Tuesday 21 July 2015
You can’t judge Buhari in two months — Fred Agbeyegbe
Call him a playwright, lawyer, author or activist and you will not be wrong. Chief Fred Agbeyegbe, who turns 80 years on Wednesday is many things to many people depending on the angle you are viewing him from. In this engaging interview, he speaks on the state of the nation, his experience in the last eight decades, how to check graft and the way forward for the country.
By Japhet Alakam & Gbenga Oke
AT 80, how do you feel?
I thank God for keeping me this long and I owe him all the gratitude.
Fred Agbeyegbe
Fred Agbeyegbe
Activities have been planned for your birthday celebration, what can you say about that?
I was given an award by the National Association of Theatre Practitioners, NANTAP. The award was called the Grand Living Legend of Nigerian theatre. They said they were tired of waiting for people to die before they celebrate them. So, they wanted to change the tide by giving me the award. Some of them have said to me that it is their prophecy that is taking place now that I am going to make 80. Let us celebrate people while they are alive so I am happy to be one of the pioneer celebrities for this new philosophy in Nigeria.
You are a playwright, lawyer, activist and so on. How exactly can we describe you?
I don’t know. So many times people ask me what I do. I, too, am confused as to what to tell them but there are people who know me in certain regards. For example, not so long ago I got into a waiting room where people were arguing about who Fred Agbeyegbe is and I sat down and joined them. They didn’t know me, a lot of people don’t know me but they know my name. In fact when some are talking to people about the Agbeyegbe family, they say they know one of them and they mention my name even in my presence because they don’t know me personally. Some described me as a journalist, some have described me as a civil defence person, some have described me as a lawyer and some as a business man. Whatever they call me, provided they don’t call me a thief there is no problem.
Do you think the judiciary is leaving up to expectations?
When I came back from England 45 years ago, things were not like this. I think that the mistake started from 1999. It is from 1999 that things became even more rotten.
Corruption in Nigeria is not by accident. Even the 1999 constitution that we are operating today is a corrupt document. To start with, it is a lie that Nigerians made a constitution for themselves. It never happened. The contents of that constitution cannot be something that a willing people would impose upon themselves.
Root cause of corruption
Therefore, all attempts at stopping corruption might even be a waste of time until you tackle the root cause of corruption. I am Itsekiri, I have never heard the word ‘corruption’ in my language. Is corruption a Nigerian word? No! Corruption is an English word.
Those things that make it impossible for Nigeria to progress are what I call corruption.
Having said all these, are you trying to say Nigeria was built on falsehood?
I have written poems and several articles on it. One of the books is called Budisco. It was a play that was commissioned by the Nigerian Bar Association when they celebrated 100 years of law practice in Nigeria. I was the one they picked to do something to celebrate that period.
Buhari, Idiagbon and Sowemimo, that is what Budisco means. It also means something vulgar in Yoruba language. Who is the President today? The same Buhari. So what explanations are you looking for? A people get a government that they deserve. Nigerians are getting what they deserve because when it is happening to you, the other person says it is not happening to me, by the time it comes to happen to you, all the people who could have stood behind you will be gone.
n 2011, my movement came out to say Nigeria was a failed state, those who thought they can patch it and repair it, by the time the Americans said 2015 is going to be a terrible year, they started calling them names. Thank God, Jonathan saved all of them. If Jonathan had stood up and said that election was rigged against him this country would have been in flames.
On NADECO
We live under this illusion that we are operating a democracy. And the way this country is organized is that when any issue comes up, Igbo man, Yoruba man, the Ijaw and Itshekiri, and other groups would have different interpretations.
This country is organized such that there will never be consensus. For example , I am an Itsekiri man and my neighbours are Urhobo and Ijaw, but these ethnic groups hardly live in harmony. NADECO fought against the trampling of the right of Nigerians.
So we did not come out in NADECO to show that we are brave, we came out to fight against the military because we felt they forced themselves on us. NADECO can function now because it was put together for a purpose.
How will you rate this administration putting in mind some of the decisions that has been taken so far?
From what I have told you, you don’t expect me to be a pro-Buhari person. But I am neither anti-Buhari. Like I said earlier, he was the people’s choice and they voted for him. Whether I voted for him or not does not stop him from being our President and he also said it that he is the President of everybody and that is how it ought to be.
But I can say that is it too early to judge him, it was the same type of judgement that Jonathan got. From day one, even before he won the last elections, he was told not to contest. Some said they will make the country ungovernable for him. And he dared to contest and he dared to win. And what happened to him, they made the place ungovernable for him and behold it is the same people who came back to judge him on performance after they had told him they will make it impossible for him to govern. That was what they did. So the guy had no opportunity.
Achieving change
I say the same thing about Buhari, give him a chance. I called him a magician and the media also called him a magician. People think he will just come and change things overnight, he is no longer a military man. We cannot achieve change in two months.
He has been criticized for the appointments he has made so far. I laughed because a lot of people do not understand the politics of this country. All the people he has appointed so far are all Northerners from his area of this country, I don’t know if the guy has a choice because psychologically, he cannot feel comfortable with anybody else.
He doesn’t know what people are going to do to him if he comes to Warri to pick me. But I will tell Nigerians to wait, if he then continues in that line of appointment then you can begin to blame him.
Do you think the proposed merging of the Economic and Financial Crimes Commission, EFCC, and Independent Corrupt Practices and other relataed Commission, ICPC, will strengthen the fight against corruption?
When I heard that President Buhari is trimming down the number of ministries from 40 to 19, I concluded that the man is truly a magician. The ministries are one of the ways we fritter away this country’s resources.
Why do you need over 40 ministries? Is it that the work load is so much such that a few people cannot do it? Is that what government business is all about? Thank God somebody has come and has seen reasons to reduce them.
