P&ID Case: UK Court Orders Release Of $200m Deposit To Nigeria

A file photo of a court gavel.

 

A commercial court in London has ordered the release of $200 million used as a deposit in the case against Process & Industrial Development (P&ID) to the Nigerian government.

The Governor of the Central Bank, Godwin Emefiele who confirmed the development on Tuesday, said the ruling follows the establishment of prima facie fraud before the court.

Commenting on the outcome, Emefiele said: “due to the substantial evidence of prima facie fraud established before the court, we are pleased that the judge has agreed to release the guarantee. We are also pleased that the Court has rejected P&ID’s application to increase the guarantee, which was clearly intended to be a diversionary tactic and entirely misconceived.

“This release which is an accretion into the reserves will further enhance the nation’s management of the exchange rate of its domestic currency, the Naira while ensuring monetary and price stability.

“This is a further and significant victory for Nigeria in our ongoing fight to overturn the US$10 billion award procured through fraud and corruption by P&ID and former government officials.

“P&ID and its backers, Lismore Capital and VR Advisory, are increasingly seeing their case slip between their fingers. They continue to resort to employing delay tactics, disseminating misleading claims, and taking every step to obstruct our investigations across multiple jurisdictions.

The FRN will not rest until we secure justice for the people of Nigeria – no matter how long it takes.

Investigations are ongoing, and we are confident that more of the truth will be revealed over the coming months.”

The court also rejected P&ID’s application to increase the guarantee.

Judge Orders P&ID To Pay Nigeria Over £1.5 million

A file photo of a court gavel.

 

 

A United Kingdom judge has ordered P&ID to make an interim payment of more than £1.5 million to Nigeria within 21 days to cover legal costs the country incurred as part of its successful application for the extension of time to challenge the arbitration award of $9.6 billion to the company.

The judge gave the order on Thursday when Nigeria appeared before it in a hearing held to decide procedural and costs issues relating to the FRN’s applications to challenge the arbitration award and to determine the short-term directions to trial. 

READ ALSO: UK Court Ruling, A Source Of Huge Satisfaction – Presidency

This latest order follows the major victory it secured on Friday last week when the court allowed the country to bring a fraud challenge against a $9.6 billion arbitration award obtained by vulture-fund-backed P&ID well outside the normal time limits.

“This is another crucial win for Nigeria in our ongoing fight against the vulture-fund-backed P&ID,” a spokesperson for the Attorney General of the Federation said in a statement announcing the latest development.  

“We are pleased that the English Courts have taken our fraud challenge seriously, and awarded us a substantial interim payment in respect of our successful application for an extension of time to challenge the award.”

With the order, Nigeria will now proceed to a full fraud trial, in its quest to avoid paying the arbitration award which is estimated to be one-third of the national budget.

The Nigerian government considers the order a “significant blow” to P&ID as will help speed up the trial and halt what it says are attempts by the company to delay the process.

“To date, P&ID and its financial backer VR Capital have not produced a single document or credible witness to challenge the FRN’s fraud evidence,” it said of the attempts.

“Instead, they continue to resort to disseminating misleading claims, while taking every step possible to delay or obstruct our investigations across multiple jurisdictions.”

The Nigerian government has maintained over time that the contract that led to the arbitration was fraudulent and that it would work relentlessly to overturn it.

After securing two favourable court decisions, it restated the commitment to overturning “the injustice”, saying it “will not rest until we secure justice for the people of Nigeria – no matter how long it takes.  Investigations into the GSPA are ongoing, and we are confident that more of the truth will be revealed over the coming months.”

P&ID, a firm based in the British Virgin Islands, won a $9.6 billion arbitration award against the Nigerian government after the 2010 gas project collapsed.

The award accrued interest since 2013 and is now worth more than $9 billion.

However, Nigeria on September 3, secured a landmark victory in its pursuit to overturn a $10 billion judgment awarded against it in a case against P&ID in a failed gas deal in 2010.

Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted Nigeria’s application for an extension of time and relief from sanctions, in the nation’s bid to overturn a $10 billion judgement awarded against it.

P&ID: FG Yet To Pay $200m Bond To UK Court, Says Malami

 

The Federal Government has revealed that the bank guarantee of $200 million placed with a United Kingdom court to secure a stay on asset seizures of up to $9 billion related to the case against an Irish firm, Process, and Industrial Development (P&ID), has not been paid.

P&ID, a firm based in the British Virgin Islands, won a $6.6 billion arbitration award against the Nigerian government after the 2010 gas project collapsed.

The award accrued interest since 2013 and is now worth more than $9 billion.

According to the Attorney General of the Federation and Minister of Justice, Abubakar Malami, who spoke on Channels Television’s Sunday Politics, the Federal Government has filed an application for the variation of the order by a high court in London.

He maintained that the ruling which would have converted the arbitration award and see P&ID seize the government assets has been appealed, including the ruling for conditional lodgement of the said amount.

“Nigeria has not paid and we filed an application for the variation of the order to allow us perhaps to consider the possibility of posting a bank guarantee against posting cash deposit.

“The order for the deposit for such amount of money and the appeal component is being considered at the superior court of record, but one thing I want to place on record is that Nigeria has not paid the amount in contention and has challenged the order as it relates to the posting of cash deposits,” Mr. Malami stated.

RELATED: P&ID Case: Investigation Shows That $301m Was Used For Under-Hand Dealings – Malami

The Justice Minister also stressed that the Federal Government has succeeded in putting up a case that the conditional lodgement of such amount should now be reviewed, a move he said, is being considered at the appellate level.

Stressing further, Mr Malami gave insight on what the Federal Government has done to ensure that such errors are not committed in subsequent deals.

Mr Malami said that a repeat of that will not occur in the Buhari-led Federal Government, as moves to tighten the processes have been developed and will be implemented henceforth.

“The first thing that has been done is to ensure that there are consequences for wrongdoing and those elements in respect of which investigations have been concluded, were charged, arraigned before the court and convicted.

“As well, we have taken steps to tighten our processes with particular reference to ensuring that things are done rightly; if a company is coming to establish a project in Nigeria, relevant associated permits and approvals must be obtained.

“If certain structures are being placed, there must be evidence of land acquisition, if an agreement is needed involving the government and its interest, that agreement must be allowed to pass through the process of vetting in the office of the Attorney General by the relevant departments and then if indeed the draft agreement is okayed, it has to pass through the Federal Executive Council for consideration, deliberation, and eventual approval before committing the government in the process,” the justice minister added.

The AGF also clarified that the Federal Government has secured a three-leg victory in the P&ID case and there is no iota of truth that the moves in response to overturn the judgment are slow.

Nigeria on September 3, secured a landmark victory in its pursuit to overturn a $10 billion judgment awarded against it in a case against P&ID in a failed gas deal in 2010.

P&ID Case: Investigation Shows That $301m Was Used For Under-Hand Dealings – Malami

 

The Attorney-General of the Federation and Minister of Justice, Abubakar Malami, has said that ongoing investigation has revealed that about $301 million was given as under-hand dealings to some persons in a bid to hide the illegality of the Process and Industrial Developments (P&ID) gas supply and processing deal.

The Federal Government, during the administration of Late President Umaru Yar’adua in 2010, signed a contract with P&ID to build a gas supply and processing plant in Calabar, Cross River State capital, a contract the President Muhammadu Buhari government has said is a result of fraud and corruption.

Speaking on Channels Television’s Sunday Politics, Mr Malami stated that the latest ruling of a court in the United Kingdom, overturning a $10 billion judgement awarded against it, is a result of the progress made from the investigation.

Mr Malami stated that some principal characters that were investigated have been arraigned and there have been certain convictions recorded.

He added that within the government employ, some retired staff have been alleged to benefit from the deal and the investigation will reveal their level of involvement.

