The United States Thursday warned the
federal government to be prepared to “replace” the $308 million to be
repatriated from funds looted by a former military ruler, the late
General Sani Abacha, if it failed to expend the cash on public projects
agreed upon.
The United States and the British
Dependency Island of Jersey had agreed with Nigeria in February to
return $308 million that Abacha, who died in 1998, had stashed in their
banks.
The Attorney-General of the
Federation (AGF) and Minister of Justice, Mr. Abubakar Malami (SAN), had
said the fresh $308 million forfeited assets would be received this
month.
Malami had signed a tripartite agreement
on behalf of the federal government with the United State and the Island of
Jersey in February to repatriate the funds.
The money is expected to be used on
three major projects: Lagos-Ibadan Expressway, the Abuja-Kano Expressway
and the Second Niger Bridge.
The Managing Director/Chief Executive
Officer of Nigeria Sovereign Investment Authority (NSIA), Mr. Uche Orji,
had told ARISE News Channel, the broadcast arm of THISDAY Newspapers,
that “the $308 million that was announced is to be channeled to the
Lagos-Ibadan Expressway, the Abuja- Kano highway and the Second Niger
Bridge.
“And there are all sorts of scrutiny and supervision attached to this, given the external funding nature.”
But a report yesterday by Reuters said the United States Justice Department warned that Nigeria must spend the repatriated funds on agreed public projects or be forced to replace it.
But a report yesterday by Reuters said the United States Justice Department warned that Nigeria must spend the repatriated funds on agreed public projects or be forced to replace it.
The US Justice Department outlined the
so-called “claw back” provision in a response to a query from a powerful
US senator questioning the prudence of returning the cash.
“Should any of the parties — including
the United States —conclude that any of the returned funds had been used
for an ineligible expenditure, a ‘claw back’ provision would then
obligate the FRN (First Republic of Nigeria) to replace fully any such
improperly diverted monies,” the letter said.
It did not specify how and to whom, the money would be replaced.
The provision is notable as Nigeria continues efforts to repatriate money allegedly stolen during Abacha’s tenure between 1993 and 1998 when he died.
The provision is notable as Nigeria continues efforts to repatriate money allegedly stolen during Abacha’s tenure between 1993 and 1998 when he died.
Corruption watchdog, Transparency
International, allegedly estimated that he stole as much as $5 billion
of public money during that time. Abacha was never charged with
corruption during his lifetime and died in office.
A spokesman of Malami said the President
Muhammadu Buhari administration had a history of “prudent and
transparent utilisation of recovered assets,” and that the money would
be used as outlined in the agreement.
“The federal government does not in any way contemplate of doing otherwise,” Malami’s spokesman, Dr. Umar Gwandu, said.
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