Saturday, 30 November 2019 05:42

$9.6bn P&ID judgement: UK court allows Nigeria to provide $200m bank guarantee in place of direct deposit

$9.6bn P&ID judgement: UK court allows Nigeria to provide $200m bank guarantee in place of direct deposit

The Federal Government of Nigeria on Thursday succeeded in securing variation of the UK court order from cash payment of $200 million security to issuing bank guarantee of the same amount. Attorney-General of the Federation and Minister of Justice, Abubakar Malami, made this known in a statement issued by his Special Assistant Media and Public Relation of the office; Dr. Umar Jibrilu Gwandu, on Friday in Abuja. According to Malami, the Federal Government appealed against the payment of $200 million security component, which was a condition for stay of execution of the judgement.

The Court granted the Federal Government’s request for variation of terms of the order seeking to provide bank guarantee in place of direct deposit. “Our application for variation of the order was allowed and we areas aresultnotmakingcashdeposit but posting a bank guarantee,” the Minister said. He however noted that Nigeria remains in control of her funds by the act of acceptance of the guarantee. “The Government is not paying the $200m cash but positing a bank guarantee by the variation of the order.

“The advantage of the variation in the judgement from direct deposition of cash to posting of bank guarantee is that the money and its control reside in the Federal Government unlike when otherwise. “Thesuccessrecordedsofarin relation to the $200m security deposit is that the amount of money remainsinourcustody, andweare simply providing a document. It isonlywhenourcasedidnotsucceed, which we never anticipate, then the court can order the withdrawal of the amount as stated in bank guarantee”. Malami added that the Federal Government requested the change in the method of paying the security deposit because it believes that the entire contract would be quashed on the basis of fraud.

 

NewTelegraph

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