“As much as I wouldn’t want to be pre-emptive, the fact still remains that at the local level, some of the principal characters were being investigated, and some were not only investigated but were arraigned and then there were certain convictions recorded.

“Within the official cycles of government, some have retired, and they are being alleged to have been involved in under-hand dealing as it relates to within the region of $301 million.

“The investigation has re-affirmed the fact that there were certain under-hand dealings to the tune of $301 million,” Mr Malami stressed.

READ ALSO: Rivers Govt Warns Organised Labour Against Disobeying Court Order

The Justice Minister added that the Federal Government is still carrying out more investigations beyond the shores of the country because further findings show that the contract which was signed in 2010, did not follow due diligence.

“There were arraignments, there were convictions and indeed, monies were established to change hands as a basis for inducement that eventually resulted into compromises on processes, compromises on the procedure and then, failure on the part of the officials of government to do the needful in terms of ensuring that the interest of the nation is protected.

“The due diligence relating to P&ID was not adequately undertaken as at the time of signing the agreement, but arising from the investigation, we have taken time to conduct and expand our investigative capacity to other jurisdiction inclusive of the US and there is nothing establishing greater financial strength capacity on the part of P&ID right from the onset either in Nigeria and the Virgin Island.”

Giving a further breakdown of the contract, Mr Malami maintained that the agreement was not allowed to pass through the office of the Attorney General, while associated approvals and permits were not obtained from the Federal Executive Council and the Department of Petroleum Resources.

He stated that the arbitral proceeding claiming that Nigeria should pay P&ID $6.6 billion as damages, as well as pre- and post-judgment interest at 7 percent, amounting to $9.6b judgment plus interest, is a result of fraud and corruption.

P&ID Case: UK Court Verdict, Victory For Magu – Wahab Shittu

Ibrahim Magu, EFCC Chairman, Senate
Suspended Acting EFCC chairman, Mr Ibrahim Magu (file photo)

 

Wahab Shittu, the lawyer to the suspended Acting Chairman of the Economic and Financial Crimes Commission (EFCC), Mr Ibrahim Magu, has described the UK court’s verdict in the case against Process and Industrial Developments (P&ID) as a victory for his client.

In a statement issued over the weekend, Shittu said the court’s decision showed the result of a detailed and thorough investigation done by the EFCC led by Mr Magu.

“It is a monumental landmark achievement occasioned by Magu’s hard work and leadership style.

“The judgment has indeed greatly relieved the country from the impending and disastrous effect that the execution of the $9.6b judgment plus interest, would have had on our fragile economy,” he said.

Shittu further stated that the decision shows that “rather than punish Mr Magu over his handling of the investigation, he should be given a heroic commendation for saving the country in a huge way”.

According to him, Magu should be celebrated rather than being vilified. “It is rather unfortunate that the handling of P&ID investigation forms part of the allegations against him which led to his suspension,” he added.

On January 31, 2017, a tribunal had ruled that Nigeria should pay P&ID $6.6 billion as damages, as well as pre- and post-judgment interest at 7 per cent.

Subsequently, the Federal Government approached the court to establish that the contract was awarded on illegal terms.

Read Also: Nigeria Secures Landmark Victory In Bid To Overturn P&ID Ruling

The country has continued to make moves to overturn the judgement and has gotten court clearance to request documents from a P&ID stakeholder and review bank statements of ex-president Goodluck Jonathan, as well as that of former petroleum ministers, Diezani Alison-Madueke and Rilwanu Lukman.

The Economic and Financial Crimes Commission (EFCC), on August 18, arraigned James Nolan, a Briton, and six companies over their alleged involvement in the contract.

On September 3, Nigeria secured a landmark victory after Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted its application for an extension of time and relief from sanctions.

Read the full statement from Magu’s lawyer below.

P&ID saga: UK court verdict, victory for Magu – Wahab Shittu

Yesterday’s decision of the English court again shows the result of a detailed and thorough investigation done by the EFCC led by Mr. Magu.

