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Alleged Breach of Contract: U.S. Court Rejects Nigeria’s Request to Cancel N2.7 Trillion Fine

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The District Circuit Court in Washington DC has dismissed Nigeria’s request for it to set aside its $8.9 billion arbitration award against her over alleged breach of contract.

The court presided over by Justice Christopher Cooper said the request was denied not only on ground that it was belated, but also that it sought the dismissal of the petition for the enforcement of the award.

A government legal team led by the Attorney General and Minister of Justice, Abubakar Malami, left Nigeria on Wednesday morning to Washington DC to attempt to get the court to set aside the award against Nigeria.

The team, which jetted out of the country aboard a British Airways flight, also included the Solicitor-General of the Federation, Dayo Apata, and the Minister of State for Petroleum Resources, Ibe Kachikwu.

The team was joined by a team of foreign solicitors, Messrs Curtis, Mallet-Prevost, Colt & Mosle LLP, hired by the federal government to initiate the legal process to challenge the enforcement of the $8.9 billion award against the country.

But, the outcome of the court’s proceedings monitored by PREMIUM TIMES showed that Nigeria’s motion requesting the court to set aside the clerk’s entry of default award was dismissed.

The court however granted a part of the country’s motion that Nigeria was not properly served the process documents by addressing them to the “head of the ministry of foreign affairs” as is the practice under 28 U.S. Code section 1608(a)(3).

The code stipulates the order of service or delivery of a copy of the summons and complaint in U.S. courts to a foreign state or political subdivision of a foreign state.

In his ruling on Friday, Judge Christopher Cooper said the court would have granted Nigeria’s request to set aside entry of default in view of the country’s recent interest to appeal, but described the request as belated.

The law stipulates a period of 30 days within which copies of the summons and complaint and a notice of suit should be sent to a foreign state.

“The motion is DENIED to the extent it seeks dismissal of the petition,” the judge said.

The arbitration award was issued on March 20, 2013 in favour of a British engineering firm, Process & Industrial Development Limited (P&ID), over alleged breach of contract by the Nigerian government.

The original award against Nigeria was about $6.59 billion. But, following the country’s refusal to enter an appeal for over five years, the award attracted additional $2.3billion in accumulated interest at 7 per cent rate per annum.

On January 31, 2017, the three-man tribunal constituted under the rules of the Arbitration Act 1996 (England and Wales) and the Nigerian Arbitration and Conciliation Act (CAP A18 LFN 2004), gave the final award of $8.9 billion for enforcement.

PREMIUM TIMES learnt that the Malami team had received a directive from President Muhammadu Buhari to ensure they did all that is legally possible to get the U.S. Court to review its affirmation of the award and drastically reduce its value against Nigeria.

However, a senior Justice Ministry official who spoke with PREMIUM TIMES on condition of anonymity on Thursday said the main plank of the team’s argument, which they sold to the president, was that the court lacked the legal authority to give such a ruling against a sovereign nation like Nigeria.

Early this month, the Solicitor-General, Mr Apata, canvassed that line of argument in his reaction to PREMIUM TIMES’ earlier report on the final ruling by the tribunal against Nigeria.

On May 24 this year, this newspaper reported exclusively how the Nigerian government fell into big trouble capable of grounding her fragile economy following a request by P&ID for enforcement of the award.

The report detailed how a $6.59 billion arbitration award since 2013 over alleged breach of contract was allowed to build up to about $8.9billion (about N2.7 trillion at CBN’s N305.4 as of May 22) following accumulated $2.3 billion uncollected interest as of March 2018.

Official documents reviewed by this newspaper showed that a government negotiation team constituted in 2015 by the Goodluck Jonathan successfully negotiated an out-of-tribunal settlement with P&ID and got the company to accept an $850 million payment, about 9.6 per cent of the $8.9billion award.

However, rather than take the recommended action, the present administration opted to set aside the settlement agreement, directing its lawyers to return to the tribunal to renegotiate with the engineering firm.

The decision gave the tribunal the opportunity to enter its final ruling, after the first and second partial final awards on July 3, 2014 and July 17, 2015 respectively, effectively awarding $6.59 billion fine against Nigeria.

