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The Federal Government is not considering raising the $200m security payment that Justice Christopher Butcher of the Commercial Court in London ordered it to pay into the court’s account in respect of an appeal against the $9.6bn arbitral award in favour of Process and Industrial Developments Limited, Saturday PUNCH has learnt.
The government is looking beyond the money which is the condition attached to the stay of execution of the award.
Specifically, it is considering other legal options available besides paying the money.
The Attorney General of the Federation, Abubakar Malami (SAN), disclosed these in an exclusive interview with Saturday PUNCH on Friday.
The court on Thursday granted Nigeria’s request to stay of execution of the enforcement of the $9.6bn award pending the Federal Government’s appeal.
Granting the stay conditionally, the judge ordered Nigeria to make a $200m security payment into its account within 60 days.
The court also granted Nigeria’s request for leave to file the appeal in respect of the $9.6bn arbitral award.
Saturday PUNCH on Friday requested to know from Malami how the government intended to raise the money and if it would be looking towards withdrawing it from the Excess Crude Account.
But the minister said paying the money was not an exclusive option opened to the government.
He said the Federal Government was studying Thursday ruling.
The plan, Malami added, was to look at other options the government could exploit.
“Raising the $200m is not an exclusive option at our disposal.
“We are studying the ruling and analysing all other available legal and judicial options open to exploit,” the minister explained.
AFP reported Justice Butcher also gave Nigeria 60 days to make the security payment available – and 14 days to pay running costs which sum was not disclosed in court.
But P&ID, in a statement e-mailed Saturday PUNCH, following enquiries from the firm at the end of the Thursday’s proceedings, said the running costs which government must pay to them within 14 days before they could file the appeal amounted to $250,000.
Justice Butcher said P&ID had the right to seize Nigerian assets should either of the deadlines be missed.
The judge based his decision on the “real risk” that Nigeria’s “assets will not be returned in the event that the appeal is successful and would be lost to the government and to the people of Nigeria.”
He added that there was the “risk of immediate, serious and potentially irreparable damage” should P&ID use “third-party agents” to monetise and stash away the assets seized pending an appeal.
Justice Butcher further ruled “that there may be immediate and potentially severe damage to Nigeria if there is no stay.”
The British court in August delivered a judgment recognising Nigeria’s liability to pay P&ID $9.6bn for breach of the controversial GSPA.
The parties in the case returned to the court on Thursday with Nigeria obtaining the leave of the court to appeal against the judgment and an order of conditional stay of execution of the judgment subject to the Federal Government’s payment of $200m into the court’s account within 60 days.
P&ID knocks AGF over extradition moves against officials
..vows not to be distracted from $200m ruling
Meanwhile, P&ID has knocked the Federal Government over the moves by the Economic and Financial Crimes to extradite top officials of the company from Britain to Nigeria for trial.
The acting Chairman, EFCC, Ibrahim Magu, said the anti-corruption agency had officially asked the UK Crime Agency and its Irish counterpart to extradite the son of P&ID’s founder, Adam Quinn, and co-founder, Brendan Cahill, to Nigeria for trial over their roles in the controversial $9.6bn award.
But the UK firm insisted on Friday that the moves were meant to distract the firm from pursuing the $200m ruling.
In a statement to enquiries by Saturday PUNCH, P&ID said with regards to suggestions of a bid to extradite Cahill Quinn, it described it as “a desperate move to distract focus from today’s ruling requiring Nigeria to pay $200m to stave off the immediate seizure of assets.”
On the US court proceedings, P&ID said, “We’ll keep you apprised on the US case as things develop.”
A source in the company also told Saturday PUNCH that P&ID would go ahead to sieze Nigeria’s asset once the deadline given by the court express.
“P&ID will go ahead to seize assets linked to Nigetia once the deadline passes. We are serious about this,” the source added.
$9.6bn: P&ID can seize Nigeria’s assets in 160 countries, say experts
P&ID may be able to seize the nation’s assets in 160 countries which are part of the New York Arbitration Convention, international arbitration experts have said.