It is a monumental landmark achievement occasioned by Magu’s hard work and leadership style. The judgment has indeed greatly relieved the country from the impending and disastrous effect that the execution of the $9.6b judgment plus interest would have had on our fragile economy.

The decision once more shows that rather than punish Mr Magu over his handling of the investigation, he should be given a heroic commendation for saving the country in a huge way. Magu should be celebrated rather than being vilified. It is rather unfortunate that the handling of the P&ID investigation forms part of the allegations against him. Magu which led to his suspension.

There is no gainsaying that the evidence relied on in arriving at the decision came from the EFCC under Mr. Magu. The English Judge was very satisfied with the way and manner the EFCC carried out its investigation when he held at paragraphs 253 and 254 of the judgment: “what occurred might have been the EFCC proceeding at its normal pace in the light of the resources allocated to it, the other inquiries it was conducting and conditions in Nigeria. By comparison, the position after August 2019 might be exceptional and prompted by the serious position Nigeria faced in the light of Butchers J’s decision on the enforcement application.

At this point, it is impossible to say. However, I cannot accept Mr. Mill’s (P&ID’s counsel) submission that there was no proper diligent investigation. The basic point is that there was no specific information such that Nigeria ought to have become aware of the building blocks of fraud now alleged.” Furthermore, the Judge observed in paragraph 251 that ” In my view, Mr Mill underplayed the work which was undertaken over the June 2018- August 2019period. In particular, there was the successful prosecution of P& ID and P& ID Nigeria on 19 September 2019 based on the groundwork undertaken during this fifteen-month period”.

Still underscoring the commendable work by the EFCC, the Judge concluded at page 260 that: ” …the fraud is complex in character and continuing.

Even on my preliminary examination, it comprises a number of quite different strands. What occurred, in this case, was deliberately concealed. Especially with international advisers it engaged, P& ID wore the cloak of legitimacy. In the circumstances which Nigeria has prima facie established it acted reasonably in its investigations…”

The public does not know that while this investigation was ongoing, the investigators and prosecutors including Magu used to close from work at 1am, 2am and resume by 8am including Saturdays and Sundays. Unfortunately, some of these men are currently on suspension without pay or transferred out of EFCC for doing nothing but working assiduously to save this country. They were not given any allegation or issued query.

Contrariwise, the investigation against Mr. Magu and the EFCC would have caused the country to lose the judgment. This is because P&ID used the petition by the AGF against Mr. Magu to strengthen their case with Nigeria. Luckily, we have an upright English Judge who prudently appreciated the excellent and patriotic effort of the EFCC under Magu and the ineffectiveness of the AGF’s complaint.

P&ID Case: Agbakoba Asks Malami To Consider Review Of Arbitration Legal Framework

A photo combination of Mr Olisa Agbakoba and Mr Abubakar Malami.

 

The Vice President of the Nigeria Institute of Arbitration, Olisa Agbakoba, has called for the emplacement of a national arbitration policy and a transformational review of the legal framework relating to arbitration in the country.

He made the call in a statement on Friday while reacting to the judgement of a court in the United Kingdom on the case involving the Process and Industrial Developments (P&ID).

Agbakoba specifically made the recommendation to the Minister of Justice and Attorney-General of the Federation (AGF), Abubakar Malami.

This comes after Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted Nigeria’s application for an extension of time and relief from sanctions, in the nation’s bid to overturn a $10 billion judgement awarded against it.

Agbakoba, who is a Senior Advocate of Nigeria (SAN) and a former President of Nigerian Bar Association (NBA), believes this will prevent the question of reference to foreign arbitration in cases where all the connecting factors are Nigerian – such as the P&ID case.

He commended the judgement of the UK court which he said has prevented Nigeria from paying $10 billion out of its lean purse to essentially crooked Irish persons.

