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Nigeria sues JP Morgan Chase for $1.7B claims

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A London high court has begun hearing into a lawsuit launched by Nigeria against U.S. bank JP Morgan Chase, claiming more than $1.7 billion for its role in a disputed 2011 oilfield deal.

The civil suit filed in the English courts relates to the purchase by energy majors Shell and Eni of the offshore OPL 245 oilfield in Nigeria, which is also at the centre of ongoing legal action in Italy.

A panel of judges in Milan acquitted the companies and executives, who all denied any wrongdoing, of bribery last March. Prosecutors have appealed the ruling.

In the court documents pertaining to the London case, Nigeria alleges JP Morgan was “grossly negligent” in its decision to transfer funds paid by the energy majors into an escrow account to a company controlled by the country’s former oil minister Dan Etete instead of into government coffers.

The trial opened Wednesday with details of the claim by Nigeria’s lawyer, Roger Masefield.

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JP Morgan will present its defence early next week. The trial will end on April 7 and a judgment will likely take several months.

In court, Masefield said Nigeria’s case rested on proving two key points: there was a fraud and JP Morgan was aware of the risk of fraud.

He said JP Morgan had breached its duties.

“The evidence of fraud is little short of overwhelming,” Masefield told the court.

“Under its Quincecare duty, the bank was entitled to refuse to pay for as long as it had reasonable grounds for believing its customer was being defrauded.”

Quincecare is a legal precedent whereby the bank should not pay out if it believes its client will be defrauded by making the payment.

JP Morgan’s London offices deal with business for Europe, Middle East and Africa, including Nigeria.

A spokesman for the bank, in a statement to Reuters, said it was “confident that it acted appropriately in making these payments” and said the bank would “robustly defend against this claim”.

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The damages sought include cash sent to Etete’s company Malabu Oil and Gas, around $875 million paid in three instalments in 2011 and 2013, plus interest, taking the total to over $1.7 billion.

The Nigerian government at the time asked JP Morgan to make these transfers as part of the oilfield sale, court documents show.

The London case dates back to 1998 when Nigerian military ruler Sani Abacha awarded the offshore oilfield licence, OPL 245, to a company Etete owned.

The $20 million price tag – of which Etete paid about $2 million, according to court documents – was widely viewed by industry experts as too low given the block was expected to yield billions of dollars of crude, although it remains undeveloped.

Subsequent Nigerian administrations contested Etete’s rights to the field, triggering years of legal wrangling until a deal designed to end the battles was struck in 2011.

Etete’s company Malabu Oil and Gas handed the undeveloped OPL 245 back to Nigeria as part of a resolution agreement involving Shell and Eni.

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To complete the deal, Shell and Eni paid a signature bonus of about $200 million directly to the Nigerian government and then deposited $1.1 billion in the Nigerian government’s escrow account with JP Morgan, court documents show.

Etete’s lawyers did not comment on the trial as Etete is not a party in this suit.

Shell and Eni are also not parties to the London law suit and declined to comment.

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Elected leaders told me ICC was built for Africa and thugs, says chief prosecutor

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Karim Khan, chief prosecutor of the International Criminal Court (ICC), says some elected leaders told him that the ICC was built for Africa and “thugs like Vladimir Putin”, the Russian president.

 

The ICC is the first and only permanent international court with jurisdiction to prosecute individuals for genocide, crimes against humanity, war crimes, and aggression.

 

The court’s member states are obliged to immediately arrest the wanted person if on their territory.

 

Israel and the US, the Jewish nation’s biggest ally, are not members of the ICC.

 

Khan did not specify which elected leader or leaders he was referring to, but expressed his disapproval at apparent threats from the US over the ICC’s intention to seek arrest warrants against Benjamin Netanyahu, prime minister of Israel.

The ICC is also asking for an arrest warrant for Yoav Gallant, Israeli defence minister. Both men have been accused of war crimes.

