Abdulrahman Bashir, the Chief Executive Officer of Rahamaniyya Oil and Gas Limited has been jailed in the United Kingdom.
This was in line with the deal Ultimate Oil and Gas, the trading arm of Rahamaniyya Oil in the Dubai Multi Commodities Centre (DMCC), entered into a deal with Sahara Energy in 2018. In the signed contract, Ultimate agreed to buy, and Sahara agreed to sell 15,000 metric tonnes in the Vacuum of Gas Oil.
A Collateral Management Agreement (CMA) containing a London arbitration clause was entered into on July 8, 2018 between the two parties and it was further learnt that Rahamaniyya agreed to store the gas oil at its terminal pending payment by Ultimate.
Premium Times reported that Sahara delivered a total of 14,967.159 metric tonnes of gas oil to Rahamaniyya’s terminal in Nigeria and also issued invoices for the gas oil on October 26, 2018 for USD 10,760,728.77. The payment should have been made by August 29, 2019 but Ultimate defaulted in making necessary payments.
Court records showed that some payments were made, in consequence of which some 8,566.469 metric tonnes of gas oil was released to Ultimate. Ultimate, however reneged in performing the terms of the settlement agreement in full by making all the payments due. After various warnings, on May 10, 2019, Sahara terminated the settlement agreement, notifying Ultimate that its agent, Asharami Synergy Plc would take delivery of part of the remaining gas oil from the terminal.
Various attempts made by Sahara to obtain delivery of the gas oil were futile, leading to the lawsuit which was filed both in Lagos and in the United Kingdom.
Justice Butcher who delivered the third order following a contempt of court judgement;
“The basis of the sentence was that Mr Bashir had committed continuing breaches of the order of Mr Justice Robin Knowles of 1 August 2019 and of the order of Mr Justice Bryan of 6 September 2019.”
There was also a binding indication that the sentence could be reduced to six months if Mr Bashir complies with the relevant order which had previously been breached. He was also fined £500,000 while Adebowale Aderemi, its manager, was fined £10,000.
SOURCE: newsdirectng.com