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Tag: P&ID

  • Judgement by UK Court on P&ID, protected Nigeria’s asset from criminals – Presidency

    Judgement by UK Court on P&ID, protected Nigeria’s asset from criminals – Presidency

    The Presidency has described the judgment by the United Kingdom Court granting Nigeria’s application for an extension of time and relief from sanctions in a $10 billion arbitration case with Process and Industrious Development Limited (P&ID) in Nigeria as just and fair.

    In a statement by Senior Special Assistant to the President on Media and Publicity, Garba Shehu, the Presidency expressed delight with the processes that led to the outcome in the English Court, noting that it has given relief to the Nigerian government to further protect the country’s national assets from criminally-minded organisations and individuals.

    The statement read: “In our view, the judgment is right, just and provides a strong prima facie case that the fraudulent gas deal with P&ID and the subsequent judgment 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 our country.

    “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 Presidency expressed delight with the processes that led to this outcome in the English Court, noting that it has given relief to the Nigerian government to further protect our national assets from criminally-minded organisations and individuals.

    “The views of the UK court thus provide sufficient grounds for the Federal Government to go ahead and challenge the frauds perpetrated by the company and overturn the arbitration award.

    “President Muhammadu Buhari therefore commends the team of lawyers who represented Nigeria in the matter with P&ID, and reassures all well-meaning Nigerians and the international community of his unwavering commitment to fight corruption in all its forms and manifestation.”

  • Nigeria secures landmark victory in P&ID contract suit – Malami

    Nigeria secures landmark victory in P&ID contract suit – Malami

    The Federal Government has secured a landmark victory in its pursuit to overturn a 10 billion dollar judgment awarded against it in a case against Process and Industrial Developments (P&ID).

    The Attorney-General and Minister of Justice, Abubakar Malami, in a statement in Abuja on Friday, said the court has granted Nigeria’s application for an extension of time and relief from sanctions due to the exceptional circumstances where the government has uncovered evidence of massive fraud in procuring the award.

    Malami said the Court heard evidence from the government and the offshore shell company P&ID in relation to the gas supply and processing agreement (GSPA).

    This agreement was entered into by the parties 10 years ago and which was never performed.

    He said the Buhari-led administration, having inherited the dispute from the previous administration, only recently uncovered evidence that the GSPA was a sham commercial deal.

    This was designed to fail from the start, and that its subsequent arbitral award was based on fraud and corruption.

    He said the government relied on a number of ongoing investigations across multiple jurisdictions, including the U.., to build its case.

    He said that the government would proceed to a full trial of the issues, where government’s substantive application to finally set aside the award would be
    heard.

    He added that the government of Nigeria was pleased with the outcome from the
    High Court hearing.

    “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.

    “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 Federal Government will now proceed to a full hearing of our fraud
    challenge in the coming months,” he said.

  • US court grants Nigeria access to key documents in $9 billion P&ID case

    US court grants Nigeria access to key documents in $9 billion P&ID case

    A US court has granted Nigeria access to key documents in the $9 billion case with Process & Industrial Developments (P&ID), which agreed to build a gas-processing plant in the country.

    TheNewsGuru.com (TNG) reports Judge Lorna Schofield, who presided over the sitting, granted Nigeria the access on Thursday, while noting that P&ID has an undisputed interest in subpoenaed information.

    Recall that Nigeria had through the Attorney General of the Federation and Minister of Justice, Mr. Abubakar Malami filed an ex-parte application seeking to subpoena 10 different banks for “all documents concerning any transaction” relating to the P&ID case.

    The US District Court for the Southern District of New York granted Nigeria’s application to request from 10 US banks documents that may incriminate officials of P&ID.

    In the ex-parte application filed by Malami, Nigeria seeks subpoenas of 10 different banks for “all documents concerning any transaction,” dating back 11 years, involving 60 individuals and corporate entities to enable it substantiate allegations of crimes and financial impropriety.

    However, P&ID filed a response to the application as an interested person but did not oppose Nigeria’s application.

    P&ID only urged that, if the court grants the application, Nigeria should be required to promptly provide P&ID’s counsel with copies of all documents produced, and with the opportunity to attend all depositions conducted, pursuant to the subpoenas.

    The firm founded by two Irish men described Nigeria’s application as “a desperate attempt to substantiate her spurious allegations of a fraud supposedly ‘carried out’ by P&ID.”

