NLNG Gets More Days for Cross Examination, Set to Counter Macobarb’s N5Bn Claim

The Nigeria Liquefied Natural Gas Limited (NLNG), which had concluded cross examination of the claimants in the N5.74bn claim suit brought against it by one of its indigenous contractors, Macobarb International in a Rivers State High Court sitting in Port Harcourt has gotten three additional days to shoot down the claim by Macobarb and its Managing Director, Shedrack Ogboru.

This is because the claimants – Macobarb and Ogburu – have submitted more exhibits in the forms of more documents to press home their claim of over N5bn against the NLNG.

The claimants successfully submitted the nine additional documents when the case was called up again after cross examination by the NLNG had come to an end.

This is the continuation in the long-drawn legal warfare between the NLNG and the indigenous contractor. Macobarb has been striving to press home a claim of N5.74bn saying it is value for ‘work done’ but not paid for, plus outcome of alleged breaches by the multinational organization (NLNG) in a 2014 contract.

Macobarb insists that the contract is still subsisting and that the company’s items and property are still on site, thus accruing value. The NLNG has contested this, saying the contract was terminated and value of work paid for.

When the case came up earlier, the claimants led on that day by Nwieke Dignity from Masters Chambers requested to submit more documents that were pleaded but not yet submitted. This was objected to by Prof Bayo Adaralegbe leading many other lawyers for the NLNG.

The judge, Justice Chinwendu Nwogu of the Port Harcourt High Court, who first allowed cross examination by the NLNG to proceed, however granted the claimants a date to submit their pleaded exhibits in the Suit No: PHC/2013/CS/2022.

Macobarb and team had first submitted 37 exhibits (documents) and later two more where they tried to show that the contract with the NLNG made downtime provision and stipulated procedures for approval of jobs done and payments.

Ogboru of Macobarb relied on the statement of claims and the many amendments which the CEO adopted on September 29 and November 1, 2024 in court along the 39 documents that were marked as exhibits in KJ series by the court as well as expert deposition.

Some of the submissions and documents include the letter written by NLNG General Counsel at that time (Company Secretary), Akachukwu Nwokedi, to Festus Keyamo’s Chamber which had stated that the contract between the NLNG and Macobarb had no provisions for standby payment. Macobarb claimed that such a position by the NLNG legal department was the reason why the NLNG refused to pay Macobarb.

Macobarb thus tendered many documents and quotes from the contract document to show that the contract had ‘standdown payment’ provisions. Macobarb also called in a forensic accountant to try and prove to the court that those contract clauses existed. 

Some of the additional documents submitted at the last adjourned date were later marked exhibits YJ-40 to 48 by the court.

Exhibit YJ-40 showed first milestone payment requisition of over N32m; purchase order to the foreign manufacturers showing agreed payment term; Total Secure pro foma invoice showing $127,000 to design and manufacture NLNG-requested items; Total Secure acknowledgement of Macobarb having paid 57.5% of total cost to manufacturer for which Macobarb expected 50% payment in bill of quantity of N33.8m leading to request for first milestone payment as agreed in contract.

The documents also showed acknowledgment of some payments; also acknowledgment of over $134,000 of the payments for turnstile.

Exhibit YJ-41: showed a mail from Babalakin & Co acknowledging Macobarb’s mails to NLNG MD (Dr Philip Mshelbila) dated 06/02/2023 and other mails from Macobarb some of which levied allegations against the NLNG.

One of the exhibits showed the ruling of Justice Nwogu dismissing NLNG preliminary objections with N200,000 cost where the NLNG had said the suit was status barred and that the 2nd complainant was not a proper party.

Another exhibit (YJ-42) is the forensic accountant’s acknowledgment of his typographical error dated April 12, 2024 of his computation; while YJ-43 is NLNG mail to Macobarb of July 14, 2015, subject, standby cost in response to Macobarb’s details of stand by cost presented to NLNG through the GRC manager of July 13, 2015, claiming over N600m in the first standby cost computation which the NLNG rejected.

The reason shown in the response was that there was no work done whereas Macobarb claimed there were two invoices establishing work done in procurement, engineering, and construction as several notes of progress review meetings showed.

Another document submitted marked YJ-44 shows a contract meeting held between Macobarb and NLNG dated July 28, 2015 where NLNG demanded that Macobarb not to make a claim on the basis that the contract payment term is based on ‘work done’ and not on material delivered (meaning that material delivered was not ‘work done’).

Macobarb had claimed that this was the basis for denying them payment for 2nd milestone for foreign procured items costing the company (Macobarb) $134,000.

Another is YJ-45 showing Macobarb response to NLNG notice of default and termination served on Macobarb by a person Macobarb claimed not known to the contract as contained in the contract terms. There is also YJ-46 which is ‘Notice of Dispute’ which Macobarb said was permitted by the contract to resolve the matter but which Macobarb claimed was bluffed by the defendants.

Macobarb also submitted YJ-47 known as ‘Progress Review meeting number 17’ where the parties showed overall progress as at the date with percentages of ‘work done’ which Macobarb said was basis for 2nd milestone payment request which they said is yet to be paid.

Another exhibit is marked YJ-48 which is NLNG notice of default and termination dated November 20, 2015, signed by one Emeka Ohiri who the claimants say is not known to the contract.

With these further particulars, the Court gave the NLNG more days for possible cross examination fixed for February 21, 27, and 28, 2025.