The refusal to settle the matter for over five years attracted additional $2.3billion in accumulated interest at seven per cent per annum.

But, Mr Apata in his reaction described the reports as “false”, claiming that the affirmation given by the tribunal on March 2018 to its January 2017 ruling was a “default entry by the clerk” rather than a “default judgement.”

The final ruling was handed down by the court following an application by P&ID seeking enforcement of the award after the Nigerian government failed to defend itself against allegations by the company.

Mr Apata told reporters the Arbitration court lacked the constitutional powers to issue such an order or award against a sovereign state like Nigeria.

“It needs to be stated that what is being touted as a default judgement was actually a default entry made by the court clerk. Under the Foreign Sovereign Immunities Act (FSIA), a defendant has up to 60 days period to answer to a petition filed against it.

“Where no response is entered for the defendant, the court clerk upon application by the petitioner, makes a default entry, which in this case was made on June 5,” he said.

Besides, he said there were certain conditions that must be attained before the U.S. court could deliver such a judgement.

According to Mr Apata, under the FSIA, a default judgement cannot be entered against a foreign state like Nigeria, unless the presiding judge determines so after the petitioner/claimant must have established its entitlement to a default judgment.

He said based on the presumption of sovereign immunity, the US District Court was still under obligation, despite default by a Foreign State, to determine whether the Foreign State was immune from the jurisdiction of the US Court under FSIA, or whether the case before it fell within one of the recognized exceptions.

Besides, he argued that even where the court had determined that it has jurisdiction, a default judgment would not be granted automatically, or as a routine matter to be handled by a court clerk, as this could only be done after a formal trial.

He cited the provision of Section 1608(e) of the FSIA, which states: “No judgment by default shall be entered by a court of the United States or of a State against a foreign state, a political subdivision thereof, or an agency or instrumentality of a foreign state, unless the claimant establishes his claim or right to relief by evidence satisfactory to the court… “

NIGERIA WAIVED HER SOVEREIGNTY UNDER AGREEMENT

Regardless, the three-member tribunal led by the presiding Arbitrator, Lord Hoffman, had noted in its final award that the agreement between P&ID and Nigeria was governed by the laws of the Federal Republic of Nigeria.

The tribunal said both parties had agreed that in the event of any dispute, each may issue a notice of arbitration under the rules of the Arbitration Act 1996 (England and Wales) and the Nigerian Arbitration and Conciliation Act (Cap A18 LFN 2004.

Under the Act, the parties agreed that any “arbitration award shall be final and binding upon the parties.”

Besides, following challenges to the tribunal’s jurisdiction in the United Kingdom and Nigeria, court documents seen by PREMIUM TIMES showed that P&ID told the court Nigeria was treaty-bound to pay the award.

The plank of the company’s argument was that by virtue of the terms of agreement they signed, agreeing to be bound by the outcome of any arbitration, Nigeria waived its right to immunity as a sovereign nation.

“The final award is governed by the New York Convention. So, Nigeria’s status as a foreign sovereign does not deprive the court of jurisdiction to confirm the award,” P&ID said in its application in March 2018.

Legal experts familiar with the matter said on Friday, the Nigerian team might have serious difficulties convincing the tribunal to change its ruling on the matter on the basis of the terms of agreement the two parties signed.

HOW IT ALL STARTED

The Nigeria government was accused of reneging on its obligation to supply gas to P&ID under an agreement to build and operate an Accelerated Gas Development project to be located at Adiabo in Odukpani Local Government Area of Cross River State.

P&ID said the country’s negligence frustrated the construction of the gas project, thereby depriving it the potential benefits expected from 20 years’ worth of gas supplies.

In August 2012, the company the government notice for Arbitration.

In July, 2015, the arbitral tribunal found Nigeria culpable of the breach and liable to pay damages.

On December 23, 2015, the government asked for the award to be set aside, despite committing under the agreement that the arbitration decision shall be final and binding upon parties.

So, on February 10, 2016, the application was dismissed, paving way for the hearing on July 22 to 24, 2016 to determine the damages.

Two members of the three-man tribunal, Lord Hoffmann and Anthony Evans, held that P&ID’s expenditure and income should have been about $6.597 billion if government fulfilled its obligation under the agreement.

Both officials said the award should be paid together with interest at the rate of 7 per cent from March 20, 2013.

The third member, who is Nigeria’s former Attorney-General and Minister of Justice, Bayo Ojo, said although P&ID was entitled to compensation for the breach, its damages could not have been more than $250 million.

On January 31, 2017, the court gave the final award as $8.9 billion, which included additional $2.3 billion in uncollected interest as of March 2018.

However, few days to the end of the Jonathan government, a $850 million agreement was reached with P&ID.

But, Mr Jonathan opted to transfer the responsibility of disbursing the funds to P&ID to the then in-coming administration of President Muhammadu Buhari since he was at the exit door already.

However, on December 23, 2015, the Buhari government asked the tribunal to set aside the award completely.

Culled from AllAfrica

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Atiku Abubakar Remains Only Person Tinubu Govt is Afraid Of – Dele Momodu (Full Interview)

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By Eric Elezuo

If there is one Nigerian, who can tell accurately the heartbeat of the nation, its direction and what the future portends for it, based on the dynamics already at play, that person is Chief Dele Momodu; a seasoned journalist, former presidential candidate, holder of high profile chieftancy titles across the country, and Chief Executive Officer, Ovation Media Group.

As a vocal politician and public speaker, whose voice echoes across the length and breadth of the nation for all the good reasons, Momodu has continued to speak against the cluelessness of the present government and the need for the government to redress its steps in terms of unpopular policies emanating from the cradle, which have rather impoverished the populace rather than do the opposite. He is credited with being the first to notice the government’s unpopular drift towards one-party system, and warned on the dangers. Today, almost all the state governors, national and state assembly members have all decamped to the ruling All Progressives Congress (APC).

Sustaining his credence as a value-adding speaker, Momodu was a guest of the fabulous, experience and adequately exposed Charles Aniagolu of Arise News(Night),  where he further highlighted the challenges and remedies of the Nigerian situation.

He also spoke on the appointment of the former Chief of Defence Staff, General Chris Musa (retd) as the Minister of Defence, the withdrawal of Police eacort from very important personalities (VIPs) including the former Vice President Atiku Abubakar and many other issues of national concern.

The text of the interview is presented in details even to the tiniest details below:

Momodu with former Vice President, Atiku Abubakar

Well, for more on this, I’m joined now from our studios in Lagos by the former presidential candidate and publisher of Ovation magazine, Basharu Dele Momodu. Mr. Momodu, thank you very much indeed for coming in. You look like you’re about to cry there. I mean, I know you had a bit of a tough time getting in, and I do apologize to our viewers because we’re quite a few minutes late. But you had a bit of a mishap coming in, and that delayed us a bit.

Dele Momodu: Yes. Well, we thank God that it was something minor. We had an accident on top of the bridge coming into the Arise studios, but we’re okay. Now, you asked if I am off the mark this…

Well, I’m going to get to that in a minute. Sorry to interrupt you – I want to be a bit systematic because we’ve got to gallop ahead, given that we’re, I mean, almost 12 minutes late in starting the program. Let me start by first of all getting your reaction to the confirmation of General Christopher Musa as the new Minister of Defence in the current climate of insecurity that’s gripping this country.

Dele Momodu: Well, I mean, I didn’t expect anything else. I expected that he would be screened — whether bow-and-go or not — he would be screened, and he would be ratified. And he’s been ratified, and I want to congratulate him. That’s all. I pray that we won’t hear sermons this time and that he will just go straight into action.

Yes, we all hope for that, don’t we? And we also got the news this evening that the National Economic Council has approved 100 billion naira for the renovation of training centres for the police and other security agencies across Nigeria. So that suggests that they’re serious about retraining serving police officers and training new ones. Is that the message that you’re getting from it?

Dele Momodu: Well, I would say that 100 billion is too small for the police and the security agencies. The government should do something better if it is serious about the insecurity that is terrorizing everybody in Nigeria. They would need to get serious, invest more in training, involve- I mean, invest in new personnel. The reasons they are saying they are withdrawing police from the streets are just because we don’t have enough of them. But we have enough jobless people in Nigeria, including graduates and non-graduates, who are willing to join the police force and other security agencies. So my advice is that President Tinubu should invest heavily in security. 100 billion to me, especially when you translate it into other currencies, it’s chicken feed.

