Mambilla Arbitration: Malami Welcomes Nigeria’s Victory, Rejects Corruption Allegation

Former Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN, has welcomed Nigeria’s victory in the arbitration dispute with Sunrise Power and Transmission Company Limited over the Mambilla Hydroelectric Power Project, while urging the public to consider the tribunal’s findings in the context of the complete documentary record.

In a statement issued by his Special Assistant on Media, Mohammed Bello Doka, Malami said the protection of Nigeria from substantial financial exposure was an outcome that should be welcomed by all Nigerians.

However, he cautioned against presenting findings contained in the 616-page arbitral award as a criminal conviction, stressing that the proceedings were commercial arbitration between parties to a contractual dispute.

Malami’s office said reports of the award contained serious findings concerning the settlement and its addendum, presidential approval, communications between Malami and Sunrise promoter, Leno Adesanya, as well as an alleged corrupt arrangement.

It said the allegations would be addressed after a detailed examination of the complete award and underlying records.

According to the statement, the Mambilla controversy predated Malami’s tenure as Attorney General by more than a decade, tracing its origins to 2003 when Sunrise became involved in the proposed project.

It noted that Malami inherited a longstanding dispute that had passed through previous administrations, Attorneys General, ministries and contractual arrangements.

The statement further recalled that former Attorney General Michael Aondoakaa had reviewed the dispute before Malami assumed office and recommended an amicable resolution, while the Federal Government entered into a General Project Execution Agreement involving Sunrise and Sinohydro in November 2012.

Malami’s office said his involvement followed a presidential directive in April 2016 concerning the resolution of outstanding disputes surrounding the project.

It explained that, as the Federal Government’s chief legal officer, Malami’s role was principally to advise on the legal exposure arising from the dispute and possible ways of resolving it.

The statement also said the unresolved arbitration had become an obstacle to financing discussions involving China Exim Bank, adding that discussions on resolving the dispute were held during a September 2019 meeting involving former President Muhammadu Buhari and Yang Jiechi, then Special Representative of Chinese President Xi Jinping.

On the proposed settlement, Malami’s office said Sunrise initially demanded $500 million as full and final settlement during negotiations in London in November 2019, while Federal Government representatives proposed $100 million before $200 million subsequently emerged from the negotiations.

It maintained that the settlement was being considered against the backdrop of Sunrise’s multibillion-dollar claims, continuing litigation, financing difficulties and delays to the Mambilla project.

The statement, however, acknowledged that Buhari ultimately rejected the proposed $200 million payment.

It said that on April 20, 2020, Buhari indicated that the Federal Government did not have the money to pay Sunrise, with Malami communicating the position to the company two days later.

It added that a subsequent request for presidential approval in January 2021 was also rejected, with Buhari reportedly writing “Not approved”.

According to the statement, after the President’s refusal, Malami instructed lawyers representing the Federal Government to resist Sunrise’s attempt to enforce the settlement terms against Nigeria.

On the allegation of a corrupt arrangement, Malami rejected any suggestion that his official actions were undertaken in exchange for personal financial benefit.

His office said the allegation should be tested against the complete evidentiary record, including whether Malami ever received any money or other financial benefit from Sunrise, Adesanya or any connected entity.

It also pointed to reports that Adesanya claimed to possess audio or video recordings relevant to the allegations but that the recordings were not produced before the tribunal.

While acknowledging the seriousness of the tribunal’s reported findings, Malami’s office stressed that an arbitral finding should not be presented as a criminal conviction.

“Malami was not standing trial before a Nigerian criminal court, and the arbitral award is not a criminal conviction of him,” the statement said, adding that he was neither a party to the proceedings nor given an opportunity to present his own side before the tribunal.

It nevertheless said the adverse findings required a serious documentary response and that any allegation of criminal wrongdoing should be addressed through appropriate lawful processes.

Malami also welcomed Nigeria’s successful defence of Sunrise’s claims, noting that the Federal Government had avoided substantial financial exposure and secured costs in its favour.

The statement called on journalists, commentators and political actors to distinguish established facts from allegations and interpretations, particularly as the country approaches the 2027 electoral cycle.

It said a more comprehensive response to the individual findings of the tribunal would be issued after the full award and accompanying records had been carefully reviewed.