Halliburton bribe suspects walk free after sloppy prosecution by EFCC

The trial of the Halliburton bribery suspects reached an anti-climax yesterday when a high court struck out the case against them because of sloppy prosecution by the EFCC.

Ibrahim Aliyu, Mohammed Gidado Bakari and four companies were standing trial over serving as conduits and receiving bribes in hard currency to facilitate natural gas contracts between 1994 and 2005.

Aliyu, a former Federal permanent secretary, was at the time chairman of contract award committee of the Bonny Liquefied Natural Gas, which awarded the contracts. The four companies are Urban Shelter Ltd, Intercellular Nigeria Ltd, Sherwood Petroleum Ltd and Tri-Star Investment Ltd.

The Halliburton bribery scandal gained international attention over the past years, and it led to convictions of companies and individuals in the U.S.

But the Abuja High Court yesterday said it was striking out the case against Aliyu and the others because of lack of diligent prosecution by the Economic and Financial Crimes Commission.

The accused had not appeared in court since the EFCC filed the case more than a year ago.

A leave for their arraignment was granted by the court on February 17, 2011. However, following their non-appearance to take their plea on January 23, the court warned it would strike out the case if the EFCC failed again to bring them to court.

When the case was called yesterday, Kauna Peziki of the EFCC applied for a bench warrant against the accused and requested for more time to prosecute the case.

In his ruling, Justice Abubakar Sadiq Umar said the prosecution has failed to diligently prosecute the case.

"The court has the duty to discharge its duties diligently; court business is a very serious business. Court should not be turned into a warehouse of keeping moribund cases," the judge said.

"It has been over a year now and still the EFCC is coming up with excuses; the EFCC should know that if it is not ready to prosecute and bring cases to conclusion, it should not apply for leave of court to arraign anybody," he added.

The Halliburton bribery case involved the funnelling of $180 million in bribes to Nigerian government officials to facilitate natural gas contracts valued at $6 billion.

In 2009, former Halliburton subsidiary, Kellogg Brown & Root (KBR), pleaded guilty and admitted that it paid $180 million in bribes to Nigerian officials to win the $6 billion contracts. Partner companies from Italy, France and Japan were also involved.

The bribes - some delivered in a briefcase stuffed with $100 bills - were paid to officials in Nigeria's executive branch as well as the state-owned Nigerian National Petroleum Corp, the U.S. Justice Department said.

At various points, huge sums of money were wired through banks in Amsterdam and New York to accounts in Monaco and Switzerland.

In 2010, London lawyer Jeffrey Tesler, who served as conduit for sharing the bribes, and 72-year-old retired sales executive Wojciech Chodan were extradited from Britain to the US to face charges over the Halliburton case.

But in the same year, the Federal Government withdrew charges earlier filed at a high court in Abuja against Tesler as well as Julius Berger Nigeria Plc, George Mark, Hans George Christ, Heinrich J. Stockhausen and Bilfinger Berger GMBH.

Chodan pleaded guilty in December 2010, while Tesler also pleaded guilty in March last year. They were sentenced last month, along with ex-KBR chief Albert Stanley, who was also convicted in the bribery scam. Tesler, 63, received the harshest punishment of 21 months imprisonment.

In a reaction to the Abuja court ruling that stuck out the case against Aliyu and the others yesterday, the EFCC said it would consult with its legal team on the way forward.

"EFCC will study the ruling and seek legal advice from our counsel on the way forward," spokesman for the commission, Wilson Uwujaren, told Daily Trust.

Daily Trust

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German engineer kidnapped in Nigeria

 

The kidnap of a German engineer, Edgar Fritz Raupach, in Kano has developed into a knotty issue for Nigeria’s security agencies, following claims that it was carried out by Al Qaeda.

THISDAY learnt that hitherto, the security agencies worked on the theory that Boko Haram was the only terrorist group in Northern Nigeria, but indications are now very strong that this may not be true.

It was even believed that Boko Haram was working in conjunction with Al Qaeda in Islamic Maghreb (AQIM), a faction of Al Qaeda.

