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Tag: Malabu oil deal

Malabu Oil deal: FG claims $1.975b against JP Mogan, Shell, Eni

…London court rejects JP Morgan’s objection to suit

As part of efforts to recover funds lost by the country through the controversial Malabu Oil deal, the Federal Government has initiated two suits against American bank, JP Morgan Chase and two multinational oil companies – Royal Dutch Shell Plc and Eni.

Salihu Isah, spokesman to the Minister of Justice and Attorney General of the Federation (AGF), Abubakar Malami (SAN) said, in a statement on Friday, that in the first of the two suits, now pending before the Commercial division of the High Court in London, the FG is claiming $875m against JP Morgan for allegedly allowing the misappropriation of state funds over the Oil Prospecting License, OPL 245.

Isah said it is part of the FG’s claim that the bank allegedly failed in its duty of care to a customer when it purportedly allowed the withdrawal of the said amount from its account with the bank, for payment to some beneficiaries of the Malabu Oil deal. He noted that in the second suit, the FG is claiming $1.1b against Shell and Eni to “recover the very significant sums lost to corruption and the unlawful activity” of the two energy majors.

He said the London court, in a ruling on Thursday, rejected the objection raised by JP Morgan against the suit brought against it.

Isah quoted Justice Andrew Burrows as saying, in the 26-page verdict, that Nigeria has “reasonable grounds” for bringing a claim to the commercial division of the High Court, meaning it can now proceed to trial.

According to Isah, Justice Burrows said “The defendant bank has failed to establish that the claimant has no real prospect of success.”

Isah added: “According to him (the judge), the bank ought to suspect the payments were fraudulent and therefore had a duty to protect the Federal Republic of Nigeria until its concerns were cleared up.

‘That duty of care entails that the defendant bank could not simply follow the mandate of abiding by the instructions given by the claimant, because the bank’s duty of care, as its core, was to protect the claimant against being defrauded by not paying out unless and until it was ‘off inquiry’, the judge said.

Isah said, “at a hearing this month, JPMorgan Chase had argued that the case should be dismissed as it had received sufficient approvals from Nigerian authorities before allowing the transfer of funds from a government account to those controlled by former Minister of Petroleum Resources, Dan Etete.

“The payments, after a 2011 settlement, aimed to end several years of battle over the ownership of a lucrative, but controversial oil licence that has ensnared Royal Dutch Shell and Eni in corruption investigations in Milan, Italy.

“The licence for the oil block was shuffled back and forth between Shell and Malabu Oil & Gas, a Nigerian oil company controlled by Etete and which was first awarded development rights in 1998 when he was the Minister, but he has denied any wrongdoing.

“Even as the bank had said it had ‘no responsibility’ to look behind any payment instructions, the judge said this was not consistent with the agreement the bank had with its client.

“However, the bank was quoted to have said after the judgement on Thursday, that; ‘While today’s judgment is disappointing, it does not address the underlying claim, which we continue to believe is completely without merit. JPMorgan complied with its legal and regulatory obligations in respect of the payments concerned and will defend the claim robustly at trial.’

“The Federal Government said it was now set to going on with its claim and had ‘full confidence that JPMorgan Chase will be held to account for its actions.’

Isah said the suit against Shell and Eni is intended to “recover the very significant sums lost to corruption and the unlawful activity” of the two energy majors. On its part, Shell and Eni have said their deal with the Federal Government was legal and that the payment was made to the state and they had no part to play in what happened to the money afterwards.

“It will be recalled that several recipient banks also refused to accept the payments and returned the money to JPMorgan as a result of compliance issues, according to the suit,” Isah said.

February 22, 2019
Court stops Adoke’s prosecution over Malabu oil deal

A Federal High Court in Abuja has held that the involvement of former Minister of Justice and Attorney General of the Federation (AGF), Mohammed Adoke, in the OPL 245 transactions commonly referred to as the Malabu Oil deals was in furtherance of the execution of lawful directives/approvals of President Goodluck Jonathan.

