BY DAPO OLORUNYOMI AND MUSIKILU MOJEED May 1, 2009 02:46PM
Our so-called leaders are nothing but common bribe takers, according to US investigators who have got to the bottom of the Halliburton scandal. The fingered personalities include three former presidents; Obasanjo, Abacha, and Abubakar- as well as a who's who of Nigeria's political and business elite.
At least three of our former presidents, Sani Abacha, Abdusalami Abubakar, and Olusegun Obasanjo, received millions of dollars in bribes from American and European contractors retained to build Africa's first liquefied natural gas plant in Bonny, Rivers State, according to US law enforcement officials. Also enmeshed in the vast and formalized bribery scheme is a long line of ministers, bureaucrats, top politicians, state and local officials and former oil minister Dan Etete, according to American investigators.
This cast of characters, charged with running the affairs of 150 million people in the heart of Africa, received stacks of US dollar bills in briefcases and sometimes in bullion vans. In other cases they received their payoffs via electronic bank transfers involving such financial institutions as Citibank.
In all, these eminent Nigerians accepted at least N27 billion in bribes from the oil services companies in exchange for billions of dollars in contracts to build our liquefied natural gas plant, US investigators say.
American authorities are now pursuing their own citizens and corporations, notably the oil services company Halliburton, in connection with the scandal. Halliburton has agreed to pay $579 million in fines and many of its agents face long jail terms.
Our law enforcement authorities, notably Attorney General Michael Aandoaka, have lately been making noises but have in reality done little to pursue those indicted in this scandal, In 2004, when a House of Representatives Committee headed by Chudi Offodile investigated the NLNG contract, it found out that Mr. Yusuf as NLNG chairman acted improperly in favour of TSKJ.
Petroleum minister at the time,Don Etiebet, had sought to ensure fair play in the contract bid between TSKJ, and the only other competitor, BCSA.
It "appeared that a decision had been taken even before the Board meeting of 24th Sept. 1994" that determined the contract, the Official report stated.
What happened after Trains 1 and 2.
Having put the Train 1 and 2 contracts in the can, TSKJ turned its gaze on the Train 3 contract. For this, Stanley flew to Abuja again in the second quarter of 1997, with the sole mission of asking Mr.Abacha to recommend a trusted front man to collect his bribe.
Shortly after he died on June 8, 1998, Mr.Tesler promptly erased him from the list of bribe beneficiaries, substituting him with the new helmsman, Abdul salami Abubakar.
To keep the entire scheme on the rails, Stanley flew back to Abuja on February 28 1999, asking Mr. Abubakar, to recommend a trusted front man to collect his bribe.
Anxiety about the election
With an election already fixed for May 1999, TSKJ was anxious to wrap up the Train 3 contract before a change of power in Abuja. Another meeting was held in London on March 05 1999, to come up with a strategy to achieve this objective.
One week after, TSKJ won the Train 3 contract for $1.2 billion. On March 18, 1999, TSKJ paid a kickback of $32.5 million into TriStar's account, to bribe the Nigerian officials who facilitated the award of the contract.
Even though the lower class officials were eventually catered for in the bribe scheme, they always got the short end of the stick.
Thus, while the senior Nigerian officials had their bribes promptly paid, it took one year after TSKJ had signed the Train 3 contract before Marubeni lined the pockets of the lower class officials. Computing the pay-offs up to January 2001, American prosecutors believe that a $2.5 million bribe was "off loaded" directly to the Swiss account of Mr. Abubakar's frontman.
For four days last week, NEXT sought unsuccessfully, through his media consultant, to reach the former Head of State, sending him details of the court indictments but he declined to comment.
After the transition to civil rule in 1999, the United States Department of Justice attorneys stated that Mr. Stanley met with the new President, Olusegun Obasanjo and the then Tesler the green light to meet the then petroleum minister, Dan Etete, to discuss and agree on the modalities.
This meeting held on November 02 1994, when Mr. Tesler handed Mr. Etete the bribe schema to secure Train 1 and Train 2 of the Liquified Natural Gas (LNG) contract. It was made clear that $60 million was available to be shared. Out of this, $40 million would go to Mr. Abacha, while others would have to scramble for the remaining $20million.
A cultural committee to manage the graft
Keeping faith with the grand plan of the cultural committee, Mr. Stanley, the CEO of KBR, who was handpicked for this job by former U.S.Vice President Dick Cheney, rushed to Abuja three weeks after the November 2 meeting, to confirm if Mr. Abacha was comfortable with Tesler as a go-between.
Once this was understood on both sides, a series of decisions was made ahead of the signing of the Train 1 and Train 2 contracts. In January 1995, Chodan and Stanley agreed to exclude any US citizens from participating in the bribe scheme. In March of the same year, TSKJ formally signed the $60 million contract with TriStar.
Furthermore, in December, TSKJ paid TriStar $1.5 million as commission for its "services," and in April 1996, TSKJ formally signed a $29 million contract with Marubeni to settle the "lower level Nigerian officials." According to filings in the Houston District court, by the time the Train 1 and Train 2 contracts had been signed, Mr.Tesler himself wired $63,000 into a Swiss account of Mr.Etete.
French police prosecutors have determined that around the same time, in order to cover up his tracks, he also opened negotiations with Etete to purchase five per cent of the then minister's holding in the OPL 245 Malibu oil block. For this deal, Mr.Tesler wired a total of $2.5 million into the accounts of the former minister through the TriStar accounts.
Mr. Etete used three different names, according to the deposition, his personal name or Buzaki Etete, or one Omoni Amafegha, who Mr.Tesler told the French Court was a listed name on the board of Malibu.
Dele Adesina, a Senior Advocate of Nigeria and Mr. Etete's lawyer in respect of the Malabu oil block licence which the Obasanjo administration revoked in 1999, would not comment on this matter when asked. He said: "I was only retained with respect of the revocation of the Malabu block; I have absolutely no knowledge of Mr.Tesler."
Mr.Tesler's brief was to make sure things moved smoothly. A key challenge at this point was unfettered access to Mr.Abacha at that time, and as he told French investigators, the man who made this possible was the former Inspector General of Police, M. D. Yusuf, who later became Chairman of the NLNG.
Mr.Tesler claimed he "downloaded $75,000 in two installments" into Mr.Yusuf's pocket for this purpose. Information on the former policeman's involvement in the TSKJ scandal is not new.
A Mr. Joseph who was in the office said, "How did you people even get this information," adding that the letter must be forwarded to Intel’s Port Harcourt office.
Intel, according to our investigations, was the key sub contractor for Marubeni in bribing the lower level officials of the NNPC and NLNG.
Bullion van bribery
Both the Department of Justice and the Security and Exchange Commission's attorneys, corroborated each other's claim that $1million in $100 bills was deposited "to the NNPC official" at the NICON Hilton Hotel in a "pilot's briefcase" for onward delivery to the PDP before the 2003 general elections.
The remaining $4 million was, according to the court filings, delivered in naira in a bul-lion van.
Audu Ogbe who was the PDP chairman at the time denied any knowledge of this and loudly called for an investigation.
A spokesman for Vincent Ogbulafor, the current chairman, said in Abuja last week that Ogboluafor also discounted this claim.
Phenomenal greed and sleaze
The planning, the scale and the sophistication of TSKJ's web of corruption and its capacity to ensnare three successive heads of state, coupled with the elaborate scheme to set up corrupting agencies for lower and senior officials, stands out in the annals of official corruption in Nigeria.
The ruling class was identified and broken down into its constituent parts: political, bureaucratic, and technocratic so as to isolate the beneficiaries of the graft.
TSKJ came fully prepared and well primed to sustaining this code named scheme over the decade it would take to come to fruition. The multijurisdictional impact of the corruption is still unprecedented in Nigeria.
Keeping mute
Attorneys for TSKJ, KBR, and Halliburton in Nigeria, Templars Law Offices on Victoria Island, Lagos declined to answer questions about the conduct of their clients, saying "we cannot make any comment on TSKJ because they are no longer our clients." Yet, Templars maintains a relationship with both TSKJ and Halliburton on its website.
It indeed claims to maintain a "recent relationship," regarding multi-jurisdictional investigations in Nigeria, Switzerland, France, and the UK.
Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Gauis Obaseki, in Abuja on November 11, 2001, to designate "a representative with whom the joint venture [TSKJ] should negotiate the [obligatory] bribes in support of the award of the [forthcoming] Trains 4 and 5 contracts."
One month later, on December 20 in London, Mr. Obaseki met Mr. Chodan and Mr. Stanley over lunch, to discuss the details of the Trains 4 and 5 contracts. On Christmas Eve, TSKJ signed a $51 million deal with TriStar, to bribe Nigerian officials for the Trains 4 and 5 contracts.
Three months later, in March 2002, TSKJ won the Train 4 and 5 contract for $3.6 billion. Mr. Obaseki declined to respond to these charges when NEXT spoke to him on the phone. He appeared to be more disturbed about how we got his phone numbers. "I am sorry I have no response to give" he said.
Mr. Obaseki's email address and phone numbers are all listed on his own personal website. We also could not reach former president Obasanjo, for his comment on the bribe claims by Mr.Tesler.
Taking care of the political big boys
Following the signing of contracts for Trains 4 and 5, all seemed to be going well between the new administration and TSKJ.
June 2002 would turn out to be a significant month in this narrative of sleaze between TSKJ and Nigerian government officials. That month, TSKJ signed another $25 million contract with Marubeni to settle the bribes of the low cadre officials for the Trains 4 and 5 of the NLNG project. It also signed a $23 million contract with TriStar to bribe the top officials for the Train 6 project.
However, Mr.Obaseki's meeting with Mr.Tesler in London represented an important turning point in the scandal. The former NNPC's GMD's message to the meeting, according to Mr. Tesler's indictment papers, was that the time had come to bring in the political boys.
Apparently the Peoples Democratic Party gods needed to be appeased.
Indictment records from both the Department of Justice (DOJ) and the Security and Exchange Commission (SEC) of the United States attorneys showed that in August 2002, Mr. Tesler wired $5 million to the account of a Port Harcourt based sub-contractor named Intels Energy Limited. The money was received in the company's account with Citibank Nigeria. Former Vice-President Atiku Abubakar and the late Shehu Musa Yar Adua are alleged to have substantial interests in Intels Energy Limited.
NEXT made repeated but unsuccessful attempts to speak to Intels officials on the phone. A letter delivered to their Ikoyi, Lagos office asking for their response to this allegation is still unanswered.
Also last Tuesday, the Nigerian Senate called on the Federal Government to identify the Nigerians involved and proceed to prosecute them.
Smart Adeyemi,one of the eight senators who sponsored the Bill said "the matter is so huge it can erase the prestige of the Senate and indeed of the Nigerian government to be legitimate, if this is swept under the carpet."
The chairman of the House of Representatives Committee on Anti-corruption, Sabo Nakudu, also takes the position that the allegations deserve "serious investigation", although he was worried that "we haven't got any petition in that regard and no report has been sent to us.
We just read about the thing in the newspapers. Unless we are able to come across some documentation to look at that kind of issue, there is nothing we can do.
We are just reading all these information in the newspapers like anybody else."
In the 2003-2007 House of Representatives, when Chudi Offodile, as chairman of the House committee on pubic petitions, investigated the Halliburton scandal, he said he repeatedly ran into a brick wall.
The Offodile committee, however, recommended that all companies in the TSKJ consortium, as well as Halliburton be excluded from future contracts in the country.
The House sitting of September 2004 approved the committee's recommendations.
In his response to the current phase of the scandal, Mr.Offodile, in a pained response, lamented how the NNPC and the Federal Government subverted all the best intensions of the legislature.
In spite of the legislators recommendations, NNPC went ahead to give KBR the contract to build the "topsides of the FPSO for Agbami Deep offshore field, owned by NNPC, ChevronTexaco Petrobras and Statoil... [and that the] same KBR formed a Joint Venture with Snamprogetti, and JGC, all three Companies were members of the notorious TSKJ consortium and still won a $1.7Billion EPC contract to build the Escravos Gas to Liquids Project, owned by the NNPC and Chevron-Texaco,'' said Mr. Offodile.
He recounted a meeting in June 2005 when he accompanied then House Speaker Aminu Bello and Deputy Speaker Austin Opara, to brief President Obasanjo on the true situation of the Halliburton/KBR.
"We were all seated at the President's conference room, the Halliburton team led by Mr. Andy Lane, the Chief Operating Officer, the NNPC team, led by the Group managing Director, Funsho Kupolokun , " a few minutes later, one of the presidency staff walked up to the Deputy Speaker and informed him that I would not be part of the meeting."
An office spokesperson declined to comment on when Templars severed its relationships with TSKJ and Halliburton.
But he was emphatic that the principal partner, Oghogho Akpata, who is the office lead on the TSKJ/KBR/Halliburton brief, would not be available for comments.
Investigating KBR
KBR or its principal officers are facing investigation and prosecution in at least five countries today. Officers from Britain's Serious Fraud Office (SFO), arrested Mr. Tesler, now 60, at his offices in Tottenham, London, on March 05.
He is to be extradited to the USA to face further questioning by the Department of Justice. Also arrested with Mr.Tesler was Mr.Chodan, 71, who as an agent for Halliburton wrote detailed diaries, describing meetings with the bribe consortium and representatives of the international oil companies.
From the United Kingdom, Britain's Serious Fraud Office confirmed that there is an on-going investigation into the allegations of bribery and corruption against British businesses in Nigeria.
Since 2004, the Economic and Financial Crimes Commission has been investigating the conduct of Halliburton/KBR. The investigation is ongoing, according to sources in Abuja.
Recently, the Swiss Justice department followed the steps of the Police Judiciary of France, which in 2003, started an investigation which revealed fraudulent Halliburton payments to Jeffery Tesler.
In their home country, the United States, KBR and Halliburton admitted last month to violations of the Foreign Corrupt Practices Act, by engaging in a decade-long bribing scheme to secure contracts in Nigeria.
The companies also agreed to pay a combined fine of $579 million to settle criminal and civil charges brought by both the United States Securities and Exchange Commission (SEC), and the United States Department of Justice (DOJ) for violation of the Foreign Corrupt Practices Act (FCPA).