President Muhammadu Buhari inaugurated party consultative committee on August 31, 2020.
President Muhammadu Buhari inaugurated party consultative committee on August 31, 2020.

 

According to the SAN, the Muhammadu Buhari administration deserves to be applauded for a well-fought legal battle.

He added that it was commendable that the country successfully persuaded the judge that English public policy would oppose the unwitting use of the English courts as an engine of fraud, merely because Nigeria failed to challenge the award in good time.

Read the full statement by the former NBA president below:

PRESS RELEASE!

The decision by Sir Ross Cranston, sitting as a Judge of the Queen’s Bench Division of the High court of England, on section 66/ 67 application by Nigeria for extension of time to challenge the Arbitral award in favour of Process and industrial development, is welcome news for us all, otherwise, Nigeria would pay 10 billion dollars out of its lean purse to essentially crooked Irish persons.

The story of the massive fraud on Nigeria by these Irish does not need repeat. What is so tragic is the collusion by an entire Government supporting, wittingly or not, what transpired.

The Government of President Buhari deserves full marks for a well-fought legal battle, at least to this stage to persuade the English Judge, that even though Nigeria was well out of time to challenge the award, that on the basis of massive fraud in which the conduct of Nigeria’s counsel at Arbitration, was in issue, Nigeria successfully persuaded the Judge that English public policy would oppose the unwitting use of the English courts as an engine of fraud, merely because Nigeria failed to challenge the Award in good time.

The English Judge had no difficulty to declare that as a result of fraud by Process and Industrial, that Nigeria will be allowed time to prove it.

This sets the path for a potential overturn of the fraudulent award in the English courts.

As I salute Abubakar Malami SAN, learned Attorney-General of the Federation, I will invite him to consider the emplacement of a National Arbitration policy and a transformational review of the legal framework relating to Arbitration, so that in cases, such as this, where all the connecting factors are Nigerian, there will no question of reference to foreign Arbitration.

Olisa Agbakoba SAN

Vice President, Nigeria Institute of Arbitration.

P&ID Deal: UK Court Ruling, A Source Of Huge Satisfaction – Presidency

Garba Shehu
A file photo of Mr Garba Shehu.

 

The Presidency has lauded the judgement of a court in the United Kingdom on the case involving the Process and Industrial Developments (P&ID).

In a statement on Friday, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu, described the ruling as right and just.

According to the presidential aide, the Presidency welcomes the judgment granting Nigeria’s application for an extension of time and relief from sanctions in the $10 billion arbitration case with the company.

He added that the judgment provided a strong prima facie case that the fraudulent gas deal with P&ID and the subsequent judgement debt of $10 billion against Nigeria was a clear attempt to cheat the country of billions of dollars by a company that had not invested one naira in it.

“On the arbitration award, it is a source of huge satisfaction that the UK Court, among others, had ruled that: ‘Nigeria has established a strong prima facie case that the Gas Supply and Processing (GSPA) was procured by bribes paid to insiders as part of a larger scheme to defraud Nigeria.

“There is also a strong prima facie case that that (P&ID) main witness in the arbitration, Mr Quinn, gave a perjured evidence to the Tribunal, and that contrary to that evidence, P&ID was not in the position to perform the contract,” the statement said.

Shehu noted that the Presidency was delighted with the processes that led to the ruling of the English court, stressing that it has given relief to the Nigerian Government to further protect its national assets from criminally minded organisations and individuals.

The views of the UK court, he stated, provided sufficient grounds for the Federal Government to go ahead and challenge the frauds perpetrated by the company and overturn the arbitration award.

In his reaction, President Muhammadu Buhari commended the team of lawyers who represented Nigeria in the matter with P&ID.

He also reassured Nigerians and the international community of his unwavering commitment to fighting corruption in all its forms and manifestation.

Nigeria Is Pleased With Court Ruling On P&ID Case – FG

A file photo of the Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami.

