Former Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN) has welcomed Nigeria’s victory in the arbitration proceedings instituted by Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project, while urging the public to distinguish the tribunal’s findings from a criminal conviction.
Malami, in a statement issued by his Special Assistant on Media, Mohammed Bello Doka, said the protection of Nigeria from substantial financial exposure was an outcome that should be welcomed by Nigerians irrespective of political affiliation.
He, however, called for caution in interpreting the 616-page arbitral award, particularly reports concerning alleged corruption and his role in the negotiations with Sunrise.
Malami stressed that the proceedings were commercial arbitration between parties to a contractual dispute and did not constitute a criminal prosecution against him.
“The proceedings were commercial arbitration proceedings between parties to a dispute. They were not a criminal prosecution of Abubakar Malami, SAN, and the award does not constitute a criminal conviction of him,” the statement said.
The former AGF acknowledged reports of serious findings in the award, including those relating to the settlement and Addendum, presidential approval, communications between him and Sunrise promoter, Leno Adesanya, and an alleged corrupt arrangement.
He said, however, that such findings should be examined against the complete evidentiary and documentary record rather than selected portions circulating in the media.
According to him, his office would issue a comprehensive response to the tribunal’s individual findings after a detailed examination of the complete award and accompanying records.
Dispute predates Malami
Malami also argued that the Mambilla controversy long predated his tenure as Attorney-General.
According to the statement, Sunrise became involved in the proposed hydroelectric project in 2003, with subsequent decisions leading to litigation and competing contractual claims before Malami assumed office.
The statement said Malami’s predecessor, Michael Aondoakaa, SAN, had reviewed the dispute and expressed the view that Sunrise had not been properly disengaged before another contractor was brought into the project.
It added that the Federal Government subsequently entered into a General Project Execution Agreement involving Sunrise and Sinohydro in November 2012 as part of efforts to resolve the dispute and advance the project.
Malami therefore maintained that he inherited a longstanding dispute that had passed through several administrations, Attorneys-General, ministries and contractual arrangements.
Buhari directive and $200m settlement
The former AGF said his involvement followed existing governmental and presidential processes.
According to him, in April 2016, the Chief of Staff to then-President Muhammadu Buhari communicated a presidential directive concerning the resolution of outstanding disputes and competing interests surrounding the Mambilla project.
He said his role as Attorney-General was primarily to advise the Federal Government on its legal exposure and possible options for resolving the dispute.
By 2019, Malami said, the unresolved Sunrise dispute had become relevant to efforts to finance and implement the Mambilla project, with the arbitration regarded as an impediment to financing discussions involving China Exim Bank.
The statement also referenced discussions on September 5, 2019, between Buhari and Yang Jiechi, then Special Representative of Chinese President Xi Jinping, concerning resolution of the arbitration.
Malami explained that settlement negotiations in London in November 2019 were driven by the need to resolve claims that Sunrise was asserting in billions of dollars.
He said Sunrise initially proposed a $500 million full-and-final settlement, while Federal Government representatives countered with $100 million, before $200 million emerged during negotiations.
According to him, the issue was whether a substantial claim, continuing litigation, financing difficulties and delays to the Mambilla project could be brought to an end through a considerably smaller negotiated settlement.
Buhari rejected $200m payment
Malami said former President Buhari ultimately did not approve payment of the proposed $200 million settlement.
According to the statement, Buhari indicated on April 20, 2020, that the Federal Government did not have $200 million to pay Sunrise, a position Malami communicated to the company two days later.
It added that a subsequent request for presidential approval in January 2021 was also unsuccessful, with Buhari reportedly writing “Not approved.”
Malami further argued that, following the President’s refusal, he did not direct that Sunrise be paid.
Instead, he said he instructed counsel representing the Federal Government to resist Sunrise’s attempt to have the settlement terms adopted or enforced against Nigeria after the company alleged that the government was in default.
The statement said Sunrise subsequently sought to crystallise an alleged $400 million liability, which Nigeria opposed.
Malami denies alleged corrupt arrangement
On reports that the tribunal found that Malami had entered into an alleged corrupt arrangement with Adesanya, the former AGF denied the allegation.
The statement said the tribunal reportedly concluded, on the civil standard applicable to the proceedings, that Malami was allegedly promised a share of money Sunrise would receive.
Malami rejected any suggestion that his official actions were undertaken in exchange for personal financial benefit.
He argued that the allegation should be tested against the complete evidentiary record, including whether he ever received money or another financial benefit from Sunrise, Adesanya or any connected entity pursuant to the alleged arrangement.
The statement also said Adesanya had reportedly claimed to possess audio or video recordings relevant to his allegations, but that the recordings were not produced before the tribunal.
Malami’s office argued that the existence, non-production, authenticity and contents of any such recordings were matters of evidentiary significance.
‘Arbitral finding is not criminal conviction’
The former AGF said acknowledging the seriousness of the tribunal’s reported findings should not lead to a mischaracterisation of the nature of the proceedings.
He noted that the tribunal determined contractual claims and related issues submitted to it and that he was not standing trial before a Nigerian criminal court.
The statement further noted that Malami was neither a party to the arbitration nor, according to the statement, given an opportunity to present his own side of the matter.
“If allegations of criminal wrongdoing are to be pursued, they must be addressed through the appropriate lawful processes, with the evidentiary and procedural protections applicable to such proceedings,” the statement said.
Malami welcomes Nigeria’s victory
Malami also welcomed the outcome of the arbitration, saying Nigeria had successfully defeated Sunrise’s substantial financial claims and secured an award of costs in its favour.
He said the defence lawyers were engaged by his office and that investigations conducted by the Economic and Financial Crimes Commission (EFCC) to strengthen Nigeria’s case were undertaken on his instructions.
According to the statement, the Presidency has publicly confirmed that the tribunal rejected Sunrise’s claims and awarded substantial costs in Nigeria’s favour.
Malami said he remained gratified whenever Nigeria’s legal interests and public finances were protected, regardless of the administration under which the outcome was achieved.
He urged journalists, commentators and political actors to distinguish established facts from allegations and interpretations, particularly as Nigeria approaches the 2027 electoral cycle.
Malami’s office said a more detailed response addressing the tribunal’s individual findings would be issued after the complete arbitral award and relevant records had been carefully reviewed.