NNPC $50 MILLION BRIBE: COURT RULES AGAINST GULF PETRO
The United States Court of Appeal, 5th circuit in Texas on Monday affirmed that claims by Gulf Petro Trading Company Inc, were properly dismissed by the district court for lack of subject matter jurisdiction in a matter filled against the Nigeria National Petroleum Corporation (NNPC).
Gulf-Petro Trading Company had in September 6, 2006 dragged the NNPC to the 5th circuit court of appeal in New Orleans, Louisiana where oral arguments was entertained on alleged payment of $25 Million to international arbitrators in London, Belgium and the United States.
Former Nigeria High Commissioner to United Kingdom, Prince Bola Ajibola, former Group Managing Director of Nigeria National Petroleum Corporation, Mr. Gaius Obaseki, the Group General Manager, Corporate and Legal, NNPC, Ms. Sena Anthony and Managing Director of Pipeline Product Marketing Company, PPMC, Mr. Dan Nzelu are being accused of paying a total sum of $25 Million from a £25 Million said to have been authorized by President Olusegun Obasanjo for the bribe as bribe to international arbitrators.
According to the ruling made exclusively available to pointblanknews.com, the 5 th Circuit Court in Louisiana ruled that Gulf Petro's claims were an "impermissible attack on the final award in favor of NNPC.”
But President of Gulf Petro, Mr. Jim Faulk told pointblanknews.com that the company would press on in the battle for justice by instituting appropriate legal proceedings against NNPC in Nigeria where it believes the relevant jurisdiction to hear the matter could be established
In a unanimous ruling by Appellate Judges Carol Dineen King, Emilio M Garza and Fortunato Pedro Benavides the court denied Gulf Petro's attempt to set aside the final award, and replace it with a modified award. The court maintained that convention dictates that a US court, sitting in secondary jurisdiction, lacks jurisdiction to consider such action.
Gulf Petro had initiated arbitration proceedings, sequel to a dispute over an alleged breach of a 1993 joint venture agreement between Gulf Petro and the Nigeria National Petroleum Corporation (NNPC).
The US based firm asserted several violations including Texas common law fraud, and civil conspiracy. Relieves included cost and expenses of the arbitration and subsequent legal challenge, cost expenses and profits, reputational injury and lost business opportunities.
In 2000 there was a partial award in partial favor of Petro, but in 2001the panel gave the final award to NNPC, holding that "Petro lacked capacity to maintaining its claims against NNPC". Gulf Petro challenged the award in the Federal Court of Switzerland, but lost. Then in 2006 it took its case to the North district of Texas where Gulf Petro sought inter alia, confirmation of the 2000 partial award in which the panel had found in Gulf Petro's favor, on some aspects of the question, NNPC's liability and determination of damages. It lost.
On appeal, the US based firm had alleged two broad categories of wrong doing on the part of NNPC, its officials and attorneys, and arbitrators. Petrec alleged that NNPC paid a $25million bribe to arbitrators in order to procure a favorable outcome in the arbitration, that two of the arbitrators had a variety of business dealings and exparte communications with NNPC, and its attorneys, that they failed to disclose prior to or during arbitration.
See Court Documents for details
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