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$1.1bn Malabo Fraud: Shell, Eni May Lose OPL 245
The Federal Government is set to retrieve one of Africa’s richest oil blocs from oil giants, Shell and Eni, if the recommendations of the Office of Director of Public Prosecution are implemented.
Not only will the two oil giants lose OPL 245, should President Muhammadu Buhari approve the recommendations, they will also be fined billions of dollars for illegal activities, including paying money to fraudulent public officials and private citizens in order to secure the bloc.
The retrieval of the controversial oil bloc, estimated to contain about nine billion barrels of crude, as well as placing heavy fines on the oil giants, is contained in a far-reaching recommendation by the office of the Director of Public Prosecution (DPP), Mohammed Diri.
The recommendation was at the instance of the Attorney General of the Federation and Minister of Justice, Abubakar Malami, who is set to advise the Federal Government on how to proceed on a controversial deal that is being investigated by authorities in four different countries.
In arriving at its recommendations, the DPP committee, which included lawyers from his office, called for the cancellation of the ‘settlement agreement’ that ceded the oil bloc to Shell and Eni.
Made on April 29, 2011, the settlement deal is made up of three different ‘Resolution agreement’ signed by the parties involved in the OPL 245 saga.
The first, titled “BLOCK 245 MALABO RESOLUTION AGREEMENT” was signed between representatives of the Federal Government and those of Malabu, which was represented during the discussions by a former petroleum minister, Dan Etete.
The second agreement, titled “BLOCK 245 RESOLUTION AGREEMENT” was between the Federal Government and officials of Shell and Eni/AGIP; while the third agreement, titled “BLOCK 245 SNUD RESOLUTION AGREEMENT”, was signed by officials of the Federal Government and Shell.
The immediate past attorney general of the federation, Mohammed Adoke, and immediate past petroleum minister, Diezani Alison-Madueke signed all the agreements on behalf of the Federal Government.
Both are among officials being investigated by Nigeria’s foremost anti-graft agency, the Economic and Financial Crimes Commission (EFFC), for their roles in the scam.
The agreements saw the transfer of OPL 245, first from the Malabu to the Nigerian government and then from the government to Shell and Eni.
The agreements also effectively cancelled all previous law suits and judgements related to the case.
It was based on these agreements that Shell and Eni paid a total of $1.3 billion into Nigerian government accounts, which as stated in earlier reports, largely ended up in accounts of phoney companies and shady characters.
The committee empanelled by the Attorney General, Malami, recommended that the agreement be cancelled, describing it as “null and void”, and saying it “should not be given any legal effect by the FGN (Federal Government of Nigeria) as doing so would amount to the FGN condoning and perpetuating illegality.”
One of the reasons the panel consider the agreement illegal is that the ex-convict, Etete, had no legal authority to negotiate the agreement on behalf of Malabo as he was not a shareholder of the company nor had the permission of the shareholders to do so.
Also, the oil bloc was awarded to Malabo in furtherance of Nigeria’s policy to encourage local companies and part of the conditions for the award was that “foreign participation interest in the blocks (OPL 245 and 214) shall not exceed 40%, i.e. 60/40 indigenous to foreign;” a fact Shell was aware of but chose to ignore.
The committee also sought the cancellation of the agreement based on a resolution by the last House of Representatives, which called for the cancellation and demanded that Shell be “censured or reprimanded… for its lack of transparency and full disclosure in its bid to acquire OPL 245.”
Also, although Shell and Eni claimed they only struck an agreement with the Federal Government and that they did not know, before the agreement, that the money they paid was going to Malabo, evidence by investigators in Italy and the Nigerian anti-graft agency, EFCC, shows that the oil firms knew the payment was eventually going to Malabu accounts controlled by Etete, a man once convicted for money laundering in France.
Apart from calling for the cancellation of the agreement, the DPP panel also recommended the full recovery of the money paid by Shell and Eni, describing it as “proceed of crime.”
Apart from recommending the withdrawal of the OPL 245 from Shell and Eni and calling for the retrieval of the money, the panel also asked the Federal Government to collaborate with all foreign agencies investigating the deal as well as prosecute all individuals and firms that violated local and international laws in the process.
In its recommendation, the panel also stated that the Federal Government can make “close to $10 billion” from the scandal.
To make the money, the panel recommended that Shell and Eni be fined at least $6.5 billion (five times the $1.3 billion Shell and Eni originally paid in the 2011 block).
This, the panel stated, should be done “in accordance with the relevant provisions of our laws in conformity with international best practices via the appropriate courts (at) home or abroad as the case may be.”
