Investigation revealed that Kuforiji-Olubi was convicted on February 18 by Justice Michael Burton of the Commercial Division of the High Court of Justice Queens Branch Division for disobeying the orders of the court.
The former minister, who was ordered to be remanded at Her Majesty Prison Holloway, got herself into jail when she attempted to repeat the levity with which high profile individuals usually treat court orders in Nigeria in London.
Her son, Olutokunbo Afolabi Kuforiji, who is said to
be allegedly on the run, was equally sentenced to four months imprisonment, and ordered to be remanded at the Her Majesty Prison Pentonbiville from the day of apprehension.
The duo and their firm, Phoenixtide Offshore Nigeria
Limited, were equally ordered to pay the plaintiff, Tidewater Marine International Inc., an accumulated
sum of 300,000 British Pounds as cost for the litigation and indemnity before March 23.
SHIPS & PORTS DAILY gathered that trouble started
for Kuforiji-Olubi when 10 years ago, Tidewater Marine International Inc., began a relationship with Phoenix Oceanlines Nigeria Limited, a business owned by the former minister, to form a company called Phoenixtide Offshore Nigeria Limited, also owned by her and her family.
By the terms of the non-exclusive agreement it was gathered, Phoenixtide was expected to provide some local support services, while Tidewater provided the most costly elements including, technical services, the vessels and access to International Oil Companies.
Key aspects of the agreement included a marketing
commission payable to Phoenixtide on all transactions carried out by the collaboration, while all payments due from the services rendered were to be made to Tidewater, after which the commission due to Phoenixtide would be paid.
The parties also agreed that any disputes that might
arise between them would be submitted to the High Court in England for determination under English law, especially since both Kuforiji-Olubi and her son, Olutokunbo, the Managing Director of Phoenixtide are British citizens.
Further findings revealed that between 2008 and
2012, there were attempts to restructure the relationship in an effort to make it more mutually beneficial and in line with Nigerian extant laws.
However, these efforts were unsuccessful as Phoenixtide insisted on getting more from the deal.
This ultimately ended up in a severed business relationship between Tidewater and Phoenixtide in
the fall of 2012.
However, during the period leading to the breakdown in the business relationship, Tidewater continued to provide full operational services to all of Phoenixtide's clients for which it expected full remuneration in accordance with the terms of the agreements between the parties with a concurrent responsibility to disburse the agreed marketing fee to Phoenixtide.
A particular IOC from whom payment had become due then requested for a letter from Phoenixtide being the operator of the service contract, authorising payment to Tidewater in line with the agreements.
Phoenixtide, contrary to the terms of its contracts
with Tidewater refused to provide the letter, and even further implied that the outstanding sum of circa $19 million be paid to it directly.
Despite entreaties, Phoenixtide was said to have
refused to provide the required letter authorising
the release of the outstanding sum of circa $19
million from the IOC.
Rather, Kuforiji-Olubi's firm then was said to have
demanded a disengagement package valued at
between $80 million and $100 million from
Tidewater as a precondition to issuing the letter and
facilitating release of the funds held by the IOC.
Tidewater responded to this by filing a suit for
breach of contract in a London High Court in line
with the agreements between the parties and sought
orders compelling Phoenixtide to issue the letter
required, amongst other things.
Phoenixtide appeared in the matter before the High
Court in London and sought to convince the English
court that it was not the appropriate place for the
hearing of the dispute despite its formal agreement
that any dispute between the parties would be
resolved before that court.
This attempt, it was gathered, failed and the High
Court in London assumed jurisdiction in the matter.
Subsequent to Tidewater commencing suit before
the High Court in London and while the action was
still pending, the transacting IOC commenced
proceedings against Tidewater and Phoenixtide
before the Federal High Court in Nigeria seeking an
order of the court determining who, between
Tidewater and Phoenixtide, was entitled to the
outstanding payments due from it.
The Federal High Court declined to make this
determination but acceded to the IOC's alternative
request that it be permitted to pay the funds into
court pending this determination.
