$9.6 Billion Court Fine: Nigeria At Risk Of Losing $2.3 Billion In...

$9.6 Billion Court Fine: Nigeria At Risk Of Losing $2.3 Billion In France

By Wires Editor | The Trent on September 3, 2019
0
Nigeria's President Muhammadu Buhari
Nigeria's President Muhammadu Buhari

As Nigerians speak ill of the controversial $9.6 billion judgement in favour of the Process and Industrial Developments, P&ID, the country is at the verge of losing another $2.3 billion in France over unresolved legal and funding crisis involving the Nigerian government and a local content partner, Sunrise Power and Transmission Company Limited SPTCL.

A statement obtained by TheCable on Monday, September 2, 2019, revealed that the country could possibly lose $2.3 billion fine in arbitration in France as a result of controversies surrounding the Mambilla power project in Taraba state.

The company through its chief executive officer Leno Adesanya, said the SPTCL was sidelined in the project by the ministry of power in a series of petitions to President Muhammadu Buhari, Vice-President Yemi Osibanjo, Malami, Babatunde Fashola, former minister of power.

The company averred that the federal government awarded SPTCL the contract to build, operate and transfer (BOT) in 2003.

It accused the federal government of signing another contract in 2017 with three Chinese companies, Sinohhydro Corporation of China, China Ghezouba Group Corporation of China and China Geo-Engineering Group Corporation, to form a joint venture for the execution of the project.

The sudden breach of contract according the company was done by ‘vested interests’ in government. The company also accused Abba Kyari, chief of staff to the president, of taking the unilateral decision to remove the company from the contract.

The company also accused Fashola of reneging on his promise to support the project.

As a result, SPTCL dragged the federal government and its Chinese partners before the International Chamber of Commerce, ICC, in Paris, France, over an alleged breach of contract.

In view of that SPTCL is making the following claims for being excluded from the final contract:

Wasted expenditures: $100 million+ 

Loss of profit as content partner: $565 million 

Loss of the commission due by SINOHYDRO to SUNRISE: $855 million 

Loss of profit that would have been made through the resettlement contract: $525 million 

Loss of reputation: $25 million+ 

Read more at Independent

NO COMMENTS

Leave a Comment

To leave a comment anonymously, simple write your thoughts in the comments box below and click the ‘post comment’ button.