Libby George

LAGOS (Reuters) - A British judge has given the Nigerian government permission to seek to overturn a ruling that would enable Process and Industrial Developments Ltd (P&ID) to try to seize some $9 billion in assets over a failed deal.

The British Virgin Islands-based firm, which was set up solely for a project to build a gas processing plant, initiated arbitration against Nigeria in 2012 after the deal collapsed.

P&ID spent $40 million on design and feasibility but didn’t construct the plant as the government failed to supply the gas it was meant to process. In 2017, the arbitration tribunal awarded P&ID $6.6 billion, plus interest, based on what it could have earned over two decades.

The award is accruing $1.2 million in interest per day, backdated to 2013, and is now worth more than $9 billion - some 20% of Nigeria’s foreign reserves.

The issue has enraged Nigeria, with President Muhammadu Buhari calling it a “scam” in a speech at the United Nations. Cabinet members are demanding patriotic Nigerians band against the award, while a dozen high-level officials were in London for a court hearing on Thursday.

WHAT DOES THE RULING MEAN?
In August, a ruling in London converted the arbitration award to a court judgement - allowing P&ID to try to seize assets in order to collect it.

A British judge on Thursday gave Nigeria permission to seek to set aside that decision, with a date for an appeal hearing yet to be decided.

Legal experts told Reuters that in order to succeed, Nigeria’s lawyers will have to prove there was an error in the ruling.

The lawyers on Thursday focused on whether the arbitration tribunal was allowed to determine that England was the appropriate seat of the arbitration; the Nigerians argue that only a court could make such a determination.

They also argue that the award itself was “patently and hugely excessive.”

The judge said he did not support one of Nigeria’s arguments, which said the award itself should not be enforced because a federal court in Lagos set it aside.

WOULD SETTING ASIDE MAKE THE LIABILITY GO AWAY?
Not exactly. While a successful set aside would make the award unenforceable in the UK, P&ID is also asking federal courts in Washington, D.C., to convert the award to a judgement in U.S. courts. That case, an entirely separate process, is pending.

The arbitration award itself also allows P&ID to seek to seize assets in any of the other 160 countries that are part of the New York Convention - a global pact for the recognition and enforcement of arbitration awards.

Legal experts said there is a long history of successful asset seizures using the New York Convention. But other jurisdictions considering seizure requests could take UK court rulings into account, which means that if Nigeria succeeds in its set aside, seizure elsewhere becomes harder.

CAN THE AWARD ITSELF BE OVERTURNED?
Possibly. Global law firm Norton Rose Fulbright noted that arbitration awards can be overturned based on “public policy arguments” that hinge on allegations of fraud or corruption.

Nigeria’s anti-graft unit, the EFCC, is conducting an investigation into P&ID, and has charged a former petroleum ministry lawyer with taking bribes related to the contract. The former official has pleaded not guilty. It also alleged that a now-deceased petroleum minister broke the law by signing the contract without proper approvals and protocol.

Last week two Nigerians, who the EFCC said worked for P&ID, pleaded guilty on its behalf to charges of fraud and tax evasion.

Nigeria’s attorney general Abubakar Malami said that gave Nigeria “a judicial proof of fraud and corruption” and “cogent ground for setting aside the liability.”

P&ID said neither man was a current employee or representative of the company, and that there was “no evidence produced, no defence allowed, no charges laid, no due process followed.”

A successful fraud argument is not an easy path.

Simon Sloane of law firm Fieldfisher said the Nigerian government would need to prove that the contract was not merely tainted by fraud, but that it was “on its face” unlawful or fraudulent. Sloane called this an “extremely high hurdle.”

Thus far, the Nigerians have not presented evidence against P&ID in an international forum.

P&ID denied any wrongdoing.

“The Nigerian government knows there was no fraud and the allegations are merely political theater designed to deflect attention from its own shortcomings,” it said in a statement.

ARE THERE OTHER OPTIONS?
Nigeria could settle with P&ID - a common route and one that would likely cost the country substantially less than $9 billion.

