SAN FRANCISCO, October 22, (THEWILL) – Son of former Head of State, Risqua Murtala Mohammed, has said that there were ulterior motives in the orchestrated widespread media reports, of a routine commercial dispute between his company and the Guaranty Trust Bank.
A Federal High Court was quoted by some national dailies to have barred Risqua Mohammed from withdrawing funds from his accounts in any of the financial institutions in the country for allegedly failing to liquidate a N1.365 billion loan.
A statement on Wednesday by the Counsel to Mohammed’s company, AMG Petroenergy Limited, said the Court order was an incidence common in commercial disputes, wondering why this particular case generated huge attention.
“It is a fact that a Judge of the Federal High Court granted various orders restraining our aforementioned clients from operating their bank accounts,” it said. “As the orders were granted ex parte, it is only upon further hearing that our clients will be afforded the opportunity of being heard in the advancement of their interests in the case.” Clarifying the matter, Consolex Legal Practitioners confirmed that there currently exists an unresolved payment dispute between AMG and Total which has resulted in suit between AMG and Anor V. Total Nigeria Limited. It explained that AMG entered into a contractual arrangement with Total Nigeria for the supply of Premium Motor Spirit under the Petroleum Support Fund (PSF) Scheme, while Guaranty Trust Bank Limited, on behalf of AMG, financed the transaction.
“The repayment of the facility was to be made from “subsidy” payments received from the Federal Government. AMG duly supplied the products as contractually agreed to Total between December 29, 2011, and January 1, 2012.”
In his reaction, Group Chief Operations Officer of AMG Petroenergy Limited, Ibrahim Baloni, explained that under the Scheme, importers of PMS, authorised by the Federal Government through its agency, the Petroleum Products Pricing Regulatory Agency (PPPRA), were entitled to look to the Federal Government for all short-falls (“under-recoveries”).
This, he said, is sustained by them by virtue of their having sold (directly or indirectly) their imported PMS at the regulated “ex-depot” price in the event that such sale(s) was/were at a price lower than the “landing cost” of the product as approved/recognized by PPPRA. Continuing, Baloni said: “In order to achieve the importation of the said 15,000 MT of PMS, our company drew down on an import facility granted to it by Guaranty Trust Bank Plc, vide Offer of Facility letter dated May 18, 2011, through the establishment of a $15,562,807.15 (Fifteen Million, Five Hundred and Sixty-two Thousand, Eight Hundred and Seven Dollars Fifteen Cents) Letter of Credit.
“It was a term of the said offer of facility letter that the facility shall be repaid from the proceeds of the transactions for which the funds were to be utilised vide the domiciliation of sales proceeds.
“On 1st January, 2012, the Federal Government of Nigeria announced changes in its policy of subsidising the importation of PMS under the PSF Scheme pursuant to which the subject PMS was imported and sold to Total.
“Between 1st January, 2012 and 16th January, 2012, the Federal Government totally withdrew its erstwhile subsidisation of the importation of PMS and from 17th January, 2012, the Federal Government re-introduced the said subsidisation (the PSF Scheme) but to a reduced extent.”
He added that the legal representatives of AMG Petroenergy Limited have been instructed to make its position clear to the court and seek redress there for the unprecedented negative publicity provided by its Orders under reference.
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