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LogoDaily Independent Online.         * Friday, July 23, 2004.

Halliburton scam: Nigerian officials shared N25b, says investigators

By Chinedu Offor

Correspondent,

Washington D.C

 

International investigators probing the activities of American oil services giant Halliburton have alleged that the company may have paid over $180 million (N25.2 billion) in bribes to top Nigerian officials to award the contract for the Nigerian Liquefied Natural Gas (LNG) project.

Sources allege  that the affected officials received payments from the contractors' agent, identified as a prominent British lawyer.

The project, one of the biggest of its kind, was awarded at an initial cost of $3.6 billion in September 1994 when Don Etiebet was Minister of Petroleum Resources. He was sacked five months later by late Head of State Sani Abacha.  

The successful bidding consortium, TSKJ made up of Technip of France, Snamprogetti of Italy, Kellog Brown & Root of the United States and Japan Gas Company, is the object of five separate investigations in several countries.  Daily Independent has learnt of the behind the scene drama disagreements among the principal officers involved in the project over how the contract was awarded.

Sources said Etiebet was so concerned about  the due process of the contract bid that he wrote a memo dated September 22, 1994 to the then NLNG Chairman Mohammadu Dikko Yusuf  where he told him that the board "seriously tinkered  with the integrity of the pending contract award".

After a meeting  with representatives of the rival  bidders in the same month in London, it  was learnt  that Etiebet concluded that "there has been breaches of commercial confidentiality which may have benefited the competing consortium that eventually won the bid”.

He reportedly complained to Abacha about his reservations but was ignored.

Etiebet was said to have told him and the NLNG board, through a memo, that "the rival consortium has unfair discretion evaluation with unequal and unclear penalty levies, the board had been told from certain quarters which group was the preferred bidder".

He also alleged shortly after the contract was awarded to TSKJ that he was contacted by someone from London claiming to be a consultant working for Kellogg (subsidiary of Halliburton) who wanted to set up "an arrangement”. He told Etiebet his codename was "London weather".

Etiebet reportedly retorted: "I would never trust London weather".

Yusuf, however, questions the account of Etiebet.  He dismissed insinuations that the board's conduct was not above board, saying the NLNG management had “maintained the integrity of the bids at all times".

He explained that the Technical Advisory Committee (TAC) which evaluated the bids was a shareholders' committee and that  the management was "not in a position to guarantee confidentiality once information was passed to it or to government officials".

He admonished Etiebet for meeting representatives of rival contractors. In a letter to him dated September 23, 1994, Yusuf said: " I would rather agree with the technical advisor's evaluation and recommendation supported by all shareholders than to listen to a losing contractor to whom we have no obligation to explain why or how we did what we did".

 

 

 

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