In 2015, at the end of the term of President Goodluck Jonathan, P&ID proposed a settlement of $850 million. The Buhari administration did not take the offer.

Both parties have said they are open to negotiations, but the government said P&ID had not directly approached it to initiate talks.

Experts said that Thursday’s ruling allowing an appeal significantly strengthened Nigeria’s negotiating position.

WHAT IS AT STAKE?
For now, Nigeria’s assets are safe; the judge on Thursday ordered a stay of execution on seizures as long as Nigeria puts $200 million into a court account with 60 days and pays certain of P&ID’s legal fees within 14 days. If they fail to do so, P&ID could try to seize assets.

Harry Mantovu QC, who represented Nigeria, said that “even if P&ID seized assets for a short time, it could be serious.”

P&ID could target real estate, bank accounts or any kind of moveable wealth, but it would have to prove that the property is unrelated to Nigeria’s operations as a sovereign state.

ADVERTISEMENT


State assets that have any diplomatic function - such as a commercial property that is also used to issue visas - cannot be seized.

Mantovu noted that the award represents 2.5% of Nigeria’s gross domestic product and half of its earnings from crude oil last year.

“It is not going to take an Einstein to conclude that this would have a massive impact on the economy of Nigeria and the monetary policy of Nigeria,” he said in court.

Additional reporting by Karin Strohecker in London; Editing by Kirsten Donovan

https://af.reuters.com/article/topNews/idAFKBN1WC1JN-OZATP

Nigerians should appreciate the Presidency for their current effort first,despite their mistake, Then we must all support the FG effort to get victory.Technically we in an Economical war,which we as a nation must win

The FG should charge everyone involved in the case,including their associates to a Nigeria court,find them guity and ask Interpol to arrest and deport them to Nigeria to face punishment.Since the FG claimed they are scammers

naijapower:
Nigerians should appreciate the Presidency for their current effort first,despite their mistake, Then we must all support the FG effort to get victory.Technically we in an Economical war,which we as a nation must win

Who is the presidency?

According to P&ID spent $40 million on design and feasibility but didn’t construct the plant as the government failed to supply the gas it was meant to process. In 2017, the arbitration tribunal awarded P&ID $6.6 billion, plus interest, based on what it could have earned over two decades

My Questions:
1:How much tax was paid to the fg
2:From which account P&ID ltd or P&ID nig ltd
3:How was the money source
4:How much was spent after the MOU was signed

The award is accruing $1.2 million in interest per day, backdated to 2013, and is now worth more than $9 billion - some 20% of Nigeria’s foreign reserves.
The Interest for their crime will cover the $9billion
WHAT DOES THE RULING MEAN?
In August, a ruling in London converted the arbitration award to a court judgement - allowing P&ID to try to seize assets in order to collect it.

A British judge on Thursday gave Nigeria permission to seek to set aside that decision, with a date for an appeal hearing yet to be decided.

Legal experts told Reuters that in order to succeed, Nigeria’s lawyers will have to prove there was an error in the ruling.

The lawyers on Thursday focused on whether the arbitration tribunal was allowed to determine that England was the appropriate seat of the arbitration; the Nigerians argue that only a court could make such a determination.

They also argue that the award itself was “patently and hugely excessive.”

The judge said he did not support one of Nigeria’s arguments, which said the award itself should not be enforced because a federal court in Lagos set it aside.

This guys and their associate are not friends of Nigeria and Nigerians,A Friend will go this far to make their case

WOULD SETTING ASIDE MAKE THE LIABILITY GO AWAY?
Not exactly. While a successful set aside would make the award unenforceable in the UK, P&ID is also asking federal courts in Washington, D.C., to convert the award to a judgement in U.S. courts. That case, an entirely separate process, is pending.

The arbitration award itself also allows P&ID to seek to seize assets in any of the other 160 countries that are part of the New York Convention - a global pact for the recognition and enforcement of arbitration awards.

Legal experts said there is a long history of successful asset seizures using the New York Convention. But other jurisdictions considering seizure requests could take UK court rulings into account, which means that if Nigeria succeeds in its set aside, seizure elsewhere becomes harder.