Raupach, who works with Dantata and Sawoe, was abducted from one of the company's road building projects on a bridge on the outskirts of the city since January 26.

A purported spokesman of Al Qaeda later said the group was responsible for the kidnap and the group is now demanding that German authorities should release a Muslim woman, Oum Seif Allah Al Ansari, who they said was being subjected to inhumane treatment in a German prison.

Boko Haram is not known to carry out kidnappings and promptly denied claims that it was responsible for the kidnap and eventual deaths of a Briton and an Italian in Sokoto State early this month.

The kidnap of Raupach has led to a manhunt mounted by a combined team of security operatives in the country.

The police said they had no immediate "clear suspicions" as to who were behind the kidnap.

However, AQIM, based in North Africa, last Wednesday, declared that it was responsible for the abduction.

The statement by the group was published by a Mauritanian news portal, Nouakchott Infor-mation Agency website, a medium which has always been used by the group to send messages. The statement published on Wednes-day by the AQIM is demanding the release of Al Ansari

THISDAY gathered at the weekend that Nigerian security chiefs are concerned about the latest development especially the link with Al Qaeda.

They have launched investigation into the Al Qaeda claim and the “swap” demand by the group. They are also looking at the possibility of the faction having a different command structure.

Meanwhile, there was a reported excitement in the camp of Boko Haram leader, Sheikh Abubakar Shekau, over the reported death of a factional militant leader, Abu Mohammed.

Intelligence sources confirmed to THISDAY last night that the Shekau group indirectly helped with the information that led to the location of the hostages held by the Mohammed group in Sokoto, although the rescue operation failed as the two foreigners were killed by their captors.

The Shekau faction of the Boko Haram might have inadvertently given the intelligence that led to the arrests of Mohammed and his “fellow traitors” in Adamawa, Katsina, Kaduna, Sokoto and Kebbi States during a Shura Council (the highest decision-making body) meeting in Layin Hanwa, Zaria, and the subsequent failed rescue mission in Mabera Estate in Sokoto.

Mohammed broke away and ran a faction of the Boko Haram until he was arrested March 7, 2012 after a gun battle with security agents.

He died March 9 from gunshot wounds. Other suspects may be taken to court next week.
Security sources said Mohammed’s men appeared well-trained and organised, with weapons and armoury that security agents were still trying to unravel their origin.

This sophistication of the faction, apparently aided externally, readily showed in their ability to keep the two hostages away from the extensive security hunt for 10 months.

This dents the claim by the security agencies that they had acquired equipment that could track terrorists anywhere in Nigeria.

This Day

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Nigeria loses $20bn in oil theft yearly

Every year, Nigeria loses about 40 million metric tonnes of petroleum products amounting to about $20 billion (N3 trillion) to crude oil theft and illegal bunkering, Mr Leke Oyewole, a Senior Special Adviser to President Goodluck Jonathan on Maritime Affairs has said.
Oyewole made this known in Lagos, on Sunday, in an interview on a Channels Television programme tagged ‘Sunday Business’.

He said the loss was sequel to sharp practices characterised by numerous leakages, adulteration of products, as well as diversion of refined imported products by some of the players in the upstream and downstream sectors of the oil and gas industry.

The presidential aide, who stated further that the estimated loss was what obtained as of 2009, said diversion of petroleum products to neighbouring African countries by fuel importers amounted to a drain on the nation’s foreign exchange, adding that employment opportunities were being left to nationals of countries where fuel was being imported.

He pointed out that it was in order to put a stop to the revenue haemorr-hage arising from these leakages that President Goodluck Jonathan was resolute on the deregulation of the oil sector.

“Deregulation will allow investment in refineries, which will in turn create jobs in Nigeria and pave the way for export of products to other countries around us.

“Nigeria cannot claim to be poorer than Ghana or Chad where fuel is sold for about N170 per litre. Total removal of subsidy will enable the government to save more money for capital projects. Beyond that, it will minimise smuggling of the products across borders,” he said.

According to him, the porous nature of the country’s waterways also provided a lee way for unscrupulous importers to short-change government, by not paying duties to relevant government agencies.

