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Fresh Post-Judgment Cost: How Justice Ekwo bailed Nigeria From $11bn P&ID Scam

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In 2023, Nigeria was tethering over the cliff of bankruptcy when a British Virgin Islands registered company Process and Industrial Developments, P&ID desperately pursued the enforcement of an $11 billion arbitration award against Nigeria over a failed gas processing contract.

The gas supply and processing agreement, GSPA for the construction of a processing plant in Calabar, Cross River State began with a Memorandum of Understanding, MOU signed in July 22, 2009 by then Minister of Petroleum Rilwanu Lukman (now late) and witnessed by the director of legal in the ministry, Grace Taiga. The chairman of P&ID, Michael Quinn (now late) signed for his company with the commercial director, Muhammad Kuchazi as witness. The MOU was followed by a formal agreement on January 11, 2010

The deal however did not sail through. Nigeria later alleged that the entire venture was steeped in fraud and the agreements consummated under dubious circumstances. But for P&ID, Africa’s biggest gas nation was guilty of contract breach.

The company later dragged Nigeria to the United Kingdom where it commenced arbitration proceedings before the London Court of International Arbitration, demanding $5.96 billion in compensation. In July 2015, the arbitration tribunal agreed with P&ID that Nigeria had indeed breached the terms of contract and in January 2017, asked Nigeria to pay the sum of $6.7 billion including interest. Armed with the award, P&ID began moves towards enforcement, setting into motion a complex legal process by Nigeria to extricate itself from possible sovereign insolvency.

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By 2023, the award and accumulated interests had risen to $11 billion. But for Nigeria to get itself out of financial sanctions, it had to adduce evidence to prove that the P&ID deal itself was fraught with fraud.

In 2019, a criminal complaint was filed before Justice Inyang Ekwo, of the Federal High Court in Abuja wherein P&ID incorporated in the British Virgin Islands and P&ID Nigeria limited were charged with 11 counts of fraud, false representation, felony, tax evasion and criminal concealment of funds.

The former through its commercial director, Muhammad Kachuzi pleaded guilty to 10 out of the 11 counts while the latter represented by its director, Adamu Usman pleaded guilty to the entire counts.

While delivering his judgment, Justice Ekwo noted the flagrant abuse committed by the company which, as revealed by the investigators, showed that P&ID did not get a Certificate of No Objection from the Bureau of Public Enterprises, BPE for the purpose of the said contract. It was also revealed that P&ID made “a little above N3, 000,000.00 tax payment”, effectively undercutting the Nigerian government of N10, 000,000.00 in tax liabilities.

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The company had also failed to make a declaration of its activities to the Special Control Unit against Money Laundering, as legally required. Justice Ekwo concluded that there was overwhelming evidence leading to his conviction of both the foreign and locally registered P&ID. While the details of the proof of evidence revealed gross abuse of office and economic sabotage, it took the unwavering stance of the presiding judge to make it happen.

Significantly, it was learnt that those behind the controversial P&ID deal were desperate to bribe their way through with anyone who stood in the way of them securing the billion dollars award. As it turned out, it was Justice Ekwo’s judgement convicting P&ID that the Ngerian government eventually filed before Justice Ross Cranston of the Business and Property Courts of England and Wales to suspend the enforcement of the arbitration award.

Justice Ekwo’s judgement was also tendered at the substantive hearing to set aside the arbitration award before Justice Robin Knowles in 2023 wherein Nigeria used it as evidence that the P&ID GSPA deal was contracted fraudulently.
Consequently, by October of the same year, the British court ruled that the arbitration award was obtained through fraud, effectively loosening the chokehold on a country already battling serious financial crisis.

In July 2024, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi disclosed that Nigeria has moved beyond setting aside the $11 billion arbitration award, to obtaining an order from a United Kingdom Court of Appeal for its P&ID post judgement costs to be paid in British pounds sterling.

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A statement from his office read, “the United Kingdom Court of Appeal validated Nigeria’s claim for the post-judgement costs to be paid in Pound Sterling (GBP), which P&ID tried to reduce drastically by claiming the Nigeria should only be entitled to recover costs in Naira, which evidently will produce lower cost.

“This was another misconceived and desperate attempt by fraudsters to deprive the Nigerian people of hard-earned public revenue. As a government, we are very determined to recover these costs and make P&ID and its US funders pay for their scam so as to serve as deterrence to others of their ilk”

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FRSC expresses worry over fatal crashes

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*** Orders strict traffic law enforcement

By Francesca Hangeior.

 

The Corps Marshal of the Federal Road Safety Corps, Shehu Mohammed, on Thursday, lamented the spate of fatal road crashes in September.

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He specifically raised concerns about the accidents that occurred on September 8 in Niger, September 12 in Sabon Wuse, and September 15 in Kaduna State.