The indictment of Mr.Tesler and Mr.Chodan, in all likelihood, will also open a floodgate of other suits.
This month the president gave full backing to the Attorney General, Michael Aondoakaa, to again investigate Halliburton for tarnishing the image of the country by bribing its officials.
Mr. Aaondoaka has assembled a team of local lawyers and briefed American-based financial crimes experts, to institute a suit against KBR and Halliburton for soiling the name of the country through the bribery schemes.
The President further stated that the country benefits nothing if it allows corruption to thrive, a trend he said the agencies saddled with the responsibility will not be influenced by the government.
Jonathan, who said in his Facebook page gleaned by LEADERSHIP vowed, "The other day, I encouraged you my fellow country men to be optimistic about the future especially as regards electoral reforms and free and fair elections in 2011. I demonstrated that such optimism is based on factually evidenced progress in statute and structures on the ground. But that is not the only area for which we should be optimistic. As you may have read, the Office of the Attorney General has begun the process of prosecuting those involved in the Haliburton bribe scandal. It serves our country no good to shield corrupt individuals or corporations. From inception this administration, gave a free hand to all anti-corruption law enforcement agencies to perform their duties to the fullest extent permitted by law. I sincerely want to urge my fellow citizens to be optimistic and believe in Nigeria as ultimate expectations tend to be reflected in reality, so if we expect and believe the best of Nigeria, our expectations are likely to become reality.
"This administration recognizes that we have several challenges as a nation and we are working on resolving these as best as we can. But there is some cheering news in the fact that our economy verifiably grew by 7% during the first half of this year. Now that we have this momentum, we are not going to rest on our oars.
This government has set out plans (which I have kept you abreast with on this page) to aggressively develop infrastructure, reform the power sector, create opportunities for our people to be employed through stimulating industrial growth among others.
Halliburton scandal: US angry with Nigeria
Written by Chris Agbambu Wednesday, 02 June 2010
THE United States of America (USA) is angry with the Nigerian government over the dragging of its fact to prosecute those indicted in the $180 million Halliburton Scandal.
Informed security sources disclosed to the Nigerian Tribune on Tuesday that the US government has also assured the Nigerian government that it would assist in retrieving part of the money now trapped in a Swiss bank, once those indicted were put on trial.
The source said the earlier plea bargain made for the cousin to the former head of state, General Abdulsalami Abubakar, Aliyu Ibrahim; Chief Don Etiebet; Bodunde Adeyanju; Lawal Batagarawa;, Air Vice Marshal A. D. Bello (rtd) and former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Gaius Obaseki, did not go down well with the US government.
The US authorities, it was learnt, claimed that they had tried all those involved in the US and jailed them and wondered why the Nigerian government should be encouraging corruption.
Offodile said adding that he was thrown out of the meeting. He described the situation as frustrating and painful because "once again, the Halliburton enforcers had their way."
It appears that Mr. Aoandoaka, who reportedly travelled to London and Washington last week also has an eye on the civil forfeiture processes for some of the monies and investments derived from the bribes.
Officials at the Serious Fraud Office in London declined comments on Mr. Aoandoaka's statement, saying investigations are still going on.
NEXT can however authoritatively confirm, that no mutual legal assistant requests have yet been filed from the Attorney General's office to give substance to his stated desire.
Sources working in UK and US law enforcement agencies told NEXT the attorney general's request for support on the Wilbros case has not been honoured due to a perception of official stalling and stonewalling on the part of Nigerian anti-corruption and law enforcement agencies.
Local attorney's reviewing Aoandoaka's strategy say it is self serving and funny.
"It is empty braggadocio couched in legal phraseology," says Jiti Ogunye, a lawyer on Aoandoaka's strategy.
"When you say you are going to sue a company for damaging the image of a country, you are speaking in the realm of libel. A country is a subject in international law, I'm not aware of a situation in which a country as an entity sues an individual or another country for libel. I think his statement should just be dismissed."
But Carol Ajie, another lawyer thinks that Aondoaka's pursuit of Haliburton might be "in order to compel Haliburton to disclose the names of bribe takers since the giver and taker of bribes are both guilty."
Abuja)
Nigeria: Halliburton - No Sacred Cows, Says Jonathan
Samuel Aruwan
15 September 2010
Kaduna — President Goodluck Jonathan yesterday stated that the Federal Government would not shield any group or individuals from the Halliburton financial scandal.
March 1995: TSKJ formally hires Mr. Tesler as agent; TSKJ's bid has still not been accepted by Nigeria LNG. Mr. Tesler's employment contract is signed by an M.W. Kellogg executive on behalf of the TSKJ partnership. Mr. Tesler had been working on behalf of TSKJ prior to March 1995 and the employment contract was given to Mr. Tesler as a reward for his prodding of Nigerian officials. The employment contract provided that Mr. Tesler would be paid $60 million if Nigeria awarded the construction contract to TSKJ. Mr. Tesler's Tri-Star was contracted to receive at least $160 million in five agreements signed between 1995 and 2002, and the funds were directed to bank accounts in Switzerland and Monaco.
March 20, 1995: Dan Etete replaces Nigeria's former oil minister, who has a falling out with the dicatator, Gen. Abacha. "In an interrogation of Mr. Tesler, a French magistrate described the London lawyer's transfer of $2.5 million into Swiss bank accounts held by Mr. Etete under a false name between 1996 and 1998. Mr. Tesler confirmed making the payments but told the magistrate that the money was for an investment in offshore oil exploration leases in Nigeria and that he wasn't aware the accounts belonged to Mr. Etete, according to peoplefamiliar with the interrogation." (Wall Street Journal, Sept. 29, 2004.)
June 1995: Albert Jack Stanley is promoted to president and chief operating officer of M.W. Kellogg after serving as executive vice president since 1991 and various positions since 1975.
August 1995: Dick Cheney is hired as CEO of Halliburton, three years before he directs the merger of Halliburton with Dresser Industries and M.W. Kellogg. He serves as CEO until August of 2000.
December 1995: TSKJ is finally awarded the $2 billion contract from Nigeria LNG.
July 1996: M.W. Kellogg promotes Albert Jack Stanley to chairman, president and chief executive officer; he also becomes vice president of operations for the parent, Dresser Industries.
February 1998: Halliburton and M.W. Kellogg's parent, Dresser Industries, agree to a $7.7 billion merger directed by Dick Cheney. M.W. Kellogg is merged with Halliburton's Brown & Root subsidiary to form Kellogg, Brown & Root. Albert Jack Stanley is named as chairman of the new subsidiary. The Independent (UK) reported that "Mr Stanley had been appointed to his senior role at Halliburton by Mr Cheney when he was chief executive between 1995 and 2000." (The Independent, Oct. 3, 2004.) The Wall Street Journal confirmed that Cheney "named Mr. Stanley � to a top post at the company in 1998." (Wall Street Journal, Sept. 29, 2004.) Cheney told the Middle East Economic Digest in 1999 that, "We took Jack Stanley � to head up the organization and that has helped tremendously." (Middle East Economic Digest, April 9, 1999.)
