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To explain relationship with ex-president
To explain relationship with ex-president
Lakshmi
Mittal, Britain’s richest man, is expected to be cross-examined over his
business practices and relationships with politicians in a court case that
could offer a rare glimpse into his empire.
Mittal, Britain’s richest man, is expected to be cross-examined over his
business practices and relationships with politicians in a court case that
could offer a rare glimpse into his empire.
The
steel magnate, worth an estimated £12.7bn, is being sued at the high court for
allegedly reneging on an agreement to pay fees to a former friend for helping
to secure an oil deal.
steel magnate, worth an estimated £12.7bn, is being sued at the high court for
allegedly reneging on an agreement to pay fees to a former friend for helping
to secure an oil deal.
The
case, which begins on Tuesday, is the culmination of a seven-year battle with
the rice importer Moni Varma. Both men will be asked to discuss their
relationships with Olusegun Obasanjo, the former president who granted Mittal
access to two unexplored oil fields in the Niger Delta.
case, which begins on Tuesday, is the culmination of a seven-year battle with
the rice importer Moni Varma. Both men will be asked to discuss their
relationships with Olusegun Obasanjo, the former president who granted Mittal
access to two unexplored oil fields in the Niger Delta.
Mittal,
63, has previously dismissed the claim, saying the case would be defended
vigorously.
63, has previously dismissed the claim, saying the case would be defended
vigorously.
Since
moving to Britain with his family in 1995, the “steel maharajah” has become
well known for his expensive tastes and his involvement in public life. He has
donated more than £5m to the Labour Party and has imported marble from the
quarry used for the Taj Mahal to decorate his £60m home. The ArcelorMittal
Orbit – 1,500 tonnes of steel twisted into a sculpture by the artist Anish
Kapoor – dominates the Olympic park in Stratford, East London.
moving to Britain with his family in 1995, the “steel maharajah” has become
well known for his expensive tastes and his involvement in public life. He has
donated more than £5m to the Labour Party and has imported marble from the
quarry used for the Taj Mahal to decorate his £60m home. The ArcelorMittal
Orbit – 1,500 tonnes of steel twisted into a sculpture by the artist Anish
Kapoor – dominates the Olympic park in Stratford, East London.
In
documents put before the court, Varma claims to have facilitated a deal in 2006
for Mittal to access two unexplored oil fields in the Niger Delta, and to have
arranged a meeting with Obasanjo.
documents put before the court, Varma claims to have facilitated a deal in 2006
for Mittal to access two unexplored oil fields in the Niger Delta, and to have
arranged a meeting with Obasanjo.
Varma,
64, from Northwood, Middlesex, whose company Veetee Rice is one of Britain’s
biggest rice traders, declined to comment on the case on Friday, saying: “Let
the courts decide if my claim is legitimate or not. My intention is not to
malign anybody.”
64, from Northwood, Middlesex, whose company Veetee Rice is one of Britain’s
biggest rice traders, declined to comment on the case on Friday, saying: “Let
the courts decide if my claim is legitimate or not. My intention is not to
malign anybody.”
The
writ details how Varma and Mittal have known each other socially since 1997 and
regularly discussed business opportunities at social events in London.
writ details how Varma and Mittal have known each other socially since 1997 and
regularly discussed business opportunities at social events in London.
Varma,
who was born in India but educated in Malawi, has longstanding connections with
Nigeria and had known Obasanjo since 2001, the documents claim.
who was born in India but educated in Malawi, has longstanding connections with
Nigeria and had known Obasanjo since 2001, the documents claim.
In July
2005, Mittal Investments Sarl, a company owned by Mittal, launched a joint
adventure with OVL, a subsidiary of ONGC India, India’s leading oil and gas
exploration company. A month later Mittal and Varma met for dinner at an Indian
restaurant in Knightsbridge and discussed possible deals in Nigeria, the writ
claims.
2005, Mittal Investments Sarl, a company owned by Mittal, launched a joint
adventure with OVL, a subsidiary of ONGC India, India’s leading oil and gas
exploration company. A month later Mittal and Varma met for dinner at an Indian
restaurant in Knightsbridge and discussed possible deals in Nigeria, the writ
claims.
In
September 2005, Varma claims, the pair had a conversation that is at the heart
of the case: how much Varma would be paid if the deal came through. Varma
claims Mittal said he could expect 5%-15% of the defendant’s investment.
September 2005, Varma claims, the pair had a conversation that is at the heart
of the case: how much Varma would be paid if the deal came through. Varma
claims Mittal said he could expect 5%-15% of the defendant’s investment.
According
to the writ, Mittal responded: “I will cover you” or “you will be covered … The
reward could be even bigger than 15%, depending on the size of the deal.”
to the writ, Mittal responded: “I will cover you” or “you will be covered … The
reward could be even bigger than 15%, depending on the size of the deal.”
Varma
claims that over the following six months he was cut out of the deal.
claims that over the following six months he was cut out of the deal.
Mittal’s
joint venture with the Indian government was successful in its bids for two
licences for 10 years in downstream projects in Nigeria. The anticipated
combined yield of the “blocks”, or areas of oil, was 650,000 barrels a day and
the value of the downstream projects is $6bn (£4bn).
joint venture with the Indian government was successful in its bids for two
licences for 10 years in downstream projects in Nigeria. The anticipated
combined yield of the “blocks”, or areas of oil, was 650,000 barrels a day and
the value of the downstream projects is $6bn (£4bn).
Mittal’s
lawyers are expected to argue that Varma was a social acquaintance of their
client, and that Varma offered to arrange a meeting with Obasanjo, but dispute
Varma’s recollection of the conversation in September 2005. The lawyers have
also dismissed as fanciful Varma’s claims of introducing Mittal to Nigeria.
lawyers are expected to argue that Varma was a social acquaintance of their
client, and that Varma offered to arrange a meeting with Obasanjo, but dispute
Varma’s recollection of the conversation in September 2005. The lawyers have
also dismissed as fanciful Varma’s claims of introducing Mittal to Nigeria.
The
commercial court has put aside 21 days to hear the case.
commercial court has put aside 21 days to hear the case.
A
spokesman for Mittal said: “Mr Varma’s claim is an opportunistic and
speculative piece of litigation brought on a conditional fee agreement, which
Mr Mittal denies in its entirety and intends to vigorously defend.”
spokesman for Mittal said: “Mr Varma’s claim is an opportunistic and
speculative piece of litigation brought on a conditional fee agreement, which
Mr Mittal denies in its entirety and intends to vigorously defend.”
Source:
Guardian of London
Guardian of London