 

The Nigeria Government says it is pleased with the ruling of a court in the United Kingdom on the case involving the Process and Industrial Developments (P&ID).

The government’s reaction was contained in a statement on Friday by Dr Umar Jibrilu Gwandu, the Special Assistant on Media and Public Relations, Office of the Attorney-General of the Federation and Minister of Justice.

This comes after Ross Cranston, a judge of the Business and Property Courts of England and Wales, granted Nigeria’s application for an extension of time and relief from sanctions, in the nation’s bid to overturn a $10 billion judgement awarded against it.

“This is a major victory in our ongoing fight against the vulture-fund-backed P&ID, to overturn the injustice of the multi-billion-dollar arbitral award,” the statement said.

It added, “In light of the new and substantive evidence presented regarding P&ID’s fraudulent and corrupt activities, the court has granted our application for an extension of time to hear our challenge out of normal time limits.”

The court, according to the statement, has allowed the government to bring its challenge well outside the normal time limits, due to the exceptional circumstances where Nigeria has uncovered evidence of massive fraud in procuring the award.

It noted that the court heard evidence from Nigeria and the offshore shell company P&ID in relation to the Gas Supply and Processing Agreement (GSPA), which the parties entered into 10 years ago but was said to have been never performed.

The statement noted that the Muhammadu Buhari administration inherited the dispute from the previous administration and only recently uncovered evidence that the GSPA was “a sham commercial deal designed to fail from the start, and that its subsequent arbitral award was based on fraud and corruption”.

It said Nigeria relied on several ongoing investigations across multiple jurisdictions, including the United States, to build its case while new evidence was presented during Friday’s hearing to further support the nation’s challenge.

Following the ruling of the court, the government said it would proceed to a full trial of the issues, where Nigeria’s substantive application to finally set aside the award would be heard.

It insisted that it was confident of recording a major success in the case, considering that Nigeria’s exceptional circumstances application, to have its challenge taken well outside the normal time limits was upheld on account of uncovered evidence of massive fraud in procuring the award.

“The Federal Government will now proceed to a full hearing of our fraud challenge in the coming months.

“Investigations into the GSPA are ongoing, and we are firmly committed to overturning the award – no matter how long it takes – to ensure that this money goes towards Nigeria’s future, not into the pockets of millionaires trying to exploit our country,” the statement added.

P&ID Bribed Officials To Secure Contract – FG

Man Bags 15 Years In Prison For N5.2m Fraud

 

 

The Federal Government has told a British Court that it has uncovered previously unknown payments to the daughter of a Nigerian official in its latest attempt to overturn an arbitration award against it, worth close to $10 billion.

Process & Industrial Developments (P&ID), a firm set up to carry out a gas project in Nigeria, won a $6.6 billion arbitration award after the 2010 deal collapsed.

The award has been accruing interest since 2013 and is now worth nearly $10 billion but Nigeria is seeking permission in the English courts to appeal the award, granted in 2017, despite having missed the 28-day appeal deadline.

It says new information came to light only in late 2019.

In an online court hearing, the government’s lawyer said it has evidence of payments from companies related to P&ID to Vera Taiga, 11 days before the deal was signed.

Vera’s mother, Grace Taiga, was the chief lawyer for the Petroleum Ministry at the time.

The government said one payment of $4,969.50 was made on December 30, 2009, and a second of $5,000 on January 31, 2012.

It also says the payments came to light following a U.S. discovery order in New York.

The government also said P&ID officials and companies linked to it paid several other officials in relation to the deal.

The EFCC had charged Grace Taiga last year with accepting bribes and failing to follow protocol related to the contract.

She has pleaded not guilty and awaits trial.

P&ID: VR Advisory Services Moves To Stop Questioning By Nigeria

Man Bags 15 Years In Prison For N5.2m Fraud
File photos.

 

One of the shareholders in Process & Industrial Development (P&ID), the company locked in a legal battle with Nigeria over a failed gas contract, has asked an American court to revoke the summons served it to answer questions on the $9billion compensation awarded P&ID over the failed project.