1999: The TSKJ partners, with Kellogg Brown & Root acting as the lead partner, agree to reappoint Mr. Tesler as its agent during a meeting in London. Kellogg wanted Mr. Tesler, with whom it had a long-term relationship, to attend. But the representative from the French partner, Technip, wanted a different agent and insisted that Mr. Tesler be excluded from the meeting. William Chaudan, the Kellogg representative at TSKJ, said Mr. Tesler had been selected on Kellogg's recommendation and over Technip's "strong opposition." (Financial Times, London, Sept. 16, 2004.) Halliburton officials in Houston deny that According to the source, the US government was also not happy that a former head of state who used his cronies to collect over $6 million was now putting pressure on the government of President Goodluck Jonathan to drop the prosecution of those indicted.
Consequently, members of the investigating team billed to visit the US were denied visas, as the US claimed that the Nigerian government was not sincere in prosecuting the suspects.
Also the principal suspect, Abdulkadir Abacha, who had been on the run, might be declared wanted, since he had refused to appear before the panel to clear various allegations against him.
The source revealed that the anger of the US government was hinged on the fact that all documents relating to the prosecution of those involved had been forwarded to the Attorney-General and Minister of Justice, including the role and amount each collected.
Following recent developments, the US, it was said, claimed that since it had completed investigations and jailed one Stanley, the moral obligation burden was now on Nigeria to follow through in the prosecution, if it was honest in fighting corruption.
Meanwhile, the US government is insisting that those indicted should be prosecuted, adding that it is only on this condition that it will know that President Jonathan is out to fight corruption and, therefore, give him the support for 2011.
Nigerian heads of state: Sani Abacha (1993-1998), Abdul salami Abubakar,(1998-1999), Olusegun Obasanjo(1976-1979, 1999-2007). Photo: NEXT
Halliburton and Nigeria:
A Chronology of Key Events in the Unfolding Bribery Scandal
1988: Dresser Industries acquires M.W. Kellogg, ten years before Dresser merges with Halliburton.
September 1994: M.W. Kellogg and three other companies form a partnership known as TSKJ, incorporated in Medeira, Portugal. Each partner owns a 25 percent equal share. Kellogg's three other partners are Technip of France, Italy's Snamprogetti, and Japan Gasoline Corp. The partnership submits a bid to Nigeria LNG to build a natural gas plant in Nigeria. Nigeria LNG is owned by the Nigerian government and Royal Dutch/Shell Group. TSKJ's $2 billion bid is not immediately accepted even though it was 5 percent lower than a bid submitted by competitor, Bechtel Group, Inc.
November 1994: As TSKJ awaits Nigeria's decision on the bid, Wojciech Chodan, an executive at Kellogg and later a consultant for Kellogg Brown & Root, meets with London lawyer Jeffery Tesler, who is known for his contacts and friendly relations with the Nigerian government, including its dictator Gen. Sani Abacha. During the meeting, they discussed channeling $40 million to Gen. Abacha through Mr. Tesler's firm Tri-Star, based in Gibralter, Spain.
consultant. (Dallas Morning News, June 19, 2004.)
August 2004: Nigeria's parliament votes unanimously to summon Halliburton CEO, David Lesar, to answer questions over its bribery investigation. It issues a report recommending that Halliburton and TSKJ be disqualified from bidding on future government projects. It denounces what it calls Halliburton's "hide-and-seek games" to avoid questions from government investigators.
September 2004: TSKJ severs all ties to Mr. Tesler and his firm, Tri-Star.
September 2004: The Wall Street Journal reports on newly disclosed evidence by Halliburton, including notes written by M.W. Kellogg employees during the mid-1990s in which they discussed bribing Nigerian officials. The Financial Times of London said the evidence "raises questions over what Mr Cheney knew - or should have known - about one of the largest contracts awarded to a Halliburton subsidiary." (Financial Times, Sept. 16, 2004.) The written notes were discovered by Halliburton's lawyer, James Doty, a lead partner in the Houston law firm Baker Botts. The "Baker" in Baker Botts is Bush family lawyer James Baker, the same lawyer credited with winning Florida for Bush Jr. over Gore. Baker also served as President George H. Bush's Secretary of State. Doty was general counsel to the Securities and Exchange Commission (SEC) under the senior President Bush. He was SEC general counsel when the SEC investigated Bush Jr. for insider trading. Doty recused himself from the case, which was eventually closed without action. Bush Jr. was never interviewed. Although Bush's lawyers gave the "smoking gun" in that case to the SEC the day after it closed the investigation, Doty refused to reopen the case. (Washington Post, Nov. 1, 2002.)
September 2004: Nigeria's President Olusegun Obasanjo officially bans Halliburton from bidding on future government contracts because it violated safety regulations for nuclear material. The president accuses the company of negligently causing the disappearance of two highly sensitive radioactive devices used to take measurements in oil wells. The ban is apparently not related to the ongoing bribery investigations.
October 2004: Revelations about Halliburton's central role in the bribery investigation forces United Kingdom's Export Credit Guarantee Department (ECGD) to consider withdrawing its support of a 133 million (British pounds) loan made last year to Kellogg. ECGD said it originally supported the loan on the basis that Halliburton was merely a "subcontractor to the [TSKJ] consortium and financial arrangements were not their responsibility," but it was maintaining a "watching brief" on the French investigation. (The Independent, Oct. 3, 2004).
October 22, 2004: Investigators with Nigeria's parliament complain that Halliburton is not being cooperative in their investigation of the alleged bribery. The investigators say Mr. Tesler paid bribes on behalf of TSKJ to Nigerian government officials. The bribes were paid in installments: $60 million in 1995, $37.5 million in 1999, $51 million in 2001 and $23 million in 2002.
June 20, 2005: The French newspaper LeFigaro reports that a U.S. Justice Department official held "lengthy" meetings with French authorities in Paris on the issue of TSKJ bribes. It said an unnamed U.S. source asserted that the bribery scandal is "probably the most significant file of corruption" known in Washington today.
Sept. 22, 2006: A former Halliburton employee says he has evidence proving the company Kellogg Brown & Root demanded Mr. Tesler's participation. Three new contracts with Mr. Tesler required TSKJ to pay his firm, Tri-Star, $32.5 million for his services in Nigeria. Richard Northmore, a sales manager for M.W. Kellogg in England, signed contracts with Mr. Tesler for TSKJ. Syed Nasser, M.W. Kellogg's legal director, acted as counsel to the TSKJ consortium, approving Mr Tesler's role. Bhaskar Patel, a sales and marketing vice-president who works in Kellogg, Brown & Root's office in England, also worked with Mr. Tesler.
March 1999: Halliburton announces the Nigerian government awarded a $1.2 billion contract to TSKJ to expand the construction of the natural gas plant from two trains to three trains in order to increase the plant's capacity by 50 percent. At the time, Stanley declared the contract award exemplifies Kellogg's "project execution skills." (Halliburton press release, March 11, 1999.)
October 1999: First shipment of liquefied natural gas is shipped from Nigeria.
