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Rwanda: Latest – Minecofin PS Appears in Parliament Over Draft Procurement Law


The New Times (Kigali)  via AllAfrica
January 19, 2015

 

Professional procurement officers in the public and private sector will add value to Rwanda’s procurement sector, Kampeta Sayinzoga, the Permanent Secretary in the Ministry of Finance, told The New Times.

She was appearing before the Parliamentary Standing Committee on Budget and Patrimony to defend a draft law that seeks to professionalize procurement this morning.

“The added value of this [new] law is that, it actually brings standards and professionalism in the procurement sector for both public and private circles,” said Kampeta.

Once enacted, the law is expected to close the loopholes that have been prevalent in public procurement sector where, according to the Auditor-General, about thirty percent of tenders awarded by public entities do not comply with procurement guidelines.

The new law will strengthen the existing legislative framework that governs public procurement by streamlining all the institutional and legal frameworks governing procurement management.

According to the Auditor General’s report covering the period between August 2012 and June 2013, more than Rwf23 billion was lost in poor contract management procedures, while nine contracts, worth Rwf908 million, were abandoned by contractors.

In a recent interview with The New Times, Augustus Seminega, the Director General of Rwanda Public Procurement Authority, blamed procurement errors on low skill levels, lack of experience and laxity among procurement officers.

Article 2 of the new draft law say that the profession of procurement shall be entrusted with persons who have knowledge, governed by ethical rules and international best practices and those who have chosen to practice it under supervision of a professional body in charge of establishing a code of professional practice.

Op-Ed: We’re withdrawing from the Arms Procurement Commission, and here’s why


Daily Maverick

By A FEINSTEIN, P HOLDEN AND H VAN VUUREN

August 29, 2014

The Arms Deal was a uniquely damaging moment in our young democratic history. It was concluded after decades of uncontrolled spending on foreign and internal wars by the apartheid regime. From the signing of the contracts in 1999 up to R70 billion of public money continues to be spent on weapons of questionable utility. The country was not and is not facing any meaningful military threat. But rather the most pressing problems that faced us then as they do now are inequality, poverty and unemployment

Since its inception the Arms Deal has been dogged by well supported allegations of corruption. We together with many other activists have consistently challenged the State to fully investigate and prosecute these allegations. Four previous investigations have failed to fully probe the Arms Deal.

We have engaged with these matters in different capacities over many years and we have done this out of the commitment to the primacy of the Constitution and the rule of law in our democracy. Given this commitment we believe that all allegations of corruption must be investigated and prosecuted without fear and favour.

After careful consideration, with great disappointment we have decided to withdraw all participation in the Seriti Commission of Inquiry into the R70 billion Arms Deal.

The appointment of the Commission raised great expectations that the truth would finally be established, and that this would challenge the interests of politicians, middlemen and large corporations in one of the most corrupt industries in the world. The Commission had the prospect of serving not only South Africans but all people across the globe campaigning against the devastating impact of corruption in the arms trade.

The Commission has failed on both accounts. It has missed a historic opportunity to support the struggle for transparency and accountability of the powerful.

We have not made our decision lightly. It follows nearly two years of actively trying to support the work of the Commission, assisted by an exceptional pro bono legal team led by Lawyers for Human Rights.

We have taken our decision due to serious and fatal concerns we have regarding the manner in which the Commission has conducted itself. There are four key reasons why we have decided to withdraw:

  1. The Chairman, Judge Willie Seriti, indicated that he was not interested in hearing evidence from witnesses about documents that they had not themselves written. Judge Seriti made this ruling during the testimony of Member of Parliament Mr David Maynier. This prevented Mr Maynier from giving any substantive evidence, as he was not the author of documents that emanated from investigations or government departments. This is particularly disturbing as this limitation was not applied to previous witnesses who were supportive of the Arms Deal. The implication of this ruling is that only those who have been involved in the Arms Deal can introduce evidence. How the Commission intends to discover the truth by only hearing from participants in the Deal is a mystery.