The Economic and Financial Crimes Commission (EFCC) had, based on Adoke’s involvement in the Malabu deal, to which it (EFCC) claimed Nigeria lost over $1.8 billion, filed a five count charge of money laundering against the ex-minister before the Federal High Court, Abuja.

But, in a judgment on Friday, Justice Binta Nyako held that Adoke merely acted in furtherance of the lawful directives/approvals of ex-President Jonathan in the exercise of his (President’s) executive powers as provided in the Constitution.

Justice Nyako said based on her finding that Adoke (who served under Jonathan) acted on the ex-President’s lawful directives/approvals, he could not be held personally liable for all he did in respect of the Malabu deals.

The judgment was on a suit marked: FHC/ABJ/94/446/2017 filed by Adoke, with the AGF as sole defendant.

The judge resolved all the issues raised for determination in favour of the plaintiff and also dismissed the preliminary objection raised against the suit by the defendant.

Justice Nyako noted that contrary to the defendant’s contention that the plaintiff exceeded the directive of the President and in the process committed a crime, Exhibits 19 and 20, which remained uncontradicted and unchallenged, confirmed that the plaintiff actually remaine within the confines of the lawful directives given to him by the President and is therefore protected by law.

Exhibit 19 is a letter written by the AGF to the Acting Chairman of the Economic and Financial Crimes Commission (EFCC) to the effect that the plaintiff (Adoke) has no case to answer in respect of the actions he took pursuant to the directives/approvals of the President in respect to the implementation of OPL 245 Resolution Agreement.

Exhibit 20 is a letter from the Minister of State, Petroleum Resources to the Chief of Staff to the President in response to the latter’s request for advice on the letter by the AGF to the Acting Chairman of the EFCC on OPL 245 Settlement Agreement implemented by the plaintiff, in which the Minister of State, Petroleum Resources agreed with the opinion of the AGF.

Justice Nyako said by the provisions of sections 5(1), 147 148 and 150 of the Constitution of the Federal Republic of Nigeria (as amended), the executive powers of the federation were vested in the President and which he could exercise either personally or through any of his appointed ministers.

She said: “I have carefully studied the provisions of sections 5(1), 147 148 and 150 of the Constitution of the Federal Republic of Nigeria (as amended).

“A community reading of sections 5(1), 147(1), 148(1) and 150 of the Constitution of the Federal Republic of Nigeria (as amended) leaves you in no doubt that the executive powers of the federation, as vested in the President, are exerciseable by him directly or through a minister of the federation.”

April 14, 2018
Court stops Adoke’s prosecution over Malabu deal

A Federal High Court in Abuja has held that the involvement of former Attorney General of the Federation and Minister of Justice, Mohammed Adoke, in the OPL 245 transactions, commonly referred to as the Malabu Oil deals was in furtherance of the execution of “lawful directives” of ex- President Goodluck Jonathan.

The Economic and Financial Crimes Commission (EFCC) had filed a five- count charge of money laundering against the ex-minister before the Federal High Court, Abuja.

The Commission claimed Adoke was directly involved in the Malabu deal in which Nigeria lost $1.8billion.

But, in a judgment on Friday, Justice Binta Nyako held that the ex-minister acted on the lawful directives of Jonathan in the exercise of his executive powers as provided in the Constitution.

Justice Nyako said based on her finding that Adoke acted on the ex-President’s directives, he could not be held personally liable for all he did in respect of the matter.

The judgment was on a suit marked: FHC/ABJ/94/446/2017 filed by Adoke, with the AGF as sole defendant.

The judge resolved all the issues raised in favour of the plaintiff and dismissed the preliminary objection raised against the suit by the defendant.

April 13, 2018
Reps invite Jonathan over Malabu oil deal

… Ex-President must give evidence on oil deal – Lawmakers

The House of Representatives on Wednesday insisted that former President Goodluck Jonathan must give evidence on his role in the controversial $1 billion Malabu Oil deal.