    “If the court grants Nigeria’s application, the court should ensure P&ID’s access to any resulting discovery from the third-party subpoena recipients, consistent with Federal Rule of Civil Procedure 45 and this court’s precedent.

    “If Nigeria serves the subpoenas, all discovery should be shared with P&ID. P&ID does not expect Nigeria’s discovery efforts to turn up evidence of fraud by P&ID – because there was no fraud – but P&ID wants to make sure that Nigeria does not mischaracterise any evidence obtained by, for example, selectively disclosing bank transfers in other court proceedings to try to make them appear suspicious,” P&ID stated in its response to the application.

    Meanwhile, reacting to the court’s decision, P&ID said, “We are pleased with the U.S. court’s decision to grant P&ID discovery as part of Nigeria’s 1782 application. Nigeria’s desperate plea to keep the results of its fishing expedition hidden was rejected by the U.S. court. As a result, AG Malami will not be able to selectively and misleadingly use this discovery in the English courts as part of its baseless fraud case to avoid paying P&ID.”

    It also said that by the ruling, the court had rejected Nigeria’s attempt to keep P&ID in the dark about the discovery it sought.

    Despite Nigeria’s submissions to the contrary, the court ordered Nigeria to give P&ID access to any documents it received and to any depositions conducted.

    The court noted, “P&ID has an undisputed interest in the subpoenaed information as applicant states that its investigations and criminal proceedings relate to P&ID, and the requested material relates to P&ID as well.”

    Nigeria was also ordered to meet and confer with the “interested parties as is necessary.”

    Nigeria and P&ID are locked in legal battles over a gas supply and process agreement entered with the Irish firm. A London commercial court had entered a $9.6 billion award against Nigeria.

    Nigeria is making frantic efforts to set aside the judgement and had launched criminal investigations against the company and its officials.

  • P&ID scam: Absence of ex-director Petroleum Resources stalls trial

    P&ID scam: Absence of ex-director Petroleum Resources stalls trial

    The absence of Grace Taiga, former director, Legal Services in the Ministry of Petroleum Resources, who is alleged to be involved in the P&ID multiple fraud, on Tuesday in an FCT High Court in Apo, stalled hearing in the matter.

    Mr Ola Olanipekun, counsel to Taiga, informed the court that the defendant was sick and on admission at the Gwagwalada Specialist Teaching hospital.

    He further informed the court that all efforts made to have the hospital bring her to the court proved abortive as she was not strong enough to be moved.

    Olanipekun then urged the court to adjourn sitting to give the defendant enough time to regain her strength.

    The EFCC Counsel, Mr Bala Sanga, raised no objections to the request of the defense counsel.

    The trial Judge, Justice Olukayode Adeniyi then adjourned the case until Nov. 6 and Nov. 7 for hearing.

    The EFCC arraigned Sept. 27, over her alleged role the fraudulent Gas Supply and Processing Agreement (GSPA) between the Federal Government and P&ID.

    She was also alleged to have used her position to administer undue favours to the company.

    She was arraigned on eight-count amended charges, bordering on accepting bribes and other related crimes.

    The accused pleaded not guilty to all the charges and was granted bail to the sum of N10 Million on Sept. 25.

  • P&ID: How UK judgment saved Nigeria’s assets from seizure – FG

    P&ID: How UK judgment saved Nigeria’s assets from seizure – FG

    The Minister of Information and Culture, Alh. Lai Mohammed has said that the judgment of the United Kingdom’s Commercial Court saved Nigeria’s assets from being seized by an Irish firm, Process and Industrial Developments (P&ID).

    He also said the Federal Government has mandated its lawyers to file an appeal against the court order for a security deposit of $200million to make the stay of execution of the $9.6billion award given to P&ID effective.

    He said contrary to the claims of P&ID, the Federal Government had a good outing in the UK Court.

    The minister made the clarifications at a briefing in Abuja on the outcome of the proceedings in the UK Commercial Court.

    Mohammed said: “Finally, and this is the most important point: For those who may still not understand the gravity of the judgement of the Commercial Court in London last week, let me say this: Had we lost our quest for a stay of execution and application to appeal in London last week, P&ID would by now be attempting to seize our assets all over the world.

    “Remember they boasted, before the judgment, that they have started compiling a list of our assets which they will attach. But now, that’s an empty boast, thanks to the successes recorded in the court of law and the court of public opinion last week.”

    He said Nigeria did not lose out in the UK Commercial Court.