In other words, from the fine and the amount to be retrieved of the $1.3 billion, the government could make about $8 billion.
Also, in asking that the oil bloc be returned to Malabu’s original owners, the panel asked that the necessary licensing fees, transfer fees, signature bonus, and tax be paid by the firm; while 50 per cent of the rights to the bloc should return to Nigeria after three years based on original intent of awarding the bloc.
It would be recalled that Malabu oil block was awarded in 1998 with its shareholders being Mohammed Abacha, son of late military dictator, Sani Abacha, (50 per cent); Kweku Amafegha (the fictional character created by Etete, 30 per cent); and Wabi Hassan (wife of Hassan Adamu, former Nigerian ambassador to the US, 20%).
Human rights lawyer, Jiti Ogunye, had argued that the oil bloc ought to return to Nigeria and Malabu’s registration cancelled since it was based on falsehood.
“Section 190 and Section 436 (b) of the Criminal Code Act is applicable to the conduct of the promoter of Malabu, in that a false representation or declaration was made to induce the Corporate Affairs Commission to issue an incorporation certificate,” Ogunye said.
“Owing to the false representation, the Corporate Affairs Commission can approach the Federal High Court under Section 563 of CAMA to seek the withdrawal and cancellation of the Certificate of Incorporation of Malabu.”
The DPP report was to be sent to the Attorney General last week, a source at his office told newsmen, but was delayed due to Malami’s trip with President Muhammadu Buhari to the United Arab Emirates.
The report is about now with both the Solicitor General of the Federation, Taiwo Abidogun, and Malami, with the latter expected to advise President Buhari on the next steps based on the recommendations.
A source at the Presidency told our correspondent that the president was keenly following the matter, and recently received a report on it from the office of the Vice President, who is coordinating the actions of the AGF, EFCC and Petroleum Ministry on the matter.
Both the DPP and the Attorney General, in separate phone interviews, confirmed their offices were working on resolving the OPL 245 issue, but would not comment on the details.
“Malabu is a very sensitive issue, and if there’s any resolution, I will have to get clearance before I can speak to the press on it,” the DPP said.
It was learnt that Shell was already aware of the government’s moves to cancel the agreement, and was lobbying against it.
However, the oil giant’s spokesperson, Precious Okolobo, declined comments on the matter.
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Our Legacy’ll Leave Lasting Impression On Rivers People -Fubara
Rivers State Governor, Sir Siminalayi Fubara, has assured that his administration will collaborate and continue to consult widely in delivering a liberated State experiencing enduring peace.
Fubara said, in doing so, he would not operate as a dictator but as a member of a team that has the best interest of the State at heart and determined to leave a lasting legacy that can be celebrated.
The governor spoke during the formal presentation of Certificate of Recognition and Staff of Office to the Amanyanabo of Okochiri Kingdom, King Ateke Michael Tom, as first class tradition ruler, at Government House in Port Harcourt, yesterday.
Fubara stated that, during the Sixth State Executive Council meeting, N80.8billion was approved with 50 percent contract value paid already as the Government awarded the construction of the Elele-Egbeda-Omoku Road.
He said the project will be funded from the savings from Internally Generated Revenue (IGR) to underscore his administration’s prudence without also borrowing to complete the project.
“We are at a crossroad in our State where we all need to stand for what is right. It happens once in a life time. So, for now, be one of those people that will be in the course to liberate and free our dear State.
“And I know strongly that having the support of a peace-loving Amanyanabo of Okochiri Kingdom, having the support of the wonderful Council of Chiefs, having the support of the great people of Rivers State, we will bring peace in our State. We will do those things that are right to develop our State.
“We will continue to consult. We will not act as dictators. We will act as people who know that one day, we will leave, and when we leave, the way we have acted will speak for us. We will not force people to talk good about us. Our legacy will be a signature for how we led”, the governor said.
Fubara explained that he acted within the ambit of the law to upgrade the traditional stool upon which King Ateke Tom sits in recognition of his efforts in promoting peace in Okrika, and indeed, the State, and urged him to continue to do justice to everyone.
In his speech, Commissioner for Chieftaincy and Community Affairs, Hon Charles Amadi, congratulated King Ateke Tom for being formally presented with the Certificate of Recognition and Staff of Office as first class traditional ruler.
Also speaking, former Transport Minister, Chief Abiye Sekibo, thanked the governor for fulfilling his promise of upgrading the traditional stool of Okochiri Kingdom, and pledged the support of Kirike Se people to his administration.
