$2.3bn Mambilla power contract: Obasanjo attacks Agunloye, says ‘your act of fraud an embarrassment to Nigeria’

“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”.
With the above statement, former President Olusegun Obasanjo has declared his readiness to testify against former Minister of Power and Steel, Dr. Olu Agunloye, in a $2.3bn disputed Mambilla power contract.
A company, Sunrise Power and Transmission Company Limited, is in arbitration with Nigeria at the International Chamber of Commerce (ICC), Paris, France, alleging a breach of contract, allegedly awarded during the Obasanjo administration in May, 2003.
But, Obasanjo, in a letter to the Attorney-General of the Federation and Justice Minister, Lateef Fagbemi (SAN), declared that Agunloye was on his own as no contract was awarded to Sunrise Power.
Sunrise Power declared that 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.
It 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.
But, Nigeria, in its defence at the arbitration, alleged fraud and corruption of public officials in the award of the contract.
This is similar to the P&ID case in which a UK court nullified an $11 billion award against Nigeria for similar reasons.
In the Sunrise Power case, the Economic and Financial Crimes Commission (EFCC) has reportedly uncovered serious issues of fraud and has filed charges against suspects.
It also declared Agunloye wanted.
But, Agunloye, in a swift reaction, declared that his lawyers “are handling the matter”.
Obasanjo said in his letter to Fagbemi: “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”.
Obasanjo 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”.