Sunday Southerner – main lead 

Details have emerged about the dirty insider dealings involving a company, Sunrise Power Transition, which unsuccessfully tried to scam Nigeria of $2.35 billion.

Facts available shows that the company and its promoter orchestrated the case to scam the country of the huge amount, which by today’s foreign exchange rate runs into trillions of naira.

Thankfully, the International Chamber of Commerce (ICC) which sat on arbitration on the matter ruled in favour of Nigeria and prevented Sunrise from carrying out its dubious plan.

The ICC, which sat in Paris, the French capital, threw out the USD 2.35 billion claim by Sunrise on the Mambila Hydro Electric Power Project over the weekend and also rejected a USD 400 million settlement claim, ordering instead, the company and Leno Adesanya, the promoter to reimburse Nigeria about USD 11. 82 million in legal and other expenses.

At the hearing, Presidents Olusegun Obasanjo and Muhammadu Buhari featured as strong pillars of the country’s defense against this flagship scheme similar to the P & ID in using international arbitration to steal billions of dollars from the country through fraud, deceit and lies.

It was, however, clear from day one that Leno and company would lose this case following the failure of all the witnesses they invited, including a beautiful lady from Senegal allegedly providing comfort to one of their government contacts.

At stake in Paris was the extraction of USD 660 million and a second one to follow for USD 2.7 billion from the country’s treasury through bogus claims of failed contracts.

The two past Presidents, alongside other key witnesses were prevailed upon by President Bola Ahmed Tinubu to rise to the occasion of defending the nation against fraudsters whose stock in trade was to bribe and get government contracts, only for them to use such projects to obtain huge sums of money as costs for settlement using arbitration.

In 2025, the English Supreme Court saved Nigeria from the theft of USD 11 billion through similar schemes, and President Tinubu vowed “not again.”

The team to Paris was led by the Minister of Justice and Attorney General of the Federation, Lateef Fagbemi, SAN with a full proof case prepared by the Economic and Financial Crimes Commission (EFCC).

At its meeting of 21 May, 2003, the Federal Executive Council, FEC, chaired by the then President of Federal Republic of Nigeria, Chief Olusegun Obasanjo, considered a memo for the issuance of Mambila contract to Leno and his company, and refused to give its approval, asking that the memo be withdrawn while noting that the establishment of new power plants must be done through a competitive process.

In spite of the above background, on 22 May, 2003 – the next day and seven days before the end of President Obasanjo’s first term – the Minister of Power and Steel at that time, Dr. Olu Agunloye, allegedly sent Mr. Adesanya a letter purporting to indicate a preliminary ‘approval’ for Sunrise to have a role in the construction of the Mambilla Hydroelectric Power Station with a value of USD 6 billion.

As far as credibility and reputation are concerned, Sunrise got the so-called “award” without any prior expertise on such projects or any real assets.

Documents placed before the tribunal by Nigeria included filed statements by Sunrise at the Corporate Affairs Commission, CAC, that the company had no turnover in 2017, 2018 or 2019, and had total net declared assets of only N1,000,000 (one million Naira).

At the time they received the “award,” the financial position of the company was N318,685 on 3rd December, 2004 and N270,370 as of 31st December, 2005.

However, a new Minister who took over from Dr. Agunloye wrote to Leno Adesanya of Sunrise to confirm the non-approval of the FEC, on 3 September 2003 and to inform the company that it had no contract whatsoever with government.

A new tender process was initiated and the contract was awarded to two Chinese companies, CGGC and CGC.

At a later meeting between President Muhammadu Buhari and the Chinese leader, Xi Xiping the Nigerian president requested funding by ChinaExim bank of the Mambila project, and requested President Xi to nominate credible companies to execute the contract.

President Xi reportedly gave an instant commitment of the Chinese government to promoting the project.

Sunrise initiated a bogey scheme by demanding payment of (1) £33 million as the costs that it had allegedly incurred “on preparation for the execution of the project”; and (2) USD 1.2 billion, which allegedly represented 20% of the USD 6 billion estimated cost of the Project “as projected profit on the project.”

Sunrise sought to prevent the project from moving forward by taking the following steps: One, filing a claim at the Federal High Court against Nigeria’s Minister of Power, the Attorney-General of the Federation, CGGC, and CGC and two, they sought an order preventing any development of the project except through Sunrise and, in the alternative, claimed the sum of USD 960 million in alleged damages.

As a result of the Sunrise litigation, the project was held up for all these years. ChinaExim withheld funds – as would any lender – pending the resolution of the legal tussle.

In order to move the project forward, Nigeria entered into settlement discussions with Sunrise, CGGC, and CGC. The settlement discussions were inherited by the administration of President Buhari.

In those discussions the Federal Ministry of Power entered a ‘General Project Execution Agreement’ with Sunrise and Sinohydro (another Chinese contractor that Sunrise had involved) (the “GPEA”), an initial agreement with Sunrise relating to the Mambilla Project.

