Abubakar Malami, former Attorney-General of the Federation and Minister of Justice, has welcomed Nigeria’s successful defence in the Mambilla arbitration while rejecting what he described as attempts to portray the arbitral findings as a criminal conviction against him.
In a statement issued by his media aide, Mohammed Bello Doka, Malami said the outcome of the international commercial arbitration protected Nigeria from substantial financial exposure, but urged the public to consider the tribunal’s findings within the context of the complete documentary and evidentiary record.
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The statement followed reports on the 616-page arbitral award concerning the dispute between the Federal Government and Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project.
Malami stressed that the proceedings were commercial arbitration and not a criminal prosecution, arguing that the award therefore should not be presented as a criminal conviction against him.
The former Attorney-General acknowledged reports of serious findings concerning the settlement and its addendum, presidential approval, his communications with Sunrise promoter Leno Adesanya and an alleged corrupt arrangement.
He said, however, that those findings should be examined alongside the complete record rather than selected extracts circulating in the media.
Malami says dispute predates his tenure
Malami’s statement also sought to place the Mambilla dispute within a longer historical context.
He said the controversy dates back to 2003, years before he became Attorney-General, when Sunrise Power and Transmission Company became involved in the proposed hydroelectric project.
According to the statement, subsequent contractual disputes and litigation continued across different administrations and preceded Malami’s appointment.
It also cited the involvement of his predecessor, Michael Aondoakaa, SAN, who reportedly reviewed the dispute and recommended an amicable resolution.
The statement further pointed to a November 2012 General Project Execution Agreement involving Sunrise and Sinohydro, describing it as part of earlier government efforts to resolve the dispute.
Malami therefore argued that he inherited, rather than originated, the longstanding contractual controversy.
Presidential directive and settlement negotiations
According to the statement, Malami’s involvement followed a presidential directive communicated by then President Muhammadu Buhari’s Chief of Staff in April 2016 concerning the resolution of disputes surrounding the Mambilla project.
It said Malami’s role as Attorney-General was primarily to advise the Federal Government on its legal exposure and options for resolving the dispute.
The statement also linked the dispute to efforts to secure financing for the Mambilla project, saying the unresolved arbitration was regarded as an impediment to discussions involving China Exim Bank.
It cited discussions between Buhari and Yang Jiechi, then Special Representative of Chinese President Xi Jinping, in September 2019 on resolving the arbitration.
Why was $200m settlement considered?
Malami’s office said the proposed $200 million settlement should be understood against claims by Sunrise reportedly running into billions of dollars.
According to the statement, Sunrise initially proposed $500 million as a full and final settlement during negotiations in London in November 2019.
Federal Government representatives reportedly countered with $100 million, after which $200 million emerged during negotiations.
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The statement said the consideration at the time was whether a potentially multibillion-dollar exposure, prolonged litigation, financing challenges and delays to the Mambilla project could be resolved through a substantially smaller negotiated settlement.
Buhari rejected payment
Malami’s office also highlighted former President Buhari’s refusal to approve the proposed $200 million payment.
According to the statement, Buhari indicated on April 20, 2020, that the Federal Government did not have the $200 million required to pay Sunrise.
Malami subsequently communicated the position to Sunrise on April 22, 2020.
The statement said a later request for presidential approval in January 2021 was also unsuccessful, with Buhari reportedly writing, “Not approved.”
It further argued that after the President’s refusal, Malami instructed Federal Government lawyers to resist Sunrise’s attempt to enforce the settlement terms against Nigeria.
Malami rejects alleged corrupt arrangement
The statement acknowledged reports that the tribunal found, on the civil standard applicable to the proceedings, that there was an alleged corrupt arrangement involving Malami and Adesanya.
Malami rejected the allegation, insisting that his official actions were not undertaken in exchange for personal financial benefit.
He said the allegation should be tested against the complete evidentiary record.
The statement also raised questions about alleged audio or video recordings that Adesanya was reported to possess but which were not produced before the tribunal.
It argued that the existence, authenticity and contents of any such recordings were matters of evidentiary significance.
Calls for distinction between arbitration and criminal proceedings
Malami’s office maintained that adverse findings in an arbitral award should not be represented as a criminal conviction.
It noted that Malami was not a party to the arbitration proceedings and argued that he was not afforded an opportunity to present his own case before the tribunal.
The statement said any allegations of criminal wrongdoing should be addressed through appropriate legal processes and subjected to the relevant evidentiary and procedural safeguards.
Nigeria’s arbitration victory welcomed
Despite his objections to aspects of the reporting, Malami welcomed Nigeria’s outcome in the arbitration.
His office said the Federal Government successfully defeated Sunrise’s financial claims and that substantial costs were awarded in Nigeria’s favour.
It also said Malami was pleased that Nigeria’s legal and financial interests had been protected.
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The statement concluded by urging journalists, commentators and political actors to distinguish established facts from allegations and interpretations when discussing the Mambilla controversy.
It said a more detailed response addressing individual findings in the arbitral award would be issued after a comprehensive review of the award and accompanying records.