Fidelity bank banner Bayelsa State banner
Malabu Oil scam: JP Morgan opens up on indicted ex-minister

By Julia Payne and Libby George on 07/04/2018

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 1,404

 •Ex-Petroleum Minister Dan Etete
•Ex-Petroleum Minister Dan Etete

JP Morgan Chase has acknowledged it knew a former Nigerian oil minister convicted of money laundering would benefit when it transferred over $800 million of government funds to a company he controlled, according to a court document seen by Reuters. 

JP Morgan made the acknowledgement in its legal response to a lawsuit filed by Nigeria over transactions made by the U.S. bank when Royal Dutch Shell and Eni bought offshore oilfield OPL 245 from Malabu Oil and Gas in 2011. 

The $1.3 billion deal has spawned legal cases spanning several countries and involving Nigerian government officials and senior ENI and Shell executives, a number of whom face trial in Italy on corruption charges next month. 

Malabu is controlled by Dan Etete, who was Nigeria’s oil minister at the time of the deal and was convicted of money laundering in France in 2007. He could not be reached for comment.

The lawsuit against JP Morgan accuses the bank of negligence over the transfer of funds from a Nigerian government escrow account into which Shell and Eni had deposited money to secure OPL 245. It claims $875 million from the bank.

In its written defence, filed in a British court last week, JP Morgan said Britain’s Serious Organised Crime Agency (SOCA), now renamed the National Crime Agency, had approved the transfers to Malabu. It denied negligence.

The bank had previously said only that it “considers the allegations made in the claim to be unsubstantiated and without merit”.

JP Morgan did not provide a comment on the filing. Lawyers representing Nigeria did not respond to requests for comment.

It was not immediately clear whether JP Morgan’s acknowledgement that it knew of Etete’s links with Malabu will have any impact on the trial starting in Milan in May. Italian prosecutors were not immediately available for comment.

Eni’s chief executive is among those going on trial in Milan on charges of paying bribes to Etete and others, including sums that went to Malabu. Shell and Eni deny wrongdoing in relation to OPL 245.

Shell said in April last year that it “always knew” the Nigerian government would compensate Malabu and that Etete was involved. It had previously told Reuters only that payments went to the Nigerian government.

DENIAL OF NEGLIGENCE

The lawsuit against JP Morgan said that although it received a request from Nigeria’s finance ministry to transfer funds to accounts controlled by Malabu, the bank showed gross negligence by not making further checks before allowing the transaction.

Denying negligence, JP Morgan said in its response that the transfers were authorised by designated government signatories for the Depository Account — the then finance minister and the African country’s accountant general.

The bank also said it knew Etete was the beneficiary of Malabu by July 2011, one month before it made the transfers, and that by July 14, 2011, it “was aware of Etete’s conviction”.

“It is admitted that the order referred to Etete as Malabu’s principal. It is admitted that by 15 July 2011 JPMC (JP Morgan Chase) was aware of Etete and of his association with Malabu,” it said in the court filing.

JP Morgan also denied it should have been aware of Nigeria’s constitutional law or that it owed the government or state any further due diligence.

•Text (excluding headline) courtesy of Reuters.

Source News Express

Posted 07/04/2018 04:52:14 AM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
CDS urges security consciousness against suicide bombing

APC chieftain seeks bailout for FCT Area Councils...

CPC attacks Jonathan over Christmas Message

Civil servants in Anambra to undergo screening for...

Dickson signs Public Service Records, Media Corporation Bills,...

Enugu maps out strategies to combat killer herdsmen...

Kogi govt dissolves councils, orders DLGs to take...

Ministry of information and Culture signs MoU on...

What is in a certificate?

Manager reported dead as dare-devil armed robbers raid...

Stranded whale butchered in Lekki (Lagos)

Troops kill 45 Boko Haram terrorists, rescue 80...

 

Latest News INEC gives notice of 2019 elections Police raid Peace Corps office, arrests 24 members 20 trapped under rubble of collapsed building in Abuja Anti-Open Grazing Law: Crucify us with Ortom, Benue monarchs tell FG Police parades father, 13-year-old son over child theft 2019 Elections: Presidential aide raises concern over NASS silence on Police, DSS budgets Third Mainland Bridge to be shut month end — Fashola We’ll win if election is conducted today — APC Sallah Celebration: Lagos CP deploys additional 1,000 policemen Fayemi vows to review mass recruitment by Fayose We have seen dividends of democracy, Kwara chief tells Minister during road inspection Enugu commences repairs of potholes on urban roads

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (377,927 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (366,787 views) Shameless Genevieve Nnaji exposes breasts in public (296,492 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (242,034 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (222,862 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (217,238 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (192,701 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (174,885 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (159,726 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (158,488 views) Lagos plane crash: Journalist releases victims’ names (152,852 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (143,130 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (56) Business & Economy (3,460) Business Verdict (48) Columnists (911) Complaints & Requests (95) Enterprise & Opportunities (207) Entertainment (528) Features (637) Global Business Monitor (294) International (2,275) Interview (162) Live Commentary (28) Love Matters (134) News (38,095) Opinion (1,060) Pidgin (11) Politics (6,078) Religion (822) Sports (1,648) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Real Madrid vs Atletico Madrid 2-4 Highlights and Goals

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement