The Federal Government has won a dispute over a contract awarded in 1981 for the construction of civil works in the Iron and Steel Complex at Ajaokuta.
The contract which was a Joint Venture of Fougerolle Nigeria Ltd and Fougourolle SA (a French company), was awarded while Kogi was still in Kwara state.
The Attorney General of the Federation and Minister of Justice, Prince Lateef Fagbemi, SAN, in a statement on Friday, said the country secured a favourable final arbitral award on November 11, from a Tribunal constituted under the auspices of the Alternative Dispute Resolution Centre of the Federal High Court.
He disclosed that the Claimant (Fougerolle V Fougerolle) initiated the arbitration vide a Notice of Arbitration dated December, 12, 2022, about 18 years after the subject contract was terminated by the claimant on 30th January, 2004.
In a statement that was signed by his media aide, Mr. Kamarudeen Ogundele, the AGF added that the company sought to compel Nigeria to collect the sums of N4billion and €185million from Nigeria, through the tribunal.
He said: “Contrary to contract terms and Fougerolle’s undertaking, Fougerolle moved the Tribunal to compel additional payment of unverified and uncertified sums of N3,846,098,403.00 (Three Billion, Eight Hundred and Forty-Six Million and Ninety-Eight Thousand, Four Hundred and Three Naira) and €185,733,496.00 (One Hundred and Eighty-Five Million, Seven Hundred and Thirty-Three Thousand, Four Hundred and Ninety-Six Euros).
“Previously, the Federal Government engaged Messrs Price WaterCooperhouse to verify any indebtedness due to Fougerolle after terminating the contract. This led to payment of N3,894,600,000.00 to Fougerolle vide FGN Bonds on 11th September, 2006. Fougerolle signed an indemnity on 8th September 2006, accepting the above sum as full and final settlement. However, over 16 years after, Fougerolle brought the instant claim.
“The Tribunal upheld the Federal Government’s preliminary objection challenging the competence of Fougerolle’s phantom claims principally on grounds of being statue barred, non-disclosure of reasonable cause of action as FGN bonds coupled with Fougerolle’s indemnity extinguished the debt, and absence of a competent claimant.
“Notwithstanding, the Tribunal considered Fougerolle’s claim on the merit and held that Fougerolle failed to establish its case and had, indeed, waived all its rights to any other claim against the Federal Government because the payment made via FGN Bonds discharged the contractual obligation between the parties. The Tribunal rejected Fougerolle’s expropriation claim and the claim that it issued the indemnity under duress.
“The entire case was eventually dismissed thereby saving FGN of over N4 billion liabilities. The case was defended by officers of the Federal Ministry of Justice in furtherance of the Attorney-General of the Federation’s commitment to boosting the capacity of Ministry officials to defend sensitive litigation and ADR matters in protecting FGN’s interest.
“This decision also underscores the current administration’s determination to challenge all predatory and opportunistic claims against Nigeria, while also emphasizing government’s policy to promote ADR as a dispute resolution mechanism,” the statement further read.