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Tuesday, September
29, 2020 / 5:17 PM /by ThisDay Newspaper / Header Image
Credit: Bio Reports
Emefiele hails court
order, says it will boost reserves
A London Commercial Court Tuesday ordered the release
of the $200million guarantee put in place as security for the stay of execution
granted Nigeria for the appeal filed against the judgment of Justice
Christopher Butcher for the execution of the Arbitral award of $10 billion in
favour of Process & Industrial Development (P&ID), a firm based in the
British Virgin Islands.
P&ID had sought to increase the security to $400 million, but the court presided over by Sir Ross Cranston rejected the request and ordered cost of 70,000 Pounds against P&ID.
The court had earlier in the month granted another cost of 1.5million Pounds against P&ID.
Commenting on the outcome, the Governor of the Central
Bank of Nigeria, Godwin Emefiele, said: "Due to the substantial evidence of
prima facie fraud established before the Court, we are pleased that the Judge
has agreed to release the guarantee. We are also pleased that the Court has
rejected P&ID's application to increase the guarantee, which was clearly
intended to be a diversionary tactic and entirely misconceived.
This release which is an accretion into the reserves
will further enhance the nation's management of the exchange rate of its
domestic currency, the Naira.
"This is a further and significant victory for Nigeria
in our ongoing fight to overturn the US$10 billion award procured through fraud
and corruption by P&ID and former government officials.
"P&ID and its backers, Lismore Capital and VR
Advisory, are increasingly seeing their case slip between their fingers. They
continue to resort to employing delay tactics, disseminating misleading claims,
and taking every step to obstruct our investigations across multiple
jurisdictions.
"The FRN will not rest until we secure justice for the
people of Nigeria - no matter how long it takes. Investigations are ongoing,
and we are confident that more of the truth will be revealed over the coming
months".
Process & Industrial Developments, a firm based in
the British Virgin Islands, won a $6.6 billion arbitration award after the 2010
gas deal collapsed. The award had been accruing interest since 2013 and is now
worth $10 billion.
Nigeria in September successfully sought the right to
appeal an August ruling that would have converted the arbitration award to a
judgment, which would make it easier for P&ID to seize its assets.
Justice Cranston J. of United Kingdom High Court had
on September 10, 2020 ordered P&ID to make an interim payment of more than 1.5 million Pounds to the federal government within 21 days.
The 1.5 million Pounds was to cover legal costs the federal government incurred as part of its successful application for the extension of time to challenge the arbitration award and procedural hearing earlier in the year.
Credit:
The post P
and ID Loses Again, as UK Court Orders Release of $200m Guarantee to Nigeria
first appeared in ThisDay
on September 29, 2020.
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