Alfa Belgore, a former chief
justice of Nigeria (CJN), provided one of the key legal arguments used by the
Process and Industrial Developments (P&ID) Limited, an Irish engineering
company, in securing the award of $9.6 billion (N3.2 trillion) against Nigeria,
a PREMIUMTIMES report says.
A UK tribunal accepted Belgore’s
opinion in ruling that the British Virgin Island firm is entitled to
$6.6billion in damages, plus interest, the report said.
In 2010, the company entered a
20-year gas and supply processing agreement (GSPA) with the federal government
to build a gas processing facility in Calabar.
But the company said after
spending years preparing for the project, it collapsed because the Nigerian
government did not build a pipeline or secure supply of gas as stipulated in
the agreement.
It then sought judicial remedy in
2012, and in 2017, it was awarded $6.6 billion in damages.
The British court gave P&ID
the fiat to seize Nigerian assets worth $9 billion, following the non-execution
of the ”agreement”.
According to the report, Belgore
who acted as a legal consultant to P&ID, analysed Nigeria’s laws,
“exploited their shortcomings” and cited case laws for the benefit of the firm.
The report quoted some lawyers as
saying the case presented a clear conflict of interest and that Belgore
violated the constitution by choosing to offer his services to P&ID.
Section 5 of the fifth schedule
of the 1999 constitution prohibits former presidents, vice presidents, chief
justices of Nigeria, governors and deputy governors from working for foreign
companies or enterprises.
WHAT BELGORE TOLD P&ID
The report said Belgore, in the
written legal advice offered to P&ID, admitted that he was working for a
foreign company.
It said the former CJN explained
he was providing the legal opinion for the benefit of Harcus Sinclair LLP,
P&ID’s solicitors, which provided him with the preliminary objections, the
memorandum of understanding between P&ID and the government, and a copy of
the gas supply and processing agreement between the company and the Nigerian
government.
The retired jurist also said he
considered several legal texts, statutes and case reports as well as evidence
to prepare the report which he admitted will be used in arbitration against
Nigeria.
“I have been instructed on behalf
of Process and Industrial Developments Limited (“P&ID”), a company
incorporated in the territory of the Virgins Island (“BVI”), to prepare a
statement addressed to the Arbitral tribunal in answer to the questions put to
me by P&ID in connection with this arbitration,” Belgore was quoted to have
written.
“This report has been prepared
solely for the use of this arbitration.
“I understand that the report
will be made available to the arbitral tribunal, the ministry of petroleum
resources of the Federal Republic of Nigeria and their respective legal
advisers and other witnesses or experts.”
“I have no conflict of interest
in accepting this instruction. Although I have acted and still act as an
adviser to the Government of the Federal Government of Nigeria on several
issues I have neither advised nor do I have relevant confidential information
relating to the Ministry of Petroleum Resources of the Federal Republic of
Nigeria.
“I understand my duty to the
Court and have complied and will continue to comply with my duty to the English
Courts, the duties of an expert witness as set out in Part 35 and Practice
Direction 35 of the Civil Procedure Rules.
“My experience and expertise is
appropriate for the evidence required in this matter.”
The report said the former CJN
was asked two questions after affirming that he was competent to give the legal
advice and also stand as an expert witness.
According to the report, the
questions were: “Whether or not the ministry lacked legal and/or contractual
capacity to validly enter into the GSPA as alleged, and whether or not the GSPA
is void as a result.
“Whether or not the claimant
failed to comply with the provision of section 54 of the Companies and Allied
Matter Act, Cap C20 Laws of the Federation of Nigeria 2004 (“CAMA”), as alleged
and if so whether the GSPA is void and /or affected by illegality, as a
result.”
In his response to the first
question, Belgore said: “In my opinion, the ministry entered into the GSPA as
an organ of government. As such the GSPA is binding on the government and the
ministry is correctly named as a defendant in its capacity as an organ of
government.”
On the second question, he
replied: “In my opinion there was no breach of section 54 of the companies and
allied matters act because: (i) a separate Nigeria corporation was set up on 21
July 2006, in compliance with section 54; (ii) in an event, P&ID was not
“carrying on business” by entering into the GSPA; and (iii) even of the
execution of the GSPA had constituted “carrying on business” within the meaning
of section 54, the ministry has waived its right to rely upon section 54 and/or
is estopped from so relying.”
Lai Mohammed, minister of
information, described the agreement as dubious, saying the federal government
is confident that it will be upturned.
Also, Abubakar Malami, attorney
general of the federation, said the Economic and Financial Crimes Commission
(EFCC) would prosecute all past government officials involved in the deal.
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