The history of state creation in Nigeria is in deed an interesting one. The reason for state creation has remained development and bringing the government nearer the governed. Quite commendable reasons! But like everything else in life that requires resources (whether money, energy, power or whatever), the law of elasticity applies and a threshold comes when state creation becomes counter productive.
With 36 states today who do nothing but converge on Abuja to meet under the aegis of Federal Accounts Allocation Committee, Revenue Mobilisation Allocation and Fiscal Commission, etc to share the federal allocation and many of them heavily indebted to the point they cannot pay salaries, never mind embarking on development projects, we do not need a fortune teller to tell us the house will collapse on us like a pack of cards soon. Please, there should be no new state. Instead the federal government should begin to engage the state governments on how to make governance less expensive, including dissolving the non-viable states, and there are quite a few in this category. There is no pride in insisting on a state when you know you cannot administer it from internally generated revenue.
Nigeria should operate a truly federal system. If this happens many of the states will on their own begin to engage others for mergers if they cannot sustain themselves. It is a natural order. The same law that applies to private businesses, which make them thrive, must be applied to the Nigerian state and government.
- Firm opts for plea bargain, to pay $185m fine
From Laolu Akande, New YorkA FRESH allegation of financial sleaze, reminiscent of the Harlliburton saga, has again turned world’s attention to Nigerian top officials and the Police.
The festering corruption in Nigerian government’s circles caught the attention of the world on Tuesday as the United States (U.S.) government accused top Nigerian officials in Aso Rock, Nigerian Police Force, Ministry of Industry, a former Nigerian diplomat in Brazil, among others, in a multi-million dollar scandal involving a U.S.-owned business, Daimler, the makers of Mercedez Benz cars.
Harlliburton, also a U.S. company recently faced a probe for allegedly bribing top Nigerian officials with $180 million in order to get contracts in Nigeria.
Perhaps in its unwillingness to contest U.S. government corruption charges against it, Daimler, according to reports, is now planning a plea bargain with American prosecutors where the company will pay fines of about $185 million to settle the case which was filed on Tuesday at a Washington DC U.S. District Court.
Court papers showed that the U.S. company making German cars and trucks Ð Daimler AG Ð has been engaging in these acts of corruption in 16 countries of the world, spanning about a decade, from 1998 to 2008, violating U.S. bribery laws by showering foreign officials, including in Nigeria, with millions of dollars and gifts of luxury cars to win business deals.
For instance in Nigeria, the court papers show that Daimler made “improper payments to Nigerian governent officials in order to secure business. These payments were authorised at the highest levels of management, and were either improperly recorded in Daimler’s books and records or were not recorded at all.”
Many of the Nigerian deals by Daimler were through the Anambra Motor Manufacturing Company (ANAMMCO), a joint venture between Daimler and the Nigerian government, according to the court papers.
The papers reveal that in Nigeria, Daimler maintained a file labelled “grellberschreitende Bestechnungen,” which translates as “cross-border briberies.”
“That file contained a memorandum dated January 21, 1999, from the then head of finance…which stated that Daimler charged the State House approximately 21 per cent over the wholesale price for the vehicles, parts, and services,” according to U.S. court filings.
The court filings showed that in exchange for sales at the Nigerian presidency, referred to as State House in the paper “in 1998, Daimler entered into a contract to sell vehicles to the Nigerian State House, which was also known as the Nigerian Presidential Complex, and was the office and residence of the Nigerian President (the “State House Contract”).
Specifically, on October 5, 1998, the ANAMMCO executive, on behalf of Daimler, agreed to sell 23 new Mercedes Benz passenger vehicles to the State House for DM15,882,302. Additionally, a used MB 600 Pullman limousine was armoured and sold to the Nigerian State House for $365,000. The State House contract was signed by a State House official on behalf of the Nigerian government, and by the ANAMMCO executive. These vehicles were intended for use by high-level members of the Executive branch of the Nigerian governent.
Again, the filings stated that “the State House paid Daimler $359,985 for the MB Pullman on December 4, 1998, and DM15,882,317 for the cars on December 14, 1998. In connection with these sales to the State House, Daimler made £1,427,242.65 in improper commission payments funded from TPAs-ie Third Party Account, associated with ANAMMCO, with the understanding that these funds would be passed on, in whole or in part, to Nigerian officials to secure the State House Contract.”
Equally, the U.S. court papers stated that payments were made to “then High-Level Executive Branch Official of Nigeria.”
For example in May 1999, at the request of the ANAMMCO executive, Daimler wired DM800,000 from its accounts in Germany to a numbered Swiss bank account. The payment request, according to the court papers, came from the ANAMMCO executive and the “referenced initials … matched those of a then high-level executive branch official of Nigeria … and the funds were debited from an ANAMMCO TPA upon the approval.”
Again in November 1999, Daimler approved payment of DM200,000 to the London bank account of the un-named “Executive Branch official”.
According to the court filings, “this payment was requested by the ANAMMCO executive, approved by the highest level managers and finance personnel …and debited from an ANAMMCO TPA. The payment instructions from the ANAMMCO executive contain the initials “SH” which ANAMMCO employees used as shorthand for the “State House” deal, and related notes by the ANAMMCO executive also referenced initials that matched those of the Executive Branch official.”
Similarly in November 1999, Daimler approved a payment of DM50,000 to the “chief buyer for State House who signed the State House Contract. The payment was requested by the ANAMMCO executive, approved by senior management and finance personnel, and debited to an ANAMMCO TPA. The payment instructions made reference to “SH.”
There were also alleged cash payments made to different government officials in Aso Rock.
According to U.S. prosecutors, “Daimler also made a variety of cash payments to the ANAMMCO executive in connection with State House transactions. For example, on June 27, 1999, the ANAMMCO executive sent a facsimile…requesting that DM400,000 in cash be disbursed to him against a debtor account used for the State House transaction. The payment instruction indicated that the ANAMMCO executive would pick up the funds when he arrived “on the occasion of the advised visit of (the Executive Branch official).”
Also on March 22, 2000, the ANAMMCO executive requested that Daimler “disburse DM50,000 in cash, which was to be used to make payments to a delegation of State House officials who were visiting a Daimler factory in Sindelfingen, Germany.”
Later that year on October 30, 2000, the ANAMMCO executive again “requested that Daimler disburse DM40,000 in cash”. In connection with this request, Daimler employees prepared a payment instruction referencing “Spare Parts State House.” The payment was debited to an ANAMMCO TPA.”
Similar payments of large bribes were also listed as paid to Nigeria Police Force (NPF) officials, including a bribe of DM150,000 paid in June 17, 2000 and another DM50,000 paid later that year in October 20 in connection with the NPF’s purchase of a Master Lift.
In May 1999, Daimler also allegedly paid DM126,000 to a Nigerian government official from the Ministry of Industry who had signed a February 12, 1999 FIFA contract on behalf of the ministry. Curiously, Daimler later had to pay another employee in that same ministry another sum of DM18,000, because as the U.S. court paper indicated, that employee had witnessed the first bribery transaction made to the official.
From L-R: Enikanolaiye, Edem, Peters, Eke, Evong, Tafida, Ogunjobi and Agwu after the meeting
Nigerians in Scotland and environ do not have to travel to London any longer for consular services. His Excellency, Dr Dalhatu Sarki Tafida, OFR announced on Tuesday, 18th February 2010 that consular services will start in Scotland immediately. He made this pledge at a meeting with Executives of Inspire Nigeria in his office at the Nigeria House in London . The members of Inspire Nigeria had gone to request the opening of a consulate in Scotland to alleviate the sufferings of Nigerians and foreigners who have to make the long trip to London for passports and visas respectively.
