Headline

Malabu: Nigeria Loses $1.7 Billion JP Morgan Case

Published

3 years ago

June 14, 2022

Nigeria on Tuesday lost its $1.7 billion claim against JP Morgan Chase Bank over the transfer of proceeds from the sale of OPL 245 in the controversial Malabu oil deal.

Judge Sara Cockerill ruled Tuesday that the Nigerian government couldn’t show that it had been defrauded in the case.

In the suit, Nigeria is claiming more than $1.7 billion for the bank’s role in the controversial deal. Nigeria also alleges that JP Morgan was “grossly negligent” in its decision to transfer funds paid by oil giants Shell and Eni into an escrow account controlled by a former Nigerian oil minister, Dan Etete.

Earlier in February, Nigerian lawyer, Roger Masefield, argued that the nation’s case rested on proving that there was fraud and JP Morgan was aware of the risk of fraud.

“The evidence of fraud is little short of overwhelming,” the lawyer 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 refers to a legal precedent whereby the bank should not pay out if it believes its client will be defrauded by making the payment.

Judge Cockerill said Tuesday that by the time of the 2013 payments, the bank was “on notice of a risk” of fraud.

“There was a risk – but it was, on the evidence, no more than a possibility based on a slim foundation,” the judge ruled.

Background
The OPL deal details how Shell and Italy’s Eni in 2011 paid the Nigerian government of then president Goodluck Jonathan a combined $1.3 billion for an oil block. Of that amount $875 million was paid to Malabu Oil & Gas, a company controlled by former oil minister Dan Etete.

Mr Etete had awarded Malabu the rights to the block in 1998 when he was Nigeria’s oil minister.

Within weeks of the deal in April 2011, half of Malabu’s money was allegedly packed into bags and paid out to Nigerian government officials and Western oil executives as cash bribes.

The deal has also spawned further lawsuits, including efforts by a new presidential regime in Nigeria to recover assets. A panel of judges in Milan acquitted the companies and executives, who all denied any wrongdoing, of bribery last March. Prosecutors have however appealed the ruling.

Classified documents from Britain’s financial crime agency seen by this newspaper revealed how it allowed JP Morgan to pay $875 million of suspicious funds to Mr Etete, a former Nigerian oil minister widely known as a convicted money launderer.

The documents, rarely seen Suspicious Activity Reports (SARs), were filed by the banking giant’s London branch as it raised concerns about huge payments it was being asked to make by the Nigerian government to Mr Etete.

The reports were filed in 2011 and 2013 to the UK’s Financial Intelligence Unit (FIU), which at that time sat within the now defunct Serious Organised Crime Agency.

Trial
The trial opened in February with details of the claim by Mr Masefield, who argued that the bank failed in its Quincecare duty.

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

But Bloomberg reports Tuesday that the London High Court judge said no such breach took place.

“The Federal Republic of Nigeria is naturally disappointed by the outcome of the judgment and will be reviewing it carefully before considering next steps,” a spokesman told Bloomberg. He added that the Nigerian government will continue its fight against fraud and corruption and to work to recover funds for the people of Nigeria.

JP Morgan in a statement said that the judgment reflects its commitment to acting with high professional standards in every country it operates in. The bank added that the judgement also shows how “we are prepared to robustly defend our actions and reputation when they are called into question.”

PREMIUM TIMES.

Headline

Trump Birthright Citizenship Order Halted In Class-action Suit

Published

1 day ago

July 10, 2025

Editor

A federal judge on Thursday halted President Donald Trump’s order restricting birthright citizenship, as opponents of the policy pursue a new legal avenue following the US Supreme Court’s overturning of a previous block.

The high court’s conservative majority delivered a landmark decision in late June that limits the ability of individual judges to issue nationwide injunctions against presidents’ policies.

Several such judges had in fact blocked Trump’s attempt to end the longstanding rule, guaranteed in the US Constitution, that anyone born on US soil is automatically an American citizen.