The Chair has also ruled that witnesses should only speak to corruption allegations of which they have personal knowledge. The logical conclusion of this ruling is that only those who have been corrupted, who have corrupted others, or who were intermediaries in such corruption, can give evidence of it. It is obvious that all of these parties have an interest in hiding the truth. Why would the Chair choose to rely solely on their opinions?

We have conducted extensive research into the Arms Deal. We have analysed thousands of documents, and interviewed people who are able to point to where evidence of corruption is likely to be found. We were not direct participants in the Arms Deal. If we are not allowed to talk to documents that we have not written, nor speak to corruption allegations based on documentary evidence, there is no point in our appearing as witnesses. This process will serve to undermine the critics without addressing the evidence they have accumulated. This can only serve to protect the corrupt and compromised.

In response to our attempt to resolve this issue, the Commission has informed us in their correspondence of 27 August 2014 that “The decision [to admit evidence of which a witness not the author, nor facts within a witness’ personal knowledge] will be influenced by the circumstances of each case, including the document’s relevance to the terms of reference and the purpose for which it is sought to be used.” There is no basis on which we can have any expectation that we will be permitted to give evidence on matters not within our personal knowledge, and rely on documents we are not the authors of. The Commission’s rulings to date in respect of other ‘critic’ witnesses, and the Commission’s rulings to date in respect of our cross-examination of other witnesses, clearly indicate the contrary. The Commission has not undertaken that it will now reverse its previous approach. (If it did so, procedural fairness would require the recall of a number of witnesses). Read more here.

Nigeria: Experts Pick Holes in Procurement Process


This Day

By James Emejo

 Say absence of  governing council violates enabling act.

Renewed controversies have trailed the continued existence of the Bureau of Public Procurement (BPP) without the proposed National Council on Public Procurement (NCPP) which ought to endorse the former’s activities as provided by the Public Procurement Act 2007.

Prof. Paul Idornigie of the Nigeria Institute of Advanced Legal Studies told THISDAY that one of the objectives of the BPP in ensuring probity, accountability and transparency in the procurement process is in doubt because the NCPP is yet to be established as required by the Act which also gave life to the Bureau.

Speaking on new issues of transparency and access to information in the public and private sectors at a one-day seminar themed: “Emerging Issues on Good Governance in Nigeria” which was organised by the Institute of Chartered Secretaries and Administration of Nigeria (ICSAN) Abuja Chapter, he also carpeted the Federal Executive Council (FEC) for allegedly usurping the function of the NCPP by approving and awarding contracts at its weekly meetings.

He said the BPP could not be said to be observing good governance in its operations when the NCPP which is supposed to vet its activities is yet to be created as prescribed by law.

He further chided members of the National Assembly for being pre-occupied with frivolous oversight functions and not ensuring that laws passed are actually implemented to the letter.

The professor said:”I am actually worried about the effect on contracts being awarded by the Federal Executive Council on this issue. I won’t use the word illegal; all I’m saying is that the National Assembly members are here: if they believe that they don’t need the National Council on Procurement, they should amend the law. But we cannot have a law that provides for NCPP and since 2007, the council has not been established.”

He said:”I have a challenge with the public procurement act when talking about transparency; this was a law passed to ensure transparency and accountability. Now this law was passed in 2007 but as we speak, we’ve not had a National Council on Public Procurement and yet, we have the Bureau of Public Procurement which ought to take directives from the Council.

“All the thresholds being observed in the ministries, departments and agencies of government are determined by the BPP but the Bureau needs the approval of the National Council on Privatisation to do this.
“How do you run a system where the law provides that there should be a council and all we see every Wednesday is that the work that ought to be done by this council is being taken by the Federal Executive Council. Is that transparency?”

According to Idornigie:”If the government feels we don’t need the National Council on Public Procurement, let them amend the law to provide that it is the FEC that would play this role. One of the objectives of the BPP is to ensure probity, accountability and transparency in the procurement process. Now how can BPP do this when it has no council?”