Prosecution of governors
The EFCC and ICPC, were they actually meant to work? How many governors have they prosecuted? Is it that there are no more corrupt governors? What has ICPC done? What examples have any of those two entities given to us? This is a situation whereby the institutions are used to serve the whims and caprices of individuals.
What do you then think needs to be done to move this nation forward?
There are many issues that divide us in Nigeria. And it is my hope that those issues will disappear for things to get better.
Our beliefs are not the same in every aspect. Sadly, religion has become a divisive tool.
You remember at a time, I lost a cousin to assassins. He was Captain Jerry Agbeyegbe, how can you convince me that Nigeria is not a place where people are killed any how? You may convince some other people but not me. Also, the one document that is supposed to bring all of us together called the constitution is itself a lie. Any document that tells a lie against itself is forgery. The 1999 constitution is not our constitution. We had no agreement on it.
Having criticised democracy as being practised in Nigeria, what form of government will you recommend to make the country work?
To make democracy work, we need to have a redefinition of the content of that word ‘democracy.’ I recently wrote an article that the Europeans came here last time and certified our last elections saying democracy is now thriving in Nigeria.
Meaning of democracy
What did they know and what did they see? I lived and worked in England for so many years, I know the meaning of democracy as an English word and I know the meaning of democracy as a Nigerian word.
The only thing Nigeria accepts about the word democracy is that the majority must have its way. They don’t even buy the other half of that same statement which says the minority must have its say.
So those things God has given me as of rights as an Itsekiri man in Warri, democracy makes it easy for somebody to come from the desert in Sokoto to teach me how to swim in Warri river where God has put me. The time Mandela started fighting their oppressors and they eventually got to where they got now, did they change the definition of democracy?
Buhari to Privatizatise Telecommunication, Energy, Solid Minerals, Health and Infrastructural Facilities
Tobi Soniyi in Abuja
President Muhammadu Buhari in Washington on Tuesday invited American business people to come and invest in Nigeria by taking advantage of the liberal trade and investment climate in the country.
The president, who gave the challenge at a business forum organized by the United States Chamber of Commerce and the Corporate Council on Africa, said his administration would go ahead with the ongoing privatization programme with improved moral architecture.
According to him, the privatization exercise will be expanded to include aviation, telecommunication, energy, gas, solid mineral, health and infrastructural development.
Buhari also enjoined the business communities in the United States and Nigeria to take advantage of the excellent political relations between the two nations to expand trade and investment activities including joint venture projects in priority sectors of the Nigerian economy.
He said: “It is my intention to create the necessary environment for future investment in Nigeria. We are the most populous nation with the largest market in Africa with vast human and natural resources and blessed with abandoned young skilled workforce.
“We are therefore proud candidate to become the destination of choice for United States investments in Africa.
“I work assiduously to welcome new investors to ur country.
“I will like to remain you all that we are continuing in major privatization programme with sectors ranging from telecommunication energy, gas, solid minerals, aviation, health and infrastructural development but with improved moral architecture.“
Phantoms of the country! Buhari disgraces CBN gov, Godwin Emefiele, Jim Ovia, Tony Elumelu, Wale Tinubu in America
· What are you guys doing here...Did I invite you people? - Buhari
By Femi Ajayi
Time was, when phantoms in scarlet persistently passed as men of honour while the righteous faded in obscurity or lay spent in trenches of blood. Hence it was no surprise that Nigerian businessmen, Jim Ovia, Tony Elumelu, Wale Tinubu and Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), in desperate bid to dig their claws into President Muhammadu Buhari, bought first class tickets and flew after him to the United States of America.
But the snag was, they were uninvited; even so, they embarked on a desperate quest to establish themselves as Nigeria's top businessmen and cronies of the incumbent president. Back when Goodluck Jonathan was president, they would have gotten away with such brazen disregard for protocol; in fact, they would have constituted a crucial part of the former president's travel plans. But a new sheriff is in town and the businessmen are yet to get with his programme.
Thus they had sheepishly gone to attend a meeting with Buhari in America and Buhari on sighting them reportedly asked, "My friends, what are you doing here? Did I invite you people? You are not needed here," Buhari allegedly told them. Shamefacedly, they gathered their folders and left the meeting. Their steps became very heavy as they trudged out of the venue.
It was indeed a big disgrace to these businessmen who once formed a ring around the former President Jonathan. They quietly left the venue with their tails and gargantuan pride tucked between their legs.
All around the world, presidential politics has always been a game of the wealthy, for the wealthy and by the wealthy. Men of means have always had a say and in several instances, determined the course of political and socioeconomic affairs in the country. This becomes imperative in their desperate bid to establish their dominance and affluence sustainably. The need to maintain their controlling grip on their country's economy, rather than ensuring that the nation's commonwealth is equitably distributed has always been the only ideological and selfish motive driving their political participation.
Consequently, the superrich of the nation's high society are continually seen as the arrowheads of plots and movements to institute and sustain political hegemony via a puppet leader or party. Political pundits are of the opinion that the President Buhari needs to stay away from these men and women who have perfected the knack for soiling the hands of any President and sullying the his administration by their self-serving pursuits which often manifests devastatingly on the lot of the citizenry and to the detriment of the country.
Two APC Reps sue Dogara over leadership crisis
John Ameh, Abuja
Joined in suit number FHC/ABJ/CS/625/2015, filed at the Federal High Court, Abuja, are the Deputy Speaker, Mr. Yusuf Lasun; and the Clerk to the House, Mr. Mohammed Sani-Omolori.
The members, Mr. Abubakar Lado-Abdullahi from Niger State; and Mr. Olajide Abdul-Jimoh from Lagos State, are praying the court to restrain the defendants from stopping the announcement of the names of principal officers recommended by the leadership of the APC.
