SWF:36 Govs, FG in Secret Talk **May settle out of court There is strong indication that counsel representing the 36 governors of the federation Yusuf Alli,SAN, counsel to the federal government Austin Alegeh, SAN are currently in a secret talk on how to resolve the dispute arising from the maintenance of the excess Crude account and the transfer of$1billion from the account to sovereign Wealth Fund,SWF pending before the supreme court. A highly placed source in the office of the Attorney General of the Federation and minister of Justice, Mohammed Bello Adoke, SAN yesterday told Nigerian pilot that the AGF has instructed the two counsels to work out modalities that will put the matter to an end following the dissagrement for out of court settlement at the last adjourned date. According to the source, the 36 governors may file before the supreme court a letter of discountinues of the suit before the matter will come up september, 23, 2014. The Federal Government had told a full panel of the Supreme Court that the out-of-court settlement with the 36 states of the Federation over the dispute arising from the maintenance of the Excess Crude Account and the transfer of $1 billion from the account to the Sovereign Wealth Fund (SWF) has collapsed for the second time. With the breakdown in talks, the Supreme Court consequently fixed September 23 for hearing of the application brought by the defendant seeking to amend its statement of defence. The 36 states of the Federation had dragged the Federal Government to the apex court praying it to decide whether the states have share in the Sovereign Wealth Fund. The Supreme Court had earlier granted a request by the parties to settle the matter out of court and to explore an amicable resolution of the disagreement. At the resumed hearing, counsel to the FG, Austin Alegeh SAN told the court that settlement between parties have collapsed and in view of that brought an application praying the court to amend his statement of defence. Alegeh further prayed the court to order the plaintiffs to furnish him with their amended statement of claims on order to amend his statement of defence. Arguing on behalf of counsel to the 36 state Governors, Yusuf Ali SAN did not oppose the application. He however, noted that the information which the defendant is asking for had been included in the papers they (plaintiffs) filed before the court. He added that the last meeting with the Federal Government was in 2011 which yielded no result and the defendant was just coming in 2014 to amend its defence. Ali however submitted that the defendants application was just to delay hearing in the suit. He further submitted that the application is an abuse of court of process. Responding, Alegeh stated that it is the office of the Vice President that is co-ordinating the settlement meeting and that the office just briefed him that the settlement does not yield any desired result. According to him, I have not been part of that meeting, when the settlement talk was on going, we did not amend our statement of defence. The need to amend it has arisen due to the collapse of settlement talk. Ruling on the application, Justice Walter Onnoghen who presided over the matter granted that defendants application. He ordered the plaintiffs to supply further particulars required to the defendant within seven days and that the defendant should within 21 days filed his amended statement of defence The plaintiffs in the suit is seeking an order of court compelling the Government of the Federation to pay into the Federation Account N5.51 trillion being the balance of the money that accrued to the central purse between 2004 and 2007 from the proceeds of crude oil sales, petroleum profits tax and oil royalties. The Government of the Federation had however classified such earnings as “excess crude proceeds” and “excess PPT and royalties” which were paid into an account termed the “Excess Crude Account”. The governors further asked the court to order the federal government to transfer to the Federation Account all sums standing to the credit of the Excess Crude Account. The federal government in its defence had accused the states of mischief because they took part in the deliberation of the National Economic Council where the decision to transfer the $1 billion from the Excess Crude Account to the SWF was taken. It added that the states had also been receiving their shares from the money and accused them of insincerity. In response, the states insisted that they had shared only the legitimate funds deposited in the Federation Account and not from the funds illegally deposited in the Excess Crude Account. While asking the Supreme Court to refuse the application by the states to stop the federal government from transferring $1 billion from the Excess Crude Account to the SWF, the federal government’s counsel said his client would run into problem if the application was granted. He said the day-to-day running of the nation’s economy would be put in danger if the application is granted. The 36 state governors had applied to the Supreme Court to restrain the federal government from making any withdrawals howsoever from the account styled the “Excess Crude Account” (or any account replacing same by any name howsoever), pending the hearing and determination of a suit they filed in 2008. The governors also asked the apex court to order that all sums standing to the credit of the account styled the “Excess Crude Account” (or any account replacing same by any name howsoever) be paid into a dedicated account at the instance of the court or be otherwise secured as the court may deem fit, pending the hearing and determination of the substantive suit. One of the counsel to the Governors, Chief Adegboyega Awomolo SAN said the governors were forced to file the application because the federal government and its officials had consistently, and in total disregard for the pending suit, withdrawn, utilised, disbursed and allocated funds from the account and had nearly depleted N5.51 trillion being the balance on the account as at 2008 when the case was instituted. He further stated that the federal government had announced its intention to withdraw, disburse and utilise another $1 billion from the credit balance from the account in disregard to the subsisting suit and in disrespect for the authority of the Supreme Court. The governors said unless the order of injunction was granted, the federal government would continue to disregard, disrespect and ignore the pending suit in the Supreme Court. They said: “The conduct of the Government of the Federation and her officials is a violation of the principle of the rule of law and breach of the independence of the judiciary and constitutes a violation of the principle of rule of law handed down by the Supreme Court in the case of Governor of Lagos V Odumegwu Ojukwu (1986) pt 1 NSCC 304 and Rotimi Chibuike Amaechi V INEC (2008) 5 NWLR (PT 1080) 277.” The governors described the action of the government as executive lawlessness and impunity. They said the proposed disbursement of $1 billion by the federal government, its Minister of Finance and other officers would create a state of fait accompli and helplessness, if not stopped immediately. “It is in the interest of justice, preservation of integrity of the Supreme Court and the rule of law that this application is granted,” the governors had argued.
Posted on: Mon, 21 Apr 2014 20:12:07 +0000
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