Malabu scam: How timely is Senate’s intervention?

EZREL TABIOWO writes on the recent decision of the Senate to revisit the controversial sale of  OPL 245 Malabu oil bloc, stressing that it speaks volume of the seriousness of the Nigerian Parliament

The Malabu oil deal which, has for years  been a matter of interest to the public. This is because of  the high level  corruption that, has  shrouded same. The development clearly triggered the attention of the International Community, particularly the European Union Parliament, whose report into the scam is set to be made public soon.

The implication of the EU Parliament report coming to limelight observers say, might rub off negatively on the image of the National Assembly, particularly for failing in its bid to unravel, investigate and come up with recommendations towards ensuring that the perpetrators of such massive fraud are punished.

Before now, the report of investigations by the Economic and Financial Crimes Commission (EFCC) indicated that $1.1billion proceeds paid to Malabu oil company was shared by some private firms  believed to be owned by people very close to the presidency.

The sum of $1.092bn was paid by ENI AGIP and Shell into depository Escrow Account domiciled in JP Morgan Chase Co, London as proceeds for the sale of oil block OPL 245 on 25, March 2011.

The report further said  by August 16, the Attorney General and Minister of Justice Mohammed Adoke(SAN) and the  Minister of State for Finance, Dr. Yerima Lawal Ngama “instructed the release of $401, 540, 000” into Malabu Oil and Gas Ltd accounts domiciled with First Bank of Nigeria and $400 million into another Malabu accounts with Keystone Bank (former Bank PHB).

The EFCC report said “JP Morgan complied with this instruction and made the transfers on 23 August, 2011.” Malabu, controlled by Chief Dan Etete, ex-oil minister, who was convicted of money laundering in France in 2007, further shared these monies to several other accounts belonging to individuals with very close ties to the presidency.

The following day, of the $400 million deposited at the Malabu’s Keystone bank account, $336 million was transferred to Rocky Top Resources Ltd’s account No 1005556552 with Abuja CBD branch of the same bank. The remaining balance of $60 million was transferred to account No 3610042596 (allegedly belonging to Etete) for forex trading, leaving zero balance with Malabu’s Keystone bank account.

Of the $336 million transferred into the Rocky Top Resources account, $165 million was subsequently transferred into various individual accounts, leaving the balance of only $171 million, the anti-graft agency’s report said.
Rocky Top Resources, the report said, was registered with the Corporate Affairs Commission (CAC) with 100,000 shares capital only and is owned by one Abubakar Aliyu.

The report said  the first payment of $401 million to Malabu’s First Bank account was distributed directly to A Group Construction Co. Ltd-also co-owned by Abubakar Aliyu ($157m); Mega Tech Engr. Co. Ltd ($180M); Imperial Union Ltd ($34m); Novel Property and Development Ltd-also co-owned by Abubakar Aliyu ($30m); leaving the balance of $143 million Malabu’s account. And “reasons for this payment is yet to be ascertained,” the EFCC report said.

The Twist
In a shocking twist, both Shell and ENI deny paying any money to Malabu Oil and Gas in respect of the licence and emphasised that their agreements were only with the Nigerian Government. However, a statement from Nigeria’s Attorney General in 2012 contradicted this.

The Attorney General had in an interview stated that “SNUD [A Royal Dutch Shell subsidiary in Nigeria] and ENI agreed to pay Malabu, through the Federal Government acting as an obligor, the sum of US$1,092,040,000 billion in full and final settlement of any and all claims, interests or rights relating to or in connection with Block 245.”

News reports also claimed that the Federal Government instructed the release almost 80 percent of the funds paid for OPL245 (US$801,540,000) into accounts controlled by Malabu, and that this money was subsequently shared through a set of complex corporate structures to accounts owned by a number of Nigerian companies and individuals.
But observers however believe that these claims raise serious questions about the transparency of the arrangements for the settlement of OPL245 and the ultimate beneficiaries of the deal.

On one flank, while indications suggest the involvement of persons within the presidency, the Nigerian Government on the other has denied consistently any wrong-doing, stating that they, “merely acted as a facilitator of an amicable settlement between two disputing parties.”

Both Shell and ENI denied that they had any agreement with Malabu.
According to Shell Nigeria’s spokesperson, “Shell was not aware that money was to be paid to Malabu”.
ENI’s subsidiary Agip also stated that their arrangement was solely with the Government of Nigeria.
On the basis of the statement made by the Nigerian Government that “SNUD and ENI agreed to pay Malabu”, the explanations coming from Shell and ENI that they made no agreement with Malabu, observers have said, are insufficient.

Senate’s Intervention
In what may be considered a desperate and last minute attempt to save face, the Senate only last week reached a decision to probe the alleged sale of  the  oil bloc by the Federal Government.

This followed  a point of order raised by Senator Olubunmi Adetunmbi (APC. Ekiti State).
The lawmaker informed the upper chamber that the Italian and Netherlands governments and the EU parliaments are on the verge of wrapping up public investigations soon to be made public.

He said: “The issue of Malabu oil was also raised at that gathering. Upon coming back, I had to check my proceedings and l found that PIB after debate was committed to the appropriate committee in this chamber on March 7, 2013. It will be exactly one year next month. Up till now, there seems to be nothing going on. The Malabu oil was committed to a committee in this Senate in July.
“It will interest this Senate that an international extractive advocacy group in Europe did a letter dated July 5, 2013 to Italian and Netherlands governments requesting for public investigation of the roles of companies from their countries and to the European Union (EU).

“As l speak, the Italian and Netherlands governments and the EU parliaments are about concluding public investigations that would be made public very soon. I feel as a senator, we should know what is going on so that the reputation of this parliament as an institution is not called to question.

“I feel a situation where the report of EU parliament on issues that affect our economy is made public and our own apex parliament is not seemed to be doing what it should do one year after, it will affect all of us collectively. That is why as a senator ,l need to receive explanation from this Senate so that if l found myself in the public, l should be able to speak intelligently so that l will not be embarrassed.”

The Senate President, Senator David Mark called on the committees to hasten legislative work into investigations regarding same.
Giving the decision of the Senate to probe the Malabu oil deal at this time, and especially coming after the European Parliament and some countries have already commenced investigations into same, speaks less about the National Assembly, some observers have opined.

It also throws a poser at Nigeria’s Parliament over how serious it manages oversight functions as embedded in the provisions of the constitution.