Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI


Olusegun Obasanjo

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.

Corruption: No more sacred cows, Jonathan vows (Nigeria)

July 26, 2011

By Oscarline Onwuemenyi

ABUJA — President Goodluck Jonathan has warned that there would be no “sacred cows” in the crusade to rid the nation’s procurement process of all forms of corruption.

Jonathan, who was speaking during the opening ceremony of the fourth National Procurement Forum to mark the 10th anniversary of the Public Procurement Reform in Nigeria, also said his administration would do everything necessary to reduce infractions in the Due Process system in the country.

Meanwhile, the Bureau of Public Procurement, BPP, has said it saved about N216.7 billion from the 2010 budget through strict implementation of due diligence before the award of contracts for public projects.

Also speaking at the forum, former President, Chief Olusegun Obasanjo, called for sanctions including imprisonment for violators of the public procurement system to serve as a deterrent.

Jonathan who was represented by the Secretary to the Government of the Federation, SGF, Senator Anyim Pius Anyim, said his administration would render every assistance required by the BPP to sustain and improve on the achievements it has so far recorded.

He said: “As we work towards the transformation of this country, I strongly advise all public officers whether elected or appointed to study the public procurement Act and understand and apply its provisions in the conducts of government business.

According to Jonathan, “there will be no sacred cows for any infractions especially by those responsible for budget implementation at the federal level. And of course, ignorance of the law will never be accepted as an excuse.”

He said the Federal Government had “received reports of collusion between civil servants and contractors, and cases of contractors abandoning projects after receiving advance payments”

The president said he was particularly pleased that the recent passage of the Freedom and Information Act had provided the media and the general public with a tool to work for good governance, adding that it was no longer possible for public officials to hide behind officialdom as all their actions would henceforth be in the open.

He said the Procurement Act should be taken seriously by ensuring that defaulters earned appropriate sanctions.
President Jonathan has meanwhile, urged the Bureau to remain fair, firm and resolute and subdue any form of inducement and intimidation in its bid to ensure an open, competitive, and cost-efficient procurement system without compromising faster budget implementation.

Jonathan’s reinstatement of support to the bureau follows a statement by Director-General, BPP, Mr. Emeka Ezeh that certain powers were bent on frustrating the due deligence efforts.

Ezeh said the bureau, through the help of civil organisations, has waxed from strength to strength notwithstanding the current opposition.

According to him, the bureau has won two out of the 11 suit-cases against it while five agencies have been recommended for investigations and eventual prosecution if found wanting.

After receiving a plaque from Ezeh for the initiation of the public procurement reform in the country, the former president dedicated the award to all those who have worked to ensure a viral procurement system in the country.

Source: Vanguard

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