Mr. Brendan Cahill, one of the founders of Irish-owned Process and Industrial Developments (P&ID) currently in a $10 billion legal battle with Nigeria in a London court, has landed in an alleged illegal arms scandal with one of his business associates thrown behind bars.
The Independent reports that Gary Hyde who deals in weapons was handed a seven-year imprisonment sentence.
The publication further reports that the arms deal valued at £6.2million from China to Nigeria, involved 40,000 AK-47 assault rifles, 30,000 rifles, 10,000 pistols and 32 million rounds of ammunition.
Michael Quinne, a co-founder of P&ID stood in for the Nigerian purchaser in the transaction, however, he faced no legal charges.
In 2012, Hyde was reported to have arranged the sales via offshore companies without a UK arms export licence. He, however, claimed he conducted the transaction away from the UK., even though phone records showed he had been in the UK during key phases of the contract.
The court in June 2013, ordered Hyde to repay the profit he had made from the deal, that is, about £782,142 (€870,000), or have another four years added to his sentence.
In a bid to limit gas flares and environmental degradation in the Niger Delta, Nigeria, in 2010, entered into an agreement with P&ID to invest in a gas processing infrastructure required to capture, transport and refine the gas, even as other international oil companies remain sceptical.
P&ID claimed to be an engineering and project management company, but in reality, they were registered in the British Virgin Islands with no operational history or even a website.
By the second half of 2012, neither party complied with the agreement and P&ID saw Nigeria’s failure to construct the facilities to begin the deal as a renouncement of the contract. Therefore, they took legal action.
In January 2017, an independent London tribunal found that Nigeria was liable for $6.6 billion in damages against Process and Industrial Development (P&ID) after breaching the 2010 contract. This amount soon rose to $9.6 billion due to accumulated interests.
The Nigerian government, in an effort to overturn the judgment, made several written petitions.
In September, the Royal Courts of Justice Strand, London, WC2A 2LL presided over by Justice Sir Ross Cranston, having reviewed Nigeria’s submissions, granted Nigeria’s applications for an extension of time and relief from the P&ID- related sanctions.