Well, to be entirely fair, Bashorun, that 100 billion is for the renovation of training centers for the police. It’s not for the whole security recruitment thing. It’s purely to renovate the centres that have been left to kind of, you know, rot across the country, and he’s trying to bring them up to speed and at the same time get on with the recruitment of new police officers and move on with the training of existing ones.

Now, you spoke recently about the ban on police escorts for VIPs. You called it a targeted move against opposition figures like Alhaji Atiku Abubakar, who you support, and who is constitutionally entitled to security protection. You argued that the ban is a calculated move to weaken opposition voices and fuel resentment against successful Nigerians, and that it’ll expose prominent Nigerians to danger. I wonder why you think all that, because public sentiment in Nigeria seems to be in support of President Tinubu’s decision to ban the use of police escorts by VIPs. And it looks like you are the one who is off the mark this time.

Dele Momodu: No, I’m not off the mark. I remember in October 2022, when I foretold the dictatorship that would soon visit Nigeria. I was abused that night — that I’m talking rubbish. You see, I am trained to go behind the scene to find the real stories. A lot of Nigerians get easily, easily fooled. And if you read my press release yesterday, I said it there that we have been fooled again. What they are doing is to set the poor against the rich. And whenever you do that, you will get an applause, you will get an ovation. But the truth is that most people are not thinking about the real motive behind this decision.

If you look at Lagos State, for example, when they had the problem in the House of Assembly, you will see that one of the things they used to intimidate the people was, one, they sent some forces in to disrupt the house. Then they withdrew the police security that was guarding the brother of the new speaker. They withdrew the police from Oba Elegushi. It’s nothing new. So if we start the campaign, let’s say in January — I don’t know when we are starting — tell me, who will risk his life criss-crossing Nigeria without police escort?

We should stop being fooled. You see, the sentiment is that, oh yes, all of us should suffer. There is no country in the world where you don’t have VIPs. And it’s never a crime to be successful. As a matter of fact, those who should lose their security are those politicians in Abuja and not the ordinary man, not a Dangote, not an Abdulsamad. Imagine a time when a kidnapper said he almost got Aliko, if not for his heavy security.

So you will see – I’ve said it again today – when tomorrow comes, and events begin to unfold, you will remember that only one man warned you that this is part of the plot to suffocate the opposition.

Well, I mean, I think that obviously you’re entitled to your opinion, but a lot of people will probably disagree with that because the government didn’t say that they were going to completely leave VIPs naked without protection. They talked about redrafting civil defense people to become protectors. And members of civil defense — they carry guns and very sophisticated weapons at that. And of course, it’s not just directed at the opposition; members of the government and the VIPs are also subject to the same restrictions.

But let’s move on from there because I’m concerned that we lost a lot of time at the beginning. I want to get your response to a lot of things because it’s not every day that we have you sitting there. I don’t know whether you’ve heard this, but it’s being reported tonight that the US government has introduced a new policy which allows it to impose a visa ban on people considered responsible for the attack on Nigerian Christians.

The State Department issued a statement saying the policy allows it to deny visas to those who have directed, authorized, supported, participated in, or carried out abuses targeting people based on faith. And it said that family members of affected people are also subject to the restrictions, and that the US cannot stand by while such atrocities are happening in Nigeria. What’s your reaction to that? Does it sound like all the attempts by the Nigerian government to convince the Americans that there isn’t genocide targeted specifically at Christians have failed?

Dele Momodu: You see, when you have bullies in power, people will also jubilate when a bigger bully comes to bully them. So what’s happening in Nigeria right now is that a lot of people feel hopeless. They feel helpless, and they are excited that there is a bigger bully. The same way you said, “Oh, people are happy that they are withdrawing security from…” is the same way America is bullying us now, and you can see us reacting.

It took us over two years to react, to what? To appoint ambassadors who will represent our country. So I think the game continues, and I can tell you that a lot of Nigerians, especially on social media, are very excited that for once, at least, our leadership is listening to someone, and that’s President Donald Trump. So if that’s what it takes for our country to get serious, maybe that’s what we needed, and that’s what we are getting.