“Our waterways are currently not so well monitored by the relevant maritime agencies. For instance, most of the vessels bringing products to Nigeria do not pay a dime to government, either though the Nigeria Maritime Administration and Safety Agency (NIMASA), the Nigeria Ports Authority (NPA) or Customs. This constitutes serious revenue losses to the economy,” he added.

The presidential aide said although Customs had been told not to collect import duties from vessels coming into the country, its officials had the task of rummaging the vessels, adding that NIMASA and NPA ought to collaborate to address issues in the offshore operations in the oil industry and mitigate the insecurity arising therefrom.

Nigeria Tribune

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Nigerian government signs deal with U.S. electric company GE

The Federal Government and GE Energy, weekend, signed a Memorandum of Understanding, MoU, for a $10 billion to be invested in various power plants with combined capacity of 10,000 Megawatts, MW.

Minister of Power, Prof. Barth Nnaji, insisted that the cost had not been padded or inflated in any way, as globally, it costs $100 million to generate 1,000MW of electricity.

Some sections of the media had reported that GE was constructing a 10,000MW plant in Nigeria.

But, at the agreement signing at the Nigerian High Commission in London, Prof. Nnaji, told journalists that GE only agreed to take up at least 15 per cent equity in each of the plants to be constructed.

He noted that GE's support was the highest expression of investment support for government's target to achieve 40,000MW generation capacity by 2020.

He said: "To have a company willing to work with us on delivering 10,000MW is a show of confidence in Mr President's vision. Even if the equity is one per cent, it is still significant because it will take us somewhere. And, with 15 per cent, Federal Government will provide the balance."

He clarified that government will not be involved in any of the projects, but will provide guarantees for the private sector participants.

According to him, "The local content will be huge because GE and any other foreign investor must have local partners."

Previous agreements

He explained that what government and GE had signed after a meeting with President Goodluck Jonathan in Abuja, was a series of general agreements for support in various sectors of the economy including power, transportation especially rail, and health.

"What we are doing is the culmination of a series of work done, some behind-the-scenes, and some in the open. With the meeting between President Jonathan and the Chairman of GE last month in Abuja, there was a narrowing of areas of focus for the country and GE to collaborate on specific areas of focus.

"Accordingly, GE developed MoUs specific to the various sectors, and today, the MoU we are signing relates to power alone."

Agreeing that $10 billion was very ambitious in the face of cash crunch at the international capital market, Nnaji said with GE's cash and government's bank guarantees, the projects will become more bankable, as investors can approach financial institutions to raise funds.

He noted that the relationship between the Nigerian government and GE was a long-term one, as the energy company has moved from just being a supplier of power equipments in Nigeria, to an equity investor.

Vanguard

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Nigerian government gives foreign airlines ultimatum

The Federal Government yesterday gave all foreign airlines operating in the country a 30-day ultimatum within which to dismantle the fare regime that sees Nigerian passengers paying higher fares than other passengers in West Africa.

Aviation Minister, Princess Stella Oduah, who issued the ultimatum in Abuja last night, said the 30-day ultimatum would start today.

This came on a day the Ministry of Aviation also sought the cooperation of the National Assembly towards the enactment of a Passengers' Bill of Rights.

It could be recalled that in the wake of the impasse between British Airways and Arik Air regarding the denial of landing slots of the latter at London Heathrow airport, the ministry had, in addition facilitating the landing rights of Arik Air in Heathrow, waded into the huge fare disparity in the sub-region and demanded fare parity from British Airways, BA, Virgin Atlantic Airways, VA, and other international airlines operating in the country.

BA and VA had particularly asked for more time to conduct its own study on the alleged fare disparity, promising to report back to the Ministry last December.

But worried by the obvious delay tactics on the part of the two British carriers, Aviation Minister, Princess Stella Adaeze Oduah, weekend said any international airline operating in Nigeria which failed to dismantle the fare imbalance and other sharp practices within the next 30 days would be banned from operating in Nigeria.

She said: "We are seriously concerned and worried by the reluctance to restore parity within the region by the foreign airlines.