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We’re Determined To Leave Legacy Of Quality Education -Fubara
Rivers State Governor, Sir Siminalayi Fubara, has promised to give the best attention to the education sector so that standard and quality learning will never be compromised in the State.
The governor emphasised that in achieving such legacy, schools in the State will be driven with a curriculum that will equip school-aged children to become competitive, innovative and self-reliant.
Governor Fubara made the assertion while inaugurating the Governing Council of Rivers State University at Government House in Port Harcourt on Wednesday.
He said: “There is a lot of noise everywhere: people asking what we are doing; that we are not focused, and that we don’t have direction.
”But I want to tell the world that we are focused and aware that we cannot grow if our energies are not channeled to education. Not just education, but purposeful education.
”Education that is creative. Education that gives you independence. We have left the era in the world when you speak too much grammar. We are in such times when it is what you can do with your hands.
”Our purpose for education is that we should bring back our academic programmes to where, at the end of your studies, you don’t need a job but you create jobs. When one creates a job, you automatically employ others. That is what I want this council to see as their task.”
Governor Fubara noted the non-existence of public secondary schools for the male child in the Diobu axis of Port Harcourt.
He said such negligence leaves children in that area who have completed primary education, and whose parents cannot afford sending them to far away secondary schools, to roam the streets, and therefore becoming willing tools for criminality.
Governor Fubara assured that such fundamental problem will be addressed by his administration as a measure to curb the negative impression associated with Diobu axis of Port Harcourt.
The governor said he trusts in the capacity of the members of the Governing Council of Rivers State University to bring about positive change in the institution while also contributing their quota to improving the general education standard in the State.
”I charge you, not just in terms of administering the affairs of the university, but let us add something different from the normal things that we already have to see new things.”
In her response, on behalf of the other members, the Pro-Chancellor of the Governing Council of Rivers State University, Justice Mary Odili (rtd), thanked the governor for finding them worthy to serve in such capacity.
Justice Odili assured they will work assiduously as a team to solve the problems that agitate the mind of the governor and ensure their contributions form part of the legacy that will be bequeathed by his administration.
The members included Justice Mary Odili (rtd) as the Pro-Chancellor and Chairman of the Governing Council with Barrister Mela Oforibika and Chukwuma Chinwo, Esq.
Others were Adata Bio-Briggs, Esq., Dr. Jonathan Nimi Hart, Ngo Martins-Yellowe, Dr. Nancy Nwankwo, Dr. Igoni William-Park, and Mr. Ogbugbu Barisua.
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Fubara, Others Eulogise Rivers First Lady’s Mother
Rivers State Governor, Sir Siminalayi Fubara, his Deputy, Prof Ngozi Odu, and key stakeholders of the State on Wednesday paid glowing tributes at the Service of Songs held in honour of late Mrs Adeline Jaja, mother of the wife of the Governor, Lady Valerie Fubara, at St. Andrew’s Anglican Church, Mile 1, Diobu, Port Harcourt.
Speaking at the event, Governor Fubara described his late mother-in-law as a great and visionary woman who lived on truth and conviction in what she believes.
“Mama was a great woman. She wasn’t a materialistic person. When she believes in you, she’ll be all out for you. She stood for me. I feel pained that, like my own mother, she left at this moment.
”Mama believed so much in God, and the wonders of God. I thank everyone, particularly the Church. On behalf of the bereaved family, we will support the Church to immortalise her name,” the Governor said.
In his homily, Vicar of the Church, Ven. A. A. Ijon-Ama, who spoke on the gains of death, said physical departure from earth was not an ultimate end but an opening for higher and permanent gain and perfection.
He pointed out that when a man has a good relationship with God, he stands to gain more in death.
Ven. Ijon-Ama described late Mrs. Adeline Jaja as a devout Christian, who exuded deep sense of hospitality, and endowed with accommodating spirit, noting that she will be greatly missed by all.
The Vicar, who prayed for the repose of the soul of Mrs Adeline Jaja, also solicited for Divine fortitude for the family to bear the great loss, and called for the immortalisation of the deceased to keep her good legacies alive.
Some family members, who spoke at the Service of Songs, extolled the virtues of the deceased, describing her as “a great community leader, counsellor, peace maker, and caring mother, who provided for the needy, and participated actively in Church activities.
Highlights of the event were special prayers for the bereaved family, conducted by the Anglican Bishop of Evo Diocese, Rt. Rev. Innocent Ordu; remarks by key family members, choir ministration, among others.
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