THE ISSUE
-----------------------------------------Corruption in Nigeria: One deal too many
-----------------------------------------
Clifford Thomas
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The President Olusegun Obasanjo's government in Nigeria has been hailed as an administration that has shown genuine interest in stamping out every act of corruption in the formal and non -formal sector. This has been achieved with the establishment of specific anti-graft agencies like the Independent Corrupt Practices Commission (ICPC), and the Economic and Financial Crimes Commission (EFCC), and some non-specific graft bodies whose activities look at standards and quality; like the National Agency For Food Drugs Administration and Control (NAFDAC), the Standards Organization of Nigeria (SON), and the National Drugs Law Enforcement Agency (NDLEA).
Major breakthroughs have been recorded with the investigation, prosecution and detention of some kingpins of corrupt practices in Nigeria. Examples of big guns that have been prosecuted successfully by the administration are: Mr. D.S.P.Alamaseigha (impeached governor of oil-rich Bayelsa State of Nigeria) for money laundering; Mr Tafa Balogun (former Inspector General of Police) for corrupt enrichment and money laundering; Professor Fabian Osuji (former Minister of Education) for collecting bribe; Senator Adolphus Wabara (former Senate President) for collecting bribe; Chief Sunday Afolabi (former Ministry of Internal Affairs) who died before he could be prosecuted; Chief Ibitimi Banigo (one time Minister in President Obasanjo's Cabinet, and Chairman of the now moribund All States Trust Bank, closed down by government.
Hundreds of others have been successfully prosecuted by this government including a son of General Sani Abacha, the former head of state, to recover stolen funds called the "Abacha loot ". These acts underscore the seriousness of the government of Nigeria in fighting corruption.
However, there have been allegations that the administration is not sincere with its fight against corruption, that the anti-graft agencies of the government were deliberately created to witch-hunt those who are opposed to the government. And the lists of "victims", according to this school of thought, are endless.
The most distressing signal which may rubbish the observed progress made in the anti-graft war of the present administration in Nigeria, aside from several allegations of corruption in high places, include the recent bribing of members of the National Assembly to support the tenure elongation bid, is the recent revelation of a $260 million arms deal with an Israeli firm.
A deal as sensitive as an arms deal, and serious as $260 million (which translates to N10.4 billion at an exchange rate of $1 exchanging for N140), was struck without the knowledge of the National Security Adviser (NSA), and defense big guns in the country. This is a country which has been described as a very poor country that prides itself in "due process" as part of the transparency and anti-corruption image it has created for itself.
When the story first carried by Yossi Melman, a Journalist working with an Israeli newspaper HAARETZ recently, named General Aliyu Mohammed Gusau (Rtd) who has just recently been eased out of office as the National Security Adviser (NSA), as the person who promoted the deal, very few people understood the import of the report until the NSA informed President Obasanjo (his erstwhile boss) that he was going to react, to put the records straight.
The former NSA, General Gusau (rtd) was not only embarrassed, but felt terribly insulted that two close allies of the president, who are not supposed to be mentioned in arms deals, were the people who promoted and sealed the deals without his knowledge or consent.
Investigations revealed that the Minister of Transport, Dr. Abiye Sekibo and Andy Uba (a close aide of the president) promoted the arms deal, without the knowledge of even the Minister of Defence, Rabiu Kwankwaso or the approval of the Federal Executive Council of the Federal Republic of Nigeria.
The contract awarded to Aeronautics Defense Systems (an Israel-based company) is to "design and build the naval array, promoting manned and unmanned naval and aerial systems, coastal radars and command-and-control centers. This structure will cover Nigeria's entire 853 km coastline, and will be designed to protect it's territorial waters and the offshore oil platforms in the Niger River Delta" according to a Release from the company on the 12th of April, 2006; describing scanty details of the contract.
The bidding process was devoid of transparency or due process. The American Ambassador to Nigeria, John Campbell, is said to have expressed dissatisfaction with the process, which prevented interested American companies from bidding. This is a reflection of the hush-hush nature of the deal.
Twenty five percent of the $260 Million has already been paid, even before Defense experts could ascertain the relevance of the deal, and the propriety of agreeing to the contract sum, which has been challenged by Defense experts.
It is alleged that the contract can be successfully executed, even with a 100% profit margin at the princely sum of $150 million: without necessarily over-bloating the price to $260Million. The questions here are: (i) Is the contract really worth $260 million; (ii) How relevant is the contract now that social infrastructural facilities in the country are down; (iii) Why were the Minister of Defense and the former National Security Adviser (NSA) not included in the negotiations; (v) Is it true that excess money (of over $110 million) from the deal was used in bribing members of the National Assembly, to support tenure elongation for President Obasanjo? These are some questions that are begging for answers.
According to HAARETS, "There is no clear answer to these questions but speculations. First and foremost, there is no question that the firm successfully spun a web of connections the reached the President of Nigeria. The deal was mediated by Israeli businessman Alon Nelken from Savyon. Nelken, who had played an active role in Nigeria for 25 year, owns the gigantic Mega-Plaza mall in Lagos."