On the 14th January, 2015, a letter was signed by the Federal Ministry of Power supposedly giving approval for Sunrise to be engaged as the local content partner on the project.

On 9 November 2019, a meeting was held between, on the one hand, Sunrise, represented by Mr. Adesanya, and, on the other, Nigeria’s Attorney-General and Minister of Justice and the Minister of Water Resources in London.

At that meeting, it was made clear to Mr. Adesanya / Sunrise that any settlement negotiated would, of course, depend on approval by the president.

At this meeting, Mr. Adesanya offered to accept a figure of USD 500 million, and the Minister of Justice and the Minister of Water Resources – no doubt under pressure to settle the dispute so that the project could proceed – made a counter-proposal of USD 100 million (based on claims that they had incurred expenses between USD 70-80 million).

After series of meetings, the Attorney General and Minister of Justice and the Ministers of Power, Finance and Water Resource agreed to propose the sum of USD 200 million as a full and final settlement of Sunrise’s claims, subject, understandably to approval of the President. This proposal was accepted by Sunrise.

On 25 March 2020, a second document entitled ‘Addendum to the Term[s] of Settlement’ was signed between Sunrise and representative of Nigeria. Again, the document provides for a potential doubling of Nigeria’s liability by another USD 200 million in case of delayed payment.

On 31 March, 2020, the ‘Terms of Settlement’ and ‘Addendum to the Term of Settlement’ were presented to President Buhari for the first time for his approval.

Upon reviewing the documents, the President decided not to grant approval. In a hand-written and signed note dated 20 April, 2020, the President withheld his approval for entry into these documents, on the basis that “FG [the Federal Government] hasn’t got USD 200 million to pay [Sunrise]”.

Despite repeated attempts, President Buhari wasn’t convinced that Nigeria should pay USD 200 million, or even higher to someone who did nothing but merely presented an unauthorized contract document.

From here, Sunrise commenced another arbitration against Nigeria alleging a violation of the terms of settlement, at which it asked to be paid USD 680 million.

President Tinubu in reaction, welcomed the tribunal verdict as the removal of the “ biggest legal hurdle” in the path of the 3,960MW Mambila power project, describing it as an affirmation of Nigeria’s determination not to succumb to the “predatory and exploitative claims by local and international entities and their enablers and funders.”

Tinubu also hailed the EFCC for enabling Nigeria to win $6 billion Mambilla arbitration in Paris

EFCC spokesperson, Dele Oyewale, disclosed this in a statement in Abuja.

He said EFCC investigations were pivotal to the Federal Government’s victory on September 17.

According to him, the International Arbitration Tribunal under the International Criminal Court (ICC) in Paris ruled in favour of Nigeria.

”The tribunal rejected 680 million dollars damages demanded by Sunrise Power as settlement.

”The company is also claiming over 2.7 billion dollars compensation and interest in another arbitration.

”The claims relate to disputes over the 3,960mw Mambilla Hydroelectric Power Project in Taraba.”

He said that Tinubu celebrated the victory and hailed all those who defended Nigeria’s interest.

”Tinubu commended former President Olusegun Obasanjo for testifying in the case.

”He also praised late President Muhammadu Buhari who testified before his death.”

He said the case dated back to an illegal 2003 contract for 3,050mw hydroelectric plant.

According to him, the contract was awarded under a build-operate-transfer model without due process.

”Tinubu said the Federal Executive Council never authorised the controversial contract.

”He thanked former ministers, Babatunde Fashola and Suleiman Adamu for participating actively.

”He also thanked expert witnesses who helped defend Nigeria’s interest.

“He specifically lauded the EFCC for investigating the fraudulent contract award.

“Tinubu said that Nigeria remains committed to partnering with genuine investors and gave assurance that government would continue to honour its legal obligations to credible partners.

”The president vowed to defend all opportunistic claims instituted against the nation’s commonwealth.

“He said the ruling cleared the biggest legal hurdle paralysing Mambilla project for years,” Oyewale said.

According to him, the project was awarded on May 22, 2003 by former Power Minister Olu Agunloye.

”Agunloye awarded it to Sunrise Power on Build, Operate and Transfer basis, but EFCC found that the award lacked approval of the Federal Executive Council then chaired by Obasanjo.

”Investigations showed favouritism as Agunloye and Sunrise owner, Leno Adesanya, are old pals.”

He also said that in August 2019, SPTCL transferred money to Agunloye’s Guaranty Trust Bank account.

The spokesperson said the irregularities led to the revocation of the contract by former President Buhari’s government.

The News Agency of Nigeria (NAN) reports that Agunloye is being prosecuted on a seven-count charge of fraudulent award and corruption.

He was arraigned on January 10, 2024 before Justice Jude Onwuegbuzie of FCT High Court, Apo, Abuja.