SERAP Sues Federal Gov’t For Failing To Prosecute Contractors Over N167bn Fraud

The Socio-Economic Rights and Accountability Project (SERAP) has dragged President Bola Tinubu before the Federal High Court in Lagos for allegedly failing to authorise prosecuting contractors indicted for collecting over N167 billion for unexpected projects.

In the suit, which is yet to be assigned to a judge, SERAP is asking the court to compel the president to direct the minister of finance and coordinating minister of the economy, Olawale Edun, to identify the contractors who received over N167 billion naira from 31 ministries, departments, and agencies (MDAs) but failed to execute any projects.

The civil society organisation is also urging the court to direct President Tinubu to direct the attorney general of the federation and minister of justice, Lateef Fagbemi (SAN), who has been joined as a respondent in the lawsuit, to bring to justice as appropriate, any companies and contractors who collected over N167bn of public funds from 31 MDAs but failed to execute any projects.

In an affidavit filed in support of the suit, the plaintiff argues that “the allegations of corruption involving numerous companies and contractors who received over N167 billion naira from 31 MDAs have significantly impaired, obstructed, and undermined poor Nigerians’ access to public goods and services.

SERAP also averred that holding these companies and contractors accountable for the funds they misappropriated would help prevent waste, fraud, and abuse in public spending.

SERAP maintained that there is a legitimate public interest in not shielding or allowing ingrained wrongdoing by companies and contractors to go unpunished.

The organisation further stated that the consequences of corruption are felt by citizens daily, forcing them to incur additional costs for health, education, and administrative services.”

The plaintiff further claimed that the allegations indicate a severe violation of the 1999 Nigerian Constitution (as amended), the nation’s anti-corruption legislation, and international anti-corruption obligations.

SERAP also submitted that if the court grants the reliefs sought; it would ensure transparency and accountability in MDAs’ public fund expenditures, thus reducing their vulnerability to corruption and mismanagement.

The plaintiff cited the UN Convention Against Corruption, to which Nigeria is a state party, argued that the law mandates integrity and honesty in economic, financial, or commercial activities in both the public and private sectors,” the suit states.

SERAP also stated that the law imposes obligations on the government to ensure that sanctions for corruption against individuals and corporate entities are effective, proportionate, and dissuasive.

The plaintiff averred, “Ensuring the accountability of companies and contractors and recovering any diverted public funds would enhance public accountability within MDAs.”

“The accountability of the government to its citizens is a hallmark of the democratic governance that Nigeria aspires to uphold.”

“According to the 2021 Annual Audited Report by the auditor-general of the federation, published on Wednesday, November 13, 2024, thirty-one MDAs disbursed over N167 billion naira (N167592,177,559.40) to companies and contractors for contracts and projects that were never executed.

“The Nigerian Bulk Electricity Trading Plc. (NBET) alone reportedly paid N100 billion naira to contractors for projects that were not carried out.

“Companies and contractors received N100 billion naira from NBET for contracts and projects that were not executed,” it adds.

“The other thirty MDAs include the Nigerian Correctional Service, the National Pension Commission, the Federal College of Land Resources Technology in Owerri, and the Hydrocarbon Pollution Remediation Project (HYPREP) Office.

“Additional agencies mentioned include the Petroleum Technology Development Fund (PTDF), the Federal Ministry of Youth and Sports Development, the Federal Medical Centre in Bida, Niger State, the National Centre for Women Development, the Institute for Peace and Conflict Resolution, the National Business and Technical Examinations Board (NABTEB), the Federal University of Gasua, and the Ministry of Niger Delta Affairs.

“Accountability requires transparency. Nigerians’ right to democratic governance allows them to influence governmental direction considerably, assess progress, and assign blame accordingly.”

No date has yet been set for the hearing of the suit.