P&ID: FG secures variation of UK court order on $200m deposit

The Federal Government (FG) on Thursday succeeded in securing variation of the UK court order from the cash payment of $200 million security to issuing bank guarantee of the same amount.

Attorney General of the Federation and Minister of Justice, Abubakar Malami (SAN) made this known in a statement issued by his Special Assistant, Media and Public Relation of Dr Umar Jibrilu Gwandu and made available to newsmen in Abuja on Friday.

According to the AGF, the Federal Government (FG) appealed against the payment of $200m security component which was a condition for a stay of execution of the judgment.

The Court granted the Federal Government’s (FG) request for variation of terms of the order seeking to provide a bank guarantee in place of direct deposit.

According to the statement, “The Government is not paying the $ 200m cash but positing a bank guarantee by the variation of the order.

“The advantage of the variation in the judgment from direct deposition of cash to the posting of bank guarantee is that the money and its control resides in the Federal Government unlike when otherwise.

“The success recorded so far in relation to the $200m security deposit is that the amount of money remains in our custody, and we are simply providing a document. It is only when our case did not succeed, which we never anticipate, then the court can order the withdrawal of the amount as stated in bank guarantee”.

Malami said the Federal Government (FG) request the change in the method of paying the security deposit because it believes that the entire contract will be quashed on the basis of fraud.

The Minister reiterated commitment to vigorously pursue the case aiming at seeking to set aside the award of $9.6billion and get the entire
contract quashed.

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