News
Malabu Scam: FG Adds Negligence Claims to $875m JPMorgan Suit
The federal government has added negligence claims to its $875 million London lawsuit against JPMorgan, alleging that the the bank was “grossly negligent” when it purportedly ignored red flags and transferred state funds to Mr Dan Etete, its former oil minister, a convicted fraudster.
Mr Dan Etete
This disclosure was contained in the ruling of London’s high court last week.
The suit, filed in the English courts in 2017 relates to the purchase of the offshore OPL 245 oilfield in Nigeria by oil majors, Royal Dutch Shell and Eni in 2011, which is the subject of an ongoing trial in Milan.
The federal government had filed a claim against the US lender, accusing the bank of negligence in transferring funds from the disputed oilfield deal to a company controlled by Etete.
A spokeswoman for JP Morgan had dismissed the accusation, saying the firm “considers the allegations made in the claim to be unsubstantiated and without merit.”
At the core of the case is a $1.3 billion payment from Shell and Eni to secure the block that the lawsuit said was deposited into a federal government’s escrow account managed by JP Morgan.
The lawsuit said JP Morgan then received a request from the finance ministry to transfer more than $800 million of the funds to accounts controlled by the previous operator of the block, Malabu Oil and Gas, controlled by Etete.
The court papers also alleged that JP Morgan transferred the funds to two accounts controlled by Etete, without sufficient due diligence to make sure the money did not leave the accounts controlled by the federal government.
The court filing, made in London in November last year on behalf of Nigeria, said JP Morgan acted with gross negligence by allowing the transfer of the money without further checks.
It said JP Morgan should have known that under Nigerian law, the money should never have been transferred to an outside company.
“If the defendant acted with reasonable care and skill and/or conducted reasonable due diligence, it would or should have known or at least suspected … that it was being asked to transfer funds to third parties who were seeking to misappropriate the funds from the claimant and/or that there was a significant risk that this was the case,” the court filing said.
Reuters reported that the London court yesterday ruled that the six-week London trial will start on the first available date after November 1 next year, meaning that proceedings may not begin until 2022.
JP Morgan declined to comment yesterday.
But a lawyer for the American multinational investment bank, Rosalind Phelps, described the federal government’s suit against the bank as a claim with no real prospect of success.
The bank “had no duty to inquire into or investigate the validity or legality of the instructions it received
“The only allegation that’s left is one of negligence,” Phelps, had told the court.
As part of the proceedings, JP Morgan will also have to disclose within 21 days which individuals at the bank made the final decision to transfer the funds in question.
“Nigeria is pleased that JP Morgan has agreed it will now confirm all the senior figures at the bank who were involved,” Reuters quoted a spokesman for the Nigerian government on this case, as saying.
“This claim will move forward and Nigeria will hold JP Morgan accountable for its central role in the OPL 245 fraud,” the report said.
The damages sought by Nigeria include the monies allegedly sent to Etete, around $875 million paid out in three instalments, plus interest taking the total to $1.7 billion.
The decision is also likely to compel the bank to disclose details of its internal processes. JP Morgan sought to quash the case last year.
The Milan trial began in 2018.
In July 2020, Italian prosecutors asked a Milan court for Eni and Shell to be fined and some of their present and former executives, including Claudio Descalzi, Eni CEO, to be jailed.
They further requested Eni and Shell to be fined 900,000 euros ($1.06 million) each and sought to confiscate a total of $1.092 billion from all the defendants in the case, the equivalent of the bribes alleged to have been paid.
Final defence arguments from lawyers representing Shell, Eni and its executives are being made to the court.
The next hearing is scheduled for November 25.
Ogba Ogbaga, an Abuja-based lawyer, has said that he has been instructed to institute legal proceedings against MTN Nigeria, Airtel Nigeria, Globacom, 9mobile and MultiChoice Nigeria, operators of DStv, over what he described as unfair consumer practices relating to expiring data bundles and television subscriptions.
In a statement posted on Facebook, Ogbaga said his law firm, GIMBG Legals, received instructions from its client, KAA, also known as KaaTruths, to challenge the companies’ subscription policies in court.
According to him, the proposed suit will question whether telecom operators and DStv’s subscription models comply with provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 and other applicable laws.
Ogbaga alleged that telecom providers operate internet data services that are unfair to consumers, claiming subscribers sometimes do not receive the services they paid for but still lose their subscriptions once the validity period expires.
He also criticised DStv’s subscription model, arguing that consumers lose paid viewing time due to factors such as power outages, adverse weather conditions and service interruptions, while subscriptions continue to count down regardless.
“Our clients have complained that MTN data services are unduly one-sided,” Ogbaga said, adding that the legal action would also extend to other telecommunications providers and DStv.