October 2003: French magistrate initiates investigation of suspicious payments made by TSKJ after a former executive with one of TSKJ's partners, Technip of France, said Mr. Tesler is "directly linked to corruption in Nigeria." (Financial Times, London, Sept. 16, 2004.) Halliburton admitted that TSKJ paid $132 million in "advisory fees" to Mr. Tesler and that under Tesler's contract with the company the money was not to be used for bribery. But the French investigator said the payments to Mr. Tesler "appear completely unjustified." (Wall Street Journal, Sept. 29, 2004.) The money was paid to Mr. Tesler between 1995 and 2002, more than half of which came after 1999. Under French law, Mr. Cheney could be subject to a charge of "abuse of corporate assets" even if he knew nothing about the alleged improper payments during his tenure as Halliburton's chief executive. The U.S. antibribery law applies only to executives who are aware of illicit payments to foreign officials. (Dallas Morning News, Sept. 8, 2004.) The Wall Street Journal reported that French authorities don't have jurisdiction over Halliburton in this case but are sharing information with U.S. authorities. (Wall Street Journal, Sept. 29, 2004.) "A preliminary investigation by the Police Judiciaire of France found that LNG Servicos, a company indirectly owned by the four partners in the Nigerian joint venture, made four payments totaling at least $166 million at times that roughly coincide with the award of contracts. The payments went to a Gibraltar company owned by a London attorney to a Swiss bank account that was later closed at the request of the bank." (Dallas Morning News, Jan. 25, 2004.)
December 2003: Albert Jack Stanley retires as chairman of Kellogg Brown & Root, but retains a position as consultant for Halliburton.
June 2004: Halliburton fires Albert Jack Stanley after investigators say he received $5 million in "improper" payments from Mr. Tesler. It also fires William Chaudan, the Kellogg representative at TSKJ. Halliburton spokesperson, Wendy Hall, said that during the years he ran KBR, Mr. Stanley reported to David Lesar, Halliburton's president and chief operating officer at the time and CEO today. Mr. Lesar reported to Mr. Cheney when Cheney was chief executive. (Dallas Morning News, Sept. 8, 2004.) (Important Note: Lesar is an accountant and former Arthur Andersen partner, meaning he may have been in a position to know about the purpose of payments to Tesler when they occurred.) According to the Dallas Morning News, "Mr. Cheney ran Halliburton when one of four suspicious payments occurred." (Dallas Morning News, Sept. 8, 2004.)
June 2004: It is reported that Tesler put $1 million into an account held by William Chaudan, the Kellogg representative at TSKJ. "The company has since learned that even larger sums may have gone into the accounts of Mr. Stanley and Mr. Chaudan." (Dallas Morning News, Sept. 3, 2004.) Chaudan retired from M.W. Kellogg Co. in 1998, but had continued as a
The jinx over investigation into the $180m Halliburton bribery scandal was broken yesterday when the Attorney General of the Federation, Mr. Bello Adoke (SAN), filed charges against Adeyanju Bodunde, a former Personal Assistant to ex-President Olusegun Obasanjo.
Other suspects are: George Mark; Hans George Christ; Heinrich J. Stockhausen; Julius Berger Nigeria Plc; Bilfinger Berger GMBH; Ibrahim Aliyu (a former federal permanent secretary); AVM Abdullahi Dominic Bello; Mohammed Gidado Bakare; Urban Shelter Limited; Intercellular Nigeria Limited; Sheerwood Petroleum Limited; Tri-Star Investment Limited; Maizube Holdings Limited; TSKJ Nigeria Limited-(a) Technip S.A.; (b)Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc(d) Japan Gasoline Corporation of Japan.
All the suspects will be prosecuted by a team of lawyers led by J. B Daudu (SAN), E. C. Ukala (SAN) and Godwin Obla.
The two cases were filed yesterday by investigators having established a prima facie case against the suspects.
The first one, involving six of the suspects, was filed before a Federal High Court in Abuja.
The other, involving nine suspects, was filed before a High Court of Justice of the Federal Capital Territory (FCT), Abuja.
In the first case, FHC/ABJ/CR/146/2010, six suspects were charged to court over alleged several cash payments of about $5million to Bodunde.
The suspects, including Bodunde, are: Mark, George Christ, Stockhausen; Julius Berger Nigeria Plc, Bilfinger Berger GMBH.
has embarked on a campaign to cover-up all wrongdoing, including attempts to mislead federal investigators.
Sources:
Solomon Hughes and Jason Nisse, "How Cheney's Firm Routed $132m to Nigeria via Tottenham Lawyer," The Independent (UK), Oct. 3, 2004.
Russell Gold and Charles Fleming, "Out of Africa: In Halliburton Nigeria Probe, A Search for Bribes to a Dictator, "Wall Street Journal, Sept. 29, 2004,p. A1.
Michael Peel, "Nigeria gas consortium 'evasive', says probe chief," Financial Times (London), Aug. 23 2004.
Michael Peel, "Halliburton angers Nigerian MPs in 'bribes' hearing," Financial Times (London), Oct. 22, 2004.
"Halliburton 'backed' bribes probe agent," Financial Times (London), Sept.16, 2004.
Middle East Economic Digest, April 9, 1999, p. 7.
Peter Behr, "Bush Sold Stock After Lawyers' Warning; SEC Closed Probe Before Receiving Letter From Harken's Outside Attorneys," Washington Post, Nov. 1, 2002.
Nigeria House of Representatives Petition Committee, Interim Report: The Halliburton/TSKJ/LNG Investigation, Summary of Facts, Sept. 2004.
Richard Whittle and Jim Landers, "Cheney's years at Halliburton under scrutiny," Dallas Morning News, Sept.8, 2004.
Jim Landers and Richard Whittle, "Details emerge in bribery probe; Cheney isn't focus of French inquiry of Nigerian gas project," Dallas Morning News, Jan. 25, 2004.
Jim Landers and Richard Whittle, "Bribery case findings detailed; Halliburton says incidents predate ownership of firm," Dallas Morning News, Sept. 3, 2004.
Richard Whittle and Jim Landers, "Halliburton fires two consultants; Company says 'improper personal benefits' received in Nigerian gas deal," Dallas Morning News, June 19, 2004.
"Bush family lawyer James Doty hired to conduct internal probe of Halliburton involvement in Nigeria payments," Corporate Crime Reporter, February 16, 2004.
Ahamefula Ogbu, "$180m LNG Scam: Witnesses Stall Investigation," ThisDayOnline.com, Oct.21, 2004.
www.Halliburton.com
corruptly procure and transfer $5million to one Adeyanju Bodunde, Personal Assistant to the President of the Federal Republic of Nigeria, thereby committed an offence punishable under Section 98A of the criminal Code CAP C38 LFN, 2004.
“That you, Adeyanju Bodunde, sometime between 2002 and 2003 while being a public official and in your capacity as the Personal Assistant to the President of the Federal Republic of Nigeria corruptly asked for and received several cash payments in the sum of $5million from one George Mark, Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH for and on behalf of one Jeffrey Tesler (now at large) thereby committed an offence punishable under Section 98B of the criminal Code CAP C38 LFN, 2004.
