Thursday, July 26, 2007

Nigeria Security Update #1 260707


Bribes Given to Stay in Business Made by Wilbros (The Punch)

The United States Department of Justice on Wednesday, gave details of how a $6m (about N767.4m) bribe was allegedly given to officials of the Nigerian National Petroleum Corporation/the National Petroleum Investment Management Services, and the ruling Peoples Democratic Party.

The bribe was in connection with the award of a $387m Eastern Gas Gathering System project.
The Department said that the scandal was not restricted to Nigeria.

It explained that, earlier this year, a US oil services company, Wilbros allegedly paid $10.5m to settle a securities-fraud class-action lawsuit accusing the firm of bribing government officials in Bolivia, Ecuador and Nigeria.

The claims of the Department of Justice were contained in some court documents that were obtained exclusively by The Punch on Wednesday.

The said documents, which were obtained on Wednesday by a US-based Nigerian news agency, Empowered Newswire, were filed before a Federal jury in the US.

In the papers, the US government indicted former Wilbros chief, Jason Edward Steph; two individuals acting in Nigeria as purported consultants to Wilbros; Nigeria-based employees of a major German engineering and construction company; and others.

The documents revealed that the aim of the conspiracy was to make corrupt payments to officials of the NNPC/NAPIMS, a senior official in government as well as officials of Shell Petroleum Development Company, to assist in retaining the EGGS business for Wilbros International Inc and its German partner.

According to USDJ, “Wilbros and German Construction Company formed a consortium, EGGS Consortium, and bid for EGGS coating work on EGGS Phase 1 that was approved for $387m in 2004.

“By 2004 and 2005, the consortium was, however, unable to get approval for EGGS phase 2.

“In and around late 2003 and 2004, defendant Steph, consultants 1 and 2, certain GCCB employees and others known to the Grand Jury, agreed to make a series of payments totaling in excess of $6m to and among others, officials of NNPC, NAPIMS, a senior official of the Federal Government of Nigeria as well as officials of SPDC, to assist in obtaining the EGGS project.”

The documents said that by 2004, some commitments were paid to the Nigerian officials.
Attempts by our correspondents to speak with the General Manager, Public Affairs, NNPC, Dr. Levi Ajonuma, were not fruitful as his telephone was switched off.

But a top official of the corporation challenged WII to identify the officials that were allegedly bribed to secure the gas contract in Nigeria.

The official, who spoke in confidence with our correspondents on the telephone on Wednesday, said that the corporation did not collect bribe from Wilbros, to approve the contract.

The official said, “Whoever said somebody took bribe from him should be able to mention the names of those he gave the bribe to, stating how much, where and when.”

He insisted that the idea of hiding the names of the culprits for security reasons was not good enough, as the reputation of the corporation was at stake.

He said that even if the culprits were highly placed officials of the corporation, they should be exposed.

“The International Police should come in here. Through the Interpol, it is possible to exchange security reports, instead of alleging bribery to faceless individuals,” he stated.

He argued that the NNPC/NAPIMS should not have been mentioned because the corporation could not have taken bribe as an institution.

The National Chairman of the PDP, Dr. Ahmadu Ali, said, “I have never heard of that name (Wilbros). I don’t know the company you are talking about. Let them be specific about the allegation.

“We did not run our party or campaign with any bribe money. There may be some people hiding somehwere and posing as PDP officials and collecting money.

“There are some people that I am fighting now. These people have, somehow, got my letterhead paper and signature and they are writing letters to people for favour.

“I don’t know them. If you know them, ask them to provide you with more information and we will react appropriately.”

Meanwhile, the new owners of Wilbros Nigeria Limited, have said that the current bribery scandal will not affect the company’s image in Nigeria.

Speaking with one of our correspondents on the telephone, the Chairman of the company, Mr. Henry Imasehka, said, “I don’t see how this will affect our image or operations in Nigeria.

“Our business partners know that we will not conduct ourselves in the same manner because the new owners are people of repute.”

He said that what was left of the EGGS contract had been concluded by the new owners, as the contract was on for over three years.

Steph, 37, a US citizen residing in Kazakhstan, was also charged with money laundering based on the international transfer of some of the bribe money.

