Daily Trust (Abuja)

Nigeria: Siemens Bribery Scandal - How Far Can EFC, ICPC Go?

analysis

Abuja — "I vow before you this day that as president of this country, I will lead the fight against corruption. The fight against corruption is my fight".

This was President Umaru Musa Yar'Adua barely a week before Nigeria once again got on the international spotlight for corruption. This time, it wasn't the usual accusers - Transparency International, Human Rights Watch, et al - but corporate titan, no less than Siemens AG, German global multinational and Europe's largest engineering company while it was facing accusation of offering bribes to gain unfair advantage over other business rivals, a practice that violates the EU ethics on business practice.

The company was indicted by a Munich court for paying millions of Euros in bribes to three former communications ministers in Nigeria, Messrs Tajudeen Olanrewaju, Bello Mohammed, Haruna Elewi, Cornelius Adebayo, current senate committee chairman on foreign affairs, Senator Jubril Aminu as well as other officials.

The Nigerian officials who were alleged to have received ten million euros were among 77 other recipients of bribes totaling 12 million euros. Siemens accepted responsibility for the misconduct, providing names of the bribe recipients and the date the shady transactions took place.

Barely has the dust settled over the Munich scandal, than questions are being asked about the Nigerian government. Where is it in all of these scandals? If the Yar'Adua administration is keen about the fight against corruption, this is more than an ample opportunity. Siemens kept records of the deals and the international mood is favourable to assisting Nigeria fight corruption on its soil.

But the administration's response was signature Yar'Adua: promises, more promises and assurances. A statement from the President's media aide, Segun Adeniyi said: "The attention of President Musa Yar'Adua has been drawn to media reports of the alleged bribery of some past Nigerian public officials. The President has therefore directed all relevant security agencies to thoroughly investigate the allegations and take appropriate legal action against anybody implicated in the corrupt practices. The President also wishes to assure Nigerians that in the new nation we seek to build under his watch, any public official found to have abused his or her oath of office will not go unpunished. The president further assures that in this Siemens scandal, as in all other cases that border on good governance and transparency, there will neither be sacred cows nor a cover up for anybody found culpable of breaching the law."

Any likely solace derivable from that statement is dampened by events from the recent and not so recent past. A week before the Siemens scandal broke out, a similar bribery scandal in Houston, Texas named top NNPC officials for collecting bribes in 2003 from an American international oil servicing company, Willbros, to facilitate a government contract.

The bribe proceeds were allegedly used to fund the election campaigns of the PDP. The Attorney-General, Michael Aondakaa was supposed to be mandated by the President to proceed to Houston to get the details of the crime where $6 million was alleged to have changed hands.

Another celebrated scandal in the past was the Halliburton scandal where the American company was alleged to have paid Nigerian tax official bribes worth $2.4 million in 2000 to reduce its tax burden in Nigeria. Another case involved Baker Hughes Energy where an employee of the company in the United States sued the company for allegedly sacking him for refusing to pay bribes to Nigerian officials. The suit was later settled out of court by the company where the company agreed to comply with the terms of the settlement that the former employee demanded.

Instances of corruption cases like these are legion, but the prosecution of the Nigerian collaborators, virtually nonexistent.

Is there much reason to hope that the Yar'Adua administration will use the opportunity presented by the current scandal to nip these odious practice in the bud?

Not much to cheer at home

The success of the fight against corruption back home should probably give some indication. Months after the administration arraigned some former governors for corruption, they remain free despite incriminating evidences of culpability from the EFCC.

Another case of corruption that has assumed international dimension, the case involving ex-Delta governor James Ibori, the London Metropolitan Police and the federal government has been enmeshed in one controversy after the other. Now, the Attorney-General has refused London's request to have Ibori tried for amassing assets worth $35 million, which includes a private jet and property in London, citing procedural errors that faulted London's claim that its investigation was "at the instance of the Nigerian authorities, contrary to their earlier assertions that the investigation was not dependent on Nigeria".

Just exactly what difference it would make in the government's vow to fight corruption is a mystery, except probably for the explanation by the AG that trying Ibori in London "would demonstrate globally that Nigeria is incapable of tackling corruption within its own jurisdiction and had to rely upon courts in other jurisdictions to prosecute such offences." The AG also said that "a trial in any other jurisdiction other than Nigeria would inevitably tarnish the image of Nigeria as a nation and send the message that the integrity of its criminal justice system cannot be relied upon".