He added that though the governing council for public procurement had not been set up, yet the BPP had been issuing financial thresholds, stressing that “the whole public procurement act made no reference to the FEC and yet, it is the FEC that approves matters which ought to be approved by the National Council on Public Procurement.”

In the same vein, Chairman, ICSAN, Abuja Chapter, Mrs. Stella Anukam, said there were several laws which had been enacted by the National Assembly but yet to be implemented.
She said:”When it comes to implementation, you would be shocked. The public procurement act is one and if the major body set up to ensure the implementation of that act since 2007 is yet to be in place I think we should begin to worry.”

Anukam, however, said ICSAN would convey the summit resolutions on issues raised to relevant authorities and press for concrete action.

Meanwhile, speaking while declaring the seminar open, Minister for Information, Mr. Labaran Maku, warned of severe consequence in neglecting good governance which he described as necessary for redeeming the country’s battered image.

He blamed the absence of good governance on the incessant political instability witnessed in the polity especially during the military regime.

Maku said the way to go was for citizens and leader to take responsibility for their actions as well as reappraise societal values.

He said everybody must be disciplined to respect rules adding that “the cutting corners syndrome is like Ebola virus” which does no good to anybody.
He added that serious people were needed in government to ensure things are done the right way.

Swaziland finance minister announces procurement reform


Supply Management

29 February 2012 | Angeline Albert

This year, the Swaziland government plans to introduce a public procurement agency to oversee the purchasing carried out by public bodies.

In this national budget speech, finance minister Majozi Sithole said that the Swaziland Public Procurement Regulatory Agency will be created in the 2012/13 financial year.

As well as overseeing public purchasing, the agency will provide an independent forum to assess suppliers’ complaints. In addition, a code of conduct for public sector procurement officials will also be adopted.

The changes come as a result of the country’s Procurement Act of 2010, which gained assent from His Majesty King Mswati III last year. The act also disqualifies public sector workers and politicians from supplying government with goods and services.

In his budget speech, Sithole said: “Government understands that improving public procurement can generate savings without compromising services to the public. It is also an area prone to corruption. That is why we have a new procurement act. In 2012, the government will apply the changes required.”

The minister emphasized the need for stronger fiscal discipline in government by investing in cost-saving policies, improving procurement and public finance management and fighting corruption.

Somalia: UN experts on use of mercenaries urge greater oversight for private security contractors


UN News Centre

18 December 2012 – The Government of Somalia must do more to ensure the security of its citizens while increasing regulations on private military and security companies, a United Nations expert panel urged today at the conclusion of its seven-day visit to the Horn of Africa country.

“As Somalia rebuilds its security institutions, the Government should ensure that private security forces are properly regulated and do not become a substitute for competent and accountable police,” said Faiza Patel, who currently heads the UN’s Working Group on the use of mercenaries.

“All Somalis have the right to security, not just those who can afford to pay for it,” she added.

After decades of factional fighting, the East Africa country has been undergoing a peace and national reconciliation process, with a series of landmark steps that have helped bring an end to the country’s nine-year political transition period and the resulting security vacuum which rendered Somalia one of the most lawless States on the planet. These steps included the adoption of a Provisional Constitution, the establishment of a new Parliament and the appointments of a new President and a new Prime Minister.

The Working Group commended the formation of the new Government and its efforts to establish a functioning, peaceful and democratic nation. It noted, however, that the new administration needed to reinforce its control over the private armed security sector through redefined laws and offered its assistance in developing such legislation by drawing on best practices learned from other countries.

“Such laws and their consistent application are critical to guarantee that private security providers operate in a legal, transparent and accountable manner,” Working Group-member Anton Katz stated, adding that the availability of private security should not detract from “the urgent need to provide security for all Somalis.”

