The Federal Government yesterday applauded the judgement by the Commercial Courts of England and Wales, halting the enforcement of the $11bn arbitration award in favour of Process & Industrial Developments (P&ID).
In the controversial deal, Nigeria claimed the collapsed gas processing project was procured by a campaign of bribery and fraud.
In a judgement yesterday, the UK court upheld Nigeria’s prayer on the ground that the ill-fated gas processing contract was obtained by fraud.
The P&ID controversy dates back to January 2010 when the company signed a gas supply and processing agreement with the Ministry of Petroleum Resources on behalf of the Federal Government.
P&ID was awarded a 20-year contract to construct and operate a gas processing plant.
Upon the failure of the deal, the little-known British Virgin Islands-based company took Nigeria to arbitration.
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•FG describes verdict as victory over corruption, indictment of predatory international investors
Reacting to the court judgement while briefing newsmen in the mid of the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the State House, Abuja, Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, expressed government’s satisfaction with the verdict, describing the judgment as a triumph over corruption and predatory international investors.
He credited the court victory to the close collaboration between various government agencies including the Federal Ministry of Justice, Economic and Financial Crimes Commission, Nigeria Police Force, Central Bank of Nigeria, Ministry of Petroleum Resources, the Nigerian National Petroleum Company Limited, Department of State Security Service and the Nigerian Financial Intelligence Unit.
•Reveals P&ID last week approached govt for out-of-court settlement
According to him, associates of P&ID had last week approached the Nigerian government for an out-of-court settlement.
Fagbemi said further hearings in the United Kingdom court will determine the costs to be paid by P&ID and other involved parties.
The Justice Minister stated, inter alia, at the press briefing, “Let me start by making a speech introduction. As you may all be aware by now, the Honourable Justice Robbin St. John Knowles of the United Kingdom commercial court today, handed down a historic judgment, in the suit, where the Federal Republic of Nigeria otherwise known as FRN, moved to set aside the arbitral award of $9.6 billion but which has now accrued interests come to $11bn, made against Nigeria in 2017 in favour of P& ID for an alleged breach of a gas supply and processing agreement, purportedly entered into with the Ministry of petroleum resources to establish a gas processing plant in Calabar for which P&ID never secured any land sight.
“The arbitral award had over the years, played the assets of the Federal Republic of Nigeria and those of its agencies all over the world, at the risk of attachment, erosion of foreign reserves and distortion of monetary, fiscal and other policies of government with attended dire consequences for Nigeria and its people. These emphasized the need for the FRN to vigorously challenge and resist the enforcement of the award by P&ID.
“The High Court has today ruled that the Federal Republic of Nigeria’s challenge to the arbitration award granted against it, to an obscure hedged fund back VVI shell entity process an industrial development limited in 2017 has been successful.
“The judgement handed down today found that the award had been obtained by fraud and in a way which goes contrary to public policy. In particular, the judge concluded that P&ID obtained the award only by practicing the most severe abuses of the arbitral process. It has been a night of long nights indeed.
“The success marks the culmination of a decade of legal action and is not just a victory for the poor of Nigeria but any similar target of corruption and fraud.
“In the words of the lead counsel to Nigeria, Mark Orwell Casey, which the High Court in England endorsed “P&ID was exactly the type of entity that was prepared to engage in bribery to achieve its aim to undermine the administration of justice in Nigeria, in the pursuit of riches young dreams of avarice.
“This successful result is a decisive victory for the people of Nigeria, who stood to lose over $11bn, and for the Nigeria administration, which has now reached a milestone in its mission to challenge the scourge of corruption.
“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 in Nigeria and the world over, shamelessly attempted to defraud the country and enrich themselves through sharing the Federal Republic of Nigeria’s privileged documents, 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 of 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, 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 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, the Central Bank of Nigeria, the Ministry of Petroleum Resources, the Nigerian National Petroleum Company Limited, NNPCL, the Department of State Security Service (DSS) and the Nigerian Financial Intelligence Unit otherwise known as NFIU.
“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. Thank you very much.”