He said the court action would seek judicial determination on whether the companies’ subscription practices comply with consumer protection laws.
The lawyer also invited interested legal practitioners to collaborate on the case, saying his firm would provide updates as the matter progresses.
In a separate Facebook post on Wednesday, Ogbaga said previous policy discussions, town hall meetings and debates at the National Assembly had failed to address the concerns raised by consumers.
He argued that telecom operators regularly carry out maintenance and network upgrades that temporarily disrupt services without extending customers’ subscription periods, while DStv subscribers also lose viewing time because of electricity outages and weather-related disruptions.
The National Insurance Commission (NAICOM) has commenced the issuance of new licence certificates to insurance companies that successfully met the industry’s new minimum capital requirements, marking the formal beginning of a new regulatory era aimed at strengthening the financial capacity, governance and global competitiveness of Nigeria’s insurance sector.
At a ceremony held at the Commission’s headquarters in Abuja, the Commissioner for Insurance, Olusegun Ayo Omosehin, presented the new licence certificates to compliant operators, describing the exercise as a major milestone in the industry’s recapitalisation programme.
According to the Commission, a total of 43 insurance companies declared compliant with the new capital requirements are expected to receive the new licence certificates in phases.
Omosehin congratulated the successful companies, saying the issuance of the new licences signals the beginning of a stronger regulatory framework anchored on improved capitalisation, sound corporate governance, innovation and sustainable growth.
He urged operators to leverage their enhanced capital base to develop innovative insurance products, improve operational efficiency and deepen insurance penetration across the country.
The Commissioner said the Commission expects the recapitalised companies to deliver stronger financial performance while maintaining high standards of professionalism and customer service.
He also announced that NAICOM’s next major regulatory initiative would be the implementation of the Risk-Based Capital (RBC) framework, under which insurers’ capital levels would be aligned with the risks inherent in their respective business portfolios.
According to him, the new framework will further strengthen the industry’s resilience by ensuring that insurers maintain capital commensurate with the risks they underwrite, thereby enhancing policyholder protection and boosting market confidence.
Omosehin reaffirmed the Commission’s commitment to removing regulatory impediments where necessary while maintaining effective oversight to safeguard policyholders and strengthen confidence in the insurance market.
The issuance of the new licence certificates marks the commencement of a phased transition to higher capital standards aimed at improving the financial capacity, solvency and claims-paying ability of insurance companies operating in Nigeria.
Management of Nigeria CommunicationsWeek Media has withdrawn its publication titled “Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-Dealing at Pan African Towers,” which was published on its platform.
The decision to retract the story follows an editorial review to ensure that the platform maintains the highest standards of accuracy, fairness and responsible journalism in reporting matters that are the subject of ongoing judicial proceedings.
Nigeria CommunicationsWeek acknowledges that the issues raised in the publication remain before the courts and have not been finally determined.
Accordingly, the organisation has decided to remove the article from its platforms pending the conclusion of the legal processes or the availability of additional verified information.
The publication regrets any inconvenience or misunderstanding the report may have caused to readers or any individuals or organisations mentioned in the story.
Nigeria CommunicationsWeek remains committed to the principles of balanced, factual and ethical journalism and will continue to uphold professional standards in its coverage of judicial and corporate governance matters.
ITUC-Africa Faults FG’s Plans to Remove Electricity Subsidy
SEC Begins Full e-Registration for Capital Market Services
NAICOM Revokes Nigeria Reinsurance’s Licence over Failure to Meet MCR
Many Nigerian Airlines May Collapse within 30 Days – Onyema
Ogbaga, Abuja Lawyer to Sue Telcos, DStv over Alleged Unfair Practices
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
BON Establishes Six Ad Hoc Committees to Modernize Broadcasting
How EFCC Turned Recovered Loot Into School Supplies for Thousands of Nigerian Students
E-Business2 days agoKaspersky Identifies Cyberespionage as a Growing Threat Across Africa, Others
Broadcasting2 days agoNBC Files Fresh Appeal against Judgment Barring it from Imposing Fines on Broadcast Stations
News2 days agoINTERPOL Report Shows AI Powers 55% of Cybercrimes in Africa Amid $484m Losses
E-Financial2 days agoNigerians Lost N25.85Bn to Digital Payment Fraud in 2025 –CBN
Telecom2 days agoWhy Strong Institutions Remain Africa’s True Growth Engine
General News2 days agoASUS and Konga Unveil West Africa’s First Flagship Experience Store in Lagos
News2 days agoNigeria Expands Deep-tech Skills Pipeline
E-Financial2 days agoNRS Announces 30 Percent Tax on Corporate Crypto Income