Legal luminary, Femi Falana (SAN) has applauded the conviction of the directors of controversial Irish firm , P&ID which is in dispute with the Federal Government over a failed gas project.
The firm had secured an arbitration award of $9.6bn against the Nigerian Government.
Reacting to the judgment, Falana said: “Once the judgment obtained from the Abuja High Court is registered abroad, it can be executed against P&ID. The judgment substantially appears to be a perfect solution to the London Court judgment. What Nigeria has to do now, is to quickly apply to have that judgment set aside on the basis of monumental fraud.
“The company has admitted and pleaded guilty to allegation of fraud. They have admitted that they did not even acquire any land in Calabar, Cross River State, for the project in the first place. This is admission that the entire project was a package of fraud, ab initio. This however, doesn’t excuse Nigeria’s criminal negligence.”
Full judgement
In the charge marked ABJ/ CS/230/19 and dated September 16, which was filed by the EFCC, the Federal Government cited the two convicted firms as 1st and 2nd Defendants.
It told the court that whereas two other foreign suspects, Michael Quinn and Neil Hitchcock are both dead, the third suspect, Brendan Cahill, is currently at large.
Meanwhile, the two firms, through their representatives, pleaded guilty to all the allegations FG leveled against them.
P&ID Ltd which was incorporated in the British Virgin Islands was represented by its Commercial Director, Mohammad Kuchazi, while P&ID Nigeria Limited was represented by its Director, Adamu Usman who is also a lawyer.
Kuchazi addressed the court through his lawyer, Mr, Dandison Akurunwua, while Adamu spoke on behalf of the 2nd defendant from the dock.
The two defendants were, among other things, alleged to have fraudulently claimed that they acquired land from the Cross River State Government in 2010 for the “fraudulent” gas supply project agreement that resulted to the $9.6bn judgment debt.
The prosecutor, Mr. Bala Sanga, had after the defendants pleaded guilty to the charge, prayed the court to convict them accordingly.
He further produced an investigator from the EFCC, Mr. Usman Babangida, to review the facts of the case before the court.
Babangida tendered before the court, a 325-page investigative report that was admitted in evidence.
None of the defendants opposed the admissibility of the report, as the witness narrated the investigative processes that precipitated the charge.
He told the court that investigations in both Cross River State and the Corporate Affairs Commission, CAC, revealed that the defendants fraudulently defrauded the Federal Government.
“From findings and response of those that were questioned, it was discovered that the company had no land in Calabar. It was also discovered that the company had defaulted in payment of tax and other remittances.
“It was also found out that the companies had no license to deal on petroleum resources and also failed to report or make any declaration to the Special Control Unit on Money Laundering,” the witness added.
Before Justice Inyang Ekwo delivered his judgment, the two firms begged the court for leniency.
In a plea of allocutus (for mercy), P&ID’s lawyer, Akurunwua and Adamu who represented the 2nd defendant, urged the court to take their level of “candour and forthrightness” into consideration, stressing that they admitted guilt instead of wasting the court’s time through unnecessary applications and arguments.
However, though the prosecutor, Mr. Sanga, commended the defendants for their “truthfulness,” he implored the court to also consider the position of the law, vis-à-vis the sections under which the charge was brought.
Consequently, in his judgment, Justice Ekwo, said he had no option than to impose the full weight of the law against the defendants.
“I have listened to allocutus by counsel to the defendants and also listened to the position of the law as presented by the prosecution. The punishment for the offence is provided for in the law, particularly the Advance Fee Fraud and other Offences Act, 2006. I will therefore make order in accordance with dictates of the law,” the judge said.
Relying on provisions of section 19(2) of the Money Laundering Prohibition Act, 2011, and section 10(2) of the Advance Fee Fraud and other related offences Act, 2006, the court ordered FG to wind up the two firms and confiscate all their assets and properties in the country.
Charges against the convict
Some of the charges upon which the firms were convicted, read: “That you, Process and Industrial Developments Limited being a company incorporated in the British Virgin Island, Process and Industrial Developments (Nigeria) Limited, Michael Quinn (deceased), Neil Hitchcock (deceased), and Brendan Cahill (at large) on or about January 11, 2010, in Abuja within the jurisdiction of this court with intent to defraud conspired to obtain benefit to wit: Petroleum Product from the Federal Government of Nigeria by falsely representing to the Federal Government of Nigeria through the Ministry of Petroleum Resources, that Process and Industrial Developments Limited was allocated land by the Cross River State Government which representation you knew to be false and you thereby committed an offence contrary to section 8 (a) and punishable under section 1(3) of the Advance Fee Fraud and other Offences Act, 2006.
“That you Process and Industrial Developments Limited being a company Incorporated in the British Virgin Islands, Process and Industrial Developments (Nigeria) Limited, Michael Quinn (deceased) Neil Hitchcock (deceased), and Brendan Cahill (at large), between July 2009 and January 2010 in Abuja within the jurisdiction of this court with intent to defraud, attempted to obtain benefit to wit: Petroleum Product from the Federal Government of Nigeria by falsely representing to the Federal Government of Nigeria through the Ministry of Petroleum Resources, that Process and Industrial Developments Limited was allocated land by the Cross River State Government which representation you knew to be false and you thereby committed an offence contrary to section 8 (a) and punishable under section 1(3) of the Advance Fee Fraud and other Offences Act, 2006.”
In count-three, FG alleged that the firms conspired with certain officials of Nigerian government to commit felony by dealing in Petroleum Product without appropriate license and thereby committed an offence contrary to section 3(6) of the Miscellaneous Offences Act Cap M17, Laws of the Federation of Nigeria 2004 and punishable under section 1(7) of the same Act.
Aside alleging that the firms influenced the gas supply contract that was awarded to it, FG told the court that the defendants engaged in money laundering, as well as evaded tax, contrary to section 18 and punishable under section 15(2) and (3) of the Money Laundering (Prohibition) Act, 2011 (as amended by Act No. 1 of 2012).
The defendants were in count seven, alleged to have in 2006, “concealed the unlawful origin of the sum of N1, 856, 503. 50 through the Guaranty Trust Bank Plc Account No. 3223250230110 operated by Process and Industrial Development (Nigeria) Ltd, when you reasonably ought to have known that the said fund formed part of the proceeds of your unlawful act to wit: Tax Evasion and you thereby committed an offence contrary to section 15 (2) (a) and punishable under section 15(3) of the Money Laundering (Prohibition) Act, 2011 (as amended by Act No. 1 of 2012).”
FG alleged that in 2007, they also concealed the unlawful origin of the sum of N3, 923, 237.65, through the account they operated with GTB.
Whereas the defendants were in count-9, accused of concealing the sum of N2, 290, 472. 50, in count-10, FG, alleged that they also concealed another N1, 414, 935.50, using the same bank account.
Likewise, in count-11, it was alleged that the 2nd defendant, “being a Designated Non-Financial Institution, DNFI, failed to comply with the requirement of submitting to the Federal Ministry of Industry, Trade and Investment, a declaration of your activities as specified under section 5(1) (a) of the Money Laundering (Prohibition) Act, 2011 (as amended) and you thereby committed an offence punishable under section 16(2) (b) of the same Act.” (Vanguard)
