A federal high court in Lagos, Thursday, adjourned the debt recovery suit filed by the federal government, against Shell Western Supply & Trading Ltd, over alleged $406.7 million shortfalls in Crude Oil shipment until June 19th.
According to reports, the Counsel to the FG, Prof. Fabian Ajogwu, SAN had filed a suit numbered FHC/L/CS/336/16, against the defendants, Shell Petroleum Development Company of Nigeria Ltd and its subsidiary, Shell Western Supply & Trading Ltd.
The case was adjourned due to the Eid-Il-Fitr celebrations and is pending before Justice Mojisola Olatoregun. However, the new date has been communicated to the respective parties.
In the suit, the plaintiff, (FG) is claiming the sum of 406.7 million dollars, from the defendants, representing the shortfall of money it paid into the Federal Government account with the Central Bank of Nigeria (CBN).
In a supporting affidavit, the plaintiff explained that they identified the company’s engaged in the questionable practices that led to missing revenues from crude oil and gas export sales.
They also revealed discrepancies in the export records from Nigeria with the import records at U.S. ports.
Further, the plaintiff said the undeclared shipments between January 2013 and December 2014 brought the total value of the entire shortfall to 406.75 million dollars.
Shell Western Supply & Trading Ltd and its subsidiary were alleged to have failed to respond to a federal government letter through its legal representative, seeking clarification to the discrepancies.
However, the federal government seeks a court order to compel the defendants to pay 406.7 million dollars, being the total value of the missing revenue and interest payment at 21 percent per annum.