The meeting was also an avenue to discuss preparations for Nigeria ’s 50th anniversary celebrations in the United Kingdom . Dr Dalhatu announced that a consulate will be opened in Scotland as requested and pledged government’s readiness to do anything in her power to give Nigerians the class of service they deserve. Pending when the consulate is established, mobile consular services will start so people requiring consular services do not have to travel to London any longer. The modalities for delivery of the services will be agreed between Inspire Nigeria and the High Commission in the next couple of weeks.
Inspire Nigeria used the occasion of the meeting to commend the High Commissioner for the improved services Nigerians now receive and the facelift Nigeria House has undergone since he assumed office. They asked that he continue the good work. The officials also commended the National Assembly, FEC and Nigerians in general over the handling of the power transition in Nigeria and pledged to keep praying for President Umaru Musa Yar’Adua’s quick recovery and return home.
Present at the meeting were Damian Agwu (Minister and Head of Information section of the High Commission), Sola Enikanolaiye (Minister and Special Assistant to the High Commissioner) and the High Commissioner, His Excellency, Dr Dalhatu Sarki Tafida.
Source: www.inspirenigeria.org
Evong: '...let's do the right thing'
Events in Nigeria in recent days and weeks have been quite disturbing. The print media is awash with avoidable speculations on who signs budgets, who swears in the JIN, who approves release of money, etc. It is saddening that the President can leave the country for what he knows will take more than a few days and not hand over to the Vice President. If we speculate that the nature of the trip made it impractical for him to perform the hand-over before travelling, one would have expected him to take measures to ensure Goodluck Jonathan can assume acting capacity. His inability, or reluctance, to do so left room for all the speculations that have in turn tensed the polity. It is situations like this that give the military the excuse to overthrow governments. Thankfully, everyone military and civilian hopefully is aware that the worst democracy is better than the best military regime.
People that should know better, including law enforcement officers, have been fuelling the situation by seeking alternatives when glaring legal options are there to be followed.
I have said repeatedly that President Musa Yar’Adua is mortal and subject to physiological changes, including sicknesses. We should continue to pray for his recovery.
I find it unacceptable that there will be no trust between a democratic President and his vice. I had thought Obasanjo’s military background could be a reason for the situation between him and Atiku. What will be the excuse for the current situation? There is no reason for Goodluck not to hand back power to his superior when he returns from his medical trip, none. So what’s the suspicion? Is it people outside te two men that are considering post Yar’Adua era and unwilling to accept that Goodluck should be President in that event?
Yar’Adua has made historic strides ending the Niger Delta conflict, even if temporarily. But he needs to make good his place in history by demonstrating his respect for rule of law all the way. He must not bow to pressures from hangers-on. He should seek counsel from Ibrahim Babangida and know that when the chips are down the responsibility for his doings and undoings are solely his. Those around him now will look for ways of laundering their image and some will even manoeuvre their ways to become born-again champions of the people’s course. See how Chukwumerije has remained in the song in recent years. He will not have a chance to be born again.
Yar’Adua should send the awaited letter to the National Assembly now for Goodluck to begin to act. Goodluck should sign the budget and swear in the JIN. Let’s avoid legalistic arguments and do what has been the legal norm, let the President, or his vice rather than the incumbent CJN, swear the incoming CJN. It is the right thing to do.
THE Venezuelan Ambassador to Nigeria, Mr. Enrique Arrundell, recently offered a piece of advice that should serve as food for thought and basis of future policies and actions in the management of Nigeria‘s petroleum resources. The ambassador, during a visit to the Information and Communications Minister, Professor Dora Akunyili, candidly counselled that Nigeria should not hand over its economy to foreigners in the name of deregulation.
He was responding to a request by Akunyili that he should encourage businessmen from Venezuela to come and establish refineries in Nigeria so that they could benefit from the proposed deregulation of the downstream sector of the petroleum industry. Akunyili presented Nigeria’s petroleum sector as a goldmine from which Venezuelans could reap bounteous harvests.