In its findings, the Working Group noted that some private security contractors have not always operated transparently in the East African country and, occasionally, veer away from their prescribed goals of providing simple protection from armed factions, bandits and pirates.

Pointing to one instance in the state of Puntland, the UN experts cited incidents involving the Puntland Maritime Police Force (PMPF) which was created with the aim to repel the continuing scourge of piracy afflicting the Somali coast.

The Working Group established that the PMPF had engaged in operations unrelated to piracy, including a recent case in which the police force had worked to prevent a candidate for the Puntland presidency from campaigning in Bossaso, the area’s largest city.

Ms. Patel warned that the PMPF was operating outside the legal framework and called on local authorities to integrate the force into “the agreed-upon Somali national security structure and ensure that it is used strictly for the purposes for which it is intended.”

Turning to the issue of piracy – a problem which has long affected international shipping in the heavily trafficked waterways off the coast of Somalia – the UN experts said they were satisfied that piracy had decreased over the past year, although they expressed concern at the continuing use of armed guards aboard vessels.

Ms. Patel called upon the international community to reach an agreement on regulations and procedures regarding the use of armed personnel in the shipping industry, cautioning that a failure to do so created risks for human rights violations at sea.

At the same time, the Working Group also examined the use of private contractors by the UN as well as the UN-backed African Union Mission in Somalia (AMISOM), and welcomed efforts to ensure that the security providers had a clean human rights record and maintained the “gold standard” when it came to human rights issues.

In addition to Ms. Patel of Pakistan, the working group is currently composed of Patricia Arias of Chile, Elzbieta Karska of Poland, Anton Katz of South Africa, and Gabor Rona of the United States and Hungary. Reporting to the Geneva-based Human Rights Council, they are independent from any government or organization, and serve in their individual capacities.

Analysis: New law fails to ease oil concerns in Uganda


IRIN NEWS

KAMPALA/NAIROBI, 13 December 2012 (IRIN) – Uganda’s parliament recently passed a law to govern the exploration, development and production of the country’s estimated three billion barrels of oil, a resource whose extraction will directly affect the livelihoods of tens of thousands of people.

While the law streamlines the burgeoning industry, analysts have raised concerns over transparency and over who controls the sector.

“The new law helps set clear guidelines under which the oil sector is to be run and managed, and makes clear who is in charge of what roles,” said Tony Otoa, director of Great Lakes Public Affairs (GLPA), a Uganda-based think tank focusing on oil and governance. “However, there are some concerns about transparency and too much power within the oil industry in the hands of the president.”

The bill was passed on 7 December after weeks of wrangling over its controversial Clause 9, which gives the energy minister wide-ranging powers, including authority over the granting and revoking of oil licenses, negotiating and endorsing petroleum agreements, and promoting and sustaining transparency in the petroleum sector. Many members of parliament (MPs) felt these powers should be held by an independent national oil authority.

“Essentially, the standoff, which has ended, was about the withdrawal of trust from a government that is battered by corruption scandals. Also the way the cabinet operates is that, in the past, the feeling has been that some key ministries, like finance, are effectively run by the presidency after being stuffed by yes-men or -women. The pushback against Clause 9 also comes as the Central Bank opened its vaults to a large withdrawal in 2010 [US$740 million to buy six fighter jets] only for approvals to be sought retrospectively,” said Angelo Izama, a Ugandan journalist and oil sector analyst.

“Loss of trust”

“This loss of trust is behind the resistance to greater control by the executive,” he added. “The executive has not been a bad shepherd of the process so far. Uganda’s negotiating position has been tougher with the oil companies, ironically, without the oversight of parliament. However, public scandals elsewhere have negatively affected the ability of the president to convince lawmakers – especially of his party – that he means well.”

A number of donors – including the UK and Ireland – recently suspended aid to Uganda following allegations of deep-rooted corruption in the Office of the Prime Minister. The prime minister, the former energy minister and the foreign affairs minister were all accused of taking kick-backs from oil companies in 2011, charges that remain unproven but that nevertheless damage the reputation of the government.