VR Advisory Services, an asset manager registered in Cayman Islands, is said to possess 25 per cent stake in the capital of P&ID and is trying to avoid being questioned by Nigeria’s Attorney General and Minister of Justice, Abubakar Malami.

Nigeria had on May 14 secured the right to summon VR and its subsidiaries to appear in court to provide documents concerning its acquisition of P&ID stock.

An arbitration court in London had awarded $9 billion to P&ID as compensation for the failed contract to build the gas facility in Cross River State.

But Nigeria is questioning the authenticity of the failed project, which it insists was a fraud organised with the collaboration of some past Nigerian government officials.

In moving to stop the summons, VR Advisory Group held that Nigeria could make use of the American-Nigerian mutual legal assistance treaty and not ask the American judiciary for access to confidential information.

The company is said to be run by London businessman, Richard Dietz and Americans, Jeffrey Johnson and Ashok Raju who are expected to reply to Malami’s questions and supply the requisite documents.

P&ID: UK Court Sets Timeline For Hearing Of Nigeria’s Application

Bauchi Assembly Crisis: Court Orders Parties To Maintain Status Quo
A file photo of a court gavel.

 

The Nigerian Government on Friday sent a representative to the United Kingdom High Court for a scheduled Case Management Conference (CMC).

The conference was held for the court to decide procedural issues relating to the government’s application to set aside the arbitral award on the basis that it was procured by fraud and corruption.

The spokesman for the office of the Attorney-General of the Federation (AGF) and Minister of Justice, Dr Umar Gwandu, confirmed this in a statement.

According to him, the court has fixed a timetable for a hearing to decide if the Nigerian government’s application can be brought outside the normal time limits.

“This is another positive milestone in the Federation’s fight to overturn this award.

“Based on new and credible evidence discovered by the Economic and Financial Crimes Commission (EFCC), it is increasingly clear that P&ID’s ‘contract’ was a highly orchestrated scam, involving a cover-up by ministers at the highest levels of office in the previous administration,” the statement said.

These officials, Gwandu said, were entrusted to safeguard the future and assets of the country.

Rather, he alleged that they knowingly entered into the ‘sham GSPA’ and deliberately failed to defend Nigeria in the ensuing arbitral proceedings.

The spokesman for the office of the AGF insisted that P&ID has said nothing to rebut the allegations of fraud.

“These issues will now be before the court to consider in relation to the Federation’s challenge to this award.

“P&ID has 28 days to respond to the application for the extension of the time to challenge the arbitral award. Thereafter, the court will set a date for the hearing of the application,” the statement added.

P&ID Case: Nigerian Govt Guarantees $200m Bond To UK Court

A file photo of Attorney General of the Federation and Minister of Justice, Abubakar Malami,

 

 

The Nigerian government says it has provided a bank guarantee of $200 million to a court in the United Kingdom.

This is part of its efforts to overturn the $9.2 billion judgement debt delivered against it by a British court in favour of an Irish firm, Process and Industrial Development (P&ID), which the government says is a result of fraud and corruption.

According to the Attorney General of the Federation and Minister of Justice, Abubakar Malami, in a statement on Thursday, the development is a positive step for Nigeria to set aside the judgement.

In pursuit of this, the Federal Government has also provided a bank guarantee of $200 million to the UK court, following the court’s acceptance of a request from Nigeria for a stay of execution of the $9.2 billion judgement debt.

In a statement confirming the provision of the bond, the Attorney General of the Federation and Minister of Justice, Abubakar Malami, said that the government does not plan to forfeit the guaranteed sum to the court in the UK.

Malami also reiterated the point raised by the Nigerian government that the contract was fictitious.

P&ID had earlier approached a UK court to seek compensation for an aborted contract it signed with the government during the administration of Late President Umaru Yar’adua in 2010, to build a gas supply and processing plant in Calabar, Cross River State capital.