Sunday, 28 July 2013

Nigerian Senate probes N175bn Malabu oil contract

 Over a year after investigation into the sale of N175billion OPL 245 oil bloc to Malabu Oil and Gas Limited was put on hold, Senate has finally resolved to go ahead with the probe. The motion to investigate the oil deal was sponsored by Deputy Majority Leader Abdul Ningi on July 19, 2012. Senate went on its annual vacation and nothing was heard of the matter until July 25, 2013 when Senate President David Mark suddenly announced at plenary that the chamber will investigate the matter after all.

The Committees on Petroleum Resources (upstream) and Finance, chaired by Senators Paulker Emmanuel and Ahmed Makarfi respectively, are to investigate the controversial oil deal.
Mark said that although the “Senate stopped short of naming the committees that would investigate the issue when we took the motion (last year), the Petroleum Resources (Upstream) will take the lead.
The Senate’s decision was based on a subsisting motion sponsored by Senator Ningi and 46 others.
Shell and Eni reportedly paid $1.1 billion into Nigeria’s foreign account for the oil bloc. The government later transferred most of the funds to Malabu Oil and Gas, whose account is allegedly controlled by a former oil minister, Chief Dan Etete.
The oil bloc became a  dispute between Malabu and the international oil companies, while the government’s transfer of the money was authorised by Attorney-General, Mr. Mohammed Adoke (SAN), and Minister of State for Finance, Yerima Ngama.
Recall that in his lead debate urging the Senate to investigate the oil deal, Ningi noted that Nigeria signed up to the Global Extractive Industries Transparency Initiative (EITI) in 2003, began implementation in 2004 and later supported the policy with the Nigerian Extractive Industry Transparency Initiative (NEITI) Act, 2007.
The objective of the law as encapsulated in Section 2(a and c), included ensuring due process and transparency in payments made by all extractive industry companies to the Federal Government and statutory recipients.
The Act also sought to eliminate all forms of corruption in the determination, payment, receipts and posting of revenue accruing to the Federal Government from the extractive industry companies.
Senate, however, expressed worries over recent clamour for a review of “circumstances surrounding a tripartite transaction involving the Federal Government, Shell/Agip as well as Malabu Oil and Gas Limited in respect of oil bloc referred to as OPL 245.”
Concerned that reports have raised legal and ethical issues surrounding the transaction and pattern of distribution of proceeds to beneficiaries, lawmakers stressed that if all the weighty allegations are ignored, Nigeria may be sanctioned by EITI for violating a global initiative to which it is a signatory and accordingly resolved to investigate the sales.
But the Chairman of the Senate Committee on Water Resources, Heineken Lokpobri (Bayelsa State), opposed the motion. He said that as Nigeria’s highest law-making body, Senate should not wade into an issue it knew little or nothing about.
Lokpobiri noted that the controversial oil bloc was allotted to certain individuals by the late Head of State, General Sani Abacha and was later revoked by former President Olusegun Obasanjo, which was later given to Shell in 2002.
Mark said that there was no crime in the Senate investigating the entire situation with a view to putting the controversy to rest. “I know close to nothing about oil blocs and what I want to ask is whether there is anything wrong with the Senate committee investigating these facts and bringing them to us,” Mark said.
The storm over OPL 245 began to gather almost at its birth in 1998, during the Abacha’s regime, when Chief Etete, his minister of petroleum, awarded two oil blocks to Malabu Oil and Gas Limited, a company he allegedly had 30 per cent interest. The company got the award five days after it was born (April 29, 1998) with a “signature bonus” of $20 million, out of which it was only able to pay $2million.



Culled from The Sun

No comments:

Post a Comment