3 months ago
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Civil Society Legislative Advocacy Centre (CISLAC), Transparency International Nigeria (TI-Nigeria) and the National Institute of Credit Administration (NICA) have called on state governors to prioritise due diligence and legal consultations in contract negotiations.
The call came in the wake of the recent seizure of three Nigerian presidential jets by a French court, following a contract dispute between the Ogun State Government and a Chinese, firm Zhongshan Fucheng Industrial Investment Co. Ltd.
Executive Director, CISLAC and TI-Nigeria, Auwal Musa Rafsanjani, in a statement, expressed concern over the escalating legal battle, which stems from a 2007 agreement for the development of the Ogun Free Trade Zone.
Rafsanjani emphasised that the fallout from the poorly managed contract had resulted in significant financial losses and tarnished Nigeria’s international reputation.
“State governors and government officials must fully understand the legal and ethical complexities of international agreements before entering into them,” Rafsanjani stated. He pointed out that personal interests often lead public officials into problematic agreements, drawing parallels to the notorious P&ID case.
“CISLAC/TI-Nigeria’s call serves as a reminder of the need for vigilance and ethical governance in handling international contracts to prevent severe repercussions from mismanagement.
“CISLAC and Transparency International have diligently monitored and advocated for global transparency and accountability, particularly since the initial arbitration order in the P&ID case in 2017, which mandated Nigeria to pay $6.6 billion in fines due to contractual breaches. This amount ballooned to $11 billion due to accrued interest,” he said.
Similarly, NICA advised that different levels of government in the country, agencies and organisations, should establish the creditworthiness of investors, contractors and all other participants before signing any offshore contract.
The chartered professional body responsible for the control, supervision and regulation of the credit management profession, as well as consulting with and making recommendations to government, regulatory bodies, trade associations and other professional bodies on all matters relating to credit management in Nigeria, advised in a statement reacting to the recent attempts by a Chinese company, Zhongshan Fucheng Industrial Investment Co. Limited, to take over offshore assets of the Federal Government through subterfuge.
The Registrar/Chief Executive Officer of NICA, Prof Chris Onalo, noted that organisations with good creditworthiness status usually possess the integrity to executive contracts devoid of controversies.
He also said it was important for the Federal Government to ensure the inclusion of creditworthiness criteria to be met by any institution, organisation, agency or state government before standing as a guarantor for them on credit and other commercial matters, among others, as the government no longer operate archaic governance system.
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