Panic Alert V NGF: Court sets aside consent judgment against Governors’ Forum

The Nigerian Governors’ Forum (NGF) said the consent judgment between it and Panic Alert Security System Ltd has since been set aside.

The Forum said the court has upturned the judgment which was in favour of Panic Alert System Ltd

According to the Forum, “consequently, all approvals by the AGF, the President, Minister of Finance, Accountant-General of the Federation, Debt-Management Office arising from, related to or concerning Panuc Alert’s claims have collapsed. “All Promissory Notes, cheques or any financial instrument issued by the FGN in favour of PANIC ALERT stand nullified and canceled and of no effect whatsoever.”

Giving background to the case, with suit no: FHC/ABJ/CS/123/2018, NGF said the suit arose when Panic Alert alleged that it was contracted by the Nigeria Governors’ Forum (NGF) to review a 16-page judgment in Suit No: FHC/ABJ/CS/130/2013, between LINAS INTERNATIONAL LTD & 235 ORS. V. FEDERAL GOVERNMENT OF NIGERIA & 3 ORS.

It thereafter claimed that the firm was entitled to a sum of $47,821,920.
But the Forum said the consultancy fees were never agreed or specified in any contract with it.

“PANIC ALERT thereafter filed an action for breach of contract against the Nigeria Governors’ Forum at the Federal High Court, Abuja on the 8th day April, 2021. The Consent judgment arising from the suit did not award the sum of ($47,821,920) or any other sum to PANIC ALERT. On the contrary, the judgment merely stated that PANIC ALERT will be referred to the Attorney General of the Federation for verification and settlement. Curiously, PANIC ALERT relied on this consent judgment to lay claim to professional fees of $47,821,920. Even more surprisingly, the AGF also relied on this judgment and recommended that the sum of $47,821,920 be paid to PANIC ALERT.

“Dissatisfied wirh the AGF’s recommendation based on the said consent judgement, the Nigeria Governors’ Forum engaged Paul Harris Ogbole, SAN, to challenge the consent judgment upon which the AGF relied. The learned Silk on 30th day of June, 2021 filed a motion to set aside the purported consent judgment on the grounds, among others, that the Federal High Court by virtue of Section 251 of the 1999 Constitution of the Federal Republic of Nigeria (1999 as amended) lacks jurisdiction to have entertained a matter that was founded on a simple contract.”

However, in a considered ruling, the Chief Judge of the Federal High Court, Justice John Tsoho set aside the consent judgment in its entirety on the grounds that the suit lacked territorial jurisdiction.

The court held that the the reliefs claimed by PANIC ALERT SYSTEMS LTD. against NGF were premised on a simple contract which by Section 251 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) strips the court ab initio the required jurisdiction to entertain such matters.

Accordingly, the xourt set aside the consent judgment.