Paris Club Refund: ALGON, LGAs disagree with lawyers over $159m legal fees demand

Association of Local Governments of Nigeria (ALGON) and 702 local government areas (LGAs) have urged the Federal High Court in Abuja to dismiss a suit filed by a lawyer,  Joe Agi, SAN. 

Agi, in the suit, sought the payment of $159 million U.S. dollars as legal fee from ALGON and LGAs’ account for his involvement in the Paris Club Refund debt buy back. 

However, ALGON and the LGAs, in their reaction, disagreed with the senior lawyer. 

They also prayed the court to discountenance the submission of Dr Ted Edwards, another legal practitioner, on his purported legal representation and payment for professional service for the association. 

They made their position known in a joint counter affidavit filed by their lawyer, Donald Ayibiowu, before Justice James Omotosho. 

Agi, a lawyer, had instituted the suit marked: FHC/ABJ/CS/653/2026, to demand for his legal fees in the sum of $159 US dollars. 

Agi named the Federal Government of Nigeria, the Attorney-General of the Federation (AGF), the Minister of Finance and the Director General, Debt Management Office, as 1st to 4th defendants. 

He listed the Accountant-General of the Federation (AGoF), Dr Ted Edwards, Incorporated Trustees of ALGON (For themselves and on behalf of the 774 local government councils in Nigeria) as 5th to 7th defendants respectively. 

The senior lawyer sought a declaration that the judgment, in motion number: M/1545/15, delivered by FCT High Court on Oct. 30, 2015 in favour of 6th defendant (Edwards) against 7th defendant (ALGON) was obtained by fraud and misrepresentation.

He said this subsequently misled the 1st to 5th defendants to exercise their executive and administrative actions wrongly in favour of Edwards to his (Agi’s) detriment.

He sought a declaration that the exercise of the executive and administrative functions of the 1st, 3rd, 4th and 5th defendants were misled to have issued the promissory notes of $159 million in Edwards’ name, “who was not counsel to the 7th defendant to entitle him to legal fees in suit number: FHC/ABJ/CS/130/13.”

He, therefore, prayed Justice Omotosho for an order setting aside the judgment in motion number: M/1545/15 delivered on Oct. 30, 2015, for being a nullity abi initio. 

Agi sought an order cancelling and or voiding the 10 promissory notes issued wrongfully by the director, Debt Management Office and the Minister of Finance in tranches of $15.9 million annually for 10 years from Sept. 27, 2021 in favour of Edwards, for having exercised their administrative and executive functions arbitrarily and wrongfully. 

He sought an order mandating the 1st to 5th defendants to forthwith redeem the four promissory notes amounting to $63.6 million that had since fallen due and pay same to him. 

The lawyer also sought an order directing the 1st, 3rd, 4th and 5th defendants to immediately reissue the six remaining promissory notes in his name, covering the same dates which was originally issued in the name of Edwards. 

In the affidavit attached to the suit, Agi deposed that he was the lawyer briefed by Linas International Limited and ALGON to represent them to sue the Federal Government, AGF, Finance Minister and AGoF to recover the wrongful deductions from the LGAs in the London Paris Club debt buy back. 

He said the judgment was entered on Dec. 3, 2013 by Justice A.F.A Ademola in the Federal High Court and that ALGON, to the knowledge of Edwards, agreed to pay him 10 per cent of whatever sum is awarded. 

He said pursuant to the said judgment, he filed a garnishee proceeding wherein the court made the Garnishee Order Nisi for the payment of the sum of $3.188 billion.

He said even when Edwards and some strange fellows started laying claim to portions of the judgment, ALGON wrote to him and the court in letters dated Feb. 17, 2016 and Feb. 11, 2016, raising alarm and emphatically informing him as lead counsel that Edwards obtained his judgment by fraud and that he was not their counsel. 

He said Edwards’ spurious claim to the payment of legal fees was dismissed in a well considered ruling by Justice Ademola on June 27, 2016.

According to him, pursuant to the fraudulent judgment obtained by the 6th defendant, the 1st, 3rd, 4th and 5th defendants, without my knowledge, proceeded into meetings with the 6th defendant. 

“And in the exercise of their executive and administrative functions offered to pay $159,000,000.00 and recommended same to the Chief of Staff to the President in a letter dated 23 December, 2019 and put the name of the 6th defendant on the said letter which is annexed as Exhibit JAI0.”

Agi said following the approval for the issuance of the promissory notes in ten tranches of $15.9 million annually payable from Oct. 15, 2027, totaling $159 million, he promptly protested to the 1st to 5th defendants that their action was wrong and was dangerous. 

Agi averred that he was the “one who conducted the case and so entitled to the payment of the legal fees in issue which was administratively issued to the 6th defendant, howbeit wrongfully.”

He said he had written to the 3rd and 2nd defendants (Finance Minister and AGF) requesting for the reissuance of the promissory notes in his name.

𝕤𝕖𝕖 𝕞𝕠𝕣𝕖/𝕨𝕒𝕥𝕔𝕙 𝕥𝕙𝕖 𝕧𝕚𝕕𝕖𝕠 𝕙𝕖𝕣𝕖