In their prayers, the members argued, “it is an indisputable fact that the positions in question are party positions; that is, principal offices of the APC, albeit that they concomitantly are also principal positions within the House of Representatives.
“Consequently, the 1st and 2nd Defendants (Speaker and Deputy Speaker) shall in accordance with Article 9.2 of APC Constitution, which states, ‘members of the party shall be obligated to affirm the party’s aims and objectives’, implement the party’s aims as contained in the party’s nomination letter’.”
Findings showed that the court process was reportedly served on Dogara and the co-defendants on July 16.
A copy of the process was made available to The PUNCH about 5.26pm on Tuesday.
Specifically, the plaintiffs urged the court to determine whether Section 14 of the 1999 Constitution, dealing with the Principle of Federal Character, was applicable to the sharing of principal offices in the National Assembly.
However, when The PUNCH sought the reactions of the Speaker’s office on Tuesday, it got a “not aware” response.
His Special Adviser on Media and Public Affairs, Mr. Hassan Turaki, simply said “not aware” in a reply to a question whether Dogara had received the court’s summons.
He declined to respond to a second question what the speaker would do about the case.
The House, which began a forced break on June 25 after fighting broke out on the floor over the sharing of the principal offices, was scheduled to resume on Today(Tuesday).
But, on Friday last week, the resumption was suddenly put off by one week without any official explanations.
However, findings indicated that the unresolved leadership tussle was the reason for the abrupt postponement of resumption.
PRESIDENT BUHARI HAILS WORLD BANK'S DECISION TO SPEND $2.1 BILLION IN REBUILDING NORTH-EAST
The World Bank has unfolded a package which would see it spending up to $2.1 billion in rebuilding the badly devastated North-eastern part of Nigeria, ravaged for the past six years by the Boko Haram insurgency.
At a meeting in Washington today with representatives of the World Bank, the Bill and Melinda Gates Foundation, and the World Health Organization (WHO), President Buhari said apart from rebuilding the region in terms of infrastructure, priority must also be given to the resettlement of internally displaced persons (IDPs), who now number over one million.
He urged the World Bank to send a team, which would work in concert with a team from the Federal Government, so that a proper assessment of needs could be done.
The World Bank will spend the 2.1 billion dollars through its IDA (International Development Agency), which gives low interest rates loans to government. The first 10 years will be interest free, while an additional 30 years will be at lower than capital market rate.
The World Bank is eager to move in quickly, give out the loans, and give succor to the people of North-east, long at the mercy of an insurgency that has claimed over 20,000 souls.
WHO is also to invest 300 million dollars on immunization against malaria in Nigeria, while the Bill and Melinda Gates Foundation will collaborate with Dangote Foundation to ensure that the country maintains its zero polio case record of the past one year. If the effort is sustained for another two years, Nigeria will be declared fully free of polio.
FEMI ADESINA
SPECIAL ADVISER, MEDIA AND PUBLICITY
JULY 21,2015
How U.S. will help Nigeria recover loot, fight corruption – Presidency
Muhammadu Buhari in handshake with Barack Obama
The United States government has agreed to assist Nigeria recover all identified ill-gotten wealth within the U.S., and from other nations where it has jurisdiction, the Nigerian presidency said Tuesday.
The American government will also train Nigerian judicial staff and prosecutors as part of efforts to tackle corruption in Nigeria.
The assurances emerged from a meeting between President Muhammadu Buhari and the United States Attorney-General, Loretta Lynch, on the subject of support for the war on corruption in Nigeria.
A statement by Mr. Buhari’s spokesperson, Garba Shehu, said the two nations agreed that the Mutual Legal Assistance Treaty signed between the two countries in 1985 which came into effect in 2003 be given some teeth.
“There will be collaboration. Each of the two countries will receive legal assistance from the other on criminal matters and that should cover the recovery of ill-gotten wealth. On extradition, we already have a treaty with U.S. By virtue of being a former British colonial territory,” the statement said.
“There is however the possibility that Nigeria might negotiate a new extradition treaty to meet our other requirements. The negotiation will be done under the auspices of a ‘reenergized’ U.S-Nigeria Bi-National Commission.”
President Buhari is on a four-day official visit to the U.S. He met with President Barack Obama and Vice President Joe Biden on Monday.
Mr. Biden assured of the goodwill of his country in rebuilding the Nigerian economy, but observed that corruption and weak institutions must be tackled, if Nigeria was to benefit from reforms.
He advised President Buhari to appoint only seasoned technocrats to manage key sectors of the Nigerian economy.
The American government will also train Nigerian judicial staff and prosecutors as part of efforts to tackle corruption in Nigeria.
The assurances emerged from a meeting between President Muhammadu Buhari and the United States Attorney-General, Loretta Lynch, on the subject of support for the war on corruption in Nigeria.
A statement by Mr. Buhari’s spokesperson, Garba Shehu, said the two nations agreed that the Mutual Legal Assistance Treaty signed between the two countries in 1985 which came into effect in 2003 be given some teeth.
“There will be collaboration. Each of the two countries will receive legal assistance from the other on criminal matters and that should cover the recovery of ill-gotten wealth. On extradition, we already have a treaty with U.S. By virtue of being a former British colonial territory,” the statement said.
“There is however the possibility that Nigeria might negotiate a new extradition treaty to meet our other requirements. The negotiation will be done under the auspices of a ‘reenergized’ U.S-Nigeria Bi-National Commission.”
President Buhari is on a four-day official visit to the U.S. He met with President Barack Obama and Vice President Joe Biden on Monday.
Mr. Biden assured of the goodwill of his country in rebuilding the Nigerian economy, but observed that corruption and weak institutions must be tackled, if Nigeria was to benefit from reforms.