A dispute resolution partner and expert in international arbitration at a European law firm, Fieldfisher, Mr Simon Sloane, and a partner with international law firm Dentons, Mr James Langley, said P&ID could seize assets belonging to Nigeria in 160 countries which are signatories to the New York Arbitration Convention.
The convention – which Nigeria is a member – was adopted by a United Nations diplomatic conference on June 10, 1958, and entered into force on June 7, 1959.
Nigeria can seek reduction, appeal against $200m security payment –SANs
Meanwhile, Nigeria can either appeal against or seek the variation of the $200m security payment.
A Senior Advocate of Nigeria, Dr Alex Izinyon, who expressed optimism that Nigeria’s appeal against the $9.6bn judgment would succeed, said the Federal Government’s legal team should explore the option of filing a separate appeal against the payment.
He said, “They can appeal against the $200m as a separate action different from the main challenge to canvass reasons why the amount is too onerous.
“Nigeria has already been granted leave to appeal to set aside the entire arbitral award on the grounds of fraud and other reasons. If that succeeds, what will be the essence of depositing $200m?
“The United Kingdom court must have asked Nigeria to pay the $200m to be sure the nation is serious to prosecute the appeal. So, let Nigeria demonstrate that it is ready to prosecute the appeal and so there is no basis to deposit the $200m.
“The award can be set aside, whether that fraud was discovered before or after the award.”
But another SAN, Kunle Ogunba, said Nigeria should apply for a reduction of the security payment.
He said, “They can apply for the variation of the amount of money to be deposited. But it is risky because the other party can also take a view that the money is too small in view of the judgment debt, without prejudice to the fact that the judgment is right or wrong. By law, they are immediately entitled to the award. I don’t know the factors taken into consideration before arriving at the $200m.
“Generally, you can always apply for a variation. It is like when a court grants bail and you find the conditions to be onerous, you can always come back to the court to apply for the variation of the bail conditions.
“I believe they can file an application before the court giving reasons why the $200m is onerous.” (Punch)
The government is looking beyond the money which is the condition attached to the stay of execution of the award.
Specifically, it is considering other legal options available besides paying the money.
The Attorney General of the Federation, Abubakar Malami (SAN), disclosed these in an exclusive interview with Saturday PUNCH on Friday.
The court on Thursday granted Nigeria’s request to stay of execution of the enforcement of the $9.6bn award pending the Federal Government’s appeal.
Granting the stay conditionally, the judge ordered Nigeria to make a $200m security payment into its account within 60 days.
The court also granted Nigeria’s request for leave to file the appeal in respect of the $9.6bn arbitral award.
Saturday PUNCH on Friday requested to know from Malami how the government intended to raise the money and if it would be looking towards withdrawing it from the Excess Crude Account.
But the minister said paying the money was not an exclusive option opened to the government.
He said the Federal Government was studying Thursday ruling.
The plan, Malami added, was to look at other options the government could exploit.
“Raising the $200m is not an exclusive option at our disposal.
“We are studying the ruling and analysing all other available legal and judicial options open to exploit,” the minister explained.
AFP reported Justice Butcher also gave Nigeria 60 days to make the security payment available – and 14 days to pay running costs which sum was not disclosed in court.
But P&ID, in a statement e-mailed Saturday PUNCH, following enquiries from the firm at the end of the Thursday’s proceedings, said the running costs which government must pay to them within 14 days before they could file the appeal amounted to $250,000.
Justice Butcher said P&ID had the right to seize Nigerian assets should either of the deadlines be missed.
The judge based his decision on the “real risk” that Nigeria’s “assets will not be returned in the event that the appeal is successful and would be lost to the government and to the people of Nigeria.”
He added that there was the “risk of immediate, serious and potentially irreparable damage” should P&ID use “third-party agents” to monetise and stash away the assets seized pending an appeal.