“The country lacks trust in the state… Institutions and officials have lost legitimacy, and for such an important bill to vest too much power into a political appointee is a recipe for disaster,” said Stephen Oola, a transitional justice and governance analyst at Uganda’s Makerere University Refugee Law Project.

“Granting and revoking licenses and negotiations are technical in nature. We need an independent commission or authority made up of people of good competence, technical ability and experience, and good morals to guard our oil,” said Frank Gashumba, a local businessman and social activist.

Proponents of Clause 9 say licensing powers are safer in the hands of the cabinet than under an oil authority. “The authority is open, easy to bribe and manipulate. Cabinet is bigger than the authority – members of the executive are answerable to Ugandans because they are elected leaders,” said Kenneth Omona, a ruling party MP.

Those opposed to it say they will challenge the law, which was passed with 149 votes in favour and 39 against; some 198 MPs did not turn up to vote.

“The fight is not complete; the passing of the bill is liable to be challenged in courts of law,” said Theodore Ssekikubo, ruling party MP and chair of the parliamentary forum on oil and gas. “If we fail to go to court, we shall subject the matter to a referendum for all Ugandans to pronounce themselves on this strategic resource. We want to ensure transparency and accountability in the oil sector.”

Transparency

There are also concerns about the law’s confidentiality clause, which limits the amount of information accessible by the public.

“The law is lacking transparency – it imposes confidentiality on officials working within the sector, even after they leave office, so there is no opportunity for whistle-blowing or for the public to have access to information on, say, production-sharing agreements,” GLPA’s Otoa said.

He noted that Uganda still hasn’t joined the Extractive Industries Transparency Initiative (EITI), an international scheme that attempts to set a global standard for transparency in oil, gas and mining, further compounding the sector’s lack of transparency. As a member of the EITI, Uganda and oil companies involved in the country would be required to publish all payments and revenues from the industry.

While Total and the China National Offshore Oil Corporation (CNOOC), two of Uganda’s major oil partners, are listed on Wall Street and are therefore subject to the Dodd-Frank Wall Street Reform and Consumer Protection Act – which requires disclosure of payments relating to the acquisition of licenses for exploration and production of oil, gas and minerals – the Irish firm Tullow Oil, another of Uganda’s main oil partners, is not under any similar obligations.

“I am worried we [legislators] and the public can’t access and scrutinize these agreements. You can imagine the recently negotiated and signed oil agreements have not been accessed by the public, not even by members of parliament,” Beatrice Anywar, former shadow energy minister, told IRIN.

The impact of the oil sector has so far been most acutely felt by communities around Lake Albert, thousands of whom have had to move – some willingly and some forcefully – to make room for an oil refinery, which is expected to take up 29sqkm and displace some 8,000 people.

Land issues

“The government is prosecuting the refinery resettlement by the book. However, managing public expectations and the process of multiple decision makers in Uganda’s complex land legal system [Uganda has multiple land systems, including customary, leasehold and freehold] has contributed some volatility to the process… What is adequate compensation? And who determines that? Is it the market or should this be done by the government?” said journalist Izama.

“As a partner to the oil companies, it’s questionable too if the government can make the best decisions for the affected people as it would look to keep project costs fairly low,” he continued. “It is still a dilemma which is jurisprudential as well as political.”

He noted that much of the oil is in game reserves and a sensitive basin with lakes, rivers and a rare biodiversity, and borders the Democratic Republic of Congo, which could also pose challenges for peaceful production; there has already been some tension between the two countries over their boundaries within Lake Albert.

“The process of consensus-building is still weak, and regardless of how it’s arrived at, displacements will create uncomfortable realities, including land and job pressure.”

According to Otoa, Uganda’s lack of a comprehensive land policy makes compensation issues more complex. “We need clear land policies to ensure people are properly compensated – there is a Resettlement Action Plan in place, but it has not been implemented, and a draft land policy has not been actualized, leaving these communities vulnerable,” he said.