He advised President Buhari to appoint only seasoned technocrats to manage key sectors of the Nigerian economy.
Inside the oil deals that cost Nigeria billions
Despite elaborate efforts to sweep it under the carpet, facts have shown that a strategic alliance agreement between the Nigerian Petroleum Development Company (NPDC) and Atlantic Energy Drilling Concepts Nigeria Limited Limited (AEDCNL) has helped parties in the agreement to swindle the country. After wide-ranging investigations, Assistant Editor ADEKUNLE YUSUF uncovers the details of the deal that set back the country by about $2b
It is an adventure laced with shoddiness. That perhaps is the most fitting silhouette for the Strategic Alliance Agreement (SAA) between the Nigerian Petroleum Development Company (NPDC) and Atlantic Energy Drilling Concept Nigeria Limited. From all available documentary evidence, the SAA, which paved the way for Atlantic Energy to operate some oil blocks during the administration of former President Goodluck Jonathan, has left the country short-changed of about $2billion, excluding hundreds of millions of dollars as bank loans and money owed to workers and contractors. After four years of the alliance, everything suggests that NPDC and Atlantic Energy owe Nigerians a lot of explanations regarding how some oil blocks – OMLs 26, 30, 34, 42, 60, 61, 62 and 63 – were handled between 2011 and 2014, including outright theft of proceeds from all the millions of barrels of crude oil lifted during in the four years.
A portfolio company
Like a well-choreographed movie, it all started on a measured pace. On July 19, 2010, Atlantic Energy Drilling Concept Limited (AEDCNL) was incorporated as a portfolio company. That was barely three months after Mrs Diezani Alison-Madueke, former Minister of Petroleum Resources, assumed office after her redeployment from Mines and Steel Development Ministry. Curiously, the company changed its name to Atlantic Energy Drilling Concepts Nigeria Limited (AEDCNL) on October 27, 2011. However, Atlantic Energy, even without prior record of successful experience in the oil and gas sector, announced that it had entered into a Strategic Alliance Agreement (SAA) with the Nigerian Petroleum Development Company (NPDC) in April 2011. That was exactly six months before AEDCNL was legally born. In a capsule, the company that claimed to have signed the SAA with NPDC was not legally in existence when the deal was shoddily consummated in April 2011. As unknown portfolio company, Atlantic Energy was operating from a temporary office accommodation before it opened office in 2012 at 32a Adetokunbo Ademola Street, Victoria Island, Lagos, after the NPDC fortune had smiled on it. With the NPDC contract in its kitty, Atlantic Energy embarked on a massive recruitment exercise, poaching good hands in the oil industry, which it used to actualise its planned scheme to play big in Nigeria’s highly shady oil and gas sector.
But all that never dissuaded partners in the deal from embarking on a hot business romance at the expense of the country. The SAA covered 4 Oil blocks: OML 26 – FHN; OML 30 Shoreline; OML 34 – Niger Delta Oil, and OML 42 Neconde, all sold by Shell /Agip and Total. It was obvious that the NPDC granted the SAA in absolute secrecy without following any due process as stipulated in the government procurement laws and policy. With the sale of the four oil blocks, in which the Federal Government owns 55 per cent, the National Petroleum Investment Management Services (NAPIMS), which oversees national investments in Joint Venture Companies (JVCs), Production Sharing Companies (PSCs), and Services and Services Contract Companies (SCs), transferred the ownership to NPDC as the upstream producing arm of the NNPC. Although the NPDC should have paid NAPIMS a signature bonus, no payment was made, leading to a loss of asset by the federation and loss of revenue that should have accrued to national coffers. This was confirmed by the recent PwC audit report, which audited remittances from NNPC to the Federation Account after the allegations by Sanusi Lamido Sanusi, former governor of the Central Bank of Nigeria (CBN) who is now the emir of Kano. The audit findings showed that remittances into the Federation Account were not up to date.
An unholy alliance?
The SAA is to enable Atlantic Energy provide fund and technical services and lift oil. Being a funding mechanism, the SAA is meant to enable the owner (NPDC) to accept its strategic partner (Atlantic Energy) to partake in the production sharing of the oil field at a fee called signature bonus, while the strategic partner is expected in return to fund the operations and provide technical support so that it can be reimbursed directly from the production in subsequent periods. Although a good idea that is said to be critical to the survival of the country’s oil and gas industry, the SAA was obviously not managed in the national interest, for it has helped parties in the deal to embark on a stealing spree of public fund after production liftings.
Up till now, industry watchers are still in a shock over how NPDC, which is peopled with some of the best engineers and technical experts, granted the SAA to a company that paraded no track record of requisite experience in the sector – all without following any process as stipulated in the government procurement laws and policy. Besides documentary evidence, findings within the sector showed that the deal was an unholy arrangement between Alison-Madueke, top NPDC officials and the duo of Kola Aluko, who is a known business ally of the ex-Minister, and Jide Omokore, a controversial business mogul who is a Peoples Democratic Party (PDP) stalwart, financier and kingmaker to some governors as well as many senators and members in the House of Representatives. Aluko and Mrs Alison-Madueke have denied any business ties.
Of the two promoters of Atlantic Energy, Omokore had no easily traceable previous experience in the oil and gas industry, while Aluko had.
However, drawing on its connections in high places, Atlantic Energy swung into plum business, having won the hearts of those at the helms of affairs – from the ministry and the Presidency. As contained in the SAA document, Atlantic Energy was supposed to pay a signature bonus of $245 million to NPDC, but it ended up paying $135 million – no thanks to legal terminology and simple mathematics that only parties in the deal could explain. The balance was remitted to the account of unknown people.
