A British Judge on Tuesday
refused to release $85 million (N17 billion) to Malabu, a fraudulent
company controlled by Nigeria’s former petroleum minister, Dan Etete.
In refusing to release the money to Malabu, Justice Edis of the
Southwark Crown Court declared that he was not sure the administration
of President Goodluck Jonathan acted in Nigeria’s interest when it
approved the transfer of the money to Malabu.
“I cannot simply assume that the FGN which was in power in 2011 and
subsequently until 2015 rigorously defended the public interest of the
people of Nigeria in all respects,” the judge ruled.
PREMIUM TIMES had reported how the Jonathan administration controversially approved the transfer of $1.092 billion from Nigeria’s JP Morgan account in London to Nigerian accounts controlled by Malabu.
PREMIUM TIMES had reported how the Jonathan administration controversially approved the transfer of $1.092 billion from Nigeria’s JP Morgan account in London to Nigerian accounts controlled by Malabu.
The money was paid by global oil giants, Shell and ENi, for Africa’s richest oil bloc, OPL 245.
The former Attorney General of the Federation, Mohammed Adoke, and
the former Minister of State for Finance, Yerima Ngama, signed the
documents approving the transfer to Malabu.
The fraudulent deal, shaded in various layers of corruption, has been
condemned by Nigerians and international transparency advocates and is
being investigated by authorities in four different countries.
THE SEIZED $85 MILLION
The $85 million was seized at the request of Italian prosecutors who are also investigating the deal. The money was the last part of the OPL 245 largesse not yet distributed.
Sensing that the Muhammadu Buhari administration was yet to find its feet on international legal matters, Mr. Etete approached the British court and asked that the money be returned to him.
The $85 million was seized at the request of Italian prosecutors who are also investigating the deal. The money was the last part of the OPL 245 largesse not yet distributed.
Sensing that the Muhammadu Buhari administration was yet to find its feet on international legal matters, Mr. Etete approached the British court and asked that the money be returned to him.
At a two-day hearing that started on November 23, Mr. Etete’s lawyers
argued that there was no fraud in the deal and asked that the money be
released to him.
While Mr. Etete argued that the money be released to him, the Italian
prosecutor argued that “their investigation could lead to a potential
forfeiture of the money down the road.” a source who has followed the
case and was present at the proceedings told PREMIUM TIMES.
Malabu’s lawyers told the court that freezing the money was an
assault on Nigeria and questioned how the court could imagine that
Messrs. Adoke and Ngama would be a party to a corrupt deal.
THE RULING
While giving his ruling on Tuesday, Justice Edis said while he could not say for certain if the deal was fraudulent pending conclusions of investigations, it would be inappropriate to release the money to Malabu.
While giving his ruling on Tuesday, Justice Edis said while he could not say for certain if the deal was fraudulent pending conclusions of investigations, it would be inappropriate to release the money to Malabu.
“I am not making any findings of fact about misconduct by anyone. I
am simply assessing the evidence before me to determine whether a
restraint order should be discharged which was granted by way of MLA
(Mutual Legal Assistance between the UK and Italy) to support an
investigation by the Italian authorities,” the judge said.
The judge also made reference to evidence provided by the Italian
authorities that ex-President Jonathan was directly involved in the
fraudulent deal.
“The suggestion from the wiretaps is that “Fortunato” was implicated
and I am told that this was a reference in code (not subtle) to the
former President of Nigeria, President Goodluck Jonathan,” the judge
said.
“Aliyu (Abubakar) is said to be associated with him and Aliyu
received, in a way which was not transparent, $523m of the money paid
for the OPL 245 licence in August 2011.”
PREMIUM TIMES had reported how fictitious companies owned by Abubakar Aliyu, a man referred to as ‘Mr. Corruption’ by anti-graft officials, received over half ($532 million) of the total $1.092 billion.
PREMIUM TIMES had reported how fictitious companies owned by Abubakar Aliyu, a man referred to as ‘Mr. Corruption’ by anti-graft officials, received over half ($532 million) of the total $1.092 billion.
Mr. Aliyu, a close ally of Mr. Jonathan was recently quizzed by EFCC
operatives for the first time despite being a central character in the
deal whose investigation was virtually stalled during the Jonathan
presidency.
ACTIVISTS REACT
Reacting to the ruling, Simon Taylor of Global Witness stated that
“Given the gathering pace of the EFCC investigation in Nigeria under new
leadership and a call by the Nigerian House of Representatives to
cancel the deal in 2014, investors in Shell and Eni should demand to
know why they were exposed to such risk.”
The UK based Global Witness has been at the forefront of the demand
for transparency in the deal and other similar deals across the world.
Also reacting to the judgement, Dotun Oloko, an anti-corruption
campaigner in Nigeria said, “In light of these allegations in a UK
court, the role of the senior Nigerian officials involved in this deal,
including Goodluck Jonathan, must now be fully investigated.”
With the ruling, Nigerian now has the opportunity to not only claim
the money but also another $110.5 million of the funds held in a Swiss
bank while investigations continue.