While Nigerians are struggling with decaying social infrastructural services, and issues like epileptic power supply (which makes production very expensive in the country), youth unemployment and restiveness, insecurity and armed banditry, extreme poverty, threat to political stability, high cost of living and countless other factors that compromise decent human living. It has been observed that this is one corrupt deal too many for a country that makes so much noise fighting corruption.
Major breakthroughs have been recorded with the investigation, prosecution and detention of some kingpins of corrupt practices in Nigeria. Examples of big guns that have been prosecuted successfully by the administration are: Mr. D.S.P.Alamaseigha (impeached governor of oil-rich Bayelsa State of Nigeria) for money laundering; Mr Tafa Balogun (former Inspector General of Police) for corrupt enrichment and money laundering; Professor Fabian Osuji (former Minister of Education) for collecting bribe; Senator Adolphus Wabara (former Senate President) for collecting bribe; Chief Sunday Afolabi (former Ministry of Internal Affairs) who died before he could be prosecuted; Chief Ibitimi Banigo (one time Minister in President Obasanjo's Cabinet, and Chairman of the now moribund All States Trust Bank, closed down by government.
Hundreds of others have been successfully prosecuted by this government including a son of General Sani Abacha, the former head of state, to recover stolen funds called the "Abacha loot ". These acts underscore the seriousness of the government of Nigeria in fighting corruption.
However, there have been allegations that the administration is not sincere with its fight against corruption, that the anti-graft agencies of the government were deliberately created to witch-hunt those who are opposed to the government. And the lists of "victims", according to this school of thought, are endless.
The most distressing signal which may rubbish the observed progress made in the anti-graft war of the present administration in Nigeria, aside from several allegations of corruption in high places, include the recent bribing of members of the National Assembly to support the tenure elongation bid, is the recent revelation of a $260 million arms deal with an Israeli firm.
A deal as sensitive as an arms deal, and serious as $260 million (which translates to N10.4 billion at an exchange rate of $1 exchanging for N140), was struck without the knowledge of the National Security Adviser (NSA), and defense big guns in the country. This is a country which has been described as a very poor country that prides itself in "due process" as part of the transparency and anti-corruption image it has created for itself.
When the story first carried by Yossi Melman, a Journalist working with an Israeli newspaper HAARETZ recently, named General Aliyu Mohammed Gusau (Rtd) who has just recently been eased out of office as the National Security Adviser (NSA), as the person who promoted the deal, very few people understood the import of the report until the NSA informed President Obasanjo (his erstwhile boss) that he was going to react, to put the records straight.
The former NSA, General Gusau (rtd) was not only embarrassed, but felt terribly insulted that two close allies of the president, who are not supposed to be mentioned in arms deals, were the people who promoted and sealed the deals without his knowledge or consent.
Investigations revealed that the Minister of Transport, Dr. Abiye Sekibo and Andy Uba (a close aide of the president) promoted the arms deal, without the knowledge of even the Minister of Defence, Rabiu Kwankwaso or the approval of the Federal Executive Council of the Federal Republic of Nigeria.
The contract awarded to Aeronautics Defense Systems (an Israel-based company) is to "design and build the naval array, promoting manned and unmanned naval and aerial systems, coastal radars and command-and-control centers. This structure will cover Nigeria's entire 853 km coastline, and will be designed to protect it's territorial waters and the offshore oil platforms in the Niger River Delta" according to a Release from the company on the 12th of April, 2006; describing scanty details of the contract.
The bidding process was devoid of transparency or due process. The American Ambassador to Nigeria, John Campbell, is said to have expressed dissatisfaction with the process, which prevented interested American companies from bidding. This is a reflection of the hush-hush nature of the deal.
Twenty five percent of the $260 Million has already been paid, even before Defense experts could ascertain the relevance of the deal, and the propriety of agreeing to the contract sum, which has been challenged by Defense experts.
It is alleged that the contract can be successfully executed, even with a 100% profit margin at the princely sum of $150 million: without necessarily over-bloating the price to $260Million. The questions here are: (i) Is the contract really worth $260 million; (ii) How relevant is the contract now that social infrastructural facilities in the country are down; (iii) Why were the Minister of Defense and the former National Security Adviser (NSA) not included in the negotiations; (v) Is it true that excess money (of over $110 million) from the deal was used in bribing members of the National Assembly, to support tenure elongation for President Obasanjo? These are some questions that are begging for answers.
According to HAARETS, "There is no clear answer to these questions but speculations. First and foremost, there is no question that the firm successfully spun a web of connections the reached the President of Nigeria. The deal was mediated by Israeli businessman Alon Nelken from Savyon. Nelken, who had played an active role in Nigeria for 25 year, owns the gigantic Mega-Plaza mall in Lagos."
While Nigerians are struggling with decaying social infrastructural services, and issues like epileptic power supply (which makes production very expensive in the country), youth unemployment and restiveness, insecurity and armed banditry, extreme poverty, threat to political stability, high cost of living and countless other factors that compromise decent human living. It has been observed that this is one corrupt deal too many for a country that makes so much noise fighting corruption.