    He added: “Gentlemen, I have gone the extra mile to summarize our week-long activities in London as well as the judgement of the London-based Commercial Court on the arbitration award of 9.6 billion US dollars to P&ID in order to put the record straight and knock the bottom off the argument by P&ID and its cohorts that we did not score a big victory in London last week.
    ” It was indeed a huge victory, and P&ID has every reason to be worried that the 9.6 billion US dollars arbitration award to it has a good chance of being overturned.”

    Details shortly…

  • P&ID: FG commences probe of six fresh suspicious petroleum deals

    Indications emerged on Saturday that the federal government may have commenced probe into six suspicious deals allegedly entered into by the Ministry of Petroleum Resources to avert a repeat of the Process and Industrial Developments (P&ID) saga.

    Recall that Nigeria is currently in court in the United Kingdom (UK) with P&ID to reverse the award of a $9.6billion debt judgement in favour of the Irish firm.

    According to sources, the six suspicious agreements are awaiting arbitration.

    Moments after returning to Nigeria from UK where he was part of the FG team fighting the P&ID debt judgement, Attorney-General of the Federation and Justice Minister Abubakar Malami (SAN), on Saturday gave an insight into how P&ID lost its bid to enforce the payment of the $9.6billion judgment against Nigeria.

    Malami said government was still weighing options on the payment of $200million security deposit as a precondition for a stay of execution of the $9.6billion.

    One of the options borders on whether or not to go to the Court of Appeal to contest the order on the $200million.

    Responding to enquiries on Saturday, Malami described the UK trip as successful.

    He said: “The outing was a sign of success since the legal team was able to convince the court to halt the execution of the judgment (payment of the $9.6 billion to P&ID) and also secure its nod to proceed on appeal against the award.

    “The Commercial court allows a procedure by which a party praying for an order has the order drafted in the terms it requires the court to have it drafted.

    “In this case, the draft prepared by P&ID contains a provision for £250,000 legal cost and the order drafted for leave to enforce the judgment, which was considered by the court was part of it.

    “It is from the drafted order that the order for enforcement of the judgment was considered and refused while the order as to cost, which was incidental order, was not contested.

    “The implication is that the order for cost stands granted while the order for enforcement stands refused and the stay of execution was in effect granted on the terms relating to the payment of security deposit of $200 million.”

    Notwithstanding, Malami said the Federal Government is weighing options on the $200million security deposit demanded by the court as a condition for granting the stay of execution.

    He added: “Raising the $200m is not exclusive option at our disposal. We are studying the ruling and all other available legal and judicial options open to exploit.”

    The Nation gathered that the Economic and Financial Crimes Commission (EFCC) and other agencies are looking into six other agreements awaiting arbitration.

    “The government wants to review these agreements in order to look at the circumstances behind such deals to avert more problems for Nigeria at the arbitration table,” a source familiar with the development said.

    Details were not given.

    The UK Court on Thursday ordered a stay of execution of the $9.6billion damages secured against Nigeria by P&ID pending the determination of an appeal by the Federal Government.

    It however asked the government to make a security payment of $200million to the court within 60 days

    The court also granted Nigeria’s leave to file an appeal against the award.

    But the court upheld the award and refused to reverse the damages.

    Malami however said the battle to quash the award has shifted to the UK Court of Appeal.

  • $9.6bn Judgement: P&ID reacts to court ruling ordering stay of execution

    The Process and Industrial Developments (P&ID) has reacted to the ruling of the United Kingdom Commercial and Arbitration Court which on Thursday in London, ordered a stay of execution of the $9.6 billion damages awarded against Nigeria pending the determination of an appeal by the Nigerian Government.

    The court had asked the government to make a security payment of $200 million to it, while also granting Nigeria’s leave to file an appeal against the award.

    However, P&ID, in a statement said it welcomed the ruling that required that Nigeria must pay $200 million before proceeding with the appeal.

    “The Court has ruled that the Nigerian Government must put up $200 million to maintain a stay of execution whilst it pursues an appeal against enforcement of the now $9.6 billion award in favor of P&ID.

    “The Nigerian Government will now have to put its money where its mouth is if it wants to avoid immediate seizure of assets,” P&ID said in the statement.

    The company added: “The Nigerian Government’s recent media exercise to allege fraud against P&ID turned out to be a red herring. Indeed, the Nigerian Government did not present any evidence to support Attorney General Malami’s “findings” from his sham investigation.

    “The Nigerian Government knows there was no fraud and the allegations are merely political theater designed to deflect attention from its own shortcomings.”