Below is a statement by Global Witness after the court ruling:
Court refuses to unfreeze funds from “smash and grab” raid on Nigerian oil block
Court refuses to unfreeze funds from “smash and grab” raid on Nigerian oil block
Prosecutors allege that “fronts for President Goodluck Jonathan of
Nigeria” received US$523m in proceeds of “smash and grab” OPL 245 deal
Southwark Crown Court today rejected an attempt by a company owned by the former Nigerian oil minister Dan Etete to unfreeze US$85m in proceeds of the corrupt deal for the Nigerian offshore oil block, Oil Prospecting Licence 245 (OPL 245), which was sold to Shell and Eni for $1.1bn in 2011.
Southwark Crown Court today rejected an attempt by a company owned by the former Nigerian oil minister Dan Etete to unfreeze US$85m in proceeds of the corrupt deal for the Nigerian offshore oil block, Oil Prospecting Licence 245 (OPL 245), which was sold to Shell and Eni for $1.1bn in 2011.
The funds were restrained at the request of Italian authorities, who
are investigating the sale of the block by Malabu Oil & Gas, a
company secretly owned by Mr Etete, to the international oil companies.
The Federal Government of Nigeria (FGN) under Goodluck Jonthan acted
as a middleman in the deal, and the court received evidence based on
wiretaps that prosecutors allege show that the then President, Goodluck
Jonathan, was directly involved. The deal deprived the Nigerian people
of a sum equivalent to 80% of the country’s 2015 health budget.
“In light of these allegations in a UK court the role of the senior
Nigerian officials involved in this deal including Goodluck Jonathan
must now be fully investigated,” said Dotun Oloko, a Nigerian
anti-corruption campaigner.
Evidence from US authorities presented to the court and included in
the judgement “shows payments following circuitous routes which total
$523m and which arrived at Abubakar Aliyu, aka ‘Mr Corruption’” […]
“Aliyu’s companies are allegedly fronts for President Goodluck Jonathan
of Nigeria”. The Crown Prosecution Service, acting at the behest of the
Public Prosecutor for Milan (PPM), described OPL 245 as a case of “grand
corruption”.
The OPL 245 deal is currently under investigation by the Public
Prosecutor of Milan, the UK’s National Crime Agency (NCA), and the
Nigerian Economic and Financial Crimes Commission (EFCC). The EFCC have
reportedly recently interviewed Abubakar Aliyu in connection with the
case, and earlier this year interviewed Dan Etete.
Justice Edis of Southwark Crown Court turned down Malabu’s
application to discharge the freezing order rejecting Malabu’s arguments
that the Crown had failed to follow proper procedures in securing the
freezing. Justice Edis concluded in his judgement:
It is extremely important that what I am about to say is not
misunderstood. I am not making any findings of fact about misconduct by
anyone. I am simply assessing the evidence before me to determine
whether a restraint order should be discharged which was granted by way
of MLA to support an investigation by the Italian authorities. That
investigation is not complete (and appears to be still at quite an early
stage). What misconduct it may ultimately prove, if any, will be a
matter for the PPM and the Italian court if proceedings are brought.
However, precisely because I cannot reach firm factual conclusions, I
cannot simply assume that the FGN which was in power in 2011 and
subsequently until 2015 rigorously defended the public interest of the
people of Nigeria in all respects. Mr. Fisher QC who appeared for the
CPS used the phrase “grand corruption” to describe the form of
corruption in which the state itself is culpable. The suggestion from
the wiretaps is that “Fortunato” was implicated and I am told that this
was a reference in code (not subtle) to the former President of Nigeria,
President Goodluck Jonathan. Aliyu is said to be associated with him
and Aliyu received, in a way which was not transparent, $523m of the
money paid for the OPL 245 licence in August 2011.
“Given the gathering pace of the EFCC investigation in Nigeria under
new leadership and a call by the Nigerian House of Representatives to
cancel the deal in 2014, investors in Shell and Eni should demand to
know why they were exposed to such risk,“ said Simon Taylor, a Director
of Global Witness.
Suspects named in the Italian case include Eni and its current and
former CEOs Claudio Descalzi and Paolo Scaroni, as well the company’s
Chief Development, Operations & Technology Officer Roberto Casula
and former executive Vicenzo Armanna. Other suspects in the Italian case
include Dan Etete and middlemen Emeka Obi, Gianluca Di Nardo and Luigi
Bisignani. Shell and Eni have denied any wrongdoing.
“It is clear from evidence in the public domain that high level
executives in Shell personally took part in negotiating this deal.
Citizens in the UK, US, Netherlands and Nigeria should demand that Shell
and its executives are investigated in their respective countries,”
said Nicholas Hildyard of The Corner House.
Shell and Eni have invested at least $1.8bn in purchasing and
developing the block, which they own 50-50. It reportedly holds probable
reserves of 9.23 billion barrels of oil, which if proven, would
represent the equivalent of a third of Shell’s proven reserves, and two
thirds of Eni’s.
Antonio Tricarico of Re:Common said: “$85 million paid by Eni and
Shell for the benefit of Dan Etete’s company Malabu remains frozen in
London. The time has come that Eni and Shell come clean about what they
knew about this deal and who else this money was intended for.”
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