‘Nigeria Wins $11bn P&ID Case
…..Victory For Our Exploited Continent’, Tinubu Hails UK Court Verdict On P&ID Case
……P&ID Judgment Should Serve As Deterrent To Others Seeking To Swindle Nigeria – AGF
Justice Robin Knowles of the Commercial Courts of England and Wales has ruled in favour of Nigeria in the enforcement of a $11bn Process & Industrial Developments (P&ID) Limited arbitration award.
With the judgement handed down physically in open court, and electronically by email to the parties on Monday, Nigeria succeeded in stopping the enforcement of the award which was initially in favour of P&ID.
According to the judge, the award against Nigeria by the company was obtained by fraud.
“In the circumstances and for the reasons I have sought to describe and explain, Nigeria succeeds on its challenge under section 68. I have not accepted all of Nigeria’s allegations. But the Awards were obtained by fraud and the Awards were and the way in which they were procured was contrary to public policy,” Justice Knowles ruled.
In January 2010, P&ID, a Virgin Islands-registered company founded by two Irish business partners, signed a Gas Supply and Processing Agreement (GSPA) with Nigeria to develop a processing plant in Calabar, the Cross River State capital but the deal failed in August 2012 and the company sought a $5.96bn compensation from Nigeria with arbitration proceedings against the country at the London Court of International Arbitration.
In January 2017, the arbitration said Nigeria breached the contract and ordered the country to pay the company $6.6bn with interest starting from May 2013. Before the verdict, the interest fixed at seven percent ($1m daily) had accumulated to over $11bn.
Subsequently, Nigeria filed an appeal against the enforcement of the award and the court granted the relief sought by the country in September 2020. The Nigerian side argued that there was enough evidence that the contract and the arbitration award were procured by fraud.
The Nigerian side thereby urged the court to set the award aside, saying that some individuals in the case were being tried for money laundering and graft.
In his ruling, the judge not only agreed that the arbitration awards were obtained by fraud but also that the manner that they were procured were contrary to public policy.
He said, “What happened in this case is very serious indeed, and it is important that section 68 has been available to maintain the rule of law.
576. Section 68 (3) provides:
“(3) If there is shown to be serious irregularity affecting the tribunal, the
proceedings or the award, the court may—
“(a) remit the award to the tribunal, in whole or in part, for reconsideration,
“(b) set the award aside in whole or in part, or
“(c) declare the award to be of no effect, in whole or in part.
“The court shall not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it would be inappropriate to remit the matters in question to the tribunal for reconsideration.
“I was asked by Lord Wolfson KC in closing that should my judgment conclude in
favour of Nigeria, as it does, to leave over the question of the order the Court should make so that the parties have the opportunity to present argument once they have considered the judgment. I respect that request and will hear that argument as soon as that can be arranged.”
P&ID Judgment Should Serve As Deterrent To Others Seeking To Swindle Nigeria – AGF
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has said that the victory secured by Nigeria in the Process and Industrial Development (P&ID) Limited litigation should serve as a pointer to others who might be nursing or nurturing any plan to swindle the country.
The AGF also said that the victory in the United Kingdom court on Monday has vindicated the Nigerian government.
The country’s victory brings to an end the legal battle which has been ongoing since 2017 when Nigeria was ordered to pay $6.6bn to P&ID with interest starting from May 2013
Before the verdict, the interest fixed at seven percent ($1m daily) had accumulated to over $11bn.
Reacting to the judgment in a statement today, the AGF said it is not just a victory for the people of Nigeria, but any similar target of corruption and fraud.
“The judgment handed down today, found that the award had been obtained by fraud and in a way which was contrary to public policy. In particular, the Judge concluded that P&ID obtained the award only by “practising the most severe abuses of the arbitral process”.
“He further noted ‘That this case has also, sadly, brought together a combination of examples of what some individuals would do for money. Driven by greed and prepared to use corruption; giving no thought to what their enrichment would mean in terms of harm to other.
“For us in this administration, it has been a night of long knives! This success marks the culmination of over a decade of legal action and is not just a victory for the people of Nigeria, but any similar target of corruption and fraud.
“In the words of Mark Howard KC, lead counsel for the FRN which the court endorsed, ‘P&ID was exactly the type of entity that was prepared to engage in bribery’, to achieve its aims – to undermine the administration of justice in Nigeria in the pursuit of, ‘riches beyond the dreams of avarice’.
“This successful result is a decisive victory for the people of Nigeria who stood to lose over US$11 billion, and for the Nigerian administration which has now reached a milestone in its mission to challenge the scourge of corruption. The judgment also serves as a damning indictment of predatory international investors, who should now rightfully be deterred from preying upon Nigeria and other developing nations to satisfy their greed.
“P&ID and its associates both Nigerians and foreigners alike, shamelessly attempted to defraud the country and enrich themselves through sharing the FRN’s privileged documents, fraud, bribery and corruption on an industrial scale. Those efforts, which took place over many years, have finally been uncovered for all to see.”
The Minister added that there will be further hearings by the UK court on the heels of this judgement to determine costs payable by P&ID and other matters.
‘Victory For Our Exploited Continent’, Tinubu Hails UK Court Verdict On P&ID Case
President Bola Tinubu, on Monday, described as a victory for Africa, Nigeria’s win in the $11bn Process & Industrial Developments (P&ID) Limited arbitration award.
The President commended Justice Robin Knowles of the Commercial Courts of England and Wales for “prioritising the merits of the case above all other considerations”.
“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,” the President said in a statement by his spokesman, Ajuri Ngelale.
“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,” the President stated.
With the judgement delivered on Monday, Nigeria succeeded in stopping the enforcement of the award which was initially in favour of P&ID.
According to the judge, the award against Nigeria by the company was obtained by fraud.
“In the circumstances and for the reasons I have sought to describe and explain, Nigeria succeeds on its challenge under section 68. I have not accepted all of Nigeria’s allegations. But the Awards were obtained by fraud and the Awards were and the way in which they were procured was contrary to public policy,” Justice Knowles ruled.
In January 2010, the P&ID signed a Gas Supply and Processing Agreement (GSPA) with Nigeria to develop a processing plant in Calabar, the Cross River State capital but the deal failed in August 2012 and the company sought a $5.96bn compensation from Nigeria with arbitration proceedings against the country at the London Court of International Arbitration.
In January 2017, the arbitration said Nigeria breached the contract and ordered the country to pay the company $6.6bn with interest starting from May 2013. Before the verdict, the interest fixed at seven percent ($1m daily) had accumulated to over $11bn.
Subsequently, Nigeria filed an appeal against the enforcement of the award and the court granted the relief sought by the country in September 2020. The Nigerian side argued that there was enough evidence that the contract and the arbitration award were procured by fraud.
The Nigerian side thereby urged the court to set the award aside, saying that some individuals in the case were being tried for money laundering and graft.