    The court had in August affirmed the ruling of a London arbitration tribunal, which, in January 2017, awarded $6.6bn arbitral award against Nigeria over an alleged breach of a gas supply and processing agreement signed with P&ID.

    The tribunal had ruled that Nigeria was liable for $6.6bn in damages, which increased to about $9.6bn with accruing interest.

    Minister of Finance, Budget and National Planning, Zainab Ahmed, on August 26, described the judgment as an assault on all Nigerians

    She had said it was important for all Nigerians to rise up to the task of ensuring that the nation and its citizens were not unfairly treated on the matter.

    The minister had said, “This matter that has brought us here today is a very weighty one. An award of $9.6bn is equivalent to N3.5trn. N3.5trn in our annual budget will be covering for us the personnel cost, which is about N3.2trn and more. So, this award is unreasonable, excessive and exorbitant.”

  • $9.6bn Judgement: Nigeria wins round one as UK court orders stay of execution

    …orders FG to deposit $200m within 60 days

    A United Kingdom Commercial Court has ordered a stay of execution of the $9.6billion damages secured against Nigeria by Process and Industrial Developments pending the determination of an appeal by the Federal Government.

    It however asked the government to make a security payment of $200million to the court within 60 days

    The court also granted Nigeria’s leave to file an appeal against the award.

    But the court upheld the award and refused to reverse the damages.

    The Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN) said the battle to quash the award has shifted to the UK Court of Appeal.

    He, however, hinted of the possibility of challenging the legality of the $200million security deposit within the 60-day window.

    P&ID secured the damages against Nigeria following a failed Gas Supply Project Agreement (GSPA) contract between it and the Federal Ministry of Petroleum Resources.

    A brief from London by the Attorney-General of the Federation and Minister of Justice, Mr. Abubakar Malami (SAN) said: “Leave to appeal has been granted. Stay of execution is also granted subject to payment of $200m security payment to court pending the determination of the appeal the leave for which has been granted by the commercial court.

    “The steps we will consider are to study the ruling and act in a way beneficial to the interest of the nation.

    “We will study the court rulings, exercise the right of appeal and consider the legal options available at our disposal as it relates to the payment of $200m in view of the 60 days window stipulated by the court.”

    Malami, who admitted that he was pleased with the judgment, said: “I see this as a positive resolution that constitutes an important step in the government‘s efforts to defend Itself in a fair and just process.

    “We look forward to challenging the UK Commercial Court’s recognition of the Tribunal’s decision in the UK Court of Appeals, uncovering P&lD’s outrageous approach for what it is: a sham based on fraudulent and criminal activity developed to profit from a developing country.”

  • JUST IN: [P&ID scandal] Court admits ex-director Petroleum Resources to N10m bail

    JUST IN: [P&ID scandal] Court admits ex-director Petroleum Resources to N10m bail

    Justice O.A. Adeniyi of the FCT High Court, sitting in Apo, Abuja, on Wednesday, admitted Grace Taiga, former director, Legal Services in the Ministry of Petroleum Resources, in the multiple fraud involving P&ID in Suleja Prison to bail in the sum of N10 million.

    Justice Adeniyi on Sept. 21,remanded Taiga in the Nigerian Correctional Service in Suleja, Niger State.

    The Economic and Financial Crimes Commission (EFCC), alleged that Taiga, a former director, Legal Services in the Ministry of Petroleum Resources, was a key actor in the fraudulent Gas Supply and Processing Agreement (GSPA) between the Federal Government and P&ID.

    She was alleged to have used her position to administer undue favours to the company.

    She was arraigned on eight-count amended charges, bordering on accepting bribes and other related crimes.

    Justice Adeniyi ordered the defendant to produce two sureties who must not below the Cadre of a Director in the Federal Ministry.

    Earlier, Defence counsel, Chief Wole Olanipekun, SAN, prayed the court to admit his client to bail on grounds of health challenges.

    He informed the court that Taiga is a 62-year old woman who has various health challenges, varying from hypertension to Diabetes.

    He also told the court that she is a lawyer with 42 years post call who has never been in any firm of trouble all through her years of practice.

    Objecting to the bail application made by Olaonipekun, Prosecution counsel, Bala Sanga, stated that the ailments bothering Taiga, are common in the society and can be adequately managed in the prison.

    Sanga also stated that the defense counsel had no concrete evidence or proof to back up his claims.

