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Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract (14458 Views)

Buhari Terminates Trobell International Limited Contract Over $2.15bn Commission / Election Postponement: Nigeria Has Lost $1.5bn – LCCI / $1.5bn Lagos-ibadan Fast Rail: FEC Gets Cost Overrun Request From Amaechi (2) (3) (4)

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Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by dre11(m): 8:59am On May 18
Nigeria may be heading for another billion-dollar arbitration as a debt-recovery firm is demanding $1,501,539,032 from the federal government over a botched contract, TheCable can report.

Little-known Trobell International Limited had been engaged by Abubakar Malami, the attorney-general of the federation (AGF), in April 2018 to help recover an estimated $43 billion unpaid “oil profits” from multinational companies at a commission of five percent.

Effectively, Trobell was to pocket $2.15 billion as commission.

However, federal government decided in October 2019 to step down the recovery process following a meeting of stakeholders — after Trobell had issued demand notices to the oil companies.

Trobell is now claiming 50 percent of the fee, saying it had already done significant work.

Nigeria is currently in international arbitration with P&ID Ltd over a botched oil and gas processing contract in which $6.4 billion plus compound interest has been awarded against the country.

Also, Sunrise Power is making a $2.3 billion claim in arbitration against Nigeria over the Mambilla power project, although it has now entered into a $200 million settlement.


WHAT IS AT STAKE?

Nigeria had, in 1993, signed production contracts with oil companies to explore deep offshore and inland basins, before changing the agreements to production sharing contracts (PSCs) in 1999.

Under various incentives in the novel arrangement, the “profits” payable to the federation were to be automatically reviewed upwards whenever crude oil hit the $20 per barrel mark or after a number of years.

However, these triggers were never activated and after years of campaign, the federal government decided in 2018 to engage Trobell as “recovery agents” on the “additional revenue from profit oil due to the federation from PSCs”.

On the other hand, the attorneys-general of Rivers, Akwa Ibom and Bayelsa states had, in 2016, filed a suit against the AGF at the supreme court and sought to compel the Federal Government of Nigeria to review the PSC Act to recover arrears of revenue which would have accrued to the federation over the years.

On October 17, 2018, the supreme court gave a consent judgment following terms of settlement arrived at by all parties on April 5, 2018.

The apex court asked that a “body” be set up for the recovery of the outstanding profits.


BUHARI APPLIES THE BRAKE

After the supreme court judgment, the AGF set up a “body” made up Trobell International as lead/coordinating consultant and representatives of Rivers, Akwa Ibom and Bayelsa, as well as accounting and legal experts.

However, in March 2019, President Muhammadu Buhari asked that the April 2018 contract with Trobell be terminated because the recovery job could be done by the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS) without any commission.

TheCable had reported that in a letter to Malami dated October 16, 2019, Abba Kyari, the late chief of staff to the president, said Buhari had directed that the minister should immediately “comply with Mr. President’s directives of March 4, 2019, and terminate the Recovery Contract which the Ministry of Justice had signed with Trobell International Limited regarding the purported recovery of $43.747b from the PSCs pursuant to the consent judgement of the Supreme Court of April 5, 2018”.

Six months after Kyari’s letter, Malami wrote to Trobell to inform them that the demand notices to the oil companies had been withdrawn.

“Following the 3rd October 2019 meeting, various Federal Government stakeholder agencies has (have) held various consultations and meeting which resulted in the Federal Government of Nigeria making a collective decision to step down the recovery process for the time being,” Malami wrote in the letter dated April 3o, 2020 and seen by TheCable.

“Consequent upon these decisions and bearing in mind the ongoing litigations in relation to the subject matter under reference, the Office of the Honourable Attorney-General of the Federation and Minister of Justice of Nigeria has issued notices to the oil companies withdrawing the demand notices issued by Trobell International Limited in its capacity as recovery agent for the Federal Government.

“Accordingly, I write in line with collective decision taken, to inform that the Federal Government of Nigeria is not inclined at the moment to pursue the recovery under reference.”


TROBELL GOES ON THE OFFENSIVE

In Trobell’s reply to Malami dated May 4, 2020 and signed by Lawal Garba, its chairman, the firm said following the setting up of the “body” by the government as mentioned in the consent judgment, it had already started work.