A statement issued by the Chairman of the Ad-hoc Committee probing the alleged corruption, malpractices and breach of process in the award of OPL 245, Hon. Razak Atunwa, said they would write the former President to come and defend himself on the allegations.

The statement reads: “The Ad-hoc Committee on OPL 245 met to consider the progress of the Committee’s work and the next steps to be taken.

“The Committee noted that it had conducted extensive investigation into the OPL 245 saga and that it is drawing to a close.

“However, the Committee is of the view that in the interest of thoroughness, natural justice and fair play, it imperative that evidence should be taken from former President Goodluck Jonathan.

In arriving at this decision, the Committee took account of the following facts:

“Mr. Jonathan was the President at the material time the ministers brokered the deal that lead to the allegation of $1bn funds diversion.

Mr. Jonathan’s name features in the proceedings initiated by the Public Prosecutor of Milan in Italy.

“A UK court judgment in relation to an application to return part of the money being restrained, castigated the Jonathan administration as not having acted in the best interest of Nigeria in relation to the ‘deal’;

“The Attorney-General of the Federation at the material time, Mohammed Bello Adoke, has recently instituted proceedings in court wherein he pleaded that all his actions were as instructed by former President Goodluck Jonathan.

“Accordingly, pursuant to the provisions of the Constitution, the Committee has decided to request that former President Goodluck Jonathan give evidence on his role in the matter. The Secretariat will write to him asking for his response and submissions.”

July 5, 2017
Malabu: Reps panel to decide on Jonathan’s invitation

The House of Representatives ad hoc committee investigating the alleged corruption, malpractices and breach of due process in the award of OPL 245 is meeting today to discuss the modalities for inviting former President Goodluck Jonathan.

The report of the committee had indicted former President Jonathan for his role in the contentious Malabu fraud.

A member of the Hon. Rasak Atunwa- headed committee who spoke under anonymity yesterday said the meeting would hold today.

“The committee is going to discuss the modalities for his invitation just like the chairman of the committee said recently.

“The issue is that the former President was the commander in Chief when the monumental fraud was committed and the country lost such a huge amount of revenue.

“The committee is going to ask the President to tell us what he knows about the Malabu deal and educate us on how he could claim ignorance of what ministers he appointed were doing on his behalf, particular, when they claimed he gave the approval for such.”

June 14, 2017
Malabu: Group kicks against House summoning Jonathan

A group under the auspices of the Niger Delta Advancement Front (NAF) Wednesday kicked against the House of Representatives summoning ex-President Goodluck Jonathan to appear before it over Malabu oil deal involving the controversial OPL 245 oil field which was bought by Italian oil giant ENI and Shell in 2011.

The group, according to its National President, Dr. Ikiomasi Wakama, in a statement, vowed to resist any attempt that would make Goodluck Jonathan to appear before the House of Representatives.

Wondering why the lawmakers singled out one of their own, who sacrificed so much for the unity of Nigeria, the group described the summon as a witch-hunt that must not be accomplished.

The statement which NAF National President issued to The Nation in Abuja, Wednesday said that: “As much as we believe in the unity of Nigeria, we must not also be the only ones to be paying the price because we can assure the National Assembly that we will resist every attempt to make Goodluck Jonathan appear before them.”

The statement that condemned the summon notice, also classified it as vilification of Jonathan, who did his best for the country.

Wakama said that: “It has come to our notice that the Nigerian House of Representatives, in a show of naked overzealousness and utter disrespect, is proposing to summoned the immediate past President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan GCFR over his perceived role in the Malabu Oil deal involving the controversial OPL 245 oil field which was bought by Italian oil giant ENI and Shell in 2011.

“We condemn in all fullness, the continued vilification of Goodluck Ebele Jonathan and the various attempts at undermining a good man who did his best for the country in service and strengthening our democracy and unity as a Nation.”

According to NAF, a Nigerian court had on January 26, 2017 given an order ceding control of OPL 245 to the Federal Government pending investigations on the $1.1 billion deal.”

