United Kingdom Commercial court has ordered release of $200million guarantee put in place as security in respect of the execution of Process and Industrial Development (P&ID) $10bn arbitral claim.
Central Bank of Nigeria (CBN) revealed this on Tuesday, September 29, adding that the court awarded a £70,000 cost in favour of Nigeria in addition to an earlier award of £1.5m.
Read Also: P&ID: Nigeria Secures Landmark Victory In Bid To Overturn $10b Judgement
According to the CBN, Nigeria filed an appeal;
Against the judgment of Justice Butcher for the execution of the Arbitral award of $10billion in favour of Messrs. Process and Industrial Development Limited (P&ID).
The court presided over by Sir Ross Cranston rejected the request of P&ID to increase the security to $400 million and instead ordered cost of £70,000 against P&ID.
The court had also earlier in the month granted another cost of £1.5million against P&ID.
Commenting on the outcome, CBN Governor, Godwin Emefiele, expressed pleasure the Court rejected the P&ID’s application to increase the guarantee, which he noted was clearly intended to be a diversionary tactic and entirely misconceived.
According to him;
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.
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 while ensuring monetary and price stability.
Tuesday’s order, the CBN governor noted;
Is seen as a further and significant victory for Nigeria in its determination to overturn the US$10 billion award procured through fraud and corruption by P&ID and former government officials.
CBN said a government source had assured that;
The Nigerian Government is determined to secure justice for the people of Nigeria – no matter how long it takes.
Background
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.
Read Also: P&ID: Nigeria Secures Landmark Victory In Bid To Overturn $10b Judgement
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 to the federal government within 21 days.
