Connect with us

News

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

Published

on

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.

Advertisement

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.

Advertisement

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.

Advertisement

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”

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

LASG shuts down Idera market over ‘environmental pollution

Published

on

By Kayode Sanni-Arewa

The Lagos State Environmental Sanitation Corps (LAGESC) says it has sealed off the Idera market in the Oshodi metropolis.

In a statement on Thursday, Ajayi Lukman, LAGESC spokesperson, said the agency sealed the market due to unhygienic practices and indiscriminate dumping of refuse, which contravened the environmental law of the state.

He said the measure was taken to enforce adherence to environmental cleanliness across registered markets in the state.

Advertisement

‘‘Our operatives stationed across the Oshodi division during routine market monitoring identified the filth, unhygienic practices, and indiscriminate dumping of refuse around the Idera Market area, which prompted us to seal off the market until further notice,” the statement reads.

Lukman quoted Olaniyi Cole, the corps marshal of the agency, as decrying the level of hygiene at the market, which could lead to an outbreak of diseases.

He said Cole frowned at the inability of the market leadership to provide a valid waste collection contract, which resulted in the heaps of refuse in the facility.

He added that the display of wares for sale on road setbacks, lay-bys, medians, verges, kerbs, street trading, and hawking remained banned in the metropolis.

Advertisement

The LAGESC corps marshal reiterated the ban on the sales, distribution, and usage of styrofoam in the state, noting that anyone found culpable would be punished decisively.

Continue Reading

News

Hours to Edo guber polls, major opposition candidate crumbles structure for Ighodalo

Published

on

By Kayode Sanni-Arewa

Hours to the Edo State governorship election, the guber candidate of the All Peoples Party (APP)Amb Osalumese Areloegbe on Thursday morning collapsed the structure for the governorship candidate of the Peoples Democratic Party (PDP), Dr. Asue Ighodalo and his running mate, Osarodion Ogie Esq.

Addressing journalists at the party secretariat in Benin City, Areloegbe said his decision to collapse the structure for the PDP candidate was because he believed that Ighodalo had all it would take to govern the state to greater heights.

According to him, I urged all my followers and supporters to disregard any information that I have aligned with the All Progressives Congress (APC) governorship candidate, Senator Monday Okpebholo.

Advertisement

“I am supporting Asue Ighodalo because he is competent, not that I am not competent but I believe Asue is on the forefront. That is my reason for supporting his candidacy.

“My party is aware because they have been having a series of negotiations for us to align with the APC, and I told them categorically that I am supporting PDP. My eighteen local government followers are in full support of my decision, I mean 100 per cent supporting the PDP candidate, Barr. Asue Ighodalo and his running mate, Barr. Osarodion Ogie in this election.

“My choice for Asue Ighodalo is because, apart from myself, I see him as the next better candidate that I can support and I can put my weight on because he has the capacity, mentally, physically and otherwise to pilot the affairs of Edo State to greater heights.

“The national secretariat of my party, APP – they are in Abuja and I am in the state, and know much more of what is happening in Edo State. They are not here and don’t know what is going on here in Edo. And I am in a position to tell them what will be better for the Edo people.

Advertisement

“There is a parable that says, ‘You cannot shave a man’s head when he is not present’. I am here in Edo State and I know who to support and why I am supporting him. The national leadership might have taken a different tone, but this is what I and my followers have chosen.

“We had a series of other politicians who had made such decisions before. That is why I agreed with the support of my supporters to collapse my structure for the governorship candidate of the PDP Barr. Asue Ighodalo and his running mate, Barr. Osarodion Ogie.”

Continue Reading

News

SAD! Woman reportedly d!3s in Osun building c0llapse

Published

on

By Kayode Sanni-Arewa

A resident of Ifetedo in Osun State, simply identified as Idowu, had reportedly died in an incident of collapse building that occurred in the town.

The collapsed structure was said to be a dilapidated building that suddenly caved in and killed the woman.

A resident of Ifetedo, simply identified as Ogunyemi, while speaking to The PUNCH on Thursday, said operatives of the Nigeria Security and Civil Defence Corps, responding to a distress call, were at the scene of the incident.

Advertisement

Some NSCDC operatives rushed to the scene after they were informed of the incident. They were joined by some other people in the community.

Idowu was the only person in the building when the incident happened. She was brought out dead from the rubble.

“The incident caused panic in Omiloode Area, where the building is located. The building that collapsed is a dilapidated structure,” Ogunyemi said.

Osun NSCDC Public Relations Officer, Kehind Adeleke, when contacted confirmed the incident, adding that the scene was immediately cordoned off by security men.

Advertisement

“An abandoned dilapidated building located along Omiloode Street, Ifetedo collapsed and killed one Mrs Idowu, who was said to be around the structure when the incident happened.

“The tragic incident occurred at about 17:30 hours on Tuesday.

“Officers and men of NSCDC Ife South Division, upon getting information rushed to the scene of the incident for rescue operation. But unfortunately, the woman had passed on. She was brought out of the rubble dead. The site was immediately cordoned off,” Adeleke said.

Advertisement
Continue Reading

Trending

Copyright © 2024 Naija Blitz News