The Attorney-General of the Federation (AGF) and Minister of Justice, Prince Lateef Fagbemi, SAN on Tuesday, described the ruling of the International Chamber of Commerce (ICC) Arbitral Tribunal in Paris which rejected in its entirety a $400 million claim brought against the Federal Republic of Nigeria by Sunrise Power and Transmission Company Limited and its principal, Mr. Leno Adesanya, over the Mambilla Hydroelectric Power Project as a comprehensive victory for the country.
The dispute relates to the 3,050-megawatt Mambilla Hydroelectric Power Project, one of Nigeria’s major planned infrastructure projects which Sunrise had demanded $400 million, comprising a $200 million settlement sum and another $200 million described as a default sum, in addition to interest at 10 per cent per annum compounded daily.
In its final award, the tribunal rejected Sunrise’s entire claim and held that the Settlement Agreement and its Addendum were not binding on the Federal Government of Nigeria because the former Nigerian ministers who signed the agreements lacked the requisite authority to commit the government without presidential approval.
The tribunal also found that the Settlement Agreement was tainted by corruption and violated Nigerian public policy, making it unenforceable.
The AGF, in a statement he personally signed on Tuesday, in reaction to the ruling of the tribunal said, the tribunal found that Adesanya had engaged in a prolonged pattern of bribery and corruption involving substantial payments to several senior Nigerian government officials connected with the Mambilla Project.
He said the tribunal specifically found that a corrupt agreement had been reached between Adesanya and former senior government officials who signed the Settlement Agreement that formed the basis of the arbitration.
Fagbemi further said the tribunal found that the alleged corrupt dealings extended to the origins of the Mambilla dispute and described the pattern as an established “modus operandi” involving financial incentives to influential government officials.
As a consequence of the ruling, Sunrise and Adesanya were ordered to bear 75 per cent of Nigeria’s legal fees and expenses, with interest at 10 per cent per annum compounded annually.
The tribunal also expressed the hope that the costs order would deter Adesanya and his companies from pursuing what it considered further frivolous legal proceedings against Nigeria.
Fagbemi said the dispute had contributed to prolonged delays in the development of the Mambilla Project, noting that financing from the China Export-Import Bank had been conditioned on the resolution of the disputes.
He said the project had consequently been unable to reach financial close, depriving Nigeria of the potential economic and energy benefits of 3,050 megawatts of hydroelectric power.
The Attorney-General described the award as a message that Nigeria would not be a “soft target” for what he termed predatory litigation and arbitration and credited President Bola Ahmed Tinubu with maintaining the position that Nigeria should not be bound by what the government considers fraudulently contrived contractual agreements adding that the President had provided the financial and logistical support required for the defence of the case.
Fagbemi also reaffirmed the commitment of his Ministry to defending Nigeria’s legal interests and providing legal representation to the Federal Government.
The Mambilla Hydroelectric Power Project has been the subject of legal disputes and arbitration proceedings involving Sunrise and the Nigerian government for more than two decades.
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