Adedapo Adesanya
By Adedapo Adesanya
The Solicitor-General of the Federation and Permanent Secretary of the Ministry of Justice, Mr Dayo Apata (SAN), has said that the Nigerian government did not lose its appeal against the order of a British commercial court directing it to deposit $200 million in the case against Process and Industrial Developments (P&ID) Limited.
He stated that parties in the suit would appear before the court on Monday for the court’s decision on whether to allow bank guarantee in place of actual payment, adding that there are indications from Friday’s proceedings that the court might accept a bank guarantee.
He further said that the reports in the media was wrong and twisted. He said, “There is no loss of any appeal. The media reports are wrong and twisted.”
“We are in court on Monday again for Butcher’s decision on whether he will substitute actual payment for bank guarantee.
“He was said to have indicated on Friday that a satisfactory bank guarantee would be acceptable to him.”
Business Post had reported in August that Justice Christopher Butcher of the Commercial Court in London had awarded the sum of $9.6 billion judgment debt against Nigeria over an alleged botched gas contract between the country and P&ID.
Nigeria then appealed against the judgment which led the London court to order the country to deposit $200 million as security into the court’s account while granting request to stay execution of the $9.6 billion award in favour of P&ID.
The court in addition gave Nigeria up till November 25 to make the deposit but the federal government appealed the court’s decision.
However, a news report circulated and claimed that at the hearing of the appeal on Friday the court refused to grant Nigeria’s bid to stop the deposit of the security.
P&ID had in 2012 instituted the legal battle against Nigeria in the Court of Arbitration in the UK in 2012 following Nigeria’s refusal to carry on with the GSPA agreement entered with the firm in 2010.
P&ID claimed that the failure of the federal government to construct the pipeline system to supply the gas frustrated the construction of the gas project and deprived it the potential benefits expected from 20 years’ worth of gas supplies.
It was also reported that the Abuja Division of the Federal High Court had on September 19 convicted and subsequently ordered the winding up of P&ID and its Nigerian affiliate, P&ID Nigeria Limited.
The court also ordered the forfeiture of “the assets and properties” of the two firms to the Nigerian government.
Justice Inyang Ekwo made the orders after the two firms, through their representatives, pleaded guilty to the 11-count charges of fraud, money laundering, tax evasion and other sundry charges in connection with a year 2010 contract leading to the recent controversial judgment of a British court recognising the award of $9.6 billion in favour of P&ID by an arbitration panel.