Garba wrote: “Since the inauguration of the ‘Body’ on 7th November, 2018 and up to the time of the receipt of your above referenced letter of 30th April 2020 suspending the engagement, the ‘Body’ has worked assiduously towards executing our mandate and we have effectively performed and delivered the following tasks:

• Obtaining relevant documents from NNPC, FIRS, Nigerian Customs and other sources (PSC Agreements, Tax Returns etc)

• Crude Oil Price Data (1998-2018)

• Crude Oil lifting data by PSC Parties over the period of each Oil Mining Lease (OML) production

• United States of America Inflation rates (1998-2018) to adjust US$20 to Real Terms – conversion of US$20 of 1998 to US$20 Real Terms over the period

• Development of Financial Model for the computation of the Additional Revenue & approval of same by the Body and the HAGF

• Computation of revised Profit Oil distribution between OML operators and NNPC/FGN on switch of profit sharing ratios

• Compilation and Presentation of a comprehensive report to your office showing the attached summary of amounts due from the various OMLs under the various PSCs

• With your approval, letters of demand for the amounts computed against the various OMLs were sent out to the various operators

• Convening of meeting between the ‘Body’, the OML Operators (IOCs) and the Federal Ministry of Justice at Transcorp Hilton Hotel Abuja to discuss the basis of the demand notices and how the outstanding amounts of Additional Revenue accruing to the Federation were calculated for each OML, the terms of the mechanism for recovery and modalities for negotiation and for making enquiries and getting responses in respect of the subject matter. This meeting was chaired by your goodself, the Hon. Attorney General of the Federation.”

Lawal said the “body” has successfully computed the amounts of additional revenue accruing to the federation and sent out demand letters to the respective operators, meaning it has “significantly performed and delivered over 80% of the key tasks within the scope of our mandate”.

“Accordingly,” he said, “the said decision of the Federal Government of Nigeria to suspend or forego the recovery at this stage cannot in any way vitiate the work so far done by the ‘Body’.

“It should also be noted that Trobell International Nigeria Limited, in its capacity as the lead consultant, has incurred significant expenses in terms of legal cost, logistics expenses for hosting several meetings of the ‘Body’, and payment of interim fees/remuneration for most members of the body as well as other consultants from the time of our engagement in April 2018 to date.

“Consequently and in view of the circumstances leading to Federal Government’s decision to suspend the recovery process at this stage due to overriding national interest, we hereby demand payment of our agreed remuneration of 5% of Additional Revenue computed and recoverable of US$55,871,219,798 less 50% rebate i.e. (50% of 5%), which amounts to US$1,396,780,494.95.”

He also added $104,758,537 as 7.5% VAT, bringing the total due to $1,501,539,032.

Lawal also said if the government decides to revisit the matter at any time in the future, “we shall be entitled to claim our agreed remuneration in full and shall accordingly issue our Fee Note for the difference of the amount receivable at the rate of 5% of Additional Revenue recovered”.


ENTER TROBELL INTERNATIONAL LTD

According to information on its website, Trobell International Nigeria Limited was incorporated on June 17, 1987 as an engineering company.

Its areas of specialisation are:

• Civil, structural & water resources engineering
• Instrumentation & control engineering
• Electrical and electronics engineering
• Mechanical and metallurgical engineering
• Scaffolding services
• Marine technical services
• Environmental protection services
• Provision of technical personnel
• Facility management services
• Material procurement

There is no record of the company having been involved in debt recovery or accounting services before it was engaged by Malami.

https://www.thecable.ng/exclusive-malamis-debt-collectors-demand-1-5bn-over-terminated-contract

5 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by GamalNasser: 9:03am On May 18
They have a valid case even though they had not recovered Zero Naira before the contract was terminated ..The Federal govt should try to settle of court with them ..The fault is from Malami who rushed to sign a contract with the company when he knew the govt was only bluffing and the IOC will leverage international powers to call their bluff

28 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Racoon(m): 9:23am On May 18
The APC government is either always incurring or invoking needless financial crisis on this nation.

60 Likes 3 Shares

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by bolaayenimo: 10:32am On May 18
They are fronting for Malami..you think Nigerians are fools?