ARRUNDELL, in his response, said Nigeria should first and foremost make its refineries work. He stated that there had been no fuel price increase in his country in the last 20 years and that it cost only $1.02 (N153.00) to fill the tank of a car. Venezuela, with a population of 27.9 million, has six refineries which are functioning at full capacity.
ACCORDING to the ambassador, the country has 18 refineries in the United States and 18,000 gas stations on the West Coast and they are all in the hands of Venezuelans.
“BEFORE 1999, we had three or four foreign companies working with us… They were taking 80 per cent and giving us 20 per cent. Now we have 90 per cent while they have 10 per cent and there are 22 countries working with us on that condition. so, it is important that Nigeria takes control of her resources. We have no illiterate people. We have 17 new universities totally free. I graduated from the university without paying one cent and took three meals everyday because we have the resources. We want the resources of the Nigerian people for Nigerians. It is enough, minister; it is enough… If you are not handling your resources, how are you going to handle your country?” the ambassador wondered with apparent concern.
THAT Nigeria’s oil is being blatantly mismanaged is an open secret. That the vast majority of Nigerians do not benefit from this natural endowment is a fact that is not councealed even from the residents of the North and South poles. The Venezuelan ambassador is thus not saying anything new. What makes his passionate expressions of concern significant is that the representative of another oil-producing country has come to say it boldly and clearly that oil is meant to be a blessing and not a curse that it is in Nigeria.
THE current price of petrol is 225 per cent higher than what it was 10 years ago and the government is a ploy to impose another price hike in the name of deregulation. The rulers are not worried that every fuel price hike has worsened the economic situation and made life more burdensome for the common man. Almost all the small and medium-scale businesses have gone under. The large-scale enterprises have been closing shop at an alarming rate because electricity is not available and diesel is not affordable.
NIGERIA simply collects rents on the basis of whatever is declared by the oil companies. There are no accurate figures either on crude oil export or on imported refined products because the weights and measures required for these purposes are not in place. The gauges at the storage facilities where products are received do not work. Whatever the ships declare is what is taken and on which the so-called subsidy is paid. The entire process stinks.
IT is on the basis of this defective arrangement that the government claims to have paid N955 billion as subsidy in the last three years. The same government has admitted that the process of fuel importation is fraught with inefficiency and fraud. It has not been able to find the wisdom or muster the courage to smash the vicious cartel that is responsible for all the abuses. Its only feasible option is to add to the price of fuel under the guise of deregulation. That more companies will close down and relocate to neighbouring countries does not matter to the government. That unemployment and aggravated insecurity will be the natural concomitants is immaterial to the people in authority.
SO far, only a microscopic minority the political elite and their business cronies and collaborators in the bureaucracy have been benefiting from Nigeria’s oil. A succession of harmful and self-serving policies has created a situation of misery in the midst of abundance for the populace. It is shameful that a cabinet minister needs a foreigner’s tutorial to get educated that her country’s resources should be used to improve the lot of its people.
AS a result of efficient managerial and sense of service on the part of the country’s leadership, the people of Venezuela have been the primary beneficiaries of their country’s oil. The economy is buoyant. Education is free and qualitative. Health care is no problem — doctors go to people’s houses to look after their health. In Nigeria, nothing works. Even the president goes abroad for medical treatment. Professionals have been migrating to other lands in search of fulfilment. The rate at which the youth have been emigrating is mind-boggling. Akunyili should have asked the Venezuelan ambassador for political and economic managers and not for investors in one sector of the oil industry.
AS stated in our previous editorials, we see nothing wrong in deregulation. But we see everything wrong in the way it is about to be implemented. The government is just about to transfer the cost of the inefficiency and fraud in the process of importation to the ordinary man. Before deregulation could serve the people’s interest, the country must have adequate refining capacity and the cesspool of corruption known as the Nigerian National Petroleum Corporation must be cleared up.
Tribune Editorial