“That you, Adeyanju Bodunde, sometime between 2002 and 2003 while being a public official and in your capacity as the Personal Assistant to the President of the Federal Republic of Nigeria accepted several cash amounting to $5million from one George Mark, Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH for and on behalf of one Jeffrey Tesler(now at large) , being a reward beyond your proper pay and emoluments, thereby committed an offence punishable under Section 98B of the criminal Code CAP C38 LFN, 2004.
“That you, George Mark, Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH did make for yourselves and on behalf of one Jefferey Tesler (now at large) several cash payments in the sum of $5million to one Adeyanju Bodunde, personal Assistant to the Federal Republic of Nigeria for the purpose of financing the activities of a political party in Nigeria thereby committed an offence punishable under Section 38(2) of the Companies and Allied Matters Act CAP. C20 LFN 2004.”
Concerning the other nine suspects in the second suit CR/95/10, they will face a 13-count charge.
They are: Ibrahim Aliyu (a former federal perm sec); AVM Abdullahi Dominic Bello; Mohammed Gidado Bakare; Urban Shelter Limited; Intercellular Nigeria Limited; Sherwood Petroleum Limited; Tri-Star Investment Limited; Maizube Holdings Limited; TSKJ Nigeria Limited-(a) Technip S.A.; (b) Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc(d) Japan Gasoline Corporation of Japan.
The charges read in part:
“That you, TSKJ Nigeria Limited-(a) Technip S.A.; (b) Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc (d) Japan Gasoline Corporation of Japan(all jointly trading in the name and style of TSKJ Joint Venture) awarded a contract for Nigerian Liquefied Natural Gas Project in Abuja within the Abuja Judicial Division of the High Court of Federal Capital Territory, Abuja, Nigeria sometime between 1994 and 2005 conspired among yourselves to commit a felony, to wit: giving the sum of US$130million to one Jeffrey Tesler(now at large) and Tri-Star Investments Limited for the purpose of gratification of public officials with the award of the contract of Nigerian Liquefied Natural Gas Project in Nigeria and thereby committed an offence under Section 96(1) (a) of the Penal Code and punishable under Section 118 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.
The charges against the six suspects are as follows:
“That you, George Mark, Jeffrey Tesler(now at large), Hans George Christ, Heinrich J. Stockhausen; Julius Berger Nigeria Plc, Bilfinger Berger GMBH, sometime between 2002 and 2003 within the jurisdiction of this Honourable Court conspired among yourselves to make several cash payments in the sum of US$1million (five times) totaling in equivalent the sum of $5million to one Adeyanju Bodunde and thereby committed an offence contrary to Section 16 of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act 2004) and punishable under Section 15(2) and (3) of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act, 2004).
“That you, George Mark, Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH and Adeyanju Bodunde sometime between 2002 and 2003 within the jurisdiction of this Honourable Court conspired among yourselves to do an illegal act, to wit: failing to report several cash payments totaling in equivalent the sum of $5million by one Jeffrey Tesler(now at large); thereby committed an offence contrary to Section 16 and punishable under Section 15(2) and (3) of the Money Laundering Act 1995.
“That the six suspects sometime between 2002 and 2003 did make several payments totalling in equivalent $5million to one Adeyanju Bodunde and thereby committed an offence contrary to Sections 1 and 15(d) of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act 2004) and punishable under Section 15(2) and (3) of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act, 2004).
“That you, Adeyanju Bodunde, sometime between 2002 and 2003 did accept several cash payments in the sum of $5milion ($1million in five tranches) from George Mark, Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH and thereby committed an offence contrary to sections 1 and 15(d) of the Money Laundering Act 1995 (as saved by Section 23(2) of the Money Laundering Act 2004) and punishable under Section 15(2) and (3) of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act, 2004).
“That you, George Mark, Jefferey Tesler(now at large), Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH did transfer several sums of money received from one Jeffrey Tesler in the sum of $5million to one Adeyanju Bodunde in Nigeria, to wit did conceal and transfer to a nominee, knowing that it constitutes proceeds of a criminal conduct and thereby committed an offence punishable under Section 16 of the Economic and Financial Crimes Commission (Establishment) Act 2002.
“That you, George Mark, Hans George Christ, Heinrich J. Stockhausen; Julius Berger Nigeria Plc, Bilfinger Berger GMBH conspired among yourselves to do an illegal act to wit: corruptly procuring and transferring cash payments amounting to $5million on behalf of one Jefferey Tesler (now at large), to one Adeyanju Bodunde, Personal Assistant to the President of the Federal Republic of Nigeria, thereby committed an offence punishable under Section 516 of the Criminal Code, CAP C38 LFN, 2004.
“That you, George Mark, Hans George Christ, Heinrich J. Stockhausen, Julius Berger Nigeria Plc, Bilfinger Berger GMBH did for and on behalf of one Jefferey Tesler (now at large) did
“That you, Mohammed Gidado Bakare; Sherwood Petroleum Limited; TSKJ Nigeria limited; Jeffrey Tesler (now at large); AVM Abdullahi Dominic Bello; Urban Shelter Limited; Intercellular Nigeria Limited; Tri-Star Investment Limited; and (a) Technip S.A.; (b) Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc(d) Japan Gasoline Corporation of Japan (all jointly trading in the name and style of TSKJ Joint Venture) sometime between 1998 and 2005, conspired among yourselves to commit a misdemeanour to wit: giving the sum of $4million without consideration to one Ibrahim Aliyu, a public officer, and thereby committed an offence under Section 96(1)(a) of the Penal Code and punishable Section 120 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.
“That you, Ibrahim Aliyu, obtained the sum of $4million through companies under your control to wit: Urban Shelter Limited and Intercellular Nigeria Limited from one Mohammed Bakare, Jeffrey Tesler(now at large); AVM Abdullahi Dominic Bello; Sherwood Petroleum Limited; Tri-Star Investment Limited; TSKJ Nigeria limited; and-(a) Technip S.A.; (b)Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc(d) Japan Gasoline Corporation of Japan, persons you know are interested or related to persons interested in the award of contracts for Nigerian Liquefied Natural Gas Project and thereby committed an offence and punishable under Section 119 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.”
The $180million bribery scandal involved the former Halliburton’s subsidiary, Kellogg Brown and Root (KBR) in respect of the nation’s Liquefied Natural Gas plant in Bonny.
Albert J. Stanley admitted before a Houston Court in the US on September 4, 2008 that he orchestrated more than $180million in bribe to senior government officials.
Stanley alleged that the bribe was channelled through a UK-based lawyer, Mr. Jeffery Tesler, in four installments of $60million, $32.5million, $51million and $23million.
The bribe was allegedly facilitated between 1995 and 2005 in London.
The countries where the bribe money was allegedly stashed by some top government officials and their accomplices are: France, the United Kingdom, Switzerland , Portugal and Seychelles.
This is the third attempt at probing those who benefited from the N21billion bribe. The House of Representatives had raised a committee, headed by Mr. Chudi Offodile, to investigate the alleged bribery.
But a breakthrough was recorded by a former Chairman of the EFCC, Mallam Nuhu Ribadu when he sent an interim report (EFCC/EC/01-048 of June 24, 2004) to ex-President Olusegun Obasanjo.
On February 20, 2008, a progress report was also forwarded to the late President Umaru Yar’Adua by the EFCC.
