Details of $9.6 billion fed govt, p& id deal

University of Lagos Law teacher Wahab Shittu examines the $9.6b judgment against Nigeria by a British High Court

Notwithstanding that the $9.6 billion arbitral award (representing 20% of our foreign reserves) against Nigeria at the instance of Process and Industrial Development Limited (P&ID) is huge and a major source of concern to patriotic Nigerians and consequently the major topical issue in our national consciousness today, many are apparently unaware of the events surrounding the execution of the contract as revealed by painstaking investigations carried out by a crack team of EFCC detectives under the watch  of Mallam Ibrahim Magu. These sordid details are the subject matter of this intervention.

Execution of the Contract

On January 11, 2010, the Federal Government of Nigeria entered into a 20-year gas and supply processing agreement with Process and Industrial Development Limited to supply gas and build a gas processing facility in Calabar Cross River State.  Under the terms of the agreement, Process and Industrial Development Limited was to refine associated natural gas into non associated gas to power the national electric grid. The contract was signed on behalf of the Federal Government by the then Minister of Petroleum, Rilwan Lukman, now late and witnessed by Grace Taiga, Director Legal Federal Ministry of Petroleum Resources.  On the part of Process and Industrial Development Limited, the contract was signed by Michael Quinn and witnessed by the company’s commercial director, Mohammed Kutchazi. Under the terms of the contract, the Federal Government through Addax Petroleum and other petroleum companies will supply gas to Process and Industrial Development Limited while Process and Industrial Development Limited will construct a facility in Cross River State to refine the product. Significantly, Process and Industrial Development Limited represented under the agreement that it had procured a land specifically at Calabar to construct a facility in furtherance of the project.

Findings arising from investigations

• Investigations and findings at Cross River State Ministry of Lands confirmed that Process and Industrial Development Limited was never allocated the said land as represented in the agreement. There was intent for a land to be allocated to Process and Industrial Development Limited with conditional requirement to pay a certain fee for the allocation of C of O, which fee was never paid by P&ID and so the land was never allocated by the Cross River State Government.
• Findings at the Bureau of Public Procurement confirmed that a certificate of No objection was never issued because the contract was never referred to Bureau of Public Procurement for their attention.
• Findings at Federal Inland Revenue Service reveal a default on the part of P&ID of N10 million in terms of tax obligations.
• Findings at national office for technology promotion and acquisition shows that the agreement was not registered.
• Findings at special control unit against money laundering show that P&ID has not made declaration of its activities in compliance with the money laundering law.
• It has also been revealed that the contract was never referred to the Federal Executive Council for deliberation and approval.
• Owing to the absence of Federal Executive Council’s approval, the contract was never referred to the Federal Ministry of Justice for vetting and approval.

Arraignment of suspects

Arising from the findings, EFCC by a 11-count charge dated 16th day of September, 2019 filed by Messrs Bala Sanga, Abba Muhammed, Ekele. E. Iheanacho and Rotimi, Oyedepo Iseoluwa for Economic and Financial Crimes Commission.  Messrs process and Industrial Developments Limited (Incorporated in the British Virgin Island) and Process and Industrial Developments (Nigeria) Limited were arraigned as follows:

 Count 1

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 the 11th day of January, 2010 in Abuja within the jurisdiction of this Honourable 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.

 Count 2

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) between July 2009 and January, 2010 in Abuja within the jurisdiction of this Honourable 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 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 8(b) and punishable under section 1(3) of the Advance Fee Fraud and other Offences Act, 2006.

• To be continued next week