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MALABU OIL SCANDAL: OBASANJO, ATIKU, JONATHAN, OTHERS INDICTED
The US House of Representatives Committee on Financial Services has asked the Department of Justice (DOJ) to reopen an investigation into Shell and Eni’s purchase of rights to Oil Prospecting Licence (OPL) 245 in 2011, one of Nigeria’s most profitable oilfields.
In a letter signed by Representatives Maxine Waters and Joyce Betty, the committee urges the DOJ to investigate potential violations of the Foreign Corrupt Practices Act (FCPA).
The letter, addressed to the Attorney General of the United States, emphasized the importance of ensuring accountability in international financial transactions.
Two Nigerian former Presidents, Olusegun Obasanjo and Goodluck Jonathan were indicted in the United States report.
Jonathan was accused of receiving $200 million in bribes from the sale of the oil licence.
In addition, former Vice President Atiku Abubakar and former Attorney-General of the Federation Bayo Ojo were also indicted in the report.
The letter reads “we write to urge the Department of Justice (DOJ to reopen a Foreign Corrupt Practices Act (FCPA) investigation into Shell and Eni regarding their 2011 purchase of the rights to Oil Prospecting License (OPL) 245, one of Nigeria’s most lucrative oilfields.
“Available evidence implicates both companies in a scheme that resulted in the payment of $1.1 billion in bribes to Nigerian government officials, including then-President Goodluck Jonathan. Shell and Eni, both registered with the U.S. Securities and Exchange Commission (SEC), continue to profit from the deal in violation of the FCPA.
“Allegations of corruption surrounding OPL 245 began in 1998, when Dan Etete, a convicted money launderer and Nigeria’s former oil minister during the military dictatorship of General Sani Abacha, awarded the OPL 245 license to Malabu Oil & Gas, a company whose principal shareholders were revealed to be Etete himself and the son of General Abacha.
“The rights to OPL 245 continued to be marred with corruption,’ and in 2000, Malabu’s share registry was changed to reflect a 50% shareholding by Pecos Energy, a company secretly controlled by then-President Obasanjo and his Vice President.
“Malabu’s license was revoked in 2001 but restored in 2006, with evidence suggesting that bribes paid to then-Attorney General Bayo Ojo played a key role in that decision.
“Shell and Eni then purchased the license from Malabu in 2011 for $1.3 billion with knowledge that a portion of the proceeds would be used to bribe numerous Nigerian officials, including then-President Goodluck Jonathan.
“Hundreds of millions of dollars passed through various Nigerian shell companies linked to Aliyu Abubakar, a businessman known in his country as “Mr. Corruption.”
“Then-President Goodluck Jonathan was said to have pocketed some $200 million from the sale, and the former Attorney General involved in the 2006 reinstatement of Malabu’s license also purportedly received a sizeable payout. Other funds would later be traced to the purchase of real estate in the U.S., Dubai, Brazil, and Switzerland, as well as luxury vehicles and gems.
“The harm to the Nigerian people, however, would continue to be felt beyond the immediate payment of bribes, with experts alleging that the country lost $6 billion in estimated future revenue double the size of Nigeria’s annual health and education budget. 4
“In 2013, there was sufficient evidence for the Federal Bureau of Investigation (FBI) and the DOJ to open a money laundering investigation into the deal, which was followed by an FCPA investigation. In DOJ notified Eni that the U.S. had closed the inquiries in light of Italy’s own prosecution of the case, yet it noted that the file could be reopened if circumstances changed.
“In a decision that has since been widely scrutinized due to concerns of impropriety and political interference, an Italian court subsequently acquitted Shell and Eni in 2021 and 2022, respectively. Soon after, a review conducted by U.S. and German representatives to the Organization for Economic Co-operation and Development (OECD) Working Group on Bribery found Italy to be noncompliant with the legal obligations of the Convention. The Working Group cited this case, in particular, in its judgment, expressing “extreme concern” over the court’s “systematic rejection” of evidence.’
“Shell and Eni continue to profit from their exploitation of the OPL 245 deal, and Eni has contested the Nigerian government’s decision to delay the conversion of their Oil Prospecting License to an Oil Mining License for OPL 245. Eni’s legal challenge, filed at the International Centre for Settlement of Investor Disputes (ICSID) and based upon the corruptly acquired prospecting license and related Resolution Agreement, as well as the use of the original contract in arbitration proceedings, constitutes further violation of the FCPA.
“The ICSID proceedings are currently suspended until May 23, 2024, with the agreement of the parties, suggesting that a settlement is being negotiated. Allegations have been made in the Nigerian press of further corruption relating to a settlement.®
“The United States has consistently demonstrated global leadership in the fight against foreign bribery, with the FCPA serving as model legislation for countries around the world.
“The reopening of this case would further illustrate the U.S.’ commitment to “aggressively pursue foreign bribery cases,” as stated in the U.S. Strategy on Countering Corruption’ and reaffirm its pledge to fully implement the OECD Anti-Bribery Convention.
“We urge you to leverage this potent anti-corruption law to address the issues in this case and to send a powerful message that the United States stands vigilant in its pursuit of corporate crime around the globe”.
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NIGERIAN WOMEN ACTIVISTS SUE MINISTER OF WOMEN AFFAIRS OVER ATTEMPT TO MISMANAGE $500M WORLD BANK LOAN
A lawsuit has been filed in the High Court of Enugu State by two women’s rights organizations against the Minister of Women Affairs, Mrs Uju Ken Ohanenye over the attempt to mismanage a $500 million loan provided by the World Bank to improve the lives of Nigerian women.