The statement added that on March 17, an Abuja Federal High Court reversed its seizure of the oil block with the judge stating that the forfeiture order was irregularly filed.

NAF said that in February this year, Italian Oil Company ENI’s Board of Statutory and Watch Structure had commissioned an independent US law firm to carry out forensic investigation of the 2011 transaction between ENI and Shell and the Nigerian Government for the acquisition of OPL 245 license in Nigeria.

The investigation, said the group, examined new materials and further information filed by prosecutors in Milan and Nigeria as part of closure of the investigation in December 2016.

The group pointed out that “the Law firm however, confirmed the conclusion reached by previous investigations in 2015 stating that there was no evidence of corrupt conduct in relation to the transaction thereby exonerated the Former President Goodluck Jonathan. So the question is “who is after Goodluck Jonathan?

“Against this background, we therefore see a calculated grand plan of deliberate mischief from the Nigerian House of Representatives to continue to witch-hunt and malign former President Jonathan and his government on a matter that competent courts and international investigators have carefully studied and given a clean bill of health.”

Raising further questions about the impropriety of the summon, the group said asked whether the Nigerian House of Representatives now working on behalf of the Nigerian people or the Abacha family who have been working round the clock to seize OPL 245 from Malabu Oil and its owners?

The NAF asked how come these investigations by EFCC and the House of Representatives are coming at the same time when the Abacha family has renewed its quest to acquire OPL 245?

It asked : ” How come that out of all the oil blocks awarded by the Abacha junta to the Mai Deribes, Indimis and the many others, it is the Malabu oil deal that has continued to be the subject of national discourse? Deliberately concocted and twisted to suit the mischievous propagandists who have sworn that Malabu oil and its owners will see no peace as much as we know that Goodluck Jonathan has no interest or stake in it?

“We are more concerned knowing that the Malabu Oil deal predates the Jonathan administration and we are left to wonder why the House of Representatives would want to summon only former President Jonathan and not Obasanjo who probably should have a better explanation on the subject matter. Or better still, start with the Abacha family.

“It is unfortunate that a country that has not been able to summon those responsible for the Halliburton scam which has won Nigeria international condemnation and for which many have been convicted in international courts would want to witch-hunt former president Goodluck Jonathan because they are bent on excavating evidence against the Jonathan presidency and the Malabu oil deal even when it has been clearly established that there was none?

“What about those who plotted coup to topple previous administrations in this country and are working free, are they not supposed to be tried after serving out as presidents? Can’t the National assembly go after coup plotters in order to forestall future occurrences, rather than hunting an innocent man in the person of former President Goodluck Jonathan, who handed over power willingly just to promote our Democracy which those in the National Assembly are one of the biggest beneficiaries.”

April 19, 2017
Malabu: Group vows to resist Jonathan’s appearance before Reps

A group under the auspices of the Niger Delta Advancement Front (NAF) on Tuesday vowed to resist any attempt to make former President Goodluck Jonathan appear before the House of Representatives over his perceived role in the Malabu Oil deal.

Wondering why the lawmakers singled out the ex- President, the group described the summon as a witch-hunt that must not be accomplished.

The statement signed NAF National President, Dr. Ikiomasi Wakama, in Abuja, said “As much as we believe in the unity of Nigeria, we must not also be the only ones to be paying the price because we can assure the National Assembly that we will resist every attempt to make Goodluck Jonathan appear before them.”

The statement also classified the House summon as vilification of Jonathan, who did his best for the country.

Wakama added: “It has come to our notice that the Nigerian House of Representatives, in a show of naked overzealousness and utter disrespect, is proposing to summon the immediate past President of the Federal Republic of Nigeria, Dr. Goodluck Ebele Jonathan GCFR over his perceived role in the Malabu Oil deal involving the controversial OPL 245 oil field which was bought by Italian oil giant ENI and Shell in 2011.

“We condemn in all fullness, the continued vilification of Goodluck Ebele Jonathan and the various attempts at undermining a good man who did his best for the country in service and strengthening our democracy and unity as a nation.”