"...The Nigerian public has been made to believe that the slow pace of action of the Federal Government headed by Major-General Muhammadu Buhari was due to the enormity of the problems left by the last civilian administration."

"-...The real reason, however, for the very slow pace of action is due to lack of unanimity of purpose among the ruling body; subsequently, the business of governance has gradually been subjected to ill-motivated power play considerations.

The ruling body, the Supreme Military Council, has, therefore, progressively been made redundant by the actions of a select few members charged with the day-to-day implementation of the SMC’s policies and decision."

-"..The concept of collective leadership has been substituted by stubborn and illadvised unilateral actions, thereby destroying the principles upon which the government came to power. Any effort made to advise the leadership, met with stubborn resistance and was viewed as a challenge to authority or disloyalty.

The Coup Speech That Overthrow Buhari on 27th.Aug.1985.

Same scenario in 1983-85, same today and same shall it remain until this catastrophe leaves our nation life.This is what dull incompetent leadership can do to a nation.

Buhari came in with a vindictive mindset hence in the course of pursuing his so called enemies, he has ended up incurring this unimaginable economy catastrophe on the Nigerian nation.Government is a continuum

Meanwhile, why is the Nigerian government yet to arrest and prosecute all the remaining active players of this failed project including the then GMD of NNPC that is still alive today to account for their actions back then since Raliwan Lukman the former petroleum minister is now late?

"According to P&ID spent $40 million on design and feasibility but didn’t construct the plant as the government failed to supply the gas it was meant to process. In 2017, the arbitration tribunal awarded P&ID $6.6 billion, plus interest, based on what it could have earned over two decades.."

...Legal experts said there is a long history of successful asset seizures using the New York Convention.

The hurried Kangaroo trial of PID representatives in Nigeria to save face is not the solution.The firebridgade approach to sensitive national issues by the present Nigerian govt is gonna cost this nation such a huge economic misfortune.

regardless of how apc worshippers twist the narrative, we re paying this huge money because of baba go slow.



his inability to make quick and precise decisions on important matters cost us already.


but if it's to flout court orders, abuse constitution, detain people illegally, rule like nebudchadnezzer, without recourse to laws, he reigns to those aspects.

Captainrambo2:
Regardless of how apc worshippers twist the narrative, we re paying this huge money because of baba go slow.His inability to make quick and precise decisions on important matters cost us already.

However, if it's to flout court orders, abuse constitution, detain people illegally, rule like Nebuchadnezzar, without recourse to laws, he reigns to those aspects.

Exactly what I am also saying.This is how Nigeria lost the Bakassi Peninsula.For goodness sake govt is a continuum.

[s]

naijapower:
Nigerians should appreciate the Presidency for their current effort first,despite their mistake, Then we must all support the FG effort to get victory.Technically we in an Economical war,which we as a nation must win

[/s]
Guess it's the same clueless and irresponsible government being led by the sworn affidavit-certificate holder who have blamed everything on earth except himself for his incompetency & ineptitude?

Actually Nigeria should try everything possible to see the judgement overturned, forfeiting this huge sum is capable of causing another ecession

Racoon:
[s][/s]
Guess it's the same irresponsible and clueless government being led by the sworn affidavit-certificate holder that have blamed everything on earth for his incompetency & ineptitude?

Nigerians should appreciate the Presidency for their current effort first,despite their mistake,
The actions of P&ID will affect every one ,whether the President is competent or not.

Okay

Okay. God go help us
Meanwhile, I'm available for your medical certificate, online documents and Print-out Slips. Check my signature

Pavarottii:

Who is the presidency?

Keep asking.

Na Atiku, Saraki the political pensioner, Dino the tree-climbing monkey, Chidoka Kanu's driver, Obi na China, Ozekhome lawyer of pickpockets and the band of thieves resident in PDP.

Atiku the overCUMmer.