Other defendants included in the lawsuit are the President of Nigeria, Asiwaju Bola Ahmed Tinubu, Minister of Finance, Wale Edun and Director of International Economic Relations Federal Ministry of Finance, Mr Nyeso Stanley George.
The applicants, Amb. Onyinye Joy Mamah, representing Heroine Women Foundation, and Amaka-Ajuzie Ogbu, of NET Bridge Empowerment Foundation, claimed that the previous $100 million loan from the World Bank, intended to empower impoverished Nigerian women, which was released during President Muhammadu Buhari’s government was allegedly squandered on consultancy fees, seminars, and other non-essential activities.
According to the plaintiffs, the funds never reached the intended beneficiaries who are poor Nigerian women.
The women’s activities said they are worried that the $500 million loan is at risk of suffering the same fate as the previous funds, being diverted into private pockets instead of being utilized for meaningful development projects.
Amb. Mamah, the lead plaintiff, emphasized in her affidavit that Nigerian women, who will bear the responsibility of repaying the loan, have not seen any tangible benefits from previous funds.
She warned that failure to utilize the current loan effectively could leave the country in prolonged economic servitude.
“That another 500 Million Dollars has just been provided by the selfsame World Bank for the benefit of the Nigerian women, it is not free manna from the Heavens but still a loan facility to be repaid with interest in due course of time by the teaming Nigerian populace.
“That the enemies of the people are circling again determined to divert the fund, away from the Nigerian women for whom the money is meant and into private pockets. A whole of 500 Million United States Dollars ploughed into useful and meaningful endeavors – agriculture, fishery, trading, making of crafts eic. wi: chase hunger, death, slavery insecurity, prostitution and other vices out of the land.
“It is the bounden responsibility of the respondents to ensure that this fund, intended for the empowerment of Nigerian women, is not misappropriated”.
The plaintiffs are asking the court to enforce the proper use of the $500 million loan for its intended purpose, arguing that Nigeria’s economic recovery, especially the dignity of its women, depends on it.
The plaintiffs argued that if the funds are mismanaged again, it will deepen Nigeria’s economic crisis and perpetuate the nation’s poor international reputation.
The court has yet to set a hearing date for the case.
- Ajube combs PDP structures for APC; pledges to fund election in Ondo South senatorial district
- we will reciprocate Ilaje’s 2023 support for Rep”-Agadagba-In-Council
Ahead of the November 16 governorship election in Ondo state, the Ijaw speaking Arogbo Kingdom on Sunday, boosted the chances of Governor Lucky Aiyedatiwa as the Kingdoms Traditional Council endorsed his candidature.
Governor Aiyedatiwa is also the candidate of the ruling All Progressives Congress (APC).
The Arogbo Ijaw Kingdom’s endorsement came as Niger Delta Peace Ambassador and entrepreneur, Senior High Chief Bibopere Ajube pledged to fund the governors election in the six local government areas of the south senatorial district of Ondo state.
The Agadagba and Paramount Ruler of Arogbo Ijaw Kingdom, Pere(Barrister) Zaccheus Doubra Egbunu, Opukutu 111, who made the endorsement pronouncement said the decision hinges on the massive support the Ilajes gave to their son, Hon Donald Ojogo during the 2023 House of Representatives election.
“Our governor is our son in Arogbo Ijaw Kingdom because he is our closest neighbour. There is no way we will not give him maximum support especially as an Ilaje man.
“In Ijaw land, we value and reciprocate good gestures; we cannot forget in a hurry how the Ilajes mobilized hugely for our son, Hon Donald Ojogo to win the House of Representatives seat in 2023. For the very first time, an Ijaw man is in the Green Chamber. So it’s our duty, it’s an obligation for us to massively vote for this Governor who happens to be our Ilaje son”, the monarch said.
Ajube, who is the Pathfinder of Arogbo Ijaw Kingdom while playing host to Governor Aiyedatiwa at an elaborate ceremony where over 2,000 members of the Peoples Democratic Party (PDP) defected to the APC pledged his commitment to fund the election
“Mr Governor, your election is our election and that of the president because it is the first governorship election in the Southwest since the 2023 presidential election that produced our own President Ahmed Bola Tinubu.
“As such, it is of great consequence to the President, and we cannot afford to play with it. We will not disappoint our president and that is why we have demolished all the ward structures of the PDP in our Kingdom.
“So Your Excellency, just leave the six local government areas in the southern senatorial district of the state for me to provide the money. Just keep the little money you have for other senatorial districts. I have the capacity. I am an Ijaw man. We don’t deceive people. If we say, we will do something, don’t doubt it, we will do it.
The Governor, while receiving the defectors, appreciated them for joining the APC family of the true progressives where everyone’s voice counts. He thanked all the party leaders for their support and announced various initiatives of his administration aimed at improving the lives of the people of the state.
The Chairman of Arogbo LCDA, Hon Caleb Ebi Molos, in His welcome address, expressed appreciation to the Governor for his concern for Arogbo Kingdom and assured him of the total support of the people of Arogbo LCDA.
The event was attended by Hon Donald Ojogo, member of the House of Representatives representing Ilaje/ Ese-Odo Federal Constituency; Hon Agabra Atili, Deputy State Chairman of APC; Hon Toyin Allen, House of Assembly Member representing Ese-Odo State Constituency; Hon Samuel Twatimi, Head of the Ondo State Office of the Presidential Amnesty Programme; Hon Kolade Akinjo, former member House of Representatives, among other leaders.
