MoneyNewsUnited NationsNigeria Governors Forum Lauds Freezing Of Bank Account Linked To Paris Club Consultant Inbox

The Nigeria Governors Forum says the freezing of the Panic Alert Security System Limited Bank account linked to a Paris Club consultant is for the benefit of the citizenry.

Recall that on June 29, 2005, the Paris Club approved $18bn as a debt relief package for Nigeria.

Mr. Abdulrazaque Bello-Barkindo, Head of Media and Public Affairs of the Forum, in an interview on Monday, said the forum will not pay for unverified, saying everyone or company involved in the negotiation of the funds from the Paris club had been paid.

On Friday, August 12, a Federal Capital Territory High Court ordered the freezing of the bank account linked to the consultant over an alleged breach of contract, after the secret payment of N4bn.

Ikechukwu Ezechukwu, (SAN) had in a suit urged the court to freeze the bank account domiciled in a commercial bank linked to the company pending the hearing and determination of the motion on notice filed in the suit

He had accused Panic Alert Security System of failing to pay a legal fee despite receiving N4bn as Paris Club refund-related judgment debt from the Nigerian government.

On Aug, 3 Federal Executive Council Meeting, President Muhammadu Buhari directed the Minister of Finance, Zainab Ahmed to suspend plans to deduct $418mn from the federation account to settle consultants over the controversial Paris Club debt.

The President’s directive followed alarm raised by the state Governors over the alleged attempt to commence the deduction to effect payment to four contractors who allegedly executed contracts in respect of the Paris Club refunds to the states and local governments.

The Paris Club is an informal group of official money lenders formed in 1956 with its Secretariat in Paris.  It is a voluntary gathering of creditor countries willing to treat in a coordinated way, the debt due to them by developing countries.

Commenting, a Petroleum Economist with a Private University in Abuja, Dr. Ahmad Adamu called for an amendment of the constitution to allow State Governments to develop the natural resources in their states.

Dr. Adamu also advised the Government to reduce foreign borrowing as it is detrimental to the economy, while more attention should be given to raising internally generated revenue.

Hassan Umar Shallpella (Regional Correspondent)

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