Malami Welcomes Nigeria’s Mambilla Arbitration Victory, Rejects Corruption Allegation

Nafiu Muhammad Lema

Former Attorney-General of the Federation and Minister of Justice, Abubakar Malami, SAN, has welcomed Nigeria’s victory in the arbitration proceedings instituted by Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project.

In a statement issued by his Special Assistant on Media, Mohammed Bello Doka, Malami said the protection of Nigeria from substantial financial exposure was an outcome every Nigerian should welcome, regardless of political affiliation.

However, he urged caution in interpreting the 616-page arbitral award, stressing that an international commercial arbitration should not be presented as a criminal trial or conviction.

The statement acknowledged reports of serious findings concerning the settlement agreement, presidential approval, communications between Malami and Sunrise promoter Leno Adesanya, and an alleged corrupt arrangement.

Malami rejected the allegation that he entered into any corrupt agreement or sought personal financial benefit from the proposed settlement, saying the claims should be tested against the complete evidentiary and documentary record.

According to the statement, the dispute involving Sunrise Power predates Malami’s tenure as Attorney-General, tracing its history to 2003 and previous administrations.

It said former Attorney-General Michael Aondoakaa had earlier reviewed the dispute and recommended an amicable resolution, while the Federal Government entered into a General Project Execution Agreement involving Sunrise and Sinohydro in November 2012.

The statement said Malami’s involvement followed a presidential directive communicated in April 2016 by the Chief of Staff to then-President Muhammadu Buhari concerning the resolution of disputes surrounding the Mambilla project.

It further explained that the proposed settlement was considered against Sunrise’s multibillion-dollar claims, continuing litigation and concerns that the unresolved dispute could affect financing discussions for the project.

The statement said Sunrise initially proposed a $500 million full-and-final settlement during negotiations in London in November 2019, while Federal Government representatives countered with $100 million before a $200 million figure emerged.

Malami’s office stressed that former President Buhari ultimately did not approve the proposed $200 million payment.

According to the statement, Buhari indicated on April 20, 2020 that the Federal Government did not have the funds to make the payment, with Malami communicating the position to Sunrise two days later. It added that a subsequent request for approval in January 2021 was reportedly marked “Not approved” by Buhari.

Malami’s office also said that after the President rejected the payment, Malami instructed government lawyers to resist Sunrise’s attempt to enforce the settlement terms against Nigeria.

On the tribunal’s alleged finding of a corrupt arrangement between Malami and Adesanya, the former Attorney-General denied the allegation and questioned whether any money or financial benefit was ever received by him from Sunrise, Adesanya or any related entity.

The statement also noted reports that Adesanya claimed to have audio or video recordings relevant to his allegations but that the recordings were not presented before the tribunal.

While welcoming Nigeria’s successful defence, Malami said the arbitral findings should be carefully examined and distinguished from criminal convictions.

“An international commercial arbitral tribunal determined contractual claims and associated issues submitted to it,” the statement said, adding that Malami was neither a party to the proceedings nor given an opportunity to present his own side of the story.

The former Attorney-General said the distinction did not erase adverse arbitral findings but was necessary to accurately describe their legal character.

He also welcomed the reported rejection of Sunrise’s claims and the award of substantial costs in Nigeria’s favour, saying the outcome demonstrated the importance of protecting the country’s legal interests and public finances.

Malami’s office said a more comprehensive response addressing individual findings in the tribunal’s award would be issued after the complete award and relevant records had been carefully studied.