Presidential Jets Seizure: Governors Warned on Due Diligence before Contract Negotiations

The Civil Society Legislative Advocacy Centre (CISLAC) and Transparency International Nigeria (TI-Nigeria) have issued a stern warning to state governors, urging them to exercise caution and conduct thorough legal consultations when negotiating contracts.

This call to action comes in response to the recent seizure of three Nigerian presidential jets by a French court, resulting from a contract dispute between the Ogun State Government and Chinese firm Zhongshan Fucheng Industrial Investment Co. Ltd.

In a statement signed by CISLAC’s Executive Director, Auwal Musa Rafsanjani, the organizations expressed deep concern over the escalating legal battle, which stems from a 2007 agreement for the development of the Ogun Free Trade Zone.

Rafsanjani emphasized that the poorly managed contract has resulted in substantial financial losses and severely tarnished Nigeria’s international reputation.

Rafsanjani was quoted thus, “State governors and government officials must fully understand the legal and ethical complexities of international agreements before entering into them,”

He said further, “Nigeria is already grappling with numerous socio-economic challenges, and the last thing we need is to be entangled in costly legal disputes that could have been avoided with proper due diligence.”

Rafsanjani criticized the federal government for allowing state governors to access loans without adequately addressing potential risks. 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,” he added

“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,” Rafsanjani said.

According to Rajasthan, CISLAC and Transparency International collaborated with local and international organizations during the legal battle in London to overturn the order, calling for a comprehensive investigation into all individuals implicated in sabotaging Nigeria’s interests.

He noted that the prior administration’s inaction on these calls was disheartening.

According to Rafsanjani, CISLAC and Transparency International’s global advocacy efforts had led to Nigeria securing temporary relief through a UK court’s decision.

He renewed its calls for President Bola Tinubu and anti-corruption agencies to take action against all individuals, including former senior officials, who had colluded with P&ID for personal gain.

“As the country navigates this complex legal situation, it is crucial to remember the need for vigilance and ethical governance in contract negotiations,” Rafsanjani concluded.

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