“That you, Ibrahim Aliyu; Mohammed Gidado Bakare; Jeffrey Tesler(now at large); AVM Abdullahi Dominic Bello; Urban Shelter Limited; Intercellular Nigeria Limited; Sherwood Petroleum Limited; Tri-Star Investment Limited; Maizube Holdings Limited; TSKJ Nigeria Limited-(a) Technip S.A.; (b)Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc(d) Japan Gasoline Corporation of Japan sometime between 1998 and 2005 in Abuja within the Abuja Judicial Division of
the High Court of Federal Capital Territory, Abuja, Nigeria conspired among yourselves to commit a misdemeanour to wit: giving several sums of money in tranches totalling in the aggregate $7.7million without consideration to one Ibrahim Aliyu, a public official, then as chairman, Programme Implementation Committee of the Federal Government of Nigeria concerned with the proceeding or business of award of contracts for Nigerian Liquefied Natural Gas Project through companies under his control to wit: Urban Shelter Limited and Intercellular Nigeria Limited and thereby committed an offence under Section 96(1) (a) of the Penal Code and punishable under Section 120 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.
“That you, TSKJ Nigeria Limited; Jeffrey Tesler (now at large); Ibrahim Aliyu; Mohammed Gidado Bakare; AVM Abdullahi Dominic Bello; Urban Shelter Limited; Intercellular Nigeria Limited; Sherwood Petroleum Limited; Tri-Star Investment Limited; Maizube Holdings Limited and(a) Technip S.A.; (b) Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc(d) Japan Gasoline Corporation of Japan(all jointly trading in the name and style of TSKJ Joint Venture) sometime between 1998 and 2005 conspired among yourselves to give $7million without consideration to one Mohammed Gidado Bakare, Sherwood Petroleum Limited, persons in whom Ibrahim Aliyu, a public officer (then Chairman, Programme Implementation Committee of the Federal Government of Nigeria concerned with the proceeding or business of award of contracts for Nigerian Liquefied Natural Gas Project is interested and thereby committed an offence under Section 96(1)(a) of the Penal Code and punishable under Section 120 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.
“That you, Ibrahim Aliyu, sometime between 1998 and 2005 in Abuja while being a public officer (then Chairman, Programme Implementation Committee of the Federal Government of Nigeria concerned with the proceeding or business of award of contracts for Nigerian Liquefied Natural Gas Project) accepted several payments of money in tranches totaling US$7.7million without consideration through companies under your control to wit: Urban Shelter Limited and Intercellular Nigeria Limited from one Jeffrey Tesler (now at large), AVM Abdullahi Dominic Bello; Tri-Star Investment Limited; TSKJ Nigeria limited and (a) Technip S.A.; (b)Snamprogetti Netherlands B.V. (c) Kellog Brown and Root Inc (d) Japan Gasoline Corporation of Japan(all jointly trading in the name and style of TSKJ Joint Venture) persons you know are interested or related to persons interested in the award of contracts for Nigerian Liquefied Natural Gas Project and thereby committed an offence under Section 119 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.
“That you, Ibrahim Aliyu, dishonestly received several payments of money in tranches totalling in the aggregate $7.7million not due to you through companies under your control thereby committed an offence punishable under Section 122 of the Penal Code CAP 532 Laws of the Federation of Nigeria 1990.
The scandal has so far netted the United States over N1 billion in fines and resulted in the conviction of Halliburton officials.
Saharareporters learnt from Nigeria presidency sources that Mr. Jonathan ordered the trial after word reached him that the chair of the Economic and Financial Crimes Commission (EFCC), Farida Waziri, has told US officials that Jonathan was hampering her efforts at fighting corruption. Mrs. Wazirit also repeated her complaints to UN anti-corruption officials during the launching of the International Anti-Corruption Academy (IACA) in Vienna, Austria.
Following our report of this story last week, Saharareporters has learnt that Mrs. Waziri was interrogated by the office of the National Security Adviser (NSA) over the statements credited to her and another recent statement where she said nothing could be done about Halliburton bribe takers.
Mr. Jonathan is due to attend the upcoming United Nations General Assembly in New York and plans to address the General Assembly, a ritual that Nigeria has not performed at the top level in the last 3 years.
The Jonathan “small fish” trial seems designed to put him in favorable light during his visit. Jonathan is expected to build the commencement of the trial into his General Assembly address, which is now being drafted. He also plans to refer to it frequently in bilateral discussions with the US, EU and UK officials as a measure of his credibility.
Those facing trial also exclude NNPC officials, PDP party leaders, and high ranking Nigerian officials involved in the bribery scam.
Halliburton scandal: List of suspects and charges
The suspects are:
1.Adeyanju Bodunde
2.George Mark
3.Hans George Christ
- Heinrich J. Stockhausen
5.Julius Berger Nigeria Plc
- Bilfinger Berger GMBH.
- Ibrahim Aliyu
- AVM Abdullahi Dominic Bello
Upon taking over as the EFCC chairman, Mrs. Farida Waziri also sent a team of operatives to many countries.
The cumulative reports prompted the constitution of a Special Investigative Panel headed by a former Inspector-General of Police, Sir Mike Okiro, to identify those behind the scandal and bring them to justice.
The present Attorney-General of the Federation, Mohammed Bello Adoke(SAN), had about three weeks ago assured that suspects involved in the Halliburton scam would soon be arraigned in court. No date has, however, been fixed for the arraignment of the suspects.
The Halliburton Hoax: Jonathan's Joke Corruption Trial
Posted: September 5, 2010 - 16:33
Posted by siteadmin
Caption: Goodluck Jonathan
By Sahara Reporters, New York
The Goodluck Jonathan government is finally taking action over the Halliburton scandal: it is taking to court some of the Nigerians involved.
But the Nigerian court trial arising from the scandal totally ignores the big fishes involved. Conspicuously missing are such names as former president Olusegun Obasanjo, former military head of state, Abdusallam Abubakar and late military dictator, Sanni Abacha, a clear indication the trial will leave Nigeria’s “Big Men” unscathed.
The initial trial features only 12 persons, largely small time officials, and companies. The big hitters were never invited for interrogation by the Okiro panel, either.
"It is important to point out that all of the alleged misconduct occurred prior to June of 2004 and involved individuals who are former management, employees, and agents of KBR subsidiaries and predecessor entities," Utt said.
The scheme commenced in the 1990's prior to Halliburton's 1998 acquisition of Dresser Industries Inc., according to Halliburton, which had previously disclosed the major aspects of its settlement. See full story.
"With respect to the SEC, without admitting or denying the allegations in the complaint, Halliburton consented to the entry of a final judgment that permanently enjoins Halliburton from violating the record-keeping and internal control provisions of the FCPA," Halliburton said.
KBR will make payments totaling $20 million over the next eight quarters. The remainder of the penalties will be paid by Halliburton in keeping with terms of a separation agreement between KBR and Halliburton.
Steve Gelsi is a reporter for MarketWatch in New York.
Haliburton: US accuses Nigeria of cover-up, releases evidence •Envoy, AGF, Waziri, Sanusi, Seriki in secret meeting
Written by Lanre Adewole Wednesday, 17 February 2010
CONTRARY to the repeated claims of the erstwhile Attorney-General of the Federation and Minister of Justice, Mr Michael Aondoakaa, the United States, on Tuesday, disclosed that it had released information needed by the Nigerian government to prosecute those indicted over the Halliburton scam.
