Why we paid $32.5m to Nigeria—Halliburton
By Ikechukwu Nnochiri
ABUJA—ATTORNEY General of the Federation and Minister of Justice, Mohammed Bello Adoke, yesterday, explained why the Federal Government embraced the plea bargain formula to save both former Vice President of the United States of America, Dick Cheney, and other multinational corporations from passing through the rigours of trial in Nigeria, even as he disclosed that US$170.8 million had been remitted into the federation account.

The AGF who spoke during the 2010 ministerial briefing of the Ministry of Justice, insisted that he advised the Federal Government to adopt the plea bargain approach after taking due cognisance of the weakness of the penal provisions dealing with corporate criminal liability, as well as the need to ensure their early resolution in the greater national interest.

Adoke said that going by the Nigerian penal system, the multinational corporations if convicted, could only pay a paltry sum of N250, 000 at the maximum despite the amount in controversy, noting that there was high need for a holistic re_appraisal of the operating penal system in the country.

High profile economic crimes
He said: “I find it necessary to use this occasion to highlight the approach adopted by the Ministry in addressing the prosecution of certain high_profile economic crimes committed by some individuals and corporate entities (local and foreign) against the Nigerian state.

“I refer particularly to the on_going prosecution of some bank executives and multinational corporations for economic crimes and corrupt practices. Within the period under review, the Economic and Financial Crimes Commission, EFCC, in collaboration with the Ministry of Justice successfully recovered money and assets worth N191 billion from Mrs. Cecilia Ibru and her associated companies.

“We also commenced the prosecution of individuals and multinational companies indicted in the infamous Halliburton Bribery Scandal. As a result of government’s resolve to prosecute those indicted, Messrs Julius Berger, Siemens Plc, Saipem, Technip and Halliburton Inc. were charged to court.

“To avert prosecution, these companies approached us with various settlement options for consideration. In resolving these case, the ministry took due cognisance of the weakness of our penal provisions dealing with corporate criminal liability, as well as the need to ensure their early resolution in the greater national interest.

“The ministry, therefore, adopted international best practices as has been practiced in other jurisdictions such as the United States of America by emphasizing on ‘restitution’ that would ensure direct benefit of the Nigerian government as the ‘victim state’.

“As a result of the adoption of this practice to the aforementioned case, the affected companies and individuals were made to disgorge the proceeds of crime and to pay appropriate penal fines. Accordingly, $170.8 million has been paid as penal fines to the Federal Government of Nigeria.

“As a long_term measure, I have directed the commencement of the review of our penal provisions with a view to amending our extant laws to properly address the reality of corporate criminality in Nigeria by providing appropriate sanctions to ensure deterrence. The ministry has so far expended N2.3 billion for the services of legal practitioners engaged to handle matter o behalf of the government.”

Why Halliburton paid $32.5m
Meanwhile, United States based petroleum giant, Halliburton, has explained why it paid $35m to settle the allegations of bribery against it by the Economic and Financial Crimes Commission, EFCC.

The company said in a statement, yesterday, that it agreed to pay $32.5 million to the Nigerian government to settle allegations of bribes paid to officials in order to secure $6 billion worth of contracts for a liquefied natural gas project in the Niger Delta.

Bribery allegations
While the oilfield contractor Halliburton agreed to pay Nigeria $35 million to settle bribery allegations that led to charges against former Vice President Dick Cheney and other executives it, however, did not explain the reason was to secure the gas project deal.

Cheney, who was Halliburton’s CEO in the 1990s, and nine others were charged with conspiracy and “distribution of gratification to public officials” in a long_running case involving the company and its Kellogg, Brown and Root subsidiary. Nigerian officials accused the company of paying bribes to secure $6 billion worth of contracts for a liquefied natural gas project in the Niger Delta.

Rather, the company said: “Pursuant to this agreement, all lawsuits and charges against KBR and Halliburton corporate entities and associated persons have been withdrawn.” And Nigerian officials agreed “not to bring any further criminal charges or civil claims against those entities or persons” in return.

The $35 million included $2.5 million to pay legal fees and other expenses for the Nigerian government, Halliburton said.

Halliburton also agreed to help Nigeria recover money from a Swiss bank account set up by a former agent for its Nigerian joint venture TSKJ. Nigerian officials said as much as $130 million had been stashed in Switzerland.

The bribes are said to have amounted to $180 million between 1994 and 2004.
According to the US Justice Department, Halliburton pleaded guilty to foreign bribery charges in the United States last year and paid a $402 million criminal fine, while. KBR and Halliburton also paid $177 million to settle civil complaints related to the bribery.