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The court’s decision to prosecute Israeli authorities has been met with ire from Israel and the US.

 

“Target Israel and we will target you. If you move forward with the measures indicated in the report, we will move to end all American support for the ICC, sanction your employees and associates, and bar you and your families from the United States,” a letter signed by some senators reads.

 

“You have been warned.”

 

US President Joe Biden had also described the allegations against Israel as “outrageous”.

 

“Let me be clear, we reject the ICC’s application for arrest warrants against Israeli leaders,” Biden said at a Jewish American Heritage Month event at the White House on Monday.

 

“There is no equivalence between Israel and Hamas.”

‘IT’S NOT GENOCIDE’

In a CNN interview on Monday, Khan described the letter as a threat, maintaining that the ICC’s values are synonymous with American beliefs.

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“And, of course, I’ve had some elected leaders speak to me and be very blunt. ‘This court is built for Africa and for thugs like Putin,’ was what one senior leader told me,” Khan said, adding that “we don’t view it like that”.

 

“We are not going to be swayed by the different types of threats, some of which are public and some maybe are not,” he added.

 

The ICC is also seeking warrants for three Hamas chiefs — Yahya Sinwar, leader of the Palestinian militant group; Mohammed Al-Masri, leader of the Al Qassem Brigades; and Ismail Haniyeh, Hamas’ political leader.

 

Charges against the Hamas leaders include “extermination, murder, taking of hostages, rape and sexual assault in detention”.

 

Netanyahu and Gallant are being charged for “causing extermination, causing starvation as a method of war, including the denial of humanitarian relief supplies, deliberately targeting civilians in conflict”.

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All charges are in relation to the ongoing Israel-Hamas war.

Israel is also facing a separate charge of alleged genocide at the International Court of Justice (ICJ) as brought forward by South Africa.

 

Biden said Israel is not committing genocide in Gaza.

 

“Contrary to allegations against Israel made by the International Court of Justice (ICJ), what’s happening in Gaza is not genocide. We reject that,” Biden added.

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Helicopter Crash: Iranians pay last respects to President Raisi

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Several thousands of Iranians gathered Tuesday to mourn President Ebrahim Raisi and seven members of his entourage who were killed in a helicopter crash on a fog-shrouded mountainside in the northwest.

 

Waving Iranian flags and portraits of the late president, mourners set off from a central square in the northwestern city of Tabriz, where Raisi was headed when his helicopter crashed on Sunday.

 

They walked behind a lorry carrying the coffins of Raisi and his seven aides.

 

Their helicopter lost communications while it was on its way back to Tabriz after Raisi attended the inauguration of a joint dam project on the Aras river, which forms part of the border with Azerbaijan, in a ceremony with his counterpart Ilham Aliyev.

 

A massive search and rescue operation was launched on Sunday when two other helicopters flying alongside Raisi’s lost contact with his aircraft in bad weather.

 

State television announced his death in a report early on Monday, saying “the servant of the Iranian nation, Ayatollah Ebrahim Raisi, has achieved the highest level of martyrdom”, showing pictures of him as a voice recited the Koran.

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Killed alongside the Iranian president were Foreign Minister Hossein Amir-Abdollahian, provincial officials, and members of his security team.

 

Iran’s armed forces chief of staff Mohammad Bagheri ordered an investigation into the cause of the crash as Iranians in cities nationwide gathered to mourn Raisi and his entourage.

 

Tens of thousands gathered in the capital’s Valiasr Square on Monday.

 

Supreme leader Ayatollah Ali Khamenei, who has ultimate authority in Iran, declared five days of national mourning and assigned vice president Mohammad Mokhber, 68, as caretaker president until a presidential election can be held.

 

State media later announced that the election would will be held on June 28.

Iran’s top nuclear negotiator Ali Bagheri, who served as deputy to Amir-Abdollahian, was named acting foreign minister.