Steph was a WII employee from 1998 to April 2005. From 2002 until April 2005, he served as general manager of WII’s on-shore operations in Nigeria, the Department of Justice said.

The Department said in exchange for the award of the EGGS project, the conspirators allegedly paid, promised to pay, and authorised payments to officials of NNPC, NAPIMS, a senior official in the executive branch of the Federal Government, and to political party, as well as to officials
of the operator of the EGGS joint venture.

Most of the payments were allegedly laundered through the consultants, who typically received three per cent of Wilbros’ contract revenue by wire transfer from Houston to a foreign bank, and transferred some or all of the funds to Nigerian officials.

The NNPC is responsible for developing Nigeria’s oil and gas wealth and regulating the industry.
It is the majority shareholder in certain joint ventures with multinational oil companies. The multinational oil companies often serve as the operators of the joint ventures.

Among other functions, NNPC and NAPIMS also approve the award of major oil and gas construction projects to private contractors such as Wilbros.


Bayelsa Speaker's Mother Abducted (This Day)

Gunmen suspected to be militants invaded the country home of the Speaker of Bayelsa State House of Assembly, Hon. Werenipre Seibarugu, in Akiabiri, Yenagoa, on Tuesday night and kidnapped his 70-year-old mother.

Seibarugu, who was attending a parliamentary conference in South Africa along with some principal officers of the House, abandoned the event on learning of the kidnap of his mother and made for the country.

Also, an American Professor of Environment, Mr. Michael Watts from University of Berkeleys, United States of America, was yesterday morning shot and wounded in the arm by hoodlums who also dispossessed him of $600.

The fate of the speaker’s mother who was popularly called Madam Yenagoa was still unknown by last night.

THISDAY gathered that those who abducted her were also yet to make any demand for ransom.

It was learnt that the gunmen who seized Madam Yenagoa were dressed in military fatigues as they invaded the sleepy community of Akiabiri, in Ekpetiama, Yenagoa Local Government Area of Bayelsa State.

They allegedly came in two boats from the River Nun at about 8.30 pm.

The speaker’s mother also known as Madam Hansel in the community was taken from her bedroom by the militants who shot sporadically into the air to scare away villagers who might want to dare them, before whisking her to an unknown destination.

The speaker was immediately contacted by the state Governor, Mr. Timipre Sylva, who briefed him on the efforts by the police to ensure the safe return of the old woman.

Confirming the incident to newsmen in Yenagoa, the state Commissioner of Police, Mr. Julian Okpaleke, said five heavily armed youths carried out the kidnap.

He said one suspect had already been arrested and was helping the police in its investigation.
Okpaleke who could not say whether the kidnappers were militants or not, however, pointed out that they were armed.

He said they shot sporadically into the air before moving into the compound, where the woman was kidnapped.

Reacting to the incident, Sylva vowed to purge the state of criminal elements, which, according to him, were damaging the image and economy of the state.

In a press statement signed by his Chief Press Secretary, Mr. Ebimo Amungo, the governor said he had initiated a strategy to rid the state of hostage takers.

Sylva said: “My Honourable Speaker, I want you to be strong in this time of trial. We share your pain and I can assure you that I will use all the resources available to me to help find your mother and bring these criminals to justice. My administration shall run a zero-tolerance policy against kidnappers in Bayelsa state”.

Sylva said government was working with security agencies in the state to ensure a quick release of the old woman, as well as bring the kidnappers to book.

A source at Yenagoa Government House told THISDAY that the speaker would head for the state today on arrival from South Africa.

It was also learnt that the Vice President, Dr. Goodluck Jonathan, may also head for Yenagoa to have dialogue with some militant groups in the state over the development.

Also speaking with newsmen on the incident, Personal Assistant to the Speaker on Media, Mr. Jonah Okah, said, “I have confirmed the kidnap of the mother of Speaker Seibarugu after speaking with his close family relatives. I am aware that government is making effort to unravel the incident.”

Okah described the kidnap as a bad omen for a state that was in dire need of development.
He, however, appealed to those who seized the woman to release her quickly.
The kidnap of relations of top politicians and businessmen ostensibly for ransom appears to be the new face of militancy in the Niger Delta.

