Ex-AGF Malami Rejects Bribery Findings in $2.7bn Mambilla Arbitration

Former Attorney-General of the Federation and Minister of Justice, Abubakar Malami, has rejected findings of a corrupt arrangement involving him in the $2.7 billion arbitration dispute over Nigeria’s Mambilla Hydroelectric Power Project.

Malami, in a statement issued by his Special Assistant on Media, Mohammed Doka, on Tuesday, welcomed Nigeria’s victory before the International Chamber of Commerce tribunal but disputed reports concerning his conduct during negotiations with Sunrise Power promoter, Leno Adesanya.

The 616-page final award, delivered in Paris on September 16, rejected claims brought by Sunrise Power and Transmission Company Limited against Nigeria and dismissed its demand for $400 million arising from a 2020 settlement agreement.

The tribunal also ordered Sunrise and Adesanya to reimburse Nigeria for a substantial portion of its legal costs.

However, the tribunal made adverse findings concerning Malami’s handling of the proposed settlement, including what it described as a corrupt arrangement between the former AGF and Adesanya.

Malami argued that the proceedings were commercial arbitration and not a criminal prosecution, stressing that the award should not be treated as a criminal conviction.

He said the findings should instead be assessed against the complete documentary and evidentiary record.

The former AGF also provided a historical account of the dispute, noting that Sunrise had been involved in the Mambilla project since 2003, years before he became Attorney-General.

According to him, the Federal Government inherited a longstanding contractual dispute involving successive administrations and Attorneys-General.

Malami said his involvement centred on advising the government on its legal exposure and possible settlement options after the dispute became an obstacle to financing discussions for the Mambilla project.

He said Sunrise initially demanded $500 million during negotiations in 2019, while government representatives proposed lower figures before a $200 million settlement was considered.

Malami maintained that former President Muhammadu Buhari did not approve the proposed $200 million payment. He said Buhari subsequently rejected another request for approval in January 2021.

The former AGF further stated that he instructed government lawyers to resist Sunrise’s efforts to enforce the settlement after presidential approval was withheld.

Malami categorically denied receiving, seeking or agreeing to receive any financial benefit in exchange for his official actions.

The tribunal, however, said it found evidence supporting an unlawful arrangement between Malami and Adesanya and relied partly on communications between the two. It also considered allegations by Adesanya that recordings existed, although those recordings were not produced before the tribunal.

Malami said he would provide a more comprehensive response after studying the complete award and accompanying records.