P&ID: FG
Reacts as UK Courts Grant Permission to Challenge Contract
Award
The English Court has
on Friday, 4th September, 2020 delivered an
unprecedented judgment, allowing the Federal Republic of
Nigeria (FRN) permission to proceed with its
challenge to the $10 billion arbitral award made against
her over three years ago.
This was disclosed in a statement issued by Dr. Umar Jibrilu
Gwandu, Special Assistant on Media to the Minister on Friday
4th September 2020.
According to the statement, “the Court has allowed
the FRN to bring the challenge well
outside the normal time limits, due to the exceptional
circumstances where the FRN has
uncovered evidence of a massive fraud in procuring the award”.
The Court heard evidence from
the FRN and the offshore shell company,
that is, Projects and Industrial Development Company
(P&ID) in relation to the Gas Supply and
Processing Agreement (GSPA), which the
parties entered into 10 years ago and which was never
performed.
According to the statement, “the Buhari Administration, having
inherited the dispute from the previous administration, only
recently uncovered evidence that
the GSPA was a bad commercial deal
designed to fail from the start, and that its subsequent
arbitral award was based on fraud and corruption”.
The FRN relied on a number of
ongoing investigations across multiple jurisdictions, including the
US, to build its case. During the hearing, new evidence was
presented to further support Nigeria’s challenge.
“The FRN will now proceed to a full trial of the issues, where
the FRN’s substantive application to
finally set aside the award will be heard, thereby recording a
major success considering the fact that the Federal Government
exceptional circumstances application to have its challenge taken
well outside the normal time limits is upheld on account of
uncovered evidence of massive fraud in procuring the award”, the
statement disclosed.
The government of the Federal Republic of Nigeria said it is
pleased with the outcome from the High Court hearing
today.
This is a major victory in the ongoing fight against
the P&ID, to overturn the injustice of
the multi-billion dollar arbitral award.
In light of the new and substantive evidence presented
regarding P&ID’s fraudulent and corrupt activities, the
Court has granted the application for an extension of time to hear
the challenge out of normal time limits.
The statement explained that,” the Federal Government will now
proceed to a full hearing of the fraud challenge in the coming
months”.
“Investigations into the GSPA are
ongoing, and we are firmly committed
to overturning the award – no matter how long it takes – to ensure
that this money goes towards Nigeria’s future, not into the pockets
of millionaires trying to exploit our country”.
Modupe Ogundoro
Deputy Director