But up till the kidnap of Seibarugu’s mother, the incident was restricted to Rivers State
Meanwhile, the news of the kidnap has paralysed activities in the state assembly.
The assembly complex wore a grave look as only a few security operatives stationed at the entrance were around.

The kidnap of the speaker’s mother came on the heel of reports that some members of the House of Assembly had initiated impeachment proceedings against the Speaker, Seibarogu and Deputy Governor, Mr. Peremobowei Ebebi.

But the assembly had on Monday denied that any such move was being contemplated.

The shooting of the American academic in Port Harcourt came yesterday as another employee in the oil sector simply identified as Elder Uchendu, was shot dead in his Ede Street in Ogbunabali, Port Harcourt by unknown gun men.

The incident occurred at about 11pm last Tuesday.

THISDAY learnt that the American was in the country to carry out a study in environment and communal conflicts in the Niger Delta had gone to National Point Newspaper, a local tabloid to interview reporters on their stable when the hoodlums stormed the office of the newspaper.

The men said to be four in number and armed were said to have made no pretences as they shot the gateman of the newspaper house many times on the leg before entering their newsroom where they also shot the American in the arm and demanded for the money.

A Nigerian human rights activist, Patrick Naangbaton, who latter rushed the American to an undisclosed hospital, said the gateman of the newspaper was critically injured and had to be moved from the first place he was taken to for a specialist attention.

Attempts by THISDAY to speak with the professor proved futile as he was said to be sleeping after taking medications.

Watts was said to have visited some of the environmentally degraded sites in the Niger Delta region and was just fine-tuning his materials through local media men who may have witnessed the incidents when he was attacked.

The killing of Elder Elendu came in controversial circumstances.

When his assailants succeeded in gaining entry into his apartment, they made straight for him and shot him severally.

On confirming that he was dead, they left his lifeless body and fled the scene before sympathisers who were attracted by the sound of the gunshots rushed him to a hospital where doctors confirmed him dead.




Port Harcourt Newspaper Attacked by Gunmen (Indymedia UK, Daily Champion)

At about 11 AM, the gunmen stormed the gate and and moved into the offices with sporadic shooting. Bullets shattered doors and left scars on the walls. Drawers and lockers were ransacked as the gunmen demanded for money and carted away 2 laptop computers and mobile phones belonging to Social Action and National Point volunteer and staff.

Professor Michael Watts of the University of California, Berkeley who was visiting the offices was a major target. He had since visited a Port Harcourt clinic to receive treatment from injury sustained during the attack.

The attackers shot Richard Kenneth, a security guard, in the leg. Richard has been taken to the Medicines Sans Frontiers trauma centre in Port Harcourt where he is receiving treatment for gunshot wounds.

Professor, Mark Watts, yesterday escaped death by the whiskers as gunmen attacked him at the premises of The National Point newspaper in the Diobu Line area of Port Harcourt, Rivers State capital.

But a Nigerian identified as Elder Echendu, was unlucky , in a separate incident as suspected armed robbers yesterday shot him dead at Ogbunabali in the city.


Daily Champion gathered that Watts got a hot chase from the unknown gunmen who trailed him from a branch of a first generation bank to the premises of the weekly community newspaper.

According to an eye-witness, who pleaded anonymity, the robbers caught up with the professor at the gate leading to the newspaper where they shot severally and wounded the security man on duty.

Though the American escaped unharmed, the robbers were said to have snatched two laptops and two GSM handsets from the employees of the newspaper.

Thereafter, they shot sporadically into the air to scare people and escaped.

The identity of the guard, who is said to be responding to treatment at a private hospital in the city, could not be ascertained at press time.

In a related development, another gang of robbers reportedly shot dead Echendu and snatched his Toyota Camry car.

Contacted for comments on the incidents, the Police Public Relations Officer of the command, Mrs. Ireju Barasua, Deputy Superintendent of Police (DSP), while confirming the attacks said the police have recovered the two computers from the robbers who dumped them on the road.

Insecurity in the Niger Delta has escalated after the April, 2007 general elections with politicins of the ruling PDP seemingly unable to control thugs armed to rig the elections. However, in recent weeks, politically sponsored attacks by armed gangs and violent robberies have left dozens killed in the oil city of Port Harcourt, with residents now living in fear.

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