Nigerian govt protects states, refuses to disclose how they spent N388bn Paris Club refund, despite failure to pay salaries

The Federal Government has told the Federal High Court in Lagos that it will not disclose the record of the spending of N388.304 billion London Paris Club Loan refunds by 35 states because it “is protected by professional privilege, and therefore confidential.”

The fund was released to the states by Federal Government to pay overdue pensioners’ entitlements and workers’ salaries.

But Socio-Economic Rights and Accountability Project (SERAP), had in a suit number FCH/CS/523/17 filed before the court, sought for “an order of mandamus directing and/or compelling the government to publish details of spending of the N388.304 billion London Paris Club Loan refunds allegedly diverted and mismanaged by 35 States.”

The court had in its ruling on the matter in June by Justice Muslim Hassan, said that SERAP could proceed with the legal challenge to unravel how exactly 35 states spent Paris Club loan refunds. Justice Hassan had while granting leave stressed that it was important for the authorities “to come and tell us how they spent our money.”

But responding through the Accountant General of the Federation, Alhaji Ahmed Idris, the Federal Government in its defence argued that, “The relationship between the Accountant General and the 35 states is professional and confidential. It is a fiduciary one akin to that between a bank and its customer and allied professionals. On that score, record of the spending of N388.304billion London Paris Club Loan refunds by the 35 states is exempted from publication, assuming the Federal Government has the information sought by SERAP.”

The Federal Government further contended that “The Accountant General does not have custody or possession of the information or record relating to the spending of N388.304billion London Paris Club Loan refunds by 35 states which the government gave them. The Accountant General did not release the funds to the states. At the risk of sounding like a broken record, the Accountant General argues that assuming we have the information sought, the government is not obliged to comply with the request.”

The government argued that, “States have exclusive control over their revenue and expenditure and the Accountant General of the Federation cannot demand obligatorily from any tier of government including the 35 states information how they have spent the Paris Club refunds.”

According to the government, “SERAP has the right to the information sought but not to request that the information be passed to the Attorney General of the Federation. In any case, the Accountant General has no record of the spending of N388.304 billion London Paris Club Loan refunds by 35 states and therefore cannot be compelled to release the record, as the court does not act in vain. An order of mandamus should not be issued because it will be unnecessary and not effective and will not serve the purpose.”

Responding, SERAP argued that, “Due to non-payment of overdue pensions and salaries of workers by the states, citizens have continued to languish in untold hardship and poverty. Therefore, there is compelling public interest in knowing how exactly the Paris Club loan refunds were spent by the 35 states. There is also no professional relationship or privilege between the Accountant General and the 35 states as to warrant any duty of confidentiality on the part of the Accountant General.”

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According to SERAP, “There must be transparency and accountability in the spending of the refunds, in line with the principle of Open Government Partnership (OGP) to which Nigeria is a signatory. In addition, section 15(5) of the Constitution of Nigeria 1999 (as amended) provides that the state shall abolish corrupt practices and abuse of power. Citizens must be able to access the performance of government, and this depends on access to record about spending of the refunds by the 35 states”.

SERAP also argued that, “Assuming without conceding that the Accountant General does not have record of spending of N388.304billion London Paris Club Loan refunds by the 35 states, nothing stops the Accountant General from working with other agencies/ministries to release information on the spending, especially being the Chief Accounting Officer of the Federation, and constitutionally charged with the overall responsibility of keeping and managing all the receipts and payments of the Federal Government.”

SERAP said that, “The Accountant General cannot therefore say he is unaware of the spending of the refunds by the states. Otherwise, this would mean that the Accountant General is lacking in his duty”
SERAP deputy director, Timothy Adewale, disclosed this in a statement he released on Sunday.

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