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The management of British Virgin Island firm, Process and Industrial Development (P&ID) will again have to defend the company in court in the United Kingdom as Nigeria files a new lawsuit against them based on new evidence. This comes days after a London high court received a bank guarantee of $200 million from the Federal Government of Nigeria to secure a stay of execution on asset seizures of up to $9 billion.

The new court case is a bid to overturn the tribunal order which directed Nigeria to pay $6.6 billion in damages in 2013. Nigeria’s refusal to pay has led to the fee’s increase to about $9 billion due to interests accrued daily since 2013.

What happened: P&ID‘s contract with the Federal Government started in 2010 when former President Umaru Musa Yar’Adua authorised partnerships with private companies to fix the power problem in Nigeria. P&ID signed an agreement with the Ministry of Petroleum Resources in January 2010. But the deal broke down, resulting into a lawsuit against Nigeria.

New development: According to a statement issued by Umar Gwandu, the Special Assistant, Media and Public Relations to the Attorney-General of the Federation and Minister of Justice, Abubakar Malami, new evidence from investigations has proved that the 2010 contract was a sham that was never meant to succeed.

Malami said the lawsuit “is a major step forward in a bid to overturn the injustice of the US$9.6bn award” adding that “The filing challenges both the underlying arbitral award and its enforcement, and lodges a fresh appeal against the subsequent High Court judgment.

“Based on new evidence that has come to light in recent investigations, it is clear that the original contract was a sham commercial deal and designed to fail from the outset. The fraud was only recently discovered as a result of President (Muhamadu) Buhari’s anti-corruption efforts spearheaded by the Economic and Financial Crimes Commission.” Punch quoted the statement in a report.

Nigeria argued that the contract “was procured on the basis of fraud and corruption, while the subsequent arbitral process was riddled with irregularities and deliberately concealed from the rest of the government

What Nigeria stands to lose: The situation is dire for Nigeria if it eventually loses the case altogether. The $9 billion is equivalent to almost 2.5% of the country’s annual gross domestic product. Also, if Nigeria can’t afford to pay the sum, the country will lose its assets in UK and the United States, depending on the assets P&ID choose to seize and sell.

Standard chartered

 

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: fakoyejo.olalekan@nairametrics.com.

2 COMMENTS

  1. Those 2 irish men are not billionaire,they are adventurers. NOBODY HAVE ASKED THE RIGHT QUESTION ? ABOUT THEIR BANKERS,WHO WILL FINANCES THIS PROJECT,when you have a project in Africa,which will finance, and they will do their risk analysis.NOW WHAT IS THEIR BANKER RISK ANALYSIS,if this project have gone to the FEDERAL EXECUTIVE COUNCIL,somebody will ask the right question.NOW WHERE IS THE INPUT OF THE PARMNENT SECTARY OF THE MINISTRY OF PETROLUEM RESOURCES.
    Some Nigerians wanted to buy NITEL,The govt then asked them to pay 100 millions dollar as deposit,and if successful,they will pay the full amount,they intended to approach some british bank to pay the balance.they approached first bank,who paid this 100 million dollar for then,which they did paid to the govt.as things near the final hurdle,all british bankers refused to finances this NITEL .now the Nigerian govt have refused to returns this mandatory deposit as required in this contract,and as subsequent,the board of first bank fired the managing director of first bank.
    if this a private business would have gone,without the federal govt any intervention,the project would have taken place in calabar.ALSO THERE ARE MANY FOREIGN OWNED BUSINESS IN NIGERIA WORTH MILLIONS OF DOLLAR,NOW WHY THOSE 2 IRISH MEN DID NOT SUCCED ?it is possible they did not have good intentionNOW WHERE IS THEIR BANKERS RISK ANALYSIS INPUT ? ,are their bankers willing to finances this project,they thought it will be easy for them,they bribed and corrupted govt official.I THINK THEY ARE MAD, AFTER SPENDING MONEY,THEY DO NOT HAVE,OUT OF DESPERATION,THEY DECIDED TO GO ARBITRATION OVERSEA NOT IN NIGERIA.
    Any Nigerian govt that pays any money through this arbitration in any circumstances will faces a horrible death. 9 billion dollar to be paid to those 2 thieves and racketing scum,which is the worst in our planet,money they did not deserve.what not Mr buhari pays 1/9 of this money,to those almahariji in north NigerIa,he will pay them or one of them 1billion dollar another 1 billion to your next of kin and all your clan up your 6 cousin with plan to,go and cut off their head and their immediate family,THERE IS SOMEBODY WHO WILL DO THIS FOR MR BUHARI AS LONG AS THEIR FAMILY IS SECURED

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