BEVERLY HILLS, May 01, (THEWILL) – The United States warned the Federal Government of Nigeria to be prepared to “replace” the $308 million to be repatriated from funds looted by a former military ruler, the late General Sani Abacha, if it failed to use the money on public projects agreed upon.
The United States and the British Dependency Island of Jersey had agreed with Nigeria in February to return $308 million that Abacha, who died in 1998, had stashed in their banks.
The Attorney-General General of the Federation (AGF) and Minister of Justice, Mr. Abubakar Malami (SAN), had said the fresh $308 million forfeited assets would be received this month.
Malami had signed a tripartite agreement on behalf of the federal government with the US and the Island of Jersey in February to repatriate the funds expected to be used on three major projects: Lagos-Ibadan Expressway, the Abuja-Kano Expressway and the Second Niger Bridge.
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However, a report by Reuters revealed that the United States Justice Department has warned that Nigeria must spend the repatriated funds on agreed public projects or be forced to replace it.
The US Justice Department outlined the so-called “clawback” provision in a response to a query from a powerful US senator questioning the prudence of returning the cash.
“Should any of the parties — including the United States —conclude that any of the returned funds had been used for an ineligible expenditure, a ‘clawback’ provision would then obligate the FRN (First Republic of Nigeria) to replace fully any such improperly diverted monies,” the letter said.