According to NAF, a Nigerian court had on January 26, given an order ceding control of OPL 245 to the Federal Government pending investigations on the $1.1 billion deal.

The statement added that on March 17, an Abuja Federal High Court reversed its seizure of the oil block with the judge stating that the forfeiture order was irregularly filed.

NAF said that in February this year, Italian Oil Company ENI’s Board of Statutory and Watch Structure had commissioned an independent United States law firm to carry out forensic investigation of the 2011 transaction between ENI and Shell and the Nigerian Government for the acquisition of OPL 245 license in Nigeria.

The investigation, the group said, examined new materials and further information filed by prosecutors in Milan and Nigeria as part of closure of the investigation in December 2016.

The group pointed out that the law firm however confirmed the conclusion reached by previous investigations in 2015, stating that there was no evidence of corrupt conduct in relation to the transaction and exonerated Jonathan.

“So the question is “who is after Goodluck Jonathan?

“Against this background, we therefore see a calculated grand plan of deliberate mischief from the Nigerian House of Representatives to continue to witch-hunt and malign former President Jonathan and his government on a matter that competent courts and international investigators have carefully studied and given a clean bill of health,” the group concluded.

April 18, 2017
MEND backs Reps summon of Jonathan over Malabu oil deal

The Movement for the Emancipation of the Niger Delta (MEND) on Monday hailed the decision of the House of Representatives to summon former President Goodluck Jonathan on the controversial Malabu oil deal.

MEND, in an online statement issued by its Spokesperson, Jomo Gbomo, alleged that ex-President Jonathan received $200 million as kickback from the oil deal, while urging the federal lawmakers to compel Jonathan’s appearance

It said: “We are compelled by natural justice, equity and good conscience to lend our voice to the most ignoble and despicable role played by the former President in the messy affair which has tainted the image of Nigeria, both locally and internationally.

“Like millions of Nigerians at home and in the Diaspora, who have keenly followed the OPL 245 saga, we have reasonable grounds to suspect that former President Jonathan may have indeed compromised his high office with regard to the matter, more especially, given the fact that key officials of his administration, including the then Attorney-General of the Federation, Mr. Mohammed Bello Adoke, have been indicted and charged before the Federal High Court in Abuja.

“We are in full support of moves by the House of Representatives to summon the former President to appear before the House to give answers to the myriad of questions concerning his role in OPL 245 saga.

“Where he (Jonathan) refuses to honour the invitation, we urge the House to invoke its inherent powers to compel his appearance.”

The militant group also said it was alarmed by media reports of the planned relocation of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Lagos from Port Harcourt, Rivers State.

If it was true, MEND urged the Anglo/Dutch oil giant (SPDC) to shelve the idea of relocating to Lagos, stressing that the move had the likely consequence of reawakening restiveness in the Niger Delta region.

It added: “Besides the massive loss of jobs, opportunities, taxes and other incentives, the planned move (by SPDC) will cause in the medium to short term, it is clear to all stakeholders, including the Federal Government, that such a move is ill advised, especially against the backdrop of the recent directive from the federal government to the International Oil Companies (IOCs) to relocate to their areas of operation in the Niger Delta.

“To be sure, the Niger Delta region is no longer hostile to the business interests of the IOCs, including SPDC, as peace has since returned to the region; following the enervating efforts of MEND, the Pan-Niger Delta Forum (PANDEF), the various state governments and the federal government. There is therefore no reason whatsoever for SPDC to relocate to Lagos.

“We use this opportunity to warn that we shall reconsider the unilateral ceasefire of May 30, 2014, if SPDC relocates to Lagos.”

April 17, 2017
$1.1b Malabu Oil deal: ‘Why Jonathan must appear before Reps committee’

THROUGH its ad hoc committee investigating the alleged corruption, malpractices and breach of due process in the award of Oil Prospecting Licence (OPL) 245, the House of Representatives yesterday explained why former President Goodluck Jonathan must appear before the Green Chamber.

