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An Abuja Federal High Court, presided over by Justice Emeka Nwite has ordered President Muhammadu Buhari to account for the spending of $460 million Chinese loan to fund the failed Abuja Closed-Circuit Television (CCTV) project.
Justice Nwite equally directed the Buhari-led government to publish the total amount of money paid to Chinese and local companies and contractors and details of the names of the companies and contractors and the status of the implementation of the project.
The judge decided while delivering judgment in Freedom of Information (FoI) suit number: FHC/ABJ/CS/1447/2019 brought by a Lagos-based rights group, Socio-Economic Rights and Accountability Project (SERAP).
The human rights group's suit came sequel to the disclosure in 2019 by the Minister of Finance, Zainab Ahmed, that Nigeria was servicing the loan, with an addition that she had no explanations on the status of the project.
The Minister had reportedly stated that "We are servicing the loan. I have no information on the status of the CCTV project”.
Justice Nwite, in his judgment, held that “There is a reasonable cause of action against the government. Accounting for the spending of the $460 million Chinese loan is in the interest of the public. It will be inimical for the court to refuse SERAP’s application for judicial review of the government’s action.
“The Minister of Finance is in charge of the finance of the country and cannot by any stretch of imagination be oblivious of the amount of money paid to the contractors for the Abuja CCTV contract and the money meant for the construction of the headquarters of the Code of Conduct Bureau (CCB)”.
The judge therefore ordered the FGN, “To provide the details clarifying whether the sum of N1.5 billion paid for the failed contract meant to construct the headquarters of the Code of Conduct Bureau (CCB) was part of another loan obtained from China”.
Justice Nwite’s judgment read in part: “SERAP’s core objectives are to promote human rights, transparency, accountability and anti-corruption in Nigeria.
“I am of the humble view that there is a reasonable cause of action against the government [through the Minister of Finance] and I hold that SERAP has made out a case to be entitled to the reliefs sought.
“The law is well settled that where a document or letter is sent by post, it is the law that the same is taken or presumed to have been delivered.
“Following this principle of law and relying on exhibit OS2, SERAP’s Freedom of Information request sent to Ms Ahmed is deemed to have been delivered.
"Therefore, the averment by the government [through her] that they were not served with the letter is hereby discountenanced. I, so hold”.
The defendants in the suit are Ms Ahmed and the Minister of Police Affairs.
Justice Nwite granted the following orders of mandamus against the Nigerian government:
“An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide and make available to SERAP information on the total amount of money paid to contractors, with details of names of companies local contractors involved, from the $460 million loan obtained in 2010 from China by the Federal Government of Nigeria to fund the failed Abuja CCTV contract.
“An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide the details of the local companies and Chinese contractors that have received funds from the $460 million loan for the finance of the Abuja CCTV contract as well as details of the status of implementation of the project.
“An order of mandamus is hereby made directing and compelling the government [through the Minister of Finance] to provide the details clarifying whether the sum of N1.5 billion Naira mobilization fee reportedly paid to the contractors for the construction of the Headquarters of the Code of Conduct Bureau in Abuja was part of another loan from China. This is the judgment of the court”.
It would be recalled that SERAP had in December 2019 filed a lawsuit against Ms Ahmed over failure to disclose information and specific documents on the total amount of money paid to contractors from the $460 million loan obtained in 2010 from China to fund the failed Abuja CCTV project.
The suit had read in part: “Servicing Chinese loans for failed projects is double jeopardy for Nigerians—they can neither see nor benefit from the projects; yet, they are made to pay both the loans and the accrued interests.
“The $460 million loan got for the failed Abuja CCTV project and the N1.5 billion for the construction of CCB headquarters, which may be part of another Chinese loan, may have been mismanaged or stolen, and in any case, remain unaccounted for.
“Transparency in the spending of Chinese loans is good for everyone, as this would help to increase the effectiveness, legitimacy, and contribution of the loans to the development of public goods and services, and the public interests.
“The information being requested does not come within the purview of the types of information exempted from disclosure under the Act. The Respondent has no legally justifiable reason for refusing to provide SERAP with the information requested.
“Democracy cannot flourish if governments operate in secrecy. The citizens are entitled to know how the commonwealth is being utilized, managed and administered in a democratic setting”.
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