Malami Rejects Bribery Mambilla Arbitration Findings: Cites No Criminal Trial

• Nigeria won its arbitration case against Sunrise Power and Transmission Company Limited regarding the Mambilla Hydroelectric Power Project.
• The ICC tribunal rejected Sunrise's claims and ordered the company and its promoter, Leno Adesanya, to reimburse Nigeria for legal costs.
• However, the tribunal made adverse findings concerning former AGF Abubakar Malami's handling of a settlement agreement, including alleged corrupt arrangements.
• Malami rejected these bribery allegations, stating the proceedings were commercial arbitration, not a criminal trial, and the dispute predated his tenure.
• Settlement negotiations in 2019 involved Sunrise demanding $500 million, with the Nigerian government eventually considering a $200 million figure to resolve project impediments.

Malami rejected these bribery allegations, stating the proceedings were commercial arbitration, not a criminal trial, and the dispute predated his tenure.

Nigeria has secured a significant victory in the Mambilla Hydroelectric Power Project arbitration, with the International Chamber of Commerce (ICC) tribunal rejecting claims brought by Sunrise Power and Transmission Company Limited. The tribunal, in its 616-page final award issued in Paris on September 16, 2026, also mandated Sunrise and its promoter, Leno Adesanya, to reimburse Nigeria for a substantial portion of its legal expenditures. This outcome was welcomed by former Attorney General of the Federation and Minister of Justice, Abubakar Malami, who had overseen aspects of the dispute.

Despite the favorable ruling for Nigeria, the tribunal's findings included adverse observations concerning Malami's handling of a proposed settlement agreement with Sunrise. These findings reportedly detailed an alleged corrupt arrangement involving the former Attorney General and Adesanya. In response, Malami, through his Special Assistant on Media, Mohammed Doka, vehemently rejected these corruption allegations, emphasizing that the proceedings constituted commercial arbitration, not a criminal trial, and therefore the award should not be misconstrued as a criminal conviction against him.

Malami acknowledged the gravity of the reported adverse findings but insisted they must be evaluated against the complete documentary and evidentiary record. He stressed that these matters should not be trivialized or addressed through speculation, indicating a call for a thorough and objective review of the facts surrounding the allegations. The former AGF's stance underscores a key point of contention: while the state achieved a win, the process itself raised questions about official conduct.

To provide perspective on the Mambilla Hydroelectric Power Project arbitration, Abubakar Malami highlighted that the dispute with Sunrise Power predated his tenure as Attorney General. He noted that Sunrise Power became involved in the proposed project as early as 2003, with successive administrations and Attorneys General grappling with contractual disagreements involving the company. For instance, former AGF Michael Aondoakaa had reviewed the dispute before Malami's time and recommended an amicable resolution, leading to the Federal Government entering into a General Project Execution Agreement with Sunrise and Sinohydro in November 2012.

Malami asserted that he inherited a long-standing and complex dispute that had traversed multiple previous administrations, Attorneys General, ministries, and contractual arrangements. His involvement, he explained, was a continuation of established governmental and presidential processes, including a directive issued by the then Chief of Staff to President Muhammadu Buhari in April 2016, specifically concerning the resolution of disputes surrounding the Mambilla project. The Ministry of Justice's primary role during his leadership was to offer advice to the Federal Government regarding its legal exposure and potential avenues for resolving the protracted disagreement.

By 2019, the unresolved dispute with Sunrise Power was identified as a significant impediment to securing crucial financing for the Mambilla Hydroelectric Power Project, including discussions with institutions like the China Exim Bank. This urgency prompted negotiations in London in November 2019, aimed at reaching a settlement. During these discussions, Sunrise Power initially demanded $500 million as a full and final settlement for its claims.

Federal Government representatives countered this demand with an offer of $100 million, eventually leading to a proposed figure of $200 million. The government's strategic calculation behind considering such a settlement was to determine whether a potentially multibillion-dollar exposure, ongoing litigation, persistent financing difficulties, and delays to the critical Mambilla project could be brought to an end through a substantially smaller, negotiated resolution. This highlights the complex balance between legal defense and pragmatic project advancement in high-stakes international disputes, even as the Malami rejects bribery Mambilla arbitration findings.

This case highlights the reputational and ethical risks for government officials involved in high-value international arbitration settlements, even when the state wins the primary dispute. Lawyers and compliance officers should note that international tribunals may make adverse findings regarding conduct, underscoring the need for stringent compliance and transparency in public sector contract negotiations and dispute resolution.

Source: Original reporting via Punch