81 Likes 7 Shares

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Jestin: 10:32am On May 18
Buhari second coming back is to loot the country dry. I am sure he did not steal enough in 1984

27 Likes 2 Shares

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Opeyemi4real(m): 10:33am On May 18
Hh
Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Yayonigga44(m): 10:33am On May 18
Is that not too much?

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Slawormir: 10:33am On May 18
Damnnnnn niggarrr
Isoright
Make the stress when I take read this long article damage una
Stupid morons

Who them want deceive
Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS) can do that job without any commission.

But still Una come give the contract to one fuckkking trobell to recover the money with five percent commission
This looks like arrangeee

23 Likes 5 Shares

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Babatunde40(m): 10:33am On May 18
Under our nose money is being shared left right and centre in this country.

1 Like

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Nobody: 10:34am On May 18
Racoon:
The APC government is either always incurring or invoking needless financial crisis on this nation.
Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Hoodbilonia: 10:34am On May 18
Why must every be in dollars
Why

2 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Mindlog: 10:34am On May 18
It will be odd not to have some Nigerians behind the debt recovery firm.

5 Likes

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Bossontop(m): 10:35am On May 18
undecided
See ehn, wen buhari finally finish with naija ehn.....nothing go remain!!!

14 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Built2last: 10:36am On May 18
Malami the corruption general of the federation

11 Likes

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by KINGJAJA888: 10:36am On May 18
lipsrsealed
Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by dontro(m): 10:38am On May 18
$1.5. My calculator crashed when I tried to convert this to Naira

6 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by paulolee(m): 10:38am On May 18
bad...naija wich way naa....common man is tired of seeing n hearing abt such huge cash flowing inside our country bt still dieing of hunger...baba GOD even if africa na must for my next life abeg i go manage lesotho...if hungry de kill me for there i go understand say my country poor than to be starving inside abundance.. GOD de shaa

1 Like 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by GEEBITE: 10:38am On May 18
Trobell is an engineering company with no record of auditing,legal or financial consulting. You can see the name of the promoter is Garba Lawal.This is obviously a front for MALAMI&CO.
GamalNasser:
They have a valid case even though they had not recovered Zero Naira ..The Federal govt should try to settle of court with them ..The fault is from Malami who rushed to sign a contract with the when he new the govt was only bluffing and the IOC will leverage international powers to call their bluff

24 Likes 3 Shares

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Factfinder1(m): 10:38am On May 18
Rawbish

1 Like

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by nsidible(f): 10:38am On May 18
Mercy Eke Surprised Ultimate love winner Kachi and Rosie in their hotel room.

https://www.youtube.com/watch?v=viU5G4UmP9A
Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Dmec(m): 10:39am On May 18
l
Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by RenaissanceGuy: 10:39am On May 18
This Malami should be one of the richest persons in Nigeria now. I wonder how much of the recovered funds is current in his bank accounts, aside all the kickbacks he got from the so-called debt recovery companies.

3 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by wink2015: 10:39am On May 18
FEDERAL GOVERNMENT IS JUST CREATING MORE PROBLEMS.

Very soon the whole country will be auctioned in Ebay or Amazon !

4 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by jrusky(m): 10:41am On May 18
No longer a surprise afterall $23billion NNPC Baru scammed contract ended in handshake how mush more just $1.3billion or thereabout.


Next topic pls............

7 Likes 1 Share

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by RillJ(m): 10:41am On May 18
I concur!

It is a breach of contract!

GamalNasser:
They have a valid case even though they had not recovered Zero Naira ..The Federal govt should try to settle of court with them ..The fault is from Malami who rushed to sign a contract with the when he new the govt was only bluffing and the IOC will leverage international powers to call their bluff

1 Like

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by axglide(m): 10:41am On May 18
Hmmm... this Malami sef lipsrsealed

However, in March 2019, President Muhammadu Buhari asked that the April 2018 contract with Trobell be terminated because the recovery job could be done by the Department of Petroleum Resources (DPR) and the Federal Inland Revenue Service (FIRS) without any commission.

Bubu at his best.

3 Likes

Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by Kingpele(m): 10:42am On May 18
Nawaoh
Re: Trobell, Malami’s ‘Debt Collectors’ Demand $1.5bn Over Terminated Contract by olisaEze(m): 10:42am On May 18
This administration seems to be causing more problems than settling. It definitely is not good for the country’s reputation that we’re always breaking contracts

5 Likes

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