He noted that the lack of education among the local population, both in the oil-rich areas and the rest of the country, had contributed to the continued problems in the sector.

“We have focused too much on educating MPs on the implications and importance of good oil governance. We need to move to people-centred approaches and encourage dialogue in the public sphere, which will lead to people demanding accountability from their MPs and the government,” he added.

Ultimately, Izama said, responsible actions by the government will be the difference between Uganda’s oil making a significant impact on the country’s economy or causing conflict and greater poverty.

“Pressure on public institutions prior to commercial oil production is an effective way of counteracting the resource curse. If this public engagement falters, if the transition [from President Museveni to his successor] is volatile, some of the scenarios of the so-called oil curse are possible,” he said. “Overall the tensions are high, but responsible actions by public and political institutions like the past debate show progress is possible.”

South Africa: Gordhan’s war on incompetence and impunity


Mail & Guardian

By Faranaaz Parker

July 24, 2012

Finance Minister Pravin Gordhan has revealed plans for the national treasury to take a much tighter grip on local governments‘ finances. See the full report here.

Following the release of a damning report on the scale of mismanagement at municipal levels, Finance Minister Pravin Gordhan on Monday revealed that the national treasury would take a tighter grip on procurement processes across the country.

Gordhan announced that treasury would create a procurement oversight unit to actively enforce supply chain management at a national level and would shortly appoint a chief procurement officer. The position would be advertised in two weeks and would be established within the next two months.

“Where there are transactions for a particular size or type within the national domain there must be the ability to assess whether they meet market criteria in terms of prices [and] whether proper processes havebeen followed,” he said.

The announcement was an indictment of local government’s failure to spend and account for public money effectively.

The minister was speaking at the release of auditor general Terence Nombembe’s report on local government audit results, which showed that only 5% of all municipal entities – a total of 13 – had achieved clean audits for the year 2010/2011.

Gordhan said IT systems would be developed to allow the treasury to actively monitor compliance with financial management requirements so that it may demand information regarding procurements, such as how decisions were made and by whom.

Spending fiascos

The move may help prevent public spending fiascos such as the multibillion-rand leasing scandal that saw former police chief Bheki Cele and former public works minister Gwen Mahlangu-Nkabinde sacked last year.

Gordhan said the government should be able to demonstrate that there were consequences for nonperformance and for working outside the law.

“At the moment, those consequences are not there. When consequences are not there continuously then a level of impunity develops,” he said.

He said the new oversight mechanism would require the help of law enforcement agencies, who would bear the responsibility of preparing cases against and prosecuting those guilty of corruption.

With reference to the auditor general’s report, Gordhan said he was particularly disappointed that some large metros, which had better skills and capacity than small municipalities, did not received clean audits.

“If they can’t meet simple criteria in financial management, then it’s a matter the treasury has to take a closer look at,” he said.

Nombembe’s damning report
Nombembe’s report showed there were three root causes behind the slow progress towards clean audits in local government.

The biggest problem, he said, was a general lack of consequence for poor performance. Modified audit results were simply considered the norm, he said.

In addition, over 70% of those audited did not have the minimum competencies and skills required to perform their jobs.

Worryingly, over half of the municipalities audited were slow in responding to the auditor general’s suggestions and were not taking ownership of key financial controls.

Nombembe said if these issues were not addressed, they would continue to weaken governance.

He also complained that most municipalities employed consultants in areas where they already had people to do the work, and even then the results were not as good as they should be.

Cedric Frolick, National Assembly house chairperson, agreed, saying: “What are the employees doing when 70% of the work is being done by people who must be paid for it on top of their salaries?”

“Why are people who are not doing their job, being allowed to keep on [not] doing it?”

Meeting the criteria
But Minister in the Presidency responsible for performance, monitoring and evaluation Collins Chabane said because of the way the three spheres of government were structured, it was difficult to make interventions in local government unless specific criteria had been met.