Inside the raw deals
Atlantic Energy approached two Nigerian banks for loans. Going by the books of Atlantic Energy, the loans were meant for the payment of signature bonus and cash calls to NPDC. Therefore, in 2011, it took a loan of $490million, with First Bank contributing $370million and Skye Bank $120million. At the beginning of the deal, Atlantic Energy actually paid the signature bonus of $135 and cash calls of $68 to NPDC from the loan, totalling $203 million out of $490million lifeline provided by the two banks.
But another weighty, if not damning evidence that was to expose the shoddiness of the SAA came in the early life of the deal. In 2011, shortly after securing the juicy contract, it was NPDC that lifted crude oil (947,096 barrels) on behalf of Atlantic Energy and remitted $102m into the coffers of its strategic partner; instead of Atlantic Energy to lift oil and remit proceeds. Why? It was because Atlantic Energy, a mere portfolio company at the time it was handed the sweetheart contract, was still too new and untested to even secure an export permit for such a venture as at the time, thus showing the level of involvement of the top echelons of the Petroleum Ministry and NPDC officials.
A detailed scrutiny of the cash calls schedules and other papers also showed that the plundering galore continued till 2012 and 2013. For example, in 2012 alone, Atlantic Energy paid cash calls worth $168m, but lifted crude oil of about 3million barrels valued, conservatively at over $350 million. Despite the differentials in remittances, NPDC continued to look the other way as Atlantic Energy lifted about 2million barrels of crude oil in 2013, valued at about $240million, but paid cash calls of $68million. In 2014, records also revealed that Atlantic Energy paid zero cash calls and lifted about 500,000 barrels of crude oil, valued at $54 million, with all the funs siphoned abroad as payments for vendors sources say are phony.
Again, the promoters incorporated the Atlantic Brass Development Company Limited on February 5, 2013. As usual, it was hurriedly granted another set of SAA. The SAA covered another set of 4 blocks: OML – 60; OML – 61; OML – 62; OML – 63. Unlike in the previous deals in 2011 and 2012, when it paid a fraction of obligatory funds, the company simply pocketed all the proceeds, paying pay no signature bonus or any cash calls at all despite lifting about 8 million barrels of crude oil, valued at $800 million at the time. Instead various amounts of money were transferred to the accounts and investment companies in UK, Dubai and Switzerland. They also opened mirror accounts of Atlantic Energy Brass in the UK and Switzerland (see the table on foreign accounts).
However, with the fall of the administration of Jonathan, the chicken seemed to have come home to roost, as the NPDC, which seemed to have condoned all the infractions of its strategic partner, has suddenly woken from slumber. In a letter from NPDC, dated May 6, Atlantic Energy was asked to pay its outstanding indebtedness OMLs 26, 30, 34, and 42, totalling $573,668,090 (five hundred and seventy three million, six hundred and sixty eight thousand, ninety dollars).
“This is to inform you that we have not yet received any payment on outstanding cash call obligations after our reconciliation sign-off, dated August 28, last year. Kindly remit the sum of $573,668,090 (five hundred and seventy three million, six hundred and sixty eight thousand, ninety dollars) only, being amount due to OMLs 26, 30, 34, and 42,” said the NPDC.
An analysis of the reconciliation sheet revealed that the $573,668,090 was just a fraction of the cash calls, as some huge returns that were yet to be subjected to technical and financials by the two parties were not included.
But the bad state of finances on OMLs 26, 30, 34, and 42 paled when compared with that on OMLs 60, 61, 62 and 63 where Atlantic Energy owes NPDC a staggering $1,250,644,474.54 (one billion, two hundred and fifty million, six hundred and forty four thousand, four hundred and seventy four dollars).
In another letter from NPDC, dated May 6, Atlantic Energy was reminded of its outstanding indebtedness.
“This is to inform you that we have not yet received any payment outstanding cash call obligations after our reconciliation sign-off, dated August 28, 2014. Kindly remit the sum of $1,250,644,474.54 (one billion, two hundred and fifty million, six hundred and forty four thousand, four hundred and seventy four dollars) only, being amount due on OMLs 60, 61, 62 and 63,” the letter said.
Atlantic Energy has also defaulted on the bank loans from First Bank Plc and Skye Bank. Instead of moving the proceeds of the liftings to the two banks to repay the loans and pay the obligatory cash calls, Atlantic Energy has transferred the funds through various related party companies. As at now, the loans have not been paid while the mounting interest element is also long overdue.
In a letter from Skye Bank, dated April 10, Atlantic Energy was reminded of repayment its outstanding obligations ($39,232,428.16) on the $120 million loan facility it took from the bank.
“Kindly refer to our various correspondence and discussions regarding your outstanding obligations on the above subject facility ($120 million). This is to remind you that the total sum of $39,232,428.16 plus accrued interest is past overdue for payment on your facility,” the letter said.
The letter was signed by Tutu Alu, manager, corporate banking group, and Tosin Faniro-Dada, relationship officer, corporate banking group.
Another letter from First Bank, dated February 20, tacitly refused a request from Atlantic Energy seeking to restructure the loan facilities it has received from the bank, hinging it on some stringent conditions.
“We refer to the meeting held on 19th February 2015 and your request for a restructure of your facilities coupled with lenders’ consent to change the ownership structure of Atlantic Energy. We wish to state that, even as we are mindful of the set timeline, we are constrained to progress your request further until we receive the following documents: (1) copy of the executed NPDC/Atlantic Energy reconciliation, (2) copy of executed NPDC repayment plan, (3) addendum to the SAA, (4) NPDC consent to the restructure of the company.”
The FBN letter also included the following conditions that must be met before considering Atlantic Energy’s request: “provision of standby Letter of LC to secure crude oil liftings, and payment of all overdue obligations, coupled with the injection of $100 million to reduce exposure to lenders.”