    The accused pleaded not guilty to all the charges.

  • $9.6bn Judgement: P&ID reacts to trial, conviction in Abuja

    $9.6bn Judgement: P&ID reacts to trial, conviction in Abuja

    Process and Industrial Developments Limited (P&ID) reacted to the trial and conviction of two of its directors in Abuja today and slammed it all as shambolic, according to an unsigned statement.

    “Today’s sham trial in Nigeria is entirely illegitimate, and follows a systematic campaign of harassment, intimidation and illegal detention of a number of individuals associated with P&ID or the GSPA contract. The individuals detained have not been afforded due process and have instead been pressured and intimidated by the government into making false statements.

    “Nigeria’s Attorney General Abubakar Malami has publicly acknowledged that his aim is to provoke global opposition against P&ID, by undertaking this EFCC ‘investigation’.

    “None of the individuals involved are current employees or representatives of P&ID. P&ID itself has received no communication from any Nigerian authority about the investigation or today’s hearing. There has been no evidence produced, no defence allowed, no charges laid, no due process followed.

    “The EFCC’s investigation is an attempt to produce false evidence, and is being conducted in blatant disregard of basic human rights and the rule of law. P&ID calls on the Government of Nigeria to accept its responsibilities under the law and to cease this sham investigation.”

    Docked today were P&ID, the commercial director, Mohammed Kuchazi and the company’s director of process, Adamu Usman.

    They were arraigned before Justice I. E. Ekwo of Federal High Court, sitting in Maitama, Abuja. The judge sentenced the company, incorporated in British Virgin Island to wind up in Nigeria and its properties, forfeited to the federal government.

    The duo were arraigned on 11-count charges, bordering on obtaining by false pretence; dealing in petroleum products without appropriate license; money laundering and failure to register P&ID with the Special Control Unit against Money Laundering (SCUML) as required by law, amounting to economic sabotage against the Nigerian state.

    One of the counts reads: “That you, Process and Industrial Development Limited, being a company, incorporated in the British Virgin Island, Michael Quinn (deceased), Brendan Cahill (at large), Neil Hitchcock (deceased), Muhammad Kuchazi and Grace Taiga on or about the 11th of January, 2010 in Abuja, within the jurisdiction of this honourable court with intent to defraud made a false statement in Paragraph 8 (g) of the Gas Supply and Processing Agreement (GSPA) to wit: the parties are aware that the 24-inch Adanga Pipeline, presently under construction from the Addax operated OML 123 directly to Calabar and due for completion in 2010 which part of the said agreement you knew to be false and you thereby committed an offence contrary to Section 362 (a) of the Penal Code and punishable under Section 364 of the same law.”

    The defendants pleaded guilty to all the 11-count charge.

    While urging the court to convict them according to their plea, the prosecuting counsel Bala S. Sanga presented to the court, statements of account, showing massive withdrawals of dollars, some running into as much as $700,000 (Seven Hundred Thousand dollars) and some of which established the violation of the Money Laundering Prohibition Act, as well as the law on Advance Fee Fraud. He revealed that contrary to the impression sold by P&ID that it was established in Calabar, the Cross River capital, the company did not as much as acquire a land for an office structure.

    Section 10 (1) of the Advance Fee Fraud and Other Fraud Related Offences Act 2006 states that “Where an offence under this Act which has been committed by a body corporate is proved to have been committed on the instigation or with the connivance of or attributable to any neglect on the part of a director, manager, secretary or other similar officer of the body corporate, or any person purporting to act in any such capacity, he, as well as the body corporate, where practicable, shall be deemed to have committed that offence and shall be liable to be proceeded against and punished accordingly.”

    It further provides that “Where a body corporate is convicted of an offence under this Act, the High Court may order that the body corporate shall thereupon and without any further assurance, but for such order, be wound up and all its assets and properties forfeited to the Federal Government.”

    Testifying as prosecuting witness, Babangida Umar Hussaini, an operative of the EFCC proved with evidence how Kuchazi (first defendant) and Usman(second defendant) conspired and sabotaged the country’s economy by evading tax payment for a period of 10 years; an accusation the duo agreed to be true.

    Counsel for the defendants, however, prayed the court to temper justice with mercy since the duo did not waste the time of the court with their immediate plea of guilt to all the charges against them.

    Justice Ekwo convicted them based on all the charges levelled against them by the EFCC. He sentenced the company to wound up and its properties be forfeited to the federal government of Nigeria.