With these two actions pending, Phoenixtide also
filed yet another suit in the Federal High Court in
Lagos against Tidewater and the transacting IOC,
seeking an order that it was entitled to receive the
payments due from the IOC.
Once Phoenixtide failed in its attempt to dissuade
the High Court in England from assuming
jurisdiction in the case, it stopped participating in
the matter and refused to respond to all further
processes issued by the court.
After giving the former minister's firm due notice
and opportunity to be heard, the High Court in
London entered judgment against it clearly
mandating its Managing Director, Olutokunbo
Kuforiji, or any other official to issue the letter
requested by the transacting IOC to enable it make
payment of the outstanding due to Tidewater.
Because the High Court in London was made aware
that the transacting IOC had obtained an order from
the Federal High Court in Lagos directing that the
funds due from it be paid into court, the letter
Phoenixtide was directed to write made it clear that
the IOC would need to obtain leave of the Federal
High Court in Nigeria before making the payment to
be authorised by it (Phoenixtide).
Despite this safeguard and the clear directives issued
by the High Court in London, Kuforiji-Olubi and her
son, Olutokunbo, both refused to comply with the
court's orders and proceedings for contempt of
court were commenced against both of them.
Neither she nor her son were present for the initial
hearing for their contempt, however through their
lawyers, they claimed to have been unaware of the
action until recently, and were apologetic and asked
for more time to respond.
The judge allowed them more time but also required
that they pay the unpaid and outstanding legal costs
orders, which they also owed from the previous
litigation.
Kuforiji-Olubi and Olutokunbo then took every step
they could to postpone and delay and/or prevent the
next hearing and did not pay the costs.
Approximately six months later, the contempt
proceedings began, the former minister and
Olutokunbo were required to be at this hearing, but
neither came.
It was gathered that the reason they gave the court
was that Kuforiji-Olubi was ill in Lagos and that
Olutokunbo had to remain at her side 24 hours a
day.
The arguments their lawyers made were
unpersuasive and Justice Burton found both
Kuforiji-Olubi and Olutokunbo to be in contempt.
He consequently ordered a warrant for their arrest
and sentenced Kuforiji-Olubi to one month in prison
and Olutokunbo to four months in prison.
However, the judge set a condition that if arrested
they should be brought to court immediately and be
given an opportunity to explain themselves and
purge their contempt, and hopefully avoid prison.
Checks further revealed that approximately one
month later, information reached the authorities
that Kuforiji-Olubi was in the United Kingdom.
They visited her home in London and found her
there but she was not arrested based on her claim to
be quite ill. The judge then held a hearing to
determine her ability to stand trial before him.
Kuforiji-Olubi had through statements made by her
lawyers to the court, claimed she was essentially
bed-ridden, used a wheelchair, and could only leave
her residence for doctors' appointments.
However, contrary to this claim, she had been
spotted shopping and walking in London on the
same day of this hearing.
Further evidence and admission from her lawyers
showed that she was actually in the United Kingdom
during the earlier court hearings contrary to her
claim of being sick and bedridden in Lagos.
Believing that it had been deliberately misled, the
court ordered her immediate arrest and appearance
in person.
During the hearing, the judge invited her to simply
comply with the court order and issue the letter. In
response, she claimed to no longer have the power
to do such as she had since resigned her
chairmanship of the board of Phoenixtide and
distributed her shares to members of her family.
Despite all the foregoing, the judge still wanted to
avoid having to send her to prison, and he asked if
her son, Olutokunbo would sign the letter and if she
would ask him to.
The judge gave some time for this to happen but
unfortunately she returned, stating that Olutokunbo
had indicated that he would not, and Kuforiji-Olubi
gave no indication that she objected to Olutokunbo's
decision.
Despite the exhaustive patience demonstrated by the
judge up till this point, the court had no other
option than to commit her to jail to serve her
sentence.
However the court still left the door open for
Olutokunbo to resolve this issue by issuing the letter
directed by the court, but till date, he has not taken
any steps to comply with the court's order and
secure his mother's release from prison and remains
a fugitive from the law as far as the United Kingdom
is concerned.
. Culled from shipsandports.com.ng.