The letter was signed by Deji Abisola, business manager, corporate banking group (energy and utilities), and Jide Ayeronwi, group head, corporate banking group, (energy and utilities).
Also, in spite of the billions of dollars it has enjoyed over the years, Atlantic Energy has not filed its accounts with the Federal Inland Revenue Service (FIRS) as stipulated by law. Using an influential lawyer, who sources said is the company’s legal backbone, Atlantic Energy has continued to hold on to the legal advice that it is not liable to tax.
In a letter from FIRS, dated February 17 , Atlantic Energy was warned of the consequences of its refusal to submit the accounts and returns within the next ten days. It was signed by the duo of Okeowo Taiwo, and Ocheja E.F., FIRS’ manager (tax) and deputy manger (tax) respectively.
It reads: “It is worrisome to note that we are yet to receive the draft accounts/returns as promised. Let me remind you that the accounts/returns are long overdue for submission. You are advised to submit the accounts/returns within 10 days from the date of receiving this letter, failing which FIRS shall enforce compliance with the relevant tax laws.”
Transfers, cash withdrawals
Sadly, a company that could not meet its financial obligations was on a spending binge, with its directors living ostentatiously (owing private jets and armoured jeeps) and transferring huge sums – sometimes in billions and millions of naira and dollars – into accounts of both local and foreign organisations. And if the local transfers raised some red flags, so were the numerous transfers of millions to foreign accounts (see a table on foreign accounts) of Expedia Marine Company Limited, Energy Property Development Ltd, Petrochemicals Offshore, SPOG Petrochemicals Limited, Premium Aviation Services Ltd, Ibalex Nigeria Limited, and numerous others, where funds were paid at different times.
Interestingly, Atlantic Energy is enmeshed in huge debts – albeit self-imposed. But it seems the embattled company is not ready to go down alone. Not only has it closed its office, it also did not pay its staff for more than one year. It has equally defaulted in the payment of workers’ pension and PAYEs, leading to a mass resignation crisis that swept the company even before it closed its shop recently. Even business partners were not left out, as Atlantic Energy, which kept booking flight tickets and enjoying services from international and reputable companies, did not meet its obligations to its numerous clients, wrecking havoc on several businesses. Now, Atlantic Energy owes NPDC about $2billion, banks $550million, workers $5million, and other vendors $20million. This explains why the banks as well as NPDC appear helpless, as Atlantic Energy is frantically looking for investors to buy the company and the massive debts to boot.
The Nation learnt that the promoters of Atlantic Energy are negotiating a soft-landing with some people that are very close to the corridors of power with a view to refunding a paltry amount. Their stratagem is to sway the new administration to avoid the “unnecessary controversies” that a probe may generate so that they can be asked to go and sin no more. As part of a grand strategy to achieve their objective, some foot soldiers have been enlisted, including some highly-placed Nigerians, to reach out to President Muhammadu Buhari to strike a deal on their behalf, fearing that any inquiry into the books of NPDC and other agencies in the highly opaque oil and gas sector will most likely unearth a can of worms. Will President Buhari, who is widely revered as an incorruptible man, allow them to walk away free after what seems like clear financial crimes against the country? Time will tell
It is an adventure laced with shoddiness. That perhaps is the most fitting silhouette for the Strategic Alliance Agreement (SAA) between the Nigerian Petroleum Development Company (NPDC) and Atlantic Energy Drilling Concept Nigeria Limited. From all available documentary evidence, the SAA, which paved the way for Atlantic Energy to operate some oil blocks during the administration of former President Goodluck Jonathan, has left the country short-changed of about $2billion, excluding hundreds of millions of dollars as bank loans and money owed to workers and contractors. After four years of the alliance, everything suggests that NPDC and Atlantic Energy owe Nigerians a lot of explanations regarding how some oil blocks – OMLs 26, 30, 34, 42, 60, 61, 62 and 63 – were handled between 2011 and 2014, including outright theft of proceeds from all the millions of barrels of crude oil lifted during in the four years.
A portfolio company
Like a well-choreographed movie, it all started on a measured pace. On July 19, 2010, Atlantic Energy Drilling Concept Limited (AEDCNL) was incorporated as a portfolio company. That was barely three months after Mrs Diezani Alison-Madueke, former Minister of Petroleum Resources, assumed office after her redeployment from Mines and Steel Development Ministry. Curiously, the company changed its name to Atlantic Energy Drilling Concepts Nigeria Limited (AEDCNL) on October 27, 2011. However, Atlantic Energy, even without prior record of successful experience in the oil and gas sector, announced that it had entered into a Strategic Alliance Agreement (SAA) with the Nigerian Petroleum Development Company (NPDC) in April 2011. That was exactly six months before AEDCNL was legally born. In a capsule, the company that claimed to have signed the SAA with NPDC was not legally in existence when the deal was shoddily consummated in April 2011. As unknown portfolio company, Atlantic Energy was operating from a temporary office accommodation before it opened office in 2012 at 32a Adetokunbo Ademola Street, Victoria Island, Lagos, after the NPDC fortune had smiled on it. With the NPDC contract in its kitty, Atlantic Energy embarked on a massive recruitment exercise, poaching good hands in the oil industry, which it used to actualise its planned scheme to play big in Nigeria’s highly shady oil and gas sector.
