The Nigeria Governors’ Forum has written to the Federal Ministry of Finance, Budget and National Planning not to pay Local Government Councils’ funds to the tune of over N105 billion being claimed by some firms as legal and consultancy fees.
The NGF counsel, Falana, wrote, “The Nigeria Governors’ Forum has engaged our services to challenge the decisions of the court relating to or connected with payments of legal and consultancy fees arising from London Club Debt Buy Back Exit Payment which is the fulcrum of the judgment of the Federal High Court, Abuja in Suit No, FHC/ABJ/CS/130/13 – Linas International Limited and Ors Vs the Federal Government of Nigeria and Ors.
“Section 162 of the 1999 Constitution of the Federal Republic of Nigeria mandates any amount standing to the credit of local governments to be paid directly to the states for the benefit of their local government councils. The states therefore have a responsibility to ensure that funds standing for the credit of the local government councils are protected as custodians of such funds.
ALGON had alleged that some firms, including Ted Edwards Isegohi's, against a court order, are making a “fraudulent claim of $159 million” from the 774 LGA allocations. The petition explained that the matter dated back to 2014 when a member of ALGON Board entered into a memorandum of understanding with another firm, Riok Nigeria Limited, for the provision of boreholes among others in all the 774 local government areas and area councils of Nigeria.