 

From Tabriz, Raisi’s body will be flown to the Shiite clerical centre of Qom on Tuesday before being moved to Tehran that evening.

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Processions will be held in in the capital on Wednesday morning before Khamenei leads prayers at a farewell ceremony.

 

Raisi’s body will then be flown to his home city of Mashhad, in the northeast, where he will be buried on Thursday evening after funeral rites.

 

Raisi, 63, had been in office since 2021. The ultra-conservative’s time in office saw mass protests, a deepening economic crisis and unprecedented armed exchanges with arch-enemy Israel.

 

Raisi succeeded the moderate Hassan Rouhani, at a time when the economy was battered by US sanctions imposed over Iran’s nuclear activities.

 

Condolence messages flooded in from Iran’s allies around the region, including the Syrian government, Palestinian militant group Hamas and Lebanese militant group Hezbollah.

 

It was an unprecedented Hamas attack on Israel that sparked the devastating war in Gaza, now in its eighth month, and soaring tensions between Israel and the “resistance axis” led by Iran.

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Israel’s killing of seven Revolutionary Guards in a drone strike on the Iranian consulate in Damascus on April 1 triggered Iran’s first ever direct attack on Israel, involving hundreds of missiles and drones.

 

In a speech hours before his death, Raisi underlined Iran’s support for the Palestinians, a centrepiece of its foreign policy since the 1979 Islamic revolution.

 

Palestinian flags were raised alongside Iranian flags at ceremonies held for the late president.

AFP

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Labour gives FG May 31 ultimatum to reverse electricity tariff hike

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The Nigeria Labour Congress (NLC) and Trade Union Congress (TUC) have given the federal government until May 31 to reverse the electricity tariff.

 

The labour bodies gave the ultimatum in a communiqué issued in Abuja on Monday at the end of a joint emergency national executive council (NEC) meeting of the NLC and TUC.

 

On April 3, the National Electricity Regulatory Commission (NERC) approved an increase in the electricity tariff for customers in the Band A classification—from N66 to N225 per kwh.

 

The tariff hike attracted public outcry and calls for its reversal.

 

On May 13, members of organised labour picketed the headquarters of the NERC, the federal ministry of power, and the Abuja Electricity Distribution Company (AEDC) in Abuja, demanding a reversal of the tariff.

 

The protest was replicated across Nigeria.

 

In the communiqué, the unions said the action taken by the government without consideration for the hardship of the masses was “unjust and burdensome”.

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“The NEC once again vehemently condemns the unilateral increase in electricity tariffs by the authorities,” the communiqué reads.

 

“This action, taken without due consideration for the economic hardships faced by the masses and the provisions of the law, is deemed unjust and burdensome.

 

“The NEC reaffirms its demands for an immediate reversal of the tariff hike and the vexatious apartheid categorization into bands to alleviate the suffering of Nigerian workers and citizens and gives the National Electricity Regulatory Commission and the federal government until the last day of May 2024 to meet these demands.”

 

The organised labour said appropriate actions would be taken if the government failed to meet its demands.

 

“This includes, but is not limited to, the mobilisation of workers for peaceful protests and industrial actions to press home these demands for social justice and workers’ rights,” the unions said.

 

The labour unions also reiterated the May 31 ultimatum for the federal government to finalise the new national minimum wage fixing process for workers.

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“We need an agreement that will genuinely reflect the true value of Nigerian workers’ contributions to the nation’s development and the current crisis of survival facing Nigerians as a result of government’s policies,” the labour movement added.

 

“The NEC affirms its commitment to ensuring that the interests and welfare of workers are adequately protected in the negotiation process.

 

“The NEC-in-session therefore reiterates the ultimatum issued by the NLC and TUC to the federal government, which expires on the last day of this month.”

 

The organised labour directed all councils whose state governments are yet to fully implement the N30,000 national minimum wage and its consequential adjustments to “immediately issue a joint two-week ultimatum to the culpable state governments to avert industrial action”.

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