Nigeria: U.S.$190 Million Frozen in UK and Switzerland in OPL 245 Bribery Case As Eni CEO Is Named As Suspect

press release

Global Witness, Re: Common and Dotun Oloko welcome the freezing of funds as part of the continuing investigation into the deal for the OPL 245 oil block in Nigeria. Italian authorities are investigating the acquisition of the Nigerian oil block OPL 245 for which subsidiaries of Eni and Royal Dutch Shell agreed to pay US$1.1billion in 2011.
Shell and ENI have claimed that they only paid the Nigerian Government. Eni has said in a statement that "Eni continues to deny any illegal conduct" and "Eni is cooperating with the Milan prosecutor's office, and is confident that the correctness of its actions will emerge during the course of the investigation."
The funds frozen today are thought to be held by Malabu and its middleman Energy Venture Partners.
"The freezing of $190m in proceeds from the OPL 245 oil deal is good news for the people of Nigeria many of whom live in poverty despite the country's oil wealth. $1.1bn was diverted from the public purse, this needs to be recovered as well as get to the bottom of the role companies and individuals played in this heist." Said Dotun Oloko, a Nigerian anti-corruption activist.
"This case shows precisely why the Securities and Exchange Commission (SEC) in the United States needs to establish a strong transparency rule for provision 1504 of the Dodd Frank Act.
This will require companies to disclose their payments for oil projects so that they don't go missing. Had an operational rule for 1504 been in place in April 2011, when the deal for OPL-245 was concluded, this would have shed crucial light on a process that was conducted hidden away behind closed doors." Said Simon Taylor, Global Witness director.
"The naming of Claudio Descalzi, ENI's new CEO, its outgoing CEO Paolo Scaroni and Roberto Casula its Chief development, operations and technology officer as suspects in the Italian bribery investigation should raise concerns in Italy about ethics standards in state owned companies.
Today's news demonstrates our concerns around Descalzi's controversial appointment and represents a further setback for the Italian government which failed to achieve reform in a vote at the company AGM. Bold action against alleged mismanagement by ENI managers is urgently needed." Said Antonio Tricarico, programme director, Re: Common
CONTACTS:
Barnaby Pace, Oil Team, Global Witness bpace@globalwitness.org +44 7525 592 738
Simon Taylor, Director, Global Witness staylor@globalwitness.org +44 7957 142 121
Antonio Tricarico, Programme Director, Re: Common atricarico@recommon.org , +39 328 84 85 448
INFOGRAHPIC:
'What Nigerians could have done with $1.1bn?' - Available here: http://www.globalwitness.org/shellagm/
NOTES TO EDITOR:
1. Shell and Eni have denied paying money to Malabu. Indeed they did pay the money to the Nigerian government. However court evidence has revealed that Shell and ENI knew that the payment was going to Malabu and had negotiated directly with former oil minister Chief Dan Etete an owner of the company who awarded Malabu the block in 1998 while in office.
2. Global Witness together with Re: Common and Nigerian anti-corruption activist Dotun Oloko has asked for action over these funds in the past and commented on the investigation, please see our previous publications for further details:
Italian authorities raid ENI in fresh investigation into billion dollar Nigerian oil scandal, 4 July 2014 http://www.globalwitness.org/library/italian-authorities-raid-eni-fresh-investigation-billion-dollar-nigerian-oil-scandal
UK Crown Prosecution Service fails to block proceeds of corrupt Nigerian oil deal, 5 June 2014, http://www.globalwitness.org/library/uk-crown-prosecution-service-fails-block-proceeds-corrupt-nigerian-oil-deal
New head of Italian oil giant Eni must explain role in corrupt Nigerian oil deal at AGM, 7 May 2014, http://www.globalwitness.org/library/new-head-italian-oil-giant-eni-must-explain-role-corrupt-nigerian-oil-deal-agm
Corrupt Nigerian oil deal loot to be distributed by UK Court, 25 March 2014, http://www.globalwitness.org/library/corrupt-nigerian-oil-deal-loot-be-distributed-uk-court
3. In the July 2013 UK High Court case of Energy Venture Partners Versus Malabu Oil and Gas, Lady Justice Gloster of the Queen's Bench Division, Commercial Court ruled, "I find as a fact that, from its incorporation and at all material times, Chief Etete had a substantial beneficial interest in Malabu", Approved Judgement, Case 2011 FOLIO-792 17 July 2013.
The Nigerian House of Representatives investigation into the case also found Dan Etete is the 30% owner of Malabu. See also Global Witness, 25 November 2013, "The Scandal of Nigerian Oil Block OPL 245", http://www.globalwitness.org/library/scandal-nigerian-oil-block-opl-245 4. ENI's statement is available at http://www.eni.com/en_IT/media/press-releases/2014/09/2014-09-11-opl-245.shtml?home_2010_en_tab=editorial

BREAKING NEWS: 65 houses razed, scores injured as PDP supporters clash in Benue

ABOUT 65 houses were razed, yesterday, rendering many homeless with others injured as People’s Democratic Party, PDP, supporters clashed in Loko, Katsina-Ala Local Government Area of Benue State.
The latest crisis in Katsina-Ala is coming on the heels of moves by the people of Loko and PDP to recall Mrs Hembadon Amena representing Katsina-Ala West constituency in Benue State House of Assembly over alleged anti-party activities.
Vanguard gathered from an eyewitness, who preferred anonymity, that crisis erupted “when a supporter of the embattled lawmaker, Mr. Shiaondo Ukor, who is chairman of Motorcycle Hirers Association at the Daudu unit, allegedly accosted one Teryange, a commercial motorcycle rider and his employee.
“Ukor asked him to hand over the keys of his motorbike to him on the ground that he (Teryange) disrespected him by joining forces with some people to unseat Mrs. Amena.
“As the two argued to a point of exchanging blows, they attracted the attention of passers-by who joined the fray and the fight escalated.”
According to the source, Mr. Ukor was alleged to have moved with his supporters to the home of the youth leader of Ugber Mr. Aondoaseer Ornguze and razed down his house after beating up his family members.
The source said: “His action sparked a reprisal attack and further escalation of the fighting and burning down of the houses of notable and vocal members of the party in the area.
“The fighting is still on with many persons injured, while over 65 houses have been razed already, as I speak to you.”
When contacted, the Police Public Relations Officer, PPRO, Deputy Superintendent, DSP, Daniel Ezeala, said he had received reports on the razing of thatched houses in the affected area last night, adding that he was still waiting for full details of the crisis.
On her part, Mrs. Amena confirmed the story, saying the trouble was caused by those who wanted to recall her for no just cause.
She said the matter had been reported to the Police in Katsina-Ala and Makurdi.
READ MORE:  http://news.naij.com/55853.html