They have been using all kinds of delay tactics; this is unacceptable and will no longer be tolerated. Nigerian passengers do not deserve this kind of exploitation and we are willing and ready to stand up to their rights."

Oduah said Nigeria remained an important and lucrative route for the international airlines, warning that anyone not ready to treat Nigerians with equity and dignity would be barred from operating in the country.

"In the interim, we encourage Nigerian travellers to avail themselves of other competitive alternatives while we try try to address and resolve this issue once and for all," she said.

A source had told Vanguard that government's action was informed by the delayed tactics deployed by the British government on the need to resolve the issue of unequal fare regime of British carriers in their Nigerian operations, compared to what holds in other countries on the West Coast.

Government had always banked on the fact that once the two British carriers were made to toe the line, other international airlines would follow their footstep on the issue, especially considering the historical links between Nigeria and Britain.

Vanguard gathered at the weekend that the latest withdrawal of slots from Arik Air on its Abuja-London Heathrow operations, which led to the airline's suspension of flight on the route yesterday, further infuriated the government.

The British government had in the last quarter of 2011 asked the federal government to give it till December 31, 2011, to conduct a study on the fare regime of both British carriers on Lagos-London and Abuja-London routes, in relation to that of other countries in the sub-region, but failed to meet up with that deadline and called for an extension of time which, according to sources, was to enable it buy time while the two carriers continued operations unhindered.

The British government had begged for a negotiation in the heat of the row caused by the shabby treatment of Arik Air at Heathrow, when government threatened to shut down British Airways operations on Lagos-London route.

A source told Vanguard weekend that government was no longer disposed to the delayed tactics being employed by the British government, especially in the light of the resurgence of Arik Air's problem at Heathrow earlier in the month.

Announcing a re-suspension of its Abuja-London flight penultimate week, Arik Air had said: "From the inception of the route in November 2009, Arik Air has been in a slot-lease agreement with a UK carrier, leasing arrival/ departure slots on the Abuja/ London route at Heathrow.

"At the end of the summer schedule (October 2011), the UK carrier that Arik Air was in the slot-lease agreement with for this route advised the airline of its intention to sell the company and began to wind down its contractual arrangements with Arik Air. Without these commercially arranged slots, Arik Air was forced to suspend operations at the start of the winter schedule (2011).

"Immediate discussions were held by the respective governments to resolve the long-existing and underlying anomaly in the BASA. As an abridgement, the UK authorities facilitated the temporary continuation of the commercial lease of these slots in support of Arik Air's Abuja/ London, Heathrow operation.

"This interim solution was only available up until 25th March (2012). Unfortunately,despite the best efforts of both governments, there has been no solution found. The situation remains as it was at the end of October 2011 with Arik Air having no landing/arrival slots after March 2012 thus forcing it to suspend the route.

Although Aviation Minister, Princess Stella Oduah, could not be reached weekend to know what action government was taking in the next two weeks, sources at the Ministry said the operations of both British carriers might be shut in Lagos in the interim, in view of Arik Air's problems at Heathrow, and shut completely should the British government fail to respond to Nigeria's quest for a dismantling of the current fare regime which is unfavourable to Nigerians.

The Aviation Minister's aide, Mr. Joe Obi, had told Vanguard three weeks ago that though the British negotiating team on British Airways and Virgin Atlantic Airways fare structures appealed for extension of time, on the expiration of the December 31, 2011, deadline, which was acceded to, the Nigerian government would not wait indefinitely because of the urge with which Nigerians want the issue settled.

He also said the matter bothered on public interest which government was in a hurry to resolve in the

Meanwhile, the Ministry of Aviation is putting finishes touches on a proposed Passengers' Bill of Rights which it hopes to present before the two chambers of the National Assembly soon.

The ministry, which is very optimistic that the National Assembly will lend its usual cooperation towards the swift passage of the bill, believes air passengers will have a fairer deal once the bill is passed into law.

One of the salient provisions in the proposed bill stipulates that a passenger has a right to demand compensation if his or her flight is delayed for more than one hour, out-rightly cancelled or where a passenger is denied boarding without any reasonable cause.

Vanguard

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