Did oil giant, Shell Petroleum Development Company Limited, fail to pay for the services rendered to it in securing the approval of the Inspector General of Police for the importation of firearms for use by its Spy Police Unit in the heat of the Ogoni crisis?
And should the company be held responsible for the refusal to pay for the services rendered in a business that has resulted in a court case in which the company has spent over N20 billion?
Those are the questions a Federal High Court sitting in Lagos will seek to provide answers to anytime from June 8, 2012 when the court is expected to fix a date for ruling on the matter.
At the resumed hearing of the matter on Monday, the court, headed by Justice James Tsoho, told the parties to the case, X.M. Federal Limited and Humanitex Nigeria Limited as plaintiffs and SPDCL and Mr. V. Oteri as defendants, that they should return on June 8, 2012 for a date for ruling.
According to the amended statement of claim by the plaintiff, Shell had approached the two companies in 1994, seeking intervention in its application before the IGP for the importation of arms and ammunition for its Spy Unit and increase in number of policemen allocated to it.
This was in the heat of the Ogoni protest against the inhuman treatment being meted out to host communities by oil producing companies, especially Shell.
It was the period that preceded the hanging of environmental rights activist, Ken Saro-Wiwa, by the military government of late General Sani Abacha, in which Shell was also fingered as a major force that pushed for the execution of the famous Ogoni Nine.
When the request to the IGP was not granted, Shell wrote another application to the Force Armament Officer in the office of the IGP, as an interim measure, requesting for 150,000 rounds of 9mm ammunition and also semi automatic weapons, that is Baretta SMG, which it said would be used for practice and training of the Nigeria Police Force dog handlers and other policemen attached to the company in Port Harcourt, Warri and Lagos.
It could not be confirmed whether this request was granted or not.
But by early 1994, Shell became impatient and approached the plaintiffs, seeking their intervention in its desperate need to acquire arms and ammunition to suppress the rising demand of the Ogonis and Niger Deltans in general for better treatment and protest against the inhuman treatment of the people of the area.
The Managing Director of Humanex Nigeria Limited, Chief Gabriel Akinluyi, took up the case with the IGP and succeeded in getting the approval of the police for Shell to import the required arms and ammunition.
The statement of claim reads in part: “The Plaintiffs aver that when the Defendants realised that all their best efforts could not persuade the IGP to grant the approvals sought, the 2nd Defendant acting for and on behalf of the 1st Defendant enlisted the services of the 2nd Plaintiff to assist in procuring the approvals set out in paragraphs 1 and 3 of the letter of the 1st Defendant to the IGP dated 1st December 1993….
“The Plaintiffs further aver that the approvals were sought by the Defendants at a time when anti-Shell sentiments were at its highest in Nigeria on account of disruption of Shell’s operations in the Niger Delta by resistance movements led by late Ken Saro-Wiwa and others who were agitating for better treatment of the Ogoni and Niger Delta people….
“By letter dated 31st March, 1994 to the IGP, the Defendants expressed the urgency attached to the grant of the approvals, yet the approvals were not forthcoming.
“On account of its expertise in the arms and ammunition business the 2nd Plaintiff after so many meetings, contacts and assurance that the approvals would not lead to further degeneration of the situation in the Niger Delta was able to persuade the IGP to grant the approvals which he was earlier on not going to grant to the Defendants.”
But after the approvals were granted, the defendants, according to the plaintiffs, refused to pay for services rendered.
Since then, the case has been in court.
The plaintiffs are claiming $20 million or its equivalent in naira at the prevailing market rate at the time of payment for services rendered, with an interest rate of 21 per cent per annum from July 27, 1994.
The Eagle Online learnt that as at five years ago, Shell had spent over N20 billion pursuing the case, with the plaintiff also investing heavily in its fight against the oil major.
Efforts to speak with the both parties to the case were not successful.
Akinluyi told The Eagle Online that he was going to wait for the outcome of the case before commenting.
This also was the position of Precious Okolobo of the Communications Department of Shell.
Okolobo spoke in a telephone interview with The Eagle Online.
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