And Mr. Momodu, as you assess the political landscape inside Nigeria using your very blunt and unapologetic assessment indicators, what do you see as we approach 2027? Is it, as some have suggested, a done deal for President Tinubu and the APC, given the many failures of the opposition? Because I see you being quoted as saying that no southern candidate — not even Goodluck Jonathan or Peter Obi — can defeat President Tinubu in 2027.

Dele Momodu: Oh, I’ve been saying that for long. It’s nothing new. nothing is a done deal for President Tinubu. About two months ago, no one expected him to suddenly sit up and respond to America. But now we are responding. So we don’t know what’s going to happen in the coming weeks that may further get them sober.

What we witnessed in the past was the giddiness — “Oh, we are the ones in charge, nothing can happen.” But suddenly we see them reacting to forces from America, which is unfortunate because to govern Nigeria is not too difficult. Nigerians — we’re the most tolerant human beings; otherwise, we wouldn’t be where we are now. We tolerate everything.

And I know that 2027 is not yet a done deal. But the opposition must get its act together. I’ve said it before on this programme that actions and reactions are always equal and opposite, according to Isaac Newton. So that’s my scientific analysis of what is going to happen.

Any southerner who goes into the race now – an average southerner will say, “After all, we already have Tinubu there, so why are we worrying ourselves?” So, the force that we need to energize the opposition, I believe it will not be there. There are three key things when it comes to presidential elections. Number one is ethnicity — where the candidate comes from. No northerner is going to come and die to come and defend a southern candidate if, let’s say, for example, he’s rigged out of the election. But when you have your own candidate, it’s more than likely that you will be more enthused to vote for that candidate.

And that is why I said, look, don’t let us waste our time. And I’ve said it — you know me, I’ve said it — I said the only person this government is afraid of is Atiku Abubakar. I will continue to say it. And since Atiku and Peter Obi ran together in 2019, I supported them then, and I was not a member of PDP. So it should be easier for them to come back together.

We have less than one year to prepare for that election. While Tinubu is already campaigning, cajoling, and, you know, coercing whoever he can, we are still busy thinking who is going to be our candidate. I think we are wasting too much time. Now is the time to do what is necessary.

And just following up on that, you recently described Peter Obi’s candidacy as independent because, according to you, he doesn’t have a party and has shown unwillingness to build and work with the ADC. But I mean, many of his supporters disagree with you and say that he is still a member of the Labour Party for now, and that the party has been making behind-the-scenes moves towards reconciliation and could well pull a rabbit out of a hat in 2027. What’s your assessment of that?

Dele Momodu: Now you have gone in the realm of magic. I am not a magician and I don’t see any magic that would awaken Labour Party or PDP and that APC will fold its arms and allow such a platform for Obi. I mean, the truth of the matter is that, you know, he’s a man I respect so much. If you look at it right now, I believe he’s party-less, like most of our opposition leaders.

He has not yet made up his mind, and he joined the ADC last week. So anybody who wants to run a year to election and you have not yet made up your mind, I think it’s proving more difficult. that’s why I said an independent candidate. But he has not said that he’s opposed to ADC, so we need to correct that. He has not said that he’s opposed. What I think he’s opposed to is maybe having to go through a convention — a primary — and ADC said everybody should come to the primary: if you win, you win, then others will support.

But I think it’s going to be difficult for any party to donate a ticket — especially any formidable party — at this stage, to donate a ticket to any candidate. I don’t even think Atiku can get an automatic ticket in ADC; he will have to fight for it. So let them — I mean, you have Roti… one of the most experienced politicians in the history of Nigeria. So they are all there; let them go and fight for it. And that is what a true democrat should do.

The only person who will get an automatic ticket, and already has, is President Tinubu. So for anybody to be shopping for a ticket at this stage, I think we need to get very serious. I’m being brutally frank.

Indeed, and that’s what we like about you – your brutal frankness. And in that regard, let’s talk a little bit about you as a prominent media personality. I mean, do you see your role as a commentator as influencing government policy or shaping public opinion?

Dele Momodu: Well, for me, I am like a prophet. I was born in an Aladura church, and I was named Joseph. I dream a lot. I see visions. And most of my predictions about Nigeria have come to pass, even after people have abused me.

