FG denies default in foreign fine payment
By Andrew Orolua, Abuja
The federal government has denied media claims that its property abroad would be confiscated if it fails to pay about $40 million judgment fine in a case between it and the Processes and Industrial Developments Limited (P&ID) before February 15 next year.
Attorney General of the Federation (AGF) and Minister of Justice, Abubakar Malami (SAN) made this clarification on Wednesday. He said there was no truth in the media reports that should the federal government fail to pay the fine before February 15, P&ID could enforce the award against Nigeria by seizing its assets in the United Kingdom.
He noted that noted in the first place, P&ID never incurred a debt of $40 million while executing the gas supply and processing agreement entered with the federal government in 2010 in respect of an accelerated gas development project in Nigeria’s OMLs 67 and 123, adding that “P&ID never began the construction of the project facility although, it alleges it incurred about $40 million in preliminary expenses.”
Malami, who addressed a press briefing Wednesday, noted that there was so much misrepresentation in the media concerning the issue, hence the need to put the records straight.
The minister said the ministry would do everything possible to protect the interest of the country in the matter, adding that the Buhari administration is challenging the award of the fine in courts in the United States and the United Kingdom respectively.
He stated that the federal government is represented by the foreign law firm of Curtis, Mallet-Prevost, Colt & Mosle LLP as the legal proceedings are currently on-going in both countries, assuring that the federal government will ensure that its interest and that of the people of Nigeria are vigorously defended.
“Meanwhile, as proceedings were ongoing in the United States, P & ID simultaneously, commenced recognition and enforcement proceedings of the arbitral award against the federal government in the UK Commercial Court. The case came up for hearing on 21st May, 2019 and has been further adjourned to 14th June, 2019 at the instance of the UK Commercial Court due to judicial availability.
“Consequently, the government is vigorously defending its interests in the United Kingdom. It is entirely proper for Nigeria to raise and to strongly assert all available and proper defences to the claims brought by P&ID.
“The foregoing facts are the true state of things and contrary to the false assertions widely circulating online that “if Nigeria fails to pay the judgment fine before February 15, P & ID can enforce the award against Nigeria by seizing its assets in the United Kingdom.
“It must be highlighted in light of the above that neither the US District Court or the UK Commercial Court has granted P&ID any enforcement orders against the government as the proceedings are still ongoing with the interests of Nigeria being vigorously defended.
“We urge our foreign friends and investors to ignore the malicious reports as the federal government is making concerted efforts through legal and diplomatic channels to resolve the issues in contention between the parties in this matter.
“It is therefore, unfortunate that false and unsubstantiated information in relation to the matter is currently being circulated. The general public should thus be well guided and rest assured that the office of the attorney general of the federation and our foreign counsel is committed to effectively defending the interests of the federal government of Nigeria in the matter as always,” he stated.
