Just in: FG sues JP Morgan for paying $875m to Dan Etete
JP Morgan is being sued by the Nigerian government for $875 million (£660 million) for allegedly being the middleman in an illegal oil deal, making payments.
The federal government of Nigeria has sued JP Morgan over $875 million (£660 million) payment to Dan Etete.
The FG is suing the American multinational banking and financial services holding company for allegedly being the middleman in an illegal oil deal, making payments to a convicted money launderer.
The Times reports that the papers filed with the High Court claim that JP Morgan transferred money to a company controlled by former oil minister Dan Etete.
Etete had been previously convicted of money laundering by French courts and also being pursued by Nigerian authorities.
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The American company is being accused of being ‘grossly negligent’ when it paid over more than $800 million ‘without proper application or regard to its obligations’.
Etete is the owner of Malabu Oil & Gas.
He served under Sani Abacha and during his time as minister, Malabu was awarded an exploration licence. Later, an agreement was made for Malabu to give up to licence for a fee which would then be sold to Shell and Eni, with JP Morgan handling the transactions.
JP Morgan has stated: ‘We consider the allegations made in the claim to be unsubstantiated and without merit.’
Meanwhile, NAIJ.com had reported that a reliable source from Nigeria's Ministry of Justice reportedly revealed a simmering dispute between the United Kingdom, Italy and Nigeria over the Malabu funds that were frozen in the UK and Switzerland at the request of the Public Prosecutor of Milan (PPM).
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NAIJ.com reports that the dispute arose because, after initially securing the support of the UK and Nigeria on the basis that the money belongs to Nigeria, the Italians have now done a complete about-turn and are attempting to claim that the money belongs to Italy.
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Source: Naija.ng