For
allegedly dumping their part of a
partnership deal to establish a polymer currency printing plant in Nigeria, the
Reserve Bank of Australia and two other firms, Securency Private Limited and
Innovia Films Limited, all based in Australia, may pay damages of up to four
billion Euros (€4bn) to a Nigerian firm.
They
are to face a €126 million specific
damages for loss of revenue for failure to establish a local polymer plant up
to date; and €1.5 billion euros damages for breach of contracts to carry out
technology transfer to a Nigerian entity or establish a polymer plant in
Nigeria.
This
is the value of what would have been saved if the Australian institution,
through its subsidiary firms, had effectively transferred and domesticated the
technology for the production of polymer currency notes in Nigeria.
The
Australian apex bank and the firms are to
face legal charges in Nigeria over
this, as an Abuja high court ruling has granted order of court to their
Nigerian partners, Global Secure Currency to serve them writ of summons.
Justice
O.O. Goodluck of the High Court, Maitama, in Abuja, had in a July 2, 2014
ruling, granted Benoy Berry and Global Secure Currency Limited order to serve
the writ of summons on the three Australia-based firms, including Securency
Private Limited, Reserve Bank of Australia and Innovia Films Limited, to appear
in court and defend allegations pertaining to breach of contract agreement for the transfer of Polymer Technology and
establish a polymer based mint in Nigeria.
At
the resumed hearing of the case, Justice Goodluck dismissed the application of
the foreign firms asking the court to set aside court ex-parte order it made on
the 2nd of February, 2012, against Reserve Bank of Australia based on the
grounds that the order was made outside jurisdiction of the court.
According
to the plaintiff, Dr. Benoy Berry, in the terms of the agreement, the
Australian Apex Bank had agreed, through its subsidiary, Securency, Australia,
to set up a Special Purpose Vehicle (SPV) to facilitate the transfer of Polymer
Technology, including a 0-pacification facility (Substrate Plant) in Nigeria;
and that the marketing of the 1st defendant’s imported polymer products
incidental to the general investment in
the local market would be undertaken ahead of the establishment of local
production.
On
the strength of the contract, Dr. Berry claimed that the Central Bank of
Nigeria (CBN) awarded the first contract for the printing of polymer notes to
the firms, but along the line, the Australian companies reneged on the contract
terms and insisted on supplying orders and demands from polymer plants abroad
rather then set up a plant in Nigeria.
It
was for this reason amongst others that Dr Berry and Global Secure Currency
Limited approached the high court to demand that the Austrian firms must
fulfill their obligations as contained in the agreements to manufacture and
print polymer notes in Nigeria.
Vanguard
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