Former President Olusegun Obasanjo has declared his willingness to provide support to Nigeria in any legal proceedings related to the disputed Mambilla power contract.
Sunrise Power has accused the Nigerian government of breaching a $6 billion contract and is seeking $2.3 billion in compensation at the International Chamber of Commerce in Paris.
In response, Nigeria contested the arbitration, citing fraudulent activities and corruption in the contract’s award, drawing parallels with the P&ID case. The Economic and Financial Crimes Commission (EFCC) has uncovered evidence of fraud in the contract and filed charges, while Obasanjo challenges former Power Minister Olu Agunloye’s claims of authorization.
Attorney-General Lateef Fagbemi had requested information from Obasanjo following claims by Agunloye and Sunrise about the Mambilla project.
According to a report by The Cable, documents reveal that the late Olusegun Agagu, Agunloye’s predecessor, sought Obasanjo’s approval on November 20, 2002, to invite Tafag Nigeria Ltd and Sunrise for detailed negotiations for the power station’s construction. Obasanjo approved on November 28, 2002, with the directive to treat both companies equally.
However, on April 7, 2003, Agunloye, now the Minister of Power, wrote to Obasanjo, requesting the recall of the earlier approval for negotiations with Tafag Nigeria Ltd, Sunrise Power Ltd, and Lemna International. Notably, Lemna International was not mentioned in previous memos.
Agunloye sought approval to issue a “letter of comfort” to Sunrise for a BOT contract, indicating initial willingness without a legally enforceable contract.
In his response, Obasanjo agreed without objection but asked for a memo to the Council, including a comparison with a coal-fired plant for 4000MW to 5000MW.
Obasanjo clarified in his letter to Fagbemi that no contract was awarded to Sunrise Power during his administration and emphasized that ministers did not have the authority to commit Nigeria beyond N25 million without presidential consent.
“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.”
Maintaining his commitment to assist the government, Obasanjo pledged to provide further information and testify in arbitration or any forum necessary for the national interest.
He expressed concern about the “acts of fraud, deceit, and malfeasance” and the resultant embarrassment to Nigeria caused by individuals like Dr. Agunloye.
“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”.