“It creates a complication where no other authority can intervene, by law, until that municipality makes a decision,” he said.

Chabane said in future, the performance of departments and institutions may be linked to the performance of the heads of those institutions.

“That will begin to bring accountability,” he said.

Meanwhile Subesh Pillay, chairperson of the South African Local Government Association, said it was important to remember that clean audits were a means to an end.

“That end is to ensure that local government become efficient and effective organs of service delivery,” he said.

Jonathan, Etete, Shell in fresh N155billion scandal


Premium Times

By Idris Akinbajo

May 21st, 2012

Four years after he was convicted of money laundering in France, Dan Etete, a former Petroleum Minister, through his company Malabu Oil, has become a billion dollars richer, courtesy of the Nigerian Government and Shell.

According to documents (filed March 22, 2012) before the Supreme Court of the State of New York in the US, President Goodluck Jonathan discreetly approved the transfer of the sum of $1.1bn to Mr. Etete on April 29, 2011, two weeks after he was re-elected.

The money was first paid to the Federal Government by two multinational oil companies: Nigeria Agip Exploration Limited (Agip) and Shell Nigeria Exploration and Production Company Limited (Shell) in respect of oil block OPL 245.

But shortly after the funds were credited to the Federal Government’s account, Mr. Jonathan ordered that it should be secretly transferred to a London account of Mr. Etete’s company, Malabu Oil.

It is not clear what deal Mr. Jonathan struck with Malabu, and on what basis the payment was made. President Jonathan’s spokesperson, Reuben Abati did not answer or return calls seeking his comment for this story. He also did not respond to a text message sent to him for the same purpose.

The government made the payment to Mr. Etete’s company even when it had repeatedly insisted that the award of the oil block to Malabu was done in violation of laid down procedures.

Shell insisted it had no knowledge that the government passed the funds to Mr. Etete’s company.

OPL 245: History

While serving as Petroleum Minister under late Head of State, Sani Abacha, Mr. Etete awarded his own company, Malabu, an oil block, OPL 245 in 1998.

The allocation was however reversed by the Federal Government under President Olusegun Obasanjo in 2001 when the FG described the allocation process as dubious. The block was allocated to Shell in 2002.

Following the revocation, a prolonged legal battle ensued with Malabu taking the Federal Government to court. In 2006, the Federal Government reversed itself and re-allocated the oil block to Malabu. This angered Shell which then filed arbitration proceedings in Washington.

Following the protracted legal battles, an agreement was reached between all parties.

The agreement

In an agreement titled “Block 245, Malabu resolution agreement” dated April 29, 2011 between Malabu and the Federal Government, the FG agreed to pay Malabu $1,092,040,000 in “full and final settlement of all its claims, interests or rights relating to OPL245.” The agreement also stated that the rights to the oil block would be reallocated to Agip and Shell.

In a separate agreement between Shell and Nigeria, titled “Block 245 resolution agreement,” the two multinationals (Agip and Shell) agreed to Pay the same sum “for the purposes of FGN settling all and any existing claims and/or issues over Block 245…”

In other words, the multinational oil firms agreed to pay $1.1bn to the FGN with the knowledge that the money would be used to settle any existing claims that existed by any other party to the oil block…Read more.

Nigeria: FG uncovers corruption in judiciary


Nigeria Tribune

August 26, 2011

By Taiwo Adisa

The presidency appears to be in a dilemma as to the nature of its intervention in the judicial arm of government, following the submission of a secret report which indicted a number of judicial officers of monumental corruption.

Investigations by the Nigerian Tribune confirmed that the government is in possession of the document which detailed lots of underhand dealings in the judiciary. It was confirmed that unethical practices, such as judgment procurement and actual instances of corruption were probed by the secret committee. According to investigations, the report, which detailed incidents in the judiciary from 2006 to 2011, confirmed that a number of judges have been named as “living above their legal means.” Read more.

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