…Tinubu aplauds judgment, We’ve been vindicated–AGF
From Godwin Tsa, and Julia Taiwo Obalonye, Abuja
The Federal Government of Nigeria yesterday,won its case against the Process and Industrial Developments Company, (P&ID) in a Business and Property Court in London presided over by Justice Robin Knowles of the Commercial Courts of England and Wales.
In the case marked CL-2019-000752, the Federal Government sought to overturn $6.6bn arbitration award in favour of P&ID in 2017. The award has continued to accrue interest since then which has now brought the current total before yesterday’s judgment to approximately $11 billion.
In the same ruling, the court declared that it did not find any merit in the charges of bribery levelled against Mr. Olasupo Shasore (SAN), a former Attorney-General of Lagos State, who was representing Nigeria in the arbitration.
The dispute dates to 2010 when P&ID Limited entered into a gas supply and processing agreement with Nigeria, with plans to establish an Accelerated Gas Development project in Cross River State. The project never materialized, and P&ID subsequently accused Nigeria of breaching the contract terms. P&ID claimed Nigeria violated terms of its agreement by failing to provide gas for the power plant it wants to build for the country. In 2015, P&ID won a judgment for a $10 billion compensation.
This frustrated the construction of the Gas Project agreed to during the government of former president Umaru Yar’Adua and deprived P&ID the potential benefits expected from 20 years’ worth of gas supplies with “anticipated profits of $5 to $6 billion.”
The arbitral tribunal unanimously decided that the Federal Government had repudiated the GSPA by failure to perform its obligations under the GSPA and awarded P&ID was entitled to $6.6 billion in 2017. That fine along with interest has now risen to $11.5billion.
Former president Goodluck Jonathan government reached an out-of-tribunal agreement for the payment of $850 million and passed on disbursement to the administration of President Buhari.
Buhari refused to pay the negotiated sum, set aside the settlement agreement and challenged the enforcement of the award before the English Commercial Court. But the London court added $2.4 billion in interest making it $9bn.
Finally, yesterday, Judge Knowles ruled that the award was obtained by fraud and what has happened in the case is contrary to public policy.
Mr. Shasore had been accused of obstructing Nigeria’s legal proceedings against the British Virgin Islands-based company.
Mr. Shasore faced allegations of negligence and inadequate due diligence in handling the case, with claims that he had inadequately defended Nigeria’s interests. In his defense, Shasore maintained that he had done everything within his power to secure the best outcome for the country. It is worth noting that the same government that accused him of not serving the national interest awarded him another arbitration contract on July 12, 2019.
Justice Knowles, in his verdict, stated, “As far as I am aware, Mr. Shasore SAN has not, in my judgment, been shown to be corrupt. His actions are inconsistent with Nigeria’s theory that he was.”
“I add that in my view, Nigeria (and specifically Mr Malami SAN, the Attorney General)did not in truth believe Mr Shasore SAN was corrupt. On 21 November 2017 Mr Shasore SAN, was engaged by Nigeria to represent the Ministry of Power in a $2.4bn arbitration claim by Sunrise Power and Transmission Co. His appointment was approved by Mr Malami SAN, on 6 March 2018 and formally confirmed by Mr Malami SAN ,on 18 March 2018,” he said.
The judge cited several reasons for his decision, highlighting Mr. Shasore’s sound advice to Nigeria to investigate and obtain expert evidence, his assistance in succeeding in Nigerian court applications, his contribution to reducing settlement figures, and his vigorous challenges against P&ID during the liability hearing.
Meanwhile, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, has expressed the Federal Government’s satisfaction, over the judgment, describing it as a triumph against corruption and predatory international investors.
The AGF, who took a break from the Federal Executive Council meeting presided over by President Bola Tinubu, briefed State House Correspondents at the Presidential Villa, saying that P&ID and several of its agents had approached the Nigerian government for an out-of-court settlement last week.
He said: “The judgement also serves as a damning indictment of predatory international investors, who should now rightfully be deterred from prying upon Nigeria and other developing nations to satisfy their greed.
“P&ID and its associates, both Nigeria and the world over, shamelessly attempted to defraud the country and enrich themselves through sharing the Federal Republic of Nigeria’s privileged document, fraud, bribery and corruption on an industrial scale. Those efforts, which took place over many years have now finally been uncovered for all of us to see.
“It is imperative to point out that several agents of P&ID made overtures even as at last week to the Federal Republic of Nigeria for settlement on this case, however, the resolve of the administration of President Bola Ahmed Tinubu not to go hand in gloves with fraudulent counterparties or condone corruption informed the position of the Federal Republic of Nigeria to hold fast to its position, not to settle.
“Indeed, earlier this morning (Monday), the President at the opening ceremony of Nigeria Economic Summit Group retreated this Cardinal position of his administration. History has been made today, as this judgment is no doubt significant in the annals of Nigeria and indeed Africa. This judgment has vindicated the government and should serve as a pointer to others who might be nursing or nurturing the plan to swindle the country.”
The AGF credited the success of the judgement to the close collaboration between various government agencies.
“The success recorded was as a result of a close inter agency collaboration of the federal government team comprising of Honourable Attorney General of the Federation, Federal Ministry of Justice, Economic and Financial Crimes Commission otherwise known as EFCC. The Nigerian police force, Central Bank of Nigeria, Ministry of petroleum resources, the Nigerian National Petroleum Company Limited (NNPCL), Department of State Security Service (DSS) and the Nigerian Financial Intelligence Unit otherwise known as NFIU.”
Fagbemi said further hearings in the United Kingdom court will determine the costs to be paid by P&ID and other involved parties.
“There will be further hearing by the United Kingdom court on the heels of this judgment to determine costs payable by P&ID and others in the matter”, he said.
In another development, President Bola Tinubu has applauded the judgment saying that it was a landmark victory to Nigeria.
In a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale, he said that the President commended the UK Court
“This landmark judgment proves conclusively that nation states will no longer be held hostage by economic conspiracies between private firms and solitarily corrupt officials who conspire to extort and indebt the very nations they swear to defend and protect.
“Today’s victory is not for Nigeria alone. It is a victory for our long exploited continent and for the developing world at large, which has for too long been on the receiving end of unjust economic malpractice and overt exploitation.
“Nigeria is appreciative of the tremendous efforts of the defense team and acknowledges the role of the Federal Ministry of Justice and the Office of the Attorney-General in the process of defending Nigeria’s interest in this case,” he stated.
On his own, the Presidential Candidate of the Social Democratic Party (SDP) in 2023 general election, Prince Adewole Adebayo has described the judgment as a well-deserved justice.
Adebayo reacting on his Xhandle stated,“I heartily congratulate Nigerians, the Federal Government and @officialEFCCon the well-deserved justice in the Nigeria vs P&ID case which would have robbed poor Nigerians of US$11bn we don’t have to pay foreign fraudsters who neither need nor deserve it.”