Justice Butcher further ruled “that there may be immediate and potentially severe damage to Nigeria if there is no stay.”
The British court in August delivered a judgment recognising Nigeria’s liability to pay P&ID $9.6bn for breach of the controversial GSPA.
The parties in the case returned to the court on Thursday with Nigeria obtaining the leave of the court to appeal against the judgment and an order of conditional stay of execution of the judgment subject to the Federal Government’s payment of $200m into the court’s account within 60 days.
P&ID knocks AGF over extradition moves against officials
..vows not to be distracted from $200m ruling
Meanwhile, P&ID has knocked the Federal Government over the moves by the Economic and Financial Crimes to extradite top officials of the company from Britain to Nigeria for trial.
The acting Chairman, EFCC, Ibrahim Magu, said the anti-corruption agency had officially asked the UK Crime Agency and its Irish counterpart to extradite the son of P&ID’s founder, Adam Quinn, and co-founder, Brendan Cahill, to Nigeria for trial over their roles in the controversial $9.6bn award.
But the UK firm insisted on Friday that the moves were meant to distract the firm from pursuing the $200m ruling.
In a statement to enquiries by Saturday PUNCH, P&ID said with regards to suggestions of a bid to extradite Cahill Quinn, it described it as “a desperate move to distract focus from today’s ruling requiring Nigeria to pay $200m to stave off the immediate seizure of assets.”
On the US court proceedings, P&ID said, “We’ll keep you apprised on the US case as things develop.”
A source in the company also told Saturday PUNCH that P&ID would go ahead to sieze Nigeria’s asset once the deadline given by the court express.
“P&ID will go ahead to seize assets linked to Nigetia once the deadline passes. We are serious about this,” the source added.
$9.6bn: P&ID can seize Nigeria’s assets in 160 countries, say experts
P&ID may be able to seize the nation’s assets in 160 countries which are part of the New York Arbitration Convention, international arbitration experts have said.
A dispute resolution partner and expert in international arbitration at a European law firm, Fieldfisher, Mr Simon Sloane, and a partner with international law firm Dentons, Mr James Langley, said P&ID could seize assets belonging to Nigeria in 160 countries which are signatories to the New York Arbitration Convention.
The convention – which Nigeria is a member – was adopted by a United Nations diplomatic conference on June 10, 1958, and entered into force on June 7, 1959.
Nigeria can seek reduction, appeal against $200m security payment –SANs
Meanwhile, Nigeria can either appeal against or seek the variation of the $200m security payment.
A Senior Advocate of Nigeria, Dr Alex Izinyon, who expressed optimism that Nigeria’s appeal against the $9.6bn judgment would succeed, said the Federal Government’s legal team should explore the option of filing a separate appeal against the payment.
He said, “They can appeal against the $200m as a separate action different from the main challenge to canvass reasons why the amount is too onerous.
“Nigeria has already been granted leave to appeal to set aside the entire arbitral award on the grounds of fraud and other reasons. If that succeeds, what will be the essence of depositing $200m?
“The United Kingdom court must have asked Nigeria to pay the $200m to be sure the nation is serious to prosecute the appeal. So, let Nigeria demonstrate that it is ready to prosecute the appeal and so there is no basis to deposit the $200m.
“The award can be set aside, whether that fraud was discovered before or after the award.”
But another SAN, Kunle Ogunba, said Nigeria should apply for a reduction of the security payment.
He said, “They can apply for the variation of the amount of money to be deposited. But it is risky because the other party can also take a view that the money is too small in view of the judgment debt, without prejudice to the fact that the judgment is right or wrong. By law, they are immediately entitled to the award. I don’t know the factors taken into consideration before arriving at the $200m.
“Generally, you can always apply for a variation. It is like when a court grants bail and you find the conditions to be onerous, you can always come back to the court to apply for the variation of the bail conditions.
“I believe they can file an application before the court giving reasons why the $200m is onerous.” (Punch)