But all that never dissuaded partners in the deal from embarking on a hot business romance at the expense of the country. The SAA covered 4 Oil blocks: OML 26 – FHN; OML 30 Shoreline; OML 34 – Niger Delta Oil, and OML 42 Neconde, all sold by Shell /Agip and Total. It was obvious that the NPDC granted the SAA in absolute secrecy without following any due process as stipulated in the government procurement laws and policy. With the sale of the four oil blocks, in which the Federal Government owns 55 per cent, the National Petroleum Investment Management Services (NAPIMS), which oversees national investments in Joint Venture Companies (JVCs), Production Sharing Companies (PSCs), and Services and Services Contract Companies (SCs), transferred the ownership to NPDC as the upstream producing arm of the NNPC. Although the NPDC should have paid NAPIMS a signature bonus, no payment was made, leading to a loss of asset by the federation and loss of revenue that should have accrued to national coffers. This was confirmed by the recent PwC audit report, which audited remittances from NNPC to the Federation Account after the allegations by Sanusi Lamido Sanusi, former governor of the Central Bank of Nigeria (CBN) who is now the emir of Kano. The audit findings showed that remittances into the Federation Account were not up to date.
An unholy alliance?
The SAA is to enable Atlantic Energy provide fund and technical services and lift oil. Being a funding mechanism, the SAA is meant to enable the owner (NPDC) to accept its strategic partner (Atlantic Energy) to partake in the production sharing of the oil field at a fee called signature bonus, while the strategic partner is expected in return to fund the operations and provide technical support so that it can be reimbursed directly from the production in subsequent periods. Although a good idea that is said to be critical to the survival of the country’s oil and gas industry, the SAA was obviously not managed in the national interest, for it has helped parties in the deal to embark on a stealing spree of public fund after production liftings.
Up till now, industry watchers are still in a shock over how NPDC, which is peopled with some of the best engineers and technical experts, granted the SAA to a company that paraded no track record of requisite experience in the sector – all without following any process as stipulated in the government procurement laws and policy. Besides documentary evidence, findings within the sector showed that the deal was an unholy arrangement between Alison-Madueke, top NPDC officials and the duo of Kola Aluko, who is a known business ally of the ex-Minister, and Jide Omokore, a controversial business mogul who is a Peoples Democratic Party (PDP) stalwart, financier and kingmaker to some governors as well as many senators and members in the House of Representatives. Aluko and Mrs Alison-Madueke have denied any business ties.
Of the two promoters of Atlantic Energy, Omokore had no easily traceable previous experience in the oil and gas industry, while Aluko had.However, drawing on its connections in high places, Atlantic Energy swung into plum business, having won the hearts of those at the helms of affairs – from the ministry and the Presidency. As contained in the SAA document, Atlantic Energy was supposed to pay a signature bonus of $245 million to NPDC, but it ended up paying $135 million – no thanks to legal terminology and simple mathematics that only parties in the deal could explain. The balance was remitted to the account of unknown people.
Inside the raw deals
Atlantic Energy approached two Nigerian banks for loans. Going by the books of Atlantic Energy, the loans were meant for the payment of signature bonus and cash calls to NPDC. Therefore, in 2011, it took a loan of $490million, with First Bank contributing $370million and Skye Bank $120million. At the beginning of the deal, Atlantic Energy actually paid the signature bonus of $135 and cash calls of $68 to NPDC from the loan, totalling $203 million out of $490million lifeline provided by the two banks.
But another weighty, if not damning evidence that was to expose the shoddiness of the SAA came in the early life of the deal. In 2011, shortly after securing the juicy contract, it was NPDC that lifted crude oil (947,096 barrels) on behalf of Atlantic Energy and remitted $102m into the coffers of its strategic partner; instead of Atlantic Energy to lift oil and remit proceeds. Why? It was because Atlantic Energy, a mere portfolio company at the time it was handed the sweetheart contract, was still too new and untested to even secure an export permit for such a venture as at the time, thus showing the level of involvement of the top echelons of the Petroleum Ministry and NPDC officials.
A detailed scrutiny of the cash calls schedules and other papers also showed that the plundering galore continued till 2012 and 2013. For example, in 2012 alone, Atlantic Energy paid cash calls worth $168m, but lifted crude oil of about 3million barrels valued, conservatively at over $350 million. Despite the differentials in remittances, NPDC continued to look the other way as Atlantic Energy lifted about 2million barrels of crude oil in 2013, valued at about $240million, but paid cash calls of $68million. In 2014, records also revealed that Atlantic Energy paid zero cash calls and lifted about 500,000 barrels of crude oil, valued at $54 million, with all the funs siphoned abroad as payments for vendors sources say are phony.
Again, the promoters incorporated the Atlantic Brass Development Company Limited on February 5, 2013. As usual, it was hurriedly granted another set of SAA. The SAA covered another set of 4 blocks: OML – 60; OML – 61; OML – 62; OML – 63. Unlike in the previous deals in 2011 and 2012, when it paid a fraction of obligatory funds, the company simply pocketed all the proceeds, paying pay no signature bonus or any cash calls at all despite lifting about 8 million barrels of crude oil, valued at $800 million at the time. Instead various amounts of money were transferred to the accounts and investment companies in UK, Dubai and Switzerland. They also opened mirror accounts of Atlantic Energy Brass in the UK and Switzerland (see the table on foreign accounts).However, with the fall of the administration of Jonathan, the chicken seemed to have come home to roost, as the NPDC, which seemed to have condoned all the infractions of its strategic partner, has suddenly woken from slumber. In a letter from NPDC, dated May 6, Atlantic Energy was asked to pay its outstanding indebtedness OMLs 26, 30, 34, and 42, totalling $573,668,090 (five hundred and seventy three million, six hundred and sixty eight thousand, ninety dollars).
“This is to inform you that we have not yet received any payment on outstanding cash call obligations after our reconciliation sign-off, dated August 28, last year. Kindly remit the sum of $573,668,090 (five hundred and seventy three million, six hundred and sixty eight thousand, ninety dollars) only, being amount due to OMLs 26, 30, 34, and 42,” said the NPDC.