They used to tell me, “Oh, you like supporting losers.” But now they can see that I support common sense. It does not matter whether you are going to win or you are not going to win. That’s the role God has chosen for me, and I have gladly accepted it.
So those who want quick fixes or quick, you know, appointments, of course, would always join the ruling party. When I supported Buhari the other time, I never went there to do anything. They invited me; I told them my piece of mind. So it tells you that I’m not desperate for anything.
For me as a person, I will continue to influence the younger ones. Everywhere I go – and I travel virtually every week – the young people come to me, even on flights, and say, “Thank you for speaking up.” A lot of people don’t speak up. That is why we believe Nigeria is populated by bad people. There are a lot of good people who are voiceless. And so they are looking for someone to just tell them where to go.
And I am happy that most things that I have said have come. I predicted that there would be a dictatorship, and that one didn’t take much. So as a prophet, I’m enjoying it.

Well, we like having you, and thank you very much indeed for taking the time to talk to us. And thank you for being there tonight. And also, I hope everything goes well because I know you had a bit of a mishap getting into the studio.
Dele Momodu — Basharun Dele Momodu — is a former presidential candidate and publisher of Ovation magazine. He was talking to me from our studios in Lagos.

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Davido Hails Uncle, Gov Adeleke on Resignation from PDP

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Nigerian Afrobeat music singer, David Adeleke aka Davido, has commented on his uncle, Governor Ademola Adeleke, after he resigned from the Peoples’ Democratic Party (PDP), posting “Jeje…” on his X page.

Adeleke, who represented Osun West as Senator and currently serves as the governor of the State, announced his resignation in a letter dated November 4, 2025, citing the party’s national leadership crisis.

The letter titled ‘Resignation of my membership of the Peoples’ Democratic Party (PDP)’ read: “Due to the current crisis of the national leadership of the Peoples’ Democratic Party (PDP), I hereby resign my Membership of the Peoples’ Democratic Party with immediate effect.”

He expressed gratitude for the opportunities afforded to him by the PDP.

“I thank the Peoples’ Democratic Party for the opportunities given to me for my elections as a Senator (Represented Osun West) and as Governor of Osun State under the Peoples’ Democratic Party,” he added.

The resignation has sparked reactions, with Davido’s post sparking speculation about the implications for the party.

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Book of Infamy: Umo Eno, Umar Bago, Egbetokun Listed Among Media Unfriendly Public Officers

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Niger and Akwa Ibom state governors, Umar Bago and Umo Eno respectively, have been listed in the “Book of Infamy” by the International Press Institute (IPI) Nigeria as the worst offenders of media repression in the country.

The IPI also included the Inspector General of Police, Kayode Egbetokun, in the blacklist for continued police harassment and attacks on journalists.

This was made known on Tuesday during the IPI Annual Conference in Abuja, with Vice President Kashim Shettima and Minister of Information and National Orientation, in attendance.

At the conference, IPI President Musikilu Mojeed said the governors and the police chief have consistently prevented journalists from performing their legitimate responsibilities.

He said, “Mohammed Umar Bago, Niger Governor, Umo Eno, Governor of Akwa Ibom and the IG of Police, Kayode Egbetokun, are hereby written in the book of infamy.”

Mojeed added that Egbetokun was added for “failing to uphold his constitutional duties and allowing systematic media oppression”.

In recent years, media reports have highlighted multiple instances of repression under the two governors.

In August 2025, Governor Umar Bago was reported to have ordered the closure of Badeggi FM, a privately owned radio station in Minna, Niger State, accusing it of inciting violence.

The station was sealed by security agents, prompting condemnation from rights organisations such as Amnesty International and the Nigerian Bar Association, which described the move as unlawful and an attack on independent journalism.

Earlier in 2025, a postgraduate student at Ibrahim Badamasi Babangida University, Lapai, Isah Mokwa was reportedly arrested and detained after criticising Governor Bago on social media.

In Akwa Ibom State, under Governor Umo Eno, a Channels Television reporter and cameraman were expelled from the Government House Press Centre in May 2025 after airing a video in which the governor allegedly announced plans to defect from his political party.

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