The former President has been invited to testify over allegations of complicity in the $1.1 billion Malabu Oil deal.

In a statement yesterday, Committee Chairman Razak Atunwa said: “The House of Representatives, by a resolution taken at Plenary set up and mandated this committee to, inter alia, conduct a thorough examination of the process and circumstances surrounding OPL 245 and identify culpability of any persons, groups or organisations.

“The committee is aware of recent information that have come to light, both nationally and internationally, indicating that former President Goodluck Ebele Jonathan may have been complicit in the controversial OPL 245 deal.

“The committee is also closely monitoring the proceedings in the Italian courts instituted by the Public Prosecutor of Milan in which ministers in Jonathan Administration were mentioned, including President Jonathan himself.

“These facts have firmly placed former President Goodluck Jonathan on the committee’s radar.

“The Committee believes that former President Goodluck Jonathan may well be in a position to assist it with its inquiries. Accordingly, the committee is considering inviting him to give evidence before it. An announcement will be made once a formal firm decision is taken on the matter.”

April 13, 2017
Jonathan denies receiving $200 million Malabu’s oil deal

The media office of the former President on Tuesday denied the allegations that former President Goodluck Jonathan received $200 million as proceeds from the Malabu Oil deal.

The allegations were published on a gossip news site, Buzzfeed, and republished by a few other newspapers.

A statement by the Media Adviser to Dr. Goodluck Jonathan, Ikechukwu Eze, said that the allegation is false and is one more in the series of fake news sponsored by those threatened by Dr. Jonathan’s continuously rising profile in the international community.

Common sense, he said, should have shown the purveyors of the slander that the Malabu oil deal far predated the Jonathan regime and it would only make sense for him to be bribed if he had a time machine to go back in time to when the deal was struck.

He said that the report relied on hearsay evidence from a man of questionable character who provided no substance to back up his false claim.

The statement reads “The man quoted by the report said he ‘assumed’ that Dr. Jonathan would
be bribed. Since when has the assumption of a crook been enough to smear the reputation of a patriot and international statesman like Dr. Goodluck Jonathan?

“The report also wrongly claimed that “Jonathan and Etete had known each other for years, according to Shell staff, when Jonathan served as a tutor to Etete’s children while he was a minister.” This claim is clearly ridiculous and nothing can be further from the truth.

“In the first place, the former President couldn’t have been a ‘tutor’ to Etete’s children without first establishing contact with the family. This is because Jonathan met Etete who served as the Petroleum Minister in Gen. Abacha’s military regime for the first time under the succeeding civilian administration, when he was already the deputy Governor of Bayelsa State. Even then, the fact remains that ex-President Jonathan has never met any of Etete’s children.

“Besides, Jonathan couldn’t have been anybody’s private tutor during that period, because he was already in the directorate cadre in Oil Mineral Producing Areas Development Commission, OMPADEC (now NDDC), having already left the academia, at the time Etete was a serving
minister.

“This story, coming so soon after the fake news that Dr. Goodluck Jonathan refused British help in rescuing the Chibok Girls (a story that the British Government debunked) and that he plans to contest the 2019 elections (another lie), proves that these fallacious stories are deliberately contrived for reasons that are yet to be publicly disclosed.

“It is instructive that this same old fable apparently intended to rubbish Jonathan’s name locally and internationally, is being recycled with more lies added to garnish the narrative, at a time the
ex-President is making efforts to resolve the issues in the People’s Democratic Party (PDP).

“Again, let us point out for clarity and for the umpteenth time that while he was in office and now that he is out of office, former President Jonathan did not open and does not own any bank account, aircraft or real estate outside Nigeria. Anyone with contrary information is challenged to publicly publish same,” he said

The former President appealed to the media to report facts rather than innuendo and gossip.

He reminded the media that he signed the Freedom of Information Act into law and that it is only fair to use it to investigate allegations in order to establish the truth.

The statement also noted that Dr. Jonathan cannot stop criminals from ‘assuming’, but that he can and he will stop them from getting away with blatant lies.

April 11, 2017