The
Nigerian government is set to retrieve one of Africa's richest oil blocs from
oil giants, Shell and Eni.
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 9 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.
The
'Settlement Agreement'
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 MALABU 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 Nigerian government and officials of Shell and Eni/AGIP; while the third
agreement, titled "BLOCK 245 SNUD RESOLUTION AGREEMENT", was signed
by officials of the Nigerian 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, 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 judgments related to the case.
Cancel
the agreement
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,
Mr. Etete, had no legal authority to negotiate the agreement on behalf of
Malabu 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 Malabu 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 Malabu, 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 Mr. 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."
Report shows how the Federal Government paid over $800 million of the
money into accounts controlled by Mr. Etete and how Justice Edis of the
Southwark Crown Court in England refused to release $85 million of the
remaining sum to Mr. Etete in December.
In
refusing the to release the money, the judge questioned the actions of the
Goodluck Jonathan presidency on the OPL 245 saga saying "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."
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.
Making
money for Nigeria 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 2011 the 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 has been earlier reported by journalist how Malabu was awarded the oil block 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 Mr. Etete, 30
per cent); and Wabi Hassan (wife of Hassan Adamu, former Nigerian ambassador to
the U.S. 20%).
Credit: Premium Times
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