But the question is with the battle of supremacy raging between the AG and the anti-corruption agencies. Is there much to expect from the criminal system? The ex-governor's trial for corruption has now strained relationship between the office of the Attorney-General and the EFCC that the AG has reportedly raised a memo reporting the EFCC to President Yar'Adua for insubordination to his constitutional authority as the nation's Chief Law Officer. The Delta State governor, Emmanuel Uduaghan added a further rub in the matter by saying the EFCC appears to be working for the interest of a foreign body.

So, now that the ICPC has waded into the latest bribery scandal how will it fare in such an atmosphere where the country's top anti-corruption officials seem to be more embroiled in a battle over procedures even as the country continues to bleed? Media consultant to ICPC, Folu Olamiti told Weekly Trust, "The ICPC will see to the end of this Siemens matter...it is no longer business as usual. We have people reporting to us about public officers demanding for money and we mark money for such public officers."

President of the Nigerian Bar Association (NBA) Olisa Agbakoba suggested an overhaul of the nation's entire anti-corruption strategy, saying "the scope and depth of work required to make a significant impact in the war against corruption are beyond the nation's legal and administrative structures as presently constituted. There is therefore need for total overhaul of the anti-corruption strategies and structures. Any meaningful war against corruption must be fought on three fronts: investigation, prosecution and assets recovery".

Others suggested new forms of punishment. Former presidential aspirant, Pat Utomi said in addition to prosecution a total ban should be imposed on culprits of corruption from holding public office of trust. He said: "We must move to ask all those who have been implicated and may be implicated in a series of bribes collected from many European and American companies operating in Nigeria to step aside from the public arena."

The House of Representatives on its part has said it has concluded arrangements for a probe on the matter, threatening to blacklist Siemens from doing business in Nigeria, saying "if it is true that they offered bribe then they are not fit, they are not the kind of people that should do business in Nigeria."

In addition, Hon. Jerry Manwe, Chairman House Committee on Communications told Weekly Trust: "We are going to make some consultations and do some findings. When we get the details of what they are being accused of then we will meet with the committee and then we will decide on when they will appear before the committee to answer some of these questions."

Denials all through

Almost all those accused in the Siemens bribery scandal deny any involvement. Rather, in a response reminiscent of the recent past where political motive is read even in allegations of corruption, media aide to Bello Mohammed, Emeka Kanu said the allegations were "strange and bewildering, malicious, libelous and wicked evil design by his political enemies."

Senator Jubril Aminu's response was: "They mentioned Jubril Aminu and others - who are these other people? Are they party officials? I have never handled party money and I know this whole thing is pure nonsense". Adebayo's response in part was: "I have an unblemished career in the public service spanning almost four decades, I have a reputation for integrity and I am under no political pressure." Even though all those accused have written statements to the ICPC, no doubt exonerating themselves, none of them has taken the further step of instituting legal action to clear their name."

But more than individual reputations need restoring. As Nigeria's image continues to suffer for corruption, the Yar'Adua administration's economic reform effort is put in jeopardy.

There is now a dawning realization that corrupt countries lose out in the global competition for capital and aid. Studies by the IMF also show that countries with a high incidence of corruption have less of their GDP going into investment and experience lower growth rates compared to their more transparent counterparts. They are also less likely to invest in areas like education and health which pays huge economic dividends but attract small bribes.

These are conclusions that alas are borne out by realities on ground in the country. Most of the bribery scandal has largely been concentrated in the oil sector of the economy, and now telecommunications, another lucrative sector. Utomi blames corruption for the social and economic ills currently being witnessed in the country. He said: "In every bribe is the death of Nigeria; death on our roads and all kinds of disaster; taking bribes constitute murder; corruption renders the system unworkable and ineffective."

It is a fact that is probably not lost on Yar'Adua. If Nigerians need any explanation as to why there is constant power failure despite huge investment in NEPA, and now PHCN, poor telecommunication infrastructures and why their refineries cannot refine their crude oil, the explanation should begin to be obvious.

Question is how much of Nigeria's resources have been diverted from economically well-founded enterprises that will benefit the people to enterprises that are merely well-connected and meant to satisfy the greed of some few disgruntled public officials? Will the Yar'Adua Administration attack the nation's problems at its roots sources or will the Administration be constantly distracted by protocols and endless promises to take action? Only time will tell.


Copyright © 2007 Daily Trust. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica aggregates and indexes content from over 130 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.

Comments Post a comment