This came as the American Ambassador to Nigeria, Robin Sanders, held a meeting behind closed doors with Aondoakaa’s successor-in-office, Prince Adetokunbo Kayode; Chairman, Economic and Financial Crimes Commission (EFCC), Mrs Farida Waziri; Governor of the Central Bank of Nigeria (CBN), Lamido Sanusi and Minister of State for Interior, Chief Demola Seriki, on Tuesday, at the Ministry for Justice.
The agenda of the meeting was kept secret, even as the chairman of the National Drug Law Enforcement Agency (NDLEA), Alhaji Ahmadu Giade, was asked to stay at the minister’s outer office along with journalists.
Before the closed-door parley commenced, Sanders and Kayode had met with journalists present, where the envoy waved off the excuse Aondoakaa had clung to, which effectively halter the probe in Nigeria.
America had jailed some top officials of the firm of the scam, while the probe committee set up by Aondoakaa which had the former Inspector General of Police, Mike Okiro, as its head, had been marooned in the middle of nowhere. The ultimatum given to the committee to submit its report had long expired, with the former
- Mohammed Gidado Bakare
10.Urban Shelter Limited
11.Intercellular Nigeria Limited
12.Sherwood Petroleum Limited
- Tri-Star Investment Limited
14.Maizube Holdings Limited
- TSKJ Nigeria Limited-(a) Technip S.A.; (b)Snamprogetti Netherlands B.V. (c) Kellogg Brown and Root Inc(d) Japan Gasoline Corporation of Japan.
KBR, Halliburton paying $579 million settlement
Regulators mark largest payment under foreign corruption act
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Halliburton Co. and its one-time KBR unit have agreed to pay a combined $579 million to settle bribery charges in connection with their dealings with Nigerian officials, the largest fine paid under the Foreign Corrupt Practices Act.
The criminal and civil settlements, announced by the Justice Department and the Securities and Exchange Commission, end a long-running investigation into an elaborate bribery scheme that helped KBR /quotes/comstock/13*!kbr/quotes/nls/kbr (KBR 23.67, -0.23, -0.94%) executives obtain more than $6 billion worth of construction contracts in Nigeria.
KBR's subsidiary Kellogg Brown & Root LLC pleaded guilty in a Houston federal court to criminal charges of violating the Foreign Corrupt Practices Act and agreed to pay a $402 million fine.
The unit has agreed to pay a $402 million fine to settle parallel criminal charges brought by the Justice Department.
KBR and Halliburton /quotes/comstock/13*!hal/quotes/nls/hal (HAL 30.78, -0.22, -0.71%) will pay $177 million in disgorgement to settle the SEC's charges.
William P. Utt, chief executive of KBR, said in a statement the settlements close "both a regrettable and unfortunate chapter" in the history of the engineering, construction and Services Company.
AGF being accused of deliberately stalling the probe due to his alleged personal interest that borders on gratification.
The disclosure by the envoy, on Tuesday, reinforced the suspicion of deliberate stalling of the probe by the former AGF, who once said the information received by Nigerian government on the scam was mostly in French and interpreters could not be found in Nigeria to translate it to English.
Apart from disclosing that America had not hidden any information from Nigeria on the matter, Sanders also promised that her country would be ready to assist Nigeria with more information in prosecuting those indicted in Nigeria.
She noted that it was surprising that long after America had concluded the international angle to the scam, the Nigerian government was yet to reach any defining point.
When a question was asked on the reason for the delay in prosecuting the local angle to the scam in Nigeria, she asked the reporter to direct his question to the new AGF, while encouraging Nigeria to be more effective in her anti-corruption crusade.
Nigerian Tribune gathered that the agenda of the meeting was on how the United States could be of assistance to Nigeria in the fight against corruption, with the repatriation of those wanted for alleged corrupt acts in Nigeria topping the list.
It was learnt that the case of wanted former Managing Director of Intercontinental Bank Plc, Dr Erastus Akingbola, was prominent during the meeting, with a source disclosing that his planned repatriation had reached an advanced stage.
The source said the US would be of help in getting Akingbola repatriated into the country, even if he was not domiciled in America.
The source added that America’s hold on international diplomacy would be of tremendous assistance in bringing the likes of Akingbola back to the country to face trial for alleged corruption.
Other ongoing corruption cases that have international angle to them, which had been tottering during Aondoakaa days, were also said to have been discussed, with the source adding that a new life would be breathed into the cases after the meeting.
Which reveals us as a nation that fully justifies its reputation as one of the world's leading cesspits for corruption and unrestrained graft.
How it all started
The origin of the Nigerian Liquefied scandal can be traced back to 1994, when bids were submitted to build Africa's first liquefied natural gas plant in Bonny, Rivers State, at a cost of $6 billion. A joint venture company, TSKJ, formed in equal partnership between a French engineering company, Technip; an Italian engineering company, Snamprogetti; a US engineering company, KBR,of the Halliburton group; and the Japanese engineering and construction company, JGC, amplified corruption in Nigeria to unprecedented levels.
Soon after TSKJ was formed, it set up three companies registered in Madeira, Portugal to recruit two "consulting companies," Tri-Star Investment Ltd, and Marubeni Inc, with the mandate to bribe Nigerian "officials of the executive branch of government, NNPC and NLNG officials, and political party leaders," according to a sealed indictment filed at the United States District Court in Houston, Texas.
Three early decisions taken by TSKJ were: hiring a British lawyer, Jeffery Tesler, to coordinate the affairs of TriStar; signing up Wojciech Chodan, an American deal maker resident in the UK to assist him and contracting Messrs Matsuda, Endo, and Lida to run Marubeni. According to the court deposition of Mr.Tesler, in a clinical application of the principles of division of labour,TSKJ mandated the Tri-Star team, which it disingenuously called "cultural advisors," to focus only on bribing the "senior level officials", while the Marubeni team was instructed to restrict itself to bribing the "lower level Nigerian officials."
Thus while Tristar was incorporated in Gibraltar and had a budget of $130 million; Marubeni, incorporated in Japan, had a budget of $50 million. Our investigations in the United States, France, the UK and in Nigeria spanned a three week period and were based on court indictments, depositions and interviews.
Bribery in a customary manner
Sani Abacha, Nigeria's late Head of State, was the first significant point of contact for the TSKJ team, according to lawyers of the United States department of justice, who claimed in court depositions that, in August 1994, the CEO of KBR, Albert Jackson Stanley, and top executives of TSKJ struck an agreement with Abacha "to do business in a customary manner."
Towards this end, a "cultural committee" of the sales and senior personnel officers of the four joint venture companies, as well as agents of Marubeni was put together to "consider how to implement, but hide, the scheme to pay bribes" to Nigerian officials.
The "cultural committee" in October 1994 worked out a programme of what it called "the downloading and offloading of payments through subcontractors and vendors."According to the U. S. Department of Justice, once a plan of how to distribute the bribes and a scheme to evade US bank monitors were resolved, the "cultural committee" gave Mr.
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