Shell has asked a Federal High Court in Lagos to declare that the Economic and Financial Crimes Commission (EFCC) is not empowered to collect debt on behalf of any party.
The multinational oil giant disclosed in court papers that the EFCC caused it to pay $1.2 million (N239 million) to Dec Oil and Gas to which it was not indebted because of the threat to arrest and detain Shell’s directors.
Shell asked the court to hold that the EFCC is not vested with judicial powers under Section 6 and 36 of the Constitution and therefore cannot act like a court.
Shell filed three suits against the EFCC claiming similar reliefs.
In one, which listed Dec Oil as second defendant, Shell averred that it signed a contract on March 29, 2000 with the company for the construction of a gas distribution pipeline at Agbara/Ota but terminated the contract in December 2001.
Dec Oil later claimed that Shell was indebted to it and resorted to litigation.
A Federal High Court entered judgment in favour of Dec Oil but Shell appealed. The Court of Appeal set aside the judgment but Dec Oil went to the Supreme Court.
While the suit was pending, the EFCC invited Shell to determine “the civil contractual rights and obligations between the plaintiff (Shell) and the second defendant (Dec Oil).”
Shell said even though it drew the attention of the EFCC to the pending court case, it “vehemently insisted, under threat of arrest and detention of officers of the plaintiff, that it must determine the civil contractual liability of the plaintiff ….”
Shell claimed that the EFCC found it “liable” and made it to pay $1.2 million.
“The plaintiff was not indebted to the second defendant in respect of the contract,” Shell insisted.
“The plaintiff brought this action when the actions of the first defendant (EFCC) in collusion with the second defendant became unbearable.”
However, the EFCC and Dec Oil denied the claims in their statement of defence. The EFCC said it “was and is investigating alleged diversion of loans and advances made against the second defendant by some of its creditor-banks ….”
It added that a bank petitioned it and listed Dec Oil as one of the customers who might have allegedly diverted loans and advances to projects not related to the original contract agreed.
The EFCC claimed that Shell was “implicated” as being indebted to Dec Oil, which made it impossible for Dec Oil to meet its financial obligations to third party banks.
Dec Oil contended in an affidavit that the action by Shell “is a ploy to overreach the Federal High Court in suit no. FHC/L/CS/1075/2002.”
Shell counsel, Babatunde Ogungbamila, asked the court for extension of time for his client to file a counter-affidavit to the preliminary objection by Dec Oil.
Justice John Tsoho granted the application and adjourned hearing until June 4.
