The two businessmen involved in a failed gas deal in Nigeria could receive around $2bn each if an arbitration award of $11.1bn is recovered, the High Court heard this week. 

Federal Republic of Nigeria v Process and Industrial Development centres on an oil and gas contract concluded through alleged ‘fraud and bribery’ of senior legal representatives and key officials in the country’s government. P&ID, an offshore company belonging to Michael Quinn and Brendan Cahill, was awarded a contract for gas supply and processing in 2010. The project did not start and P&ID began arbitration proceedings against Nigeria for breach of contract. P&ID was awarded $6.6bn, a bill which currently stands at $11.1bn with interest.

The Federal Republic of Nigeria took the dispute to the High Court in London claiming the deal had been based on ‘fraud and bribery’.

The court heard that if P&ID was to recover the $11bn in damages, Brendan Cahill and Adam Quinn, the late Michael Quinn’s son, would receive ‘something over $2bn’ each.

When asked about payments to Grace Taiga, the Nigerian government’s legal director of the Ministry of Petroleum Resources at the time and others, Mark Howard KC, for Nigeria, put it to Cahill that P&ID sought to hide payments from the Nigerian government. He told Cahill that money transferred to Taiga’s daughter’s account in the US was so that ‘the EFCC (Economic and Financial Crimes Commission) will not be able to see it’ during its investigations.

Cahill said: ‘No, that is not correct. If I did not do it that way, EFCC would seize the money. I was concerned by the number of people being arrested, ill-treated and charged [by the government].’

Cahill told the court payments were not made directly to Nigeria in some cases so that the government ‘cannot seize it’.

Howard said: ‘You say they will seize that money, so you do not want them to know about it?’

Cahill replied: ‘False.’

Howard said: ‘Put away old conspiracies, focus on what I am asking. You sent [payments] to her daughter’s account so EFCC will not know about it.’

Cahill said: ‘Absolutely correct.’

Howard asked about a $13,500 payment to Mohammed Kuchazi, a Nigerian representative of P&ID, through a bureau de change.

He added: ‘It is classic money laundering… deposit cash in country one, here in London or somewhere in the UK, then cash is withdrawn from another bureau de change and nobody can see cash moving in this way. [It is a] classic way criminals and drug lords operate.’

Cahill replied: ‘Yes, I am sure it is.’

Earlier in the hearing, Seamus Andrew, who represented P&ID in an arbitration, was the first witness to be called. He told the court he would agree with the statement that payments made to the Nigerian government’s legal defence at the time and legal director of the Ministry of Petroleum Resources Grace Taiga were ‘intended to cover…tracks so neither Nigeria nor the EFCC would find out about it’ with ‘one alteration’.

P&ID denies any wrongdoing.

The trial continues.