However, the Supreme Court left open the possibility that orders could be blocked via broad class-action suits against the government.

Trump’s opponents quickly filed new class-action suits seeking to block again the executive order.

On Thursday, Judge Joseph Laplante of the US District of New Hampshire granted class-action status to any child who would potentially be denied citizenship under Trump’s order. The judge ordered a preliminary halt to it as legal proceedings carry on.

The judge delayed his ruling for seven days to permit the Trump administration to appeal.

Cody Wofsy, a lawyer with the American Civil Liberties Union (ACLU) who argued the case, called the ruling a “huge victory” that “will help protect the citizenship of all children born in the United States, as the Constitution intended.”

Trump’s executive order decrees that children born to parents in the United States illegally or on temporary visas would not automatically become citizens — a radical reinterpretation of the 14th Amendment to the US Constitution.

His administration has argued that the 14th Amendment, passed in the wake of the Civil War, addresses the rights of former slaves and not the children of undocumented migrants or temporary US visitors.

The Supreme Court rejected such a narrow definition in a landmark 1898 case.

The current high court, with a 6-3 conservative majority, avoided ruling last month on the constitutionality of Trump’s executive order and only addressed the issue of nationwide injunctions.

It nonetheless permitted the order to go ahead but delayed its ruling from taking effect until late July to allow for new court challenges.

Several lower courts, in issuing their previous injunctions, had ruled that the executive order violated the Constitution.

Headline

PICTORIAL: Two Undocumented Nigerians Arrested For Drug Trafficking In Libya

Published

1 day ago

July 10, 2025

Editor

Libya’s Counter-Terrorism Forces have arrested two undocumented Nigerians over alleged involvement in drug trafficking.

According to a statement shared by Migrant Rescue Watch on X (formerly Twitter) on Thursday, the suspects were caught with quantities of hashish and hallucinogenic pills, including Tramadol and Lyrica.

Authorities also recovered a large sum of cash suspected to be proceeds from drug sales during the operation.

Following their arrest, the two Nigerians have been handed over to the appropriate legal authorities for further investigation and possible prosecution.

The statement said, “Counter-Terrorism Forces arrested 2 undocumented #migrants of Nigerian nationality for drug trafficking. The individuals were found in possession of hashish, hallucinogenic pills “Tramadol” & “Lyrica” as well as cash from proceeds.

“Both individuals were referred to competent authorities for legal action.”

Headline

31 Workers Escape Death As Tunnel Collapses In Los Angeles

Published

2 days ago

July 10, 2025

Editor

All 31 workers escaped without injuries from a collapsed industrial tunnel in Los Angeles’ Wilmington area, after scrambling over a tall pile of loose underground soil, city officials said late on Wednesday.

The trapped workers were shuttled back to the tunnel’s entry point, more than 5 miles (8 km) away from the affected area, after they escaped the collapsed section and met several coworkers in the unaffected part of the tunnel, the Los Angeles Fire Department said in a statement.

The tunnel, which had a diameter of 18 ft (5.5 m), trapped 27 individuals, while four workers entered the damaged section to assist with rescue, LA Fire Chief Ronnie Villanueva told reporters in a media briefing.

“The workers had to climb through debris. They had to make themselves out through,” before they were assisted out, Villanueva said.

Robert Ferrante, chief engineer and general manager of Los Angeles County Sanitation Districts, told the briefing that a section of the already built part of the tunnel experienced squeezing ground conditions and partially collapsed.

“LAFD has just reported that all workers who were trapped in the tunnel in Wilmington are now out and accounted for. I just spoke with many of the workers who were trapped. Thank you to all of our brave first responders who acted immediately,” Los Angeles Mayor Karen Bass said in a post on X.

The collapsed section was a part of the Los Angeles County’s Clearwater Project, where the new 7-mile tunnel is being built to upgrade the region’s sewer system, officials added.

(Reuters)