NNPC $50 MILLION BRIBE: U.S COURT ADMITS ORAL ARGUMENTS

The United State Court of Appeal for the 5 th Circuit sitting in New Orleans, Louisiana, on Thursday decided to discountenance plea of “Lack of subject Matter Jurisdiction” and an “impermissible collateral attack on a final award” entered by counsels to Nigeria National Petroleum Corporation, NNPC. Appellate Judges Carol Dineen King, Emilio M Garza and Fortunato Pedro Benavides decided to admit preliminary oral arguments in the matter brought by Gulf-Petrec Oil Trading Company against NNPC which was alleged to have bribed international arbitrators with $25 million of $50 million allocated by the former President Olusegun Obasanjo to secure an arbitration award in favor of the NNPC.

Quoting the U.S. Federal Arbitration Act among other US statutes, the three Judges struck down objections by NNPC appellate attorney William Boyce of Fulbright & Jaworski who is one of seven attorneys that showed up at the hearing to support Boyce. The judges declared “if there is corruption involved it the procuring of an arbitral award by a party, a court is obligated to hear the merits of that case and has the powers to overturn an arbiter award if it is gained through any corruption such as bribery.”

NNPC defense team made very desperate attempt to remind the court that the case was not only lacking in merit, there was also the need for the New Orleans court to take into cognizance earlier rulings in Switzerland and at Eastern District EDTX where the matter was repeatedly dismissed for “lack of subject matter jurisdiction.” The determined defense team made no remarkable impression on the counsel to the plaintiff who argued that the ruling of “lack of subject matter jurisdiction” by earlier judicial bodies did not put a final seal on the case; rather, it was only an opening to transfer the case to an appropriate court of competent jurisdiction.

Counsel to the plaintiff (Gulf-Petrec), David J. Bederman, a Professor of Law at the Emory University in Atlanta Georgia, was locked in a tug of legal war with the NNPC’s counsel for over 45 minutes. He predicated the resolve of issue of Lack of Subject Matter Jurisdiction that had been previously used as grounds for dismissal by both the NDTX Court and the EDTX Court. This issue was resolved by the dismissal of criminal charges filed by Gulf-Petrec against the NNPC in Switzerland to overturn the Final Award. The dismissal of the cause of action, automatically cancelled the Swiss jurisdiction, passing to the US Federal Court in the EDTX and the opportunity to seek a retrial of the case in the U.S EDTX where there is evidence of commercial dealing between NNPC and US Companies.

The determined NNPC defense team made no remarkable impression on Professor Bederman who argued that the ruling of “lack of subject matter jurisdiction” by earlier judicial bodies did not put a final seal on the case; rather, it was only an opening to follow the procedures necessary to transfer the case to an appropriate court of competent jurisdiction that would hear the merits of case thus exposing the corruption of the NNPC and the arbitration panel.

Asked specifically by the judges to explain the subject matter jurisdiction issue, Bederman replied that “the jurisdiction issue has been cleared after the Swiss Court denied jurisdiction and referred back the case to the United States.”

Point Blank News Editor was present for the hearing in the East Courtroom of the magnificent United States Courthouse in New Orleans today where the United States Court of Appeals for the Fifth Circuit heard the appeal lodged against NNPC in a case involving allegations of Racketeering and fraud Former Chief Judge King and Judges Garza and Benavides listened intently to a discussion of issues involving the Federal Arbitration Act and the Foreign Sovereign Immunities Act, and its interpretation as well as the Unites States’ most devastating statute against civil and criminal activity, the Racketeering Influenced Corrupt Organizations Act of 1970. Commonly referred to as THERICO Act or RICO) is a United States Federal Law that provides for extended penalties for criminal acts performed as part of an ongoing criminal organizations. RICO was enacted by section 901(a) of the Organized Crime Control Act of 1970.

After three other hearings, at exactly 10: 31am, the NNPC Versus Gulf-Petrec case was called for hearing and in 45 minutes the over 50 capacity court was as silent as a grave yard when the allegations of bribery and rebuttals were presented by the counsels.

The seven attorneys from Fulbright & Jaworski, attorneys for NNPC were present during the argument indicating the importance of the case to the NNPC.

This case involves the giant company NNPC and some of its corrupt officials that are engaged in a battle with a small Texas corporation Gulf-Petro and its Division Petrec International Inc. Interestingly no one from NNPC was present in the courtroom nor was their trial attorney Robert Clarke. Professor Bederman was crisp, well organized and very logical in his presentation to the court. He responded fully and completely to all questions asked of him by the distinguished judges admitting factual allegations and pointing out the errors committed by the trial court in its rulings dismissing claims against NNPC which could lead to significant findings of liability against NNPC and the individuals named in the suit. 

After Professor Bederman’s opening argument, Fulbright & Jaworski’s attorney William Boyce responded on behalf of NNPC arguing the trial court did not err in dismissing the case. The court listened intently to his presentation and stated that it wished it had received more precise and specific briefing on the issues in question but that the case presented very difficult issues for their determination.

 In particular, they were disturbed by the allegations of bribery and corruption in arbitration where the NNPC is alleged to have paid off the arbitrators to rule in favor of NNPC and how to discover if such corruption actually occurred. The questions centered on whether or not such an attack on the arbitration should be allowed and whether or not NNPC was to be allowed immunity from prosecution. It was abundantly clear that NNPC does not want the small company to look at documents or ask questions of its officials, including Chief Sena Anthony Group General Manager of the Legal Department and Secretariat of the NNPC. It was further apparent that the NNPC hopes to prevail so that no further questions can be asked about its activities or those of its officials in regard to other acts of corruption.

The judges have taken the case under advisement and will rule sometime in the near future. This case is yet another cause for concern by the President of Nigeria over the corruption by the NNPC and its leaders, and even more concern for the Federal Republic of Nigeria. This case also appears to be the tip of the iceberg that is another immoral commercial activity by the NNPC and certain corrupt officials headed by Ms. Anthony who is responsible for the alleged bribery and corruption that has taken this case from Switzerland to the United States Court. The NNPC is spending a lot of time and money in an attempt to not allow the real facts of this case to see the light of day.

One of the people present in court told pointblanknews.com that “if they fail it will be because today David (Bederman) was able to slay Goliath (NNPC).”

From the presentations by the counsels, analyst told pointblanknews.com that the judge’s countenance and body language show that they may be taking very serious look at the allegations of bribery and corruption leveled against NNPC and international arbitrators. Also, further analysis indicated that the 5 th circuit court may want to refer the case back to the Eastern District Court in Texas where the plaintiff maybe allowed to file criminal charges and present evidence to prove the allegation of bribery and corruption.