Home Business P&ID: How Emefiele Shunned  Pressure on Him to Pay Off $11bn Arbitral Award — Aondoakaa

P&ID: How Emefiele Shunned  Pressure on Him to Pay Off $11bn Arbitral Award — Aondoakaa

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A former Minister of Justice and Attorney General of the Federation (AGF), Michael Aondoakaa has commended the immediate past Central Bank of Nigeria governor, Godwin Emefiele for his patriotism and assistance to Nigeria’s legal team in the case between Nigeria and a foreign company, Process and Industrial Developments (P&ID).

Specifically, the former AGF revealed that  Emefiele saved Nigeria billions of dollars that would otherwise have been paid as arbitral award to P&ID.

Aondoakaa who was AGF when P&ID signed the botched gas contract agreed with Nigeria in 2010 to build a gas processing plant in Calabar, Cross River State, spoke recently on Arise Television breakfast show.

P&ID had claimed the contract failed because the Nigerian government breached the terms of the agreement. The Nigerian government insisted that the contract was obtained by fraud and did not follow due process.

Consequently, the P&ID had approached the court and on January 31, 2017, it succeeded in securing an arbitral award of $6.6 billion against Nigeria as well as pre-and post-judgment interest at seven per cent. The amount rose to $11billion due to the interest.

Speaking recently on the development, Aondoakaa who was part of the consortium of senior lawyers interfacing with Nigeria’s lawyers at the London court, also urged the current Minister of Justice and Attorney General of the Federation AGF, Lateef Fagbemi SAN to look into other fraudulent cases filed against Nigeria.

He said: “This fraud has been exposed and it gives us a window to look at other similar cases like Ajaokuta and the rest of them that they hurriedly went abroad, got arbitration and are trying to enforce against Nigeria. “I particularly give credit to the CBN under the then Governor, Godwin Emefiele because there was strong pressure that settlement should be made. Our team was in the minority that we must fight till the end.

There was also apprehension that if we didn’t settle and the court now give judgment against us, that Nigeria would lose everything. But for them to have confidence in us, there was one going man in the CBN, the Director Legal Services, he gave us the confidence, gave us the support and ensured that we were able to present to the UK lawyers that this was a fraud. So, I am most grateful, I completely agree with the honourable Attorney General that this is a big fraud.”

Presidency sources had alleged that top government officials had mounted pressure on President Buhari to approve payment for the award to avoid heavier penalty if the matter dragged on.

Emefiele, who was the CBN governor then, was said to have shunned the pressure mounted on him to release the judgment sum and advised the President against such approval, insisting that the contract was fraudulent and that the P &ID would not succeed in court if Nigeria hired competent lawyers.

Acting on Emefiele’s advice, President Buhari was said to have refused the payment and okayed the litigation, which was eventually determined in the favour of Nigeria.

Penultimate week, the Federal Government of Nigeria won the five years legal battle against P&ID Limited in London, as the UK court quashed the $11 billion arbitration award in favour of P&ID.

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