An analysis of the reconciliation sheet revealed that the $573,668,090 was just a fraction of the cash calls, as some huge returns that were yet to be subjected to technical and financials by the two parties were not included.
But the bad state of finances on OMLs 26, 30, 34, and 42 paled when compared with that on OMLs 60, 61, 62 and 63 where Atlantic Energy owes NPDC a staggering $1,250,644,474.54 (one billion, two hundred and fifty million, six hundred and forty four thousand, four hundred and seventy four dollars).
In another letter from NPDC, dated May 6, Atlantic Energy was reminded of its outstanding indebtedness.
“This is to inform you that we have not yet received any payment outstanding cash call obligations after our reconciliation sign-off, dated August 28, 2014. Kindly remit the sum of $1,250,644,474.54 (one billion, two hundred and fifty million, six hundred and forty four thousand, four hundred and seventy four dollars) only, being amount due on OMLs 60, 61, 62 and 63,” the letter said.Atlantic Energy has also defaulted on the bank loans from First Bank Plc and Skye Bank. Instead of moving the proceeds of the liftings to the two banks to repay the loans and pay the obligatory cash calls, Atlantic Energy has transferred the funds through various related party companies. As at now, the loans have not been paid while the mounting interest element is also long overdue.
In a letter from Skye Bank, dated April 10, Atlantic Energy was reminded of repayment its outstanding obligations ($39,232,428.16) on the $120 million loan facility it took from the bank.
“Kindly refer to our various correspondence and discussions regarding your outstanding obligations on the above subject facility ($120 million). This is to remind you that the total sum of $39,232,428.16 plus accrued interest is past overdue for payment on your facility,” the letter said.
The letter was signed by Tutu Alu, manager, corporate banking group, and Tosin Faniro-Dada, relationship officer, corporate banking group.
Another letter from First Bank, dated February 20, tacitly refused a request from Atlantic Energy seeking to restructure the loan facilities it has received from the bank, hinging it on some stringent conditions.
“We refer to the meeting held on 19th February 2015 and your request for a restructure of your facilities coupled with lenders’ consent to change the ownership structure of Atlantic Energy. We wish to state that, even as we are mindful of the set timeline, we are constrained to progress your request further until we receive the following documents: (1) copy of the executed NPDC/Atlantic Energy reconciliation, (2) copy of executed NPDC repayment plan, (3) addendum to the SAA, (4) NPDC consent to the restructure of the company.”
The FBN letter also included the following conditions that must be met before considering Atlantic Energy’s request: “provision of standby Letter of LC to secure crude oil liftings, and payment of all overdue obligations, coupled with the injection of $100 million to reduce exposure to lenders.”
The letter was signed by Deji Abisola, business manager, corporate banking group (energy and utilities), and Jide Ayeronwi, group head, corporate banking group, (energy and utilities).
Also, in spite of the billions of dollars it has enjoyed over the years, Atlantic Energy has not filed its accounts with the Federal Inland Revenue Service (FIRS) as stipulated by law. Using an influential lawyer, who sources said is the company’s legal backbone, Atlantic Energy has continued to hold on to the legal advice that it is not liable to tax.
In a letter from FIRS, dated February 17 , Atlantic Energy was warned of the consequences of its refusal to submit the accounts and returns within the next ten days. It was signed by the duo of Okeowo Taiwo, and Ocheja E.F., FIRS’ manager (tax) and deputy manger (tax) respectively.
It reads: “It is worrisome to note that we are yet to receive the draft accounts/returns as promised. Let me remind you that the accounts/returns are long overdue for submission. You are advised to submit the accounts/returns within 10 days from the date of receiving this letter, failing which FIRS shall enforce compliance with the relevant tax laws.”
Transfers, cash withdrawals
Sadly, a company that could not meet its financial obligations was on a spending binge, with its directors living ostentatiously (owing private jets and armoured jeeps) and transferring huge sums – sometimes in billions and millions of naira and dollars – into accounts of both local and foreign organisations. And if the local transfers raised some red flags, so were the numerous transfers of millions to foreign accounts (see a table on foreign accounts) of Expedia Marine Company Limited, Energy Property Development Ltd, Petrochemicals Offshore, SPOG Petrochemicals Limited, Premium Aviation Services Ltd, Ibalex Nigeria Limited, and numerous others, where funds were paid at different times.
Interestingly, Atlantic Energy is enmeshed in huge debts – albeit self-imposed. But it seems the embattled company is not ready to go down alone. Not only has it closed its office, it also did not pay its staff for more than one year. It has equally defaulted in the payment of workers’ pension and PAYEs, leading to a mass resignation crisis that swept the company even before it closed its shop recently. Even business partners were not left out, as Atlantic Energy, which kept booking flight tickets and enjoying services from international and reputable companies, did not meet its obligations to its numerous clients, wrecking havoc on several businesses. Now, Atlantic Energy owes NPDC about $2billion, banks $550million, workers $5million, and other vendors $20million. This explains why the banks as well as NPDC appear helpless, as Atlantic Energy is frantically looking for investors to buy the company and the massive debts to boot.
The Nation learnt that the promoters of Atlantic Energy are negotiating a soft-landing with some people that are very close to the corridors of power with a view to refunding a paltry amount. Their stratagem is to sway the new administration to avoid the “unnecessary controversies” that a probe may generate so that they can be asked to go and sin no more. As part of a grand strategy to achieve their objective, some foot soldiers have been enlisted, including some highly-placed Nigerians, to reach out to President Muhammadu Buhari to strike a deal on their behalf, fearing that any inquiry into the books of NPDC and other agencies in the highly opaque oil and gas sector will most likely unearth a can of worms. Will President Buhari, who is widely revered as an incorruptible man, allow them to walk away free after what seems like clear financial crimes against the country? Time will tell
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