sunrise, Adesanya or any related entity was ever received by him.
The statement also raised questions over reports that Adesanya claimed to have audio or video recordings relevant to the allegation but did not produce them before the tribunal.
It said the existence, authenticity and contents of any such recordings, as well as their reported non-production, were matters that deserved consideration.
Malami's office further stressed that the former minister was not a party to the arbitration and was not being criminally prosecuted before the tribunal.
“The proceedings were commercial arbitration proceedings between parties to a dispute. They were not a criminal prosecution of Abubakar Malami, SAN, and the award does not constitute a criminal conviction of him,” the statement said.
It added that any allegation of criminal wrongdoing should be pursued through the appropriate legal processes.
The former Attorney-General said he was particularly pleased that Nigeria had successfully defended itself against Sunrise's claims.
According to the statement, the defence lawyers were engaged by Malami while he was Attorney-General, while EFCC investigations undertaken to strengthen Nigeria's case were also conducted on his instructions.
It said the Presidency had confirmed that the tribunal rejected Sunrise's claims and awarded substantial costs in Nigeria's favour.
Malami urged Nigerians to consider the Mambilla controversy within its historical context, noting that it had spanned several administrations, Attorneys-General, ministries, contractors and years of litigation and arbitration.
His office also appealed to journalists and commentators to distinguish between established facts, allegations and interpretations in reporting the matter.
It said a comprehensive response to the tribunal's individual findings would be released after a detailed review of the full arbitral award and relevant records.
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