Take due process, consultations before jumping into contract deals, CISLAC, TI tell state govs

Civil Society Legislative Advocacy Centre, CISLAC, and Transparency International Nigeria, TI-Nigeria, have said that the seizure of three Nigerian presidential jets by a French court, as a result of a contract dispute between Ogun State Government and a Chinese firm, Zhongshan Fucheng Industrial Investment Co. Ltd, called on State governors to prioritise due diligence and legal consultations before jumping into deals. The call was made by the Executive Director, CISLAC, Auwal Rafsanjani, in a statement he signed, which according to him the escalating legal battle, stems from a 2007 agreement for the development of the Ogun Free Trade Zone, and that the fallout from what he described as poorly managed contract has resulted in significant financial losses, which had tarnished Nigeria’s international reputation. He said “State governors and government officials must fully understand the legal and ethical complexities of international agreements before entering into them.
“Nigeria is already grappling with numerous socio-economic challenges, and the last thing we need is to be entangled in costly legal disputes that could have been avoided with proper due diligence.” However, he chided the federal government for giving State governors access to loans without adequately addressing potential risks and other intricacies involved. According to him (Rafsanjani), personal interests often lead public officials into problematic agreements, which he pointed out the notorious P&ID case that embarrassed and perplexed the nation with a fine of $11billion including accumulated interest due to alleged contractual breaches. It will be recalled that CISLAC and Transparency International, Nigeria secured temporary relief through a UK court’s decision via global advocacy efforts made in that regard. “CISLAC/TI-Nigeria’s call serves as a reminder of the need for vigilance and ethical governance in handling international contracts to prevent severe repercussions from mismanagement.  CISLAC and Transparency International have diligently monitored and advocated for global transparency and accountability, particularly since the initial arbitration order in the P&ID case in 2017, which mandated Nigeria to pay $6.6 billion in fines due to contractual breaches. This amount ballooned to $11 billion due to accrued interest. 
“During the legal battle in London to overturn this order, CISLAC and Transparency International collaborated with local and international organisations to demand a comprehensive investigation into all individuals implicated in sabotaging Nigeria’s interests. The prior administration’s failure to act on these calls was disheartening.”  He also added that, “CISLAC reiterates calls on President Bola Tinubu and anti-corruption agencies to prosecute all Nigerians and their accomplices, including former senior officials, who were involved in colluding with P&ID for personal gain. CISLAC/TI-Nigeria’s statement reflects broader concerns about Nigeria’s management of international agreements and the severe consequences of neglecting due diligence. “As the country navigates this complex legal situation, it is crucial to remember the need for vigilance and ethical governance in contract negotiations.”