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David Beckham
How much? David Beckham was a guest speaker at St James's Place

City Spy: Vince Cable, Shell and a Nigerian headache

25 Jan 2011


Hmmm... Who to side with in the Shell oil case about to start in Lagos?

The energy giant is being sued by a Nigerian arms dealer for refusing to pay him commission for military hardware it allegedly bought in the Nineties for use in the oil-rich Niger Delta, where its operations were facing protests from locals.

It's claimed that Shell's Nigerian subsidiary requested the government give it more "spy police" and "additional weapons and ammunition". The request took ages to be approved, so Shell allegedly asked weapons dealer Chief Gabriel Akinluyi to help.

Officials eventually granted approval for Shell to buy semi-automatic rifles to supply the Nigerian police for use in the Delta. Akinluyi has spent 15 years suing for his commission, claiming his lobbying brought the deal about. The case has just been adjourned yet again, to February 3. Shell claims it owes him nothing.

Locals in the Delta say both sides have blood on their hands. One person who may be watching with interest is our own Vince Cable. The business secretary was Shell's economist at the time.

Money talks at St James's Place

Tell you what, there's some cash knocking around at St James's Place. At the group's annual meeting for the salesforce, a lavish bash at the O2, an all-star roster of speakers were booked.

They were: Clare Balding, Geoff Miller, Alastair Cook and... David Beckham. Blimey. How much does Becks cost per syllable?

Maybe Balls is not-so-red Ed

There's a general assumption that as shadow chancellor, Ed Balls will drag Labour's economic policy to the Left. Maybe. But Alastair Campbell's new volume of diaries suggests that Balls can pull in different directions.

On page 196, Campbell records that Balls was "pushing hard" for privatisation "re NATS (Air Traffic Control), Post Office (forty per cent) and the Tube. All very politically difficult but Gordon Brown seemed to think we could make the argument."

Then on page 420, we read that Balls was out to "destabilise" the minimum wage, pushing for a lower youth rate. Margaret Beckett warned that the Low Pay Commission membership would "walk out" if their recommendations were not accepted.

No time to talk?

How long does Greencore have to come back with a higher offer for Northern Foods, now that its first offer has been trumped by Ranjit Boparan? "Plenty," says spokesman Rory Godson. Who promptly hangs up. Something we said?

Russia intrique hits British courts

More bad news for Russia's reputed richest woman, construction mogul Yelena Baturina, wife of the ex-Mayor of Moscow.

Following hubby Yury Luzhkov's departure as Mayor - during his tenure, she managed to win many lucrative tenders for city construction projects - the couple announced that they would in future school their teenage daughters Aleona and Olga in London. No sooner had Yelena touched down here than she was reportedly quizzed by British officials at the airport.

Now Baturina, Luzhkov and potash billionaire Suleyman Kerimov are embroiled in a court case in London. They're accused of involvement in a conspiracy against Russian parliament member and businessman Ashot Egiazaryan that saw a hostile takeover of his shares in the redevelopment of the landmark Moskva Hotel in Moscow.

Already, many of Kerimov's assets have been frozen under the £1.5 billion lawsuit filed by rival Egiazaryan in London's arbitration court. Kerimov is battling the freezing order. Watch this space.

The law in 140 characters

An email arrives indicating it really is time to leave Britain.

"We are pleased to announce the launch of the UK's first Twitter Law Firm," it reads. "With accidents and claims cases at their peak during this time of year, one legal entrepreneur has set up @thelegaloracle. With Brits missing out on millions of pounds of compensation every year, it is hoped the @thelegaloracle will help the thousands of people in genuine need."

Or possibly more ambulance-chasers costing the NHS millions... Set up by Nicholas Jervis, "who was a solicitor for 14 years before founding marketing firm Loyalty Law", it is promising free legal advice in 140 character tweets.

"While Jervis accepts that it may be difficult to solve an entire case without legal representation, the service will certainly save Brits valuable time and money in legal consultation fees."

Where your computer game cash goes

Calling all parents forking out cash to those young sons addicted to RuneScape and similar computer games.

Ever wondered where the money goes? Wonder no more. Andrew Gower is the happy beneficiary. The founder of Jagex, the computer games company that developed RuneScape, made a pre-tax profit of £18.8 million on sales of £44 million last year.

Better still for Gower, it paid £22.8 million in dividends, of which he took £8.75 million. No wonder US private-equity players have been beating a path to his door.

Morris back at the centre of music

When US music industry veteran Doug Morris stepped down last year as chief executive of the world's biggest record label, Universal, in favour of Lucian Grainge, a Brit, no one thought he would have a quiet retirement.

And so it has proved. Morris, who stayed with Universal as chairman, is off to arch-rival Sony, where he is also set to hold the role of chairman. Sony is pushing to get the appointment brought forward to April, rather than waiting for Universal's notice period for Morris to run out in July.

Time is short because June looks like the month when Guy Hands' beleaguered EMI label may finally collapse into the hands of its bankers unless it can raise more cash. And a battle royal is in prospect over EMI's spoils...

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