Dont know why i have a bitter sweet feeling about this 9bil, maybe because it sweetens my soul, when a scammer has been scamed. Na the ordinary man go suffer am pass, because no mata how broke we become, politicians will still steal and rob us. Shame

Omo Nigeria really enter one chance for this matter oh.. Oyinbo people Wan show us say na them be the real yahoo, our yahoo Boys dey learn.. See as them sit down throw live format give full country.. Shuu. 40milla for design LA sun?? Egba mi oh...

Last last Nigeria go get sense. I remember when this case first come out, efcc and Fg dey protect the integrity of the petroleum minister, now breeze Don blow fowl yansh Don open. Na now dem know say sign papers without protocol. Them summon ona for court for case of this magnitude, mumu country nor gree prepare defense team because for back home, dem nor send court matters. Now e Don burst

Good luck Jonathan was the worst thing to happen to this nation, I don’t know if we would be able to survive that administrations disaster still reporting till today, your government went and signed a contract with out knowing the implications..

The UK government cannot afford to lose Nigeria cooperation if the PID scam is allowed to stand.

They need us when BREXIT becomes a reality as most European countries will ignore dealing with them. That is why Thier prime minister and Merkel of Germany quickly visited Nigeria after the vote to sway public opinion.. they are negotiating Thier exit now and solicit the help of non erupean countries.
THEY BETTER INTERVENE NOW.

The case also remind me of the antecedent of politicians. Just recently a politician said that he will sell NNPC to his friends. Could this be a pointer of dealings that we are now battling with.

naijapower:


Nigerians should appreciate the Presidency for their current effort first,despite their mistake,
The actions of P&ID will affect every one ,whether the President is competent or not.

Current effort? like they have a choice? The more this matter drags, the more the debt profile rises. If care is not taken, we will pay more than the 9 billion dollars USD. This is what happens when we put personal aggrandizement over national good. We still haven't learnt our lessons.

give dem nathing but take from dem everything....!!!!

so says the darkside....!!

Nigeria shall be great

naijapower:
Nigerians should appreciate the Presidency for their current effort first,despite their mistake, Then we must all support the FG effort to get victory.Technically we in an Economical war,which we as a nation must win

Mind yourself

That useless living skeleton in ASO Rock never see anything... When you ignore important matters and start running after cows and tribal interest, this is what you reap... That was how we lost Bakassi under the Foolish OBJ... Just imagine France threatening Nigeria on behalf on Cameroon... If we have been up and doing, can such happen? Can France threaten Israel, Indian, Iran even if these countries are not major powers

Edusouls:
Good luck Jonathan was the worst thing to happen to this nation, I don’t know if we would be able to survive that administrations disaster still reporting till today, your government went and signed a contract with out knowing the implications..

Your hatred for GEJ has really messed up your ability to reason and speak like an adult. The Court case was instituted against the FG in 2012, showing that the contract pre-dates his administration and your here shouting GEJ.

Receive sense, no matter how small, it will help your life.

Edusouls:
Good luck Jonathan was the worst thing to happen to this nation, I don’t know if we would be able to survive that administrations disaster still reporting till today, your government went and signed a contract with out knowing the implications..

will you just shut up already?

This contract that is said to be built on sham was centred around one nan that's called Quinn "Mick" Michael who lived his life on dirty and shady business deals but now late.

PaChukwudi44:

Are you sure you are mentally okay? What has GEJ got to do with the signing of the contract?

This is the zombie mindset for you bro.The gross cluelessness, incompetency and ineptitude of their demigod because of their warped thinking.

Racoon:

The hurried Kangaroo trial of PID representatives in Nigeria to save face is not the solution.

So what's the solution? Cos I see people just complaining and blaming the government without offering any advice on how to fight this and win.

Racoon:

The firebridgade approach to sensitive national issues by the present Nigerian govt is gonna cost this nation such a huge economic misfortune.

The govt isn't taking this any less serious. We need to be objective here.

See better reporting. Our journalist are either bribed or lazy.

Why was the government social media handles praising the setting aside when they still have to pay $200 million and also the legal fees running into more millions?

PaChukwudi44:


Are you sure you are mentally okay? What has GEJ got to do with the signing of the contract?

Bros I think you are the one that has problem... the contract was signed during the previous administration for goodness sake, pls read again