These three incidents, according to him, resulted in the tragic loss of at least 91 lives.
Speaking during a meeting with fleet operators and other stakeholders in Abuja, Mohammed expressed frustration that despite the government’s efforts to provide and maintain transport facilities according to global standards, many drivers continue to undermine these efforts with reckless behaviour on the roads.

He said, “While the Government continues to do its best to provide and maintain transport facilities in accordance with global best practices, some road users, especially drivers, have continued to make a mockery of this concerted effort by exhibiting a high level of recklessness on the roads.

” In the last month or thereabout, the Corps witnessed 3 landmark crashes that were caused by negligence, fatigue, speeding, night trips and dangerous driving. These three landmark crashes include that of Niger State which occurred on 8 September 2024 and killed 48 people, that of 12 September 2024 which killed 18 people in Sabon Wuse and that of 15 September 2024 which happened in Kaduna State leading to the death of 25 people.

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“These 3 crashes alone, which proved to have been obviously avoidable, claimed the lives of 91 people. This is alarming and it calls for concern.”

Mohammed ordered commanding officers to ensure round-the-clock enforcement of traffic laws.

He also disclosed that a special operation would be conducted to checkmate the incessant accidents recorded across the country.

Mohammed said, “I am compelled to state that the spate of the crashes recently recorded is, however, very disturbing and every step must be taken to avert continued future occurrences. It is against this backdrop that I have directed Commanding Officers to ensure round-the-clock enforcement of traffic offences to mitigate these excesses. A special patrol operation will be instituted and enforcement will be carried out nationwide.”

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Speaking, the President of the Independent Petroleum Marketers of Nigeria, Abubakar Shettima, dismissed the allegations linking the group to some of the accidents in the country.

He said, “We transport highly inflammable products through our trucks, and all the allegations being made are unfounded. We collaborate with NARTO and PTD.

” NARTO represents the truck owners, while the tanker drivers are our drivers. We always come together to make important decisions regarding safety, as it is our top priority, and we take it very seriously.

” Mohammed has been doing his best to reduce road accidents involving trucks. We’ve taken precautions, such as prohibiting our members from driving at night and advising them to rest if they feel sleepy. NARTO has also begun building rest parks for drivers to use when they need to take a break.”

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Tinubu to skip 79th UNGA to focus on pressing challenges at home

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By Francesca Hangeior

President Bola Tinubu has decided to skip the 79th United Nations General Assembly (UNGA) in New York, opting instead to focus on Nigeria’s pressing domestic challenges, particularly the recent devastating flooding that has affected the country.

A statement issued on Thursday by Special Adviser to the President on Information and Strategy, Bayo Onanuga, which disclosed President Tinubu’s decision, also said Vice President Kashim Shettima will lead Nigeria’s delegation in his place.

The President’s move is seen as a prioritization of local concerns over international diplomacy, as President Tinubu aims to address the immediate needs of Nigerians affected by the floods.

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The UNGA, scheduled to take place from September 24 to 28, 2024, will feature discussions on sustainable development, peace, and human dignity.

VP Shettima will deliver Nigeria’s national statement to the General Assembly, attend key sideline events, and engage in bilateral meetings, ensuring the country’s interests are represented on the global stage.

“President Bola Tinubu will not attend the 79th United Nations General Assembly session in New York this year.

“The President has thus directed Vice President Kashim Shettima to lead Nigeria’s delegation.

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“President Tinubu, who returned to the country last Sunday after his trip to China and the United Kingdom, wants to focus on domestic issues and address some of the country’s challenges, especially after the recent devastating flooding.

“At UNGA 79, Vice President Shettima will deliver Nigeria’s national statement to the General Assembly, attend important sideline events, and hold bilateral meetings.

“The high-level General Debate, with the theme ‘Leaving no one behind: Acting together for the advancement of peace, sustainable development and human dignity for present and future generations’, will run from Tuesday, September 24, through Saturday, September 28, 2024”, the statement said.

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Tinubu Loyalist, Yemi Adenuga under fire after asking Igbos to leave Lagos but contesting for Elelection In Ireland

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By Francesca Hangeior

President Tinubu staunch loyalist and Igbo-Must-Leave-Lagos-Election-For-Yoruba campaigner, Yemi Adenuga is under fire in Ireland, where she is vying for nomination for position in the general election.

The Irish nationals who watched her video calling for the Igbo to leave elections in Lagos for the Yoruba, have called on Nigerians to enquire if it is morally right for her to leave Irish election for the Irish?

Yemi Adenugais facing avalanche of serious criticism over nominations to contest in Irish general election.

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Irish and Nigerian critics have questioned her conscience and moral right to take part in Ireland election when she was involved in hate election campaign that asked the Igbo to leave Lagos for Yoruba during the last election in February 2023.

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