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Nigeria drags JP Morgan to court for $1.7 billion over oil deal

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3 years ago

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LONDON (Reuters) -A London high court began to hear a lawsuit on Wednesday 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 seen by Reuters, 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 with details of the claim by Nigeria’s lawyer, Roger Masefield. 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”.

DAMAGES SOUGHT

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.

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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Joe Biden Grants Posthumous Pardon to Black Nationalist Marcus Garvey

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January 20, 2025

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On Sunday, President Joe Biden made a powerful move by posthumously pardoning Marcus Garvey, the Black nationalist who left a lasting mark on figures like Malcolm X and other civil rights leaders.

Back in the 1920s, Garvey was hit with a mail fraud conviction that many believe was just a way to silence his growing voice in the fight for racial pride. Alongside Garvey, Biden also granted pardons to a prominent Virginia lawmaker and advocates pushing for immigrant rights, criminal justice reform, and gun violence prevention.

Congressional leaders had been calling on Biden to clear Garvey’s name, arguing that his conviction was more about politics than justice. After his conviction, Garvey was sent back to his native Jamaica, where he lived until his passing in 1940. This pardon is a nod to recognizing the legacy of a man who inspired countless others and fought fiercely for his people.

The Rev. Martin Luther King Jr. said of Garvey: “He was the first man, on a mass scale and level” to give millions of Black people “a sense of dignity and destiny.”

As President Biden wraps up his term on Monday, it’s still up in the air whether he’ll issue pardons for those who’ve faced criticism or threats from President-elect Donald Trump. Granting preemptive pardons for anyone who might be investigated or prosecuted by the incoming administration would push the limits of presidential power into uncharted territory.

Biden has already made history by issuing the most pardons and commutations in a single presidency. Just last Friday, he announced that he’s commuting the sentences of nearly 2,500 folks locked up for nonviolent drug offenses. He also gave a blanket pardon to his son Hunter, who faced charges related to gun and tax issues.

Additionally, Biden has commuted the sentences of 37 out of the 40 individuals on federal death row, swapping their death sentences for life in prison—this move comes right as Trump, who has been vocal about his support for capital punishment, is stepping into office. During his first term, Trump oversaw an unprecedented wave of executions, with 13 carried out even amid the pandemic.

It’s important to note that a pardon wipes the slate clean, lifting guilt and punishment, while a commutation simply lightens or eliminates the sentence without clearing the wrongdoing.

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At least seven people killed by army at Ghana’s AngloGold Ashanti mine

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1 day ago

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January 20, 2025

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ACCRA (Reuters) -A Ghanaian small-scale miners’ association on Sunday said soldiers killed nine unarmed people at an AngloGold Ashanti mine on Saturday night, while the army said seven illegal miners had been killed in a firefight.

Kofi Adams, local chairman of the Ghana National Association of Small Scale Miners, told Reuters that nine people had been killed and fourteen severely injured in the incident at the Obuasi gold mining site in the West African country’s Ashanti Region.

He said the people had not been armed.

Earlier, Ghana’s armed forces said that about 60 illegal miners carrying locally manufactured rifles and other weapons breached the mine’s security fence at around 11:00 pm (2300 GMT) on Saturday and fired on a military patrol deployed there, leading to a shootout.

“This is unprecedented (and) it’s difficult to understand why this happened,” Adams said, noting that in the past, trespassers on the site had been scared off with warning shots.

Ghana’s President John Dramani Mahama ordered an immediate investigation into the incident, the presidency said in a statement on Sunday, calling it “tragic”.

The government has asked AngloGold Ashanti to cover the medical expenses of the injured and the cost of burials, the presidency’s statement said.

AngloGold Ashanti could not immediately be reached for comment.

The Johannesburg-listed miner owns the Iduapriem and Obuasi mines in southern Ghana. The two mines produced more than 490,000 ounces of gold last year.

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Thousands attend funeral of Liberian ex-warlord Prince Johnson

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January 20, 2025

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Thousands gathered in northern Liberia on Saturday for the funeral of warlord-turned-politician Prince Johnson, a notorious face of the country’s brutal civil wars who died without facing trial.

Back-to-back conflicts devastated the small west African country from 1989 until 2003, claiming around 250,000 lives and resulting in massacres, mutilation, rape, cannibalism and the widespread use of child soldiers.

Johnson became infamous in 1990 after appearing in a video sipping beer as he calmly watched his fighters mutilate and torture president Samuel Doe to death.

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