The Civil Society Network Against Corruption (CSNAC), a coalition of 150 anti-corruption organizations, has petitioned the Economic and Financial Crimes Commission (EFCC) to investigate new allegations of corruption brought by several Delta State oil-producing communities last week against the Minister of Petroleum, Diezani Alison-Madueke.
The Civil Society Network Against Corruption (CSNAC), a coalition of 150 anti-corruption organizations, has petitioned the Economic and Financial Crimes Commission (EFCC) to investigate new allegations of corruption brought by several Delta State oil-producing communities last week against the Minister of Petroleum, Diezani Alison-Madueke.
On April 26, representatives of Itsekiri, Urhobo, Ijaw, Isokoand Ndokwa communities shut down the National Assembly in Abuja for hours asking for an immediate probe by the National Assembly of a shady N58.9 trillion oil deal that the Minister and Shell Petroleum Development Company (SPDC) were involved in.
“The communities accused the minister of having secretly transferred production rights of four large oil blocks (OMLs 26, 30, 34, and 42) to Atlantic Energy Drilling Concept Limited (Atlantic Energy) allegedly owned by one Mr. Jide Omokore,” CSNAC said in the petition, which was signed by its chairman, Olarenwaju Suraju.
“According to the report, Mr. Jide Omokore’s Atlantic Energy Drilling Concept Limited neither tendered for, nor bidded for the blocks. The petition alleged that on the above named OML, the minister entertained no bid under the guise of a “Strategic Alliance Agreement” that earned the federation account a little more than $50 million as initial entrance fee from Atlantic energy. The petition further added that if the open and competitive bidding process mandated by Public Procurement Act had been followed, the market value of the OML 30 assets divested to Atlantic Energy should not be any less than $800 million.”
Under the deal, the communities allege in their petition, "60 per cent of NPDC's 55 per cent stake of these assets is about five billion barrels, which when calculated with the 2013 Crude Oil benchmark comes to $380billion or N58.9 trillion. This figure is exclusive of the 4trillion cubic feet of gas assets in the blocks valued at $15.72 trillion.
"The 'game' behind this deal is brought sharply into focus by while noting the fact that, on OML 26, 30, 34, and 42, Mrs. Diezani Alison-Madueke's no-bid approach via the so-called 'Strategic Alliance Agreement,' fetched the Federation Account an upfront cash payment of little more than $50million as initial entrance fee from Atlantic Energy, SPDC's open and competitive bidding process, though excluding indigenes of the area on the other hand, got $1.3billion from Heritage Oil Plc. for its 45 per cent Joint Venture beneficial stake of the same block," they said.
The anti-corruption campaigners noted that the oil industry, especially the NNPC, has been plagued for years by accusations of corruption and fraudulent dealings.
“This has led to misappropriation of revenue earned from oil production, consequently leading to under development and wide spread poverty in the nation not to mention injustice to the indigenes of the oil producing communities,” the petition said. “The ramification of this can be seen in the rise of militancy in the region to which the government has lost billions of naira in revenue and human lives.”
Calling on the EFCC to use its good offices to investigate these allegations and ensure that the fight against corruption is not just another sound bite, CSNAC warned that it is the failure of Nigeria’s anti-corruption agencies to investigate and make public outcomes of their investigations that gave rise to the recent negative report from the United States on the state of corruption in Nigeria.
It would be recalled that several newspaper reports and civil society organizations have implicated Mrs. Alison-Madueke in a variety of corruption allegations in the past few years. But the Minister, who is known as much for her extensive wealth as for her personal relationship with President Jonathan, has never been investigated.
Full text of the petition:
29th April, 2013.
The Chairman,
Economic and Financial Crimes Commission
5, Fomella Street,
Off Adetokunbo Ademola Crescent,
Wuse II, Abuja,
Nigeria.
Dear Sir,
PETITION TO INVESTIGATE THE MINISTER OF PETROLEUM, DIEZANI ALISON-MADUEKE, ON CORRUPTION ALLEGATIONS BROUGHT BY DELTA STATE COMMUNITIES
Civil Society Network Against Corruption (CSNAC) is a coalition of over hundred and fifty Anti- corruption organizations whose primary aim is to constructively combat corruption vigorously and to ensure the effective monitoring of the various Anti-graft agencies in its activities in the fight against corruption and to enthrone transparency, accountability, probity, and total commitment in the fight to eradicate corruption in Nigeria.
On April 26, 2013, sunnewsonline.com reported under the caption “Minister named in N59tr Oil deal” that five oil producing communities in Delta State and their leaders namely Itsekiri Ethnic Nationality (led by Chief Emami Ayiri), IjawEthnic Nationality (led by Chief Aribogha Johnny) UrhoboEthnic Nationality (Olorogun Jaro Egbo), Isoko Ethnic Nationality (Zino Onaemor) and Ndokwa Ethnic Nationality (Emmanuel Orwti) shut down the National Assembly over allegations that the Petroleum Minister, Diezani Alison-Madueke and Shell Petroleum Development Company(SPDC) limited were involved in a N58.9 trillion shady oil.
The communities accused the minister of having secretly transferred production rights in four large oil blocks (OMLs 26, 30, 34, and 42) to Atlantic Energy Drilling Concept Limited (Atlantic Energy) allegedly owned by one Mr. Jide Omokore. According to the report, Mr. Jide Omokore’s Atlantic EnergyDrilling Concept Limited neither tendered for, nor bided for the blocks. The petition alleged that on the above named OML, the minister entertained no bid under the guise of a “Strategic Alliance Agreement” that earned the federation account a little more than $50 million as initial entrance fee from Atlantic energy. The petition further added that if the open and competitive bidding process mandated by Public Procurement Act had been followed, the market value of the OML 30 assets divested to Atlantic Energy should not be any less than $800 million.
The oil industry, especially the Nigerian National Petroleum Corporation has been plagued for years with accusations of corruption and fraudulent dealings. This has led to misappropriation of revenue earned from oil production, consequently leading to under development and wide spread poverty in the nation not to mention injustice to the indigenes of the oil producing communities. The ramification of this can be seen in the rise of militancy in the region to which the government has lost billions of naira in revenue and human lives.
We write this petition to implore the EFCC to use the good office and investigate these allegations and ensure that the fight against corruption is not just another sound bite. It is previous failure of Anti-corruption Agencies to investigate and make public outcomes of the investigate that gave rise to the recent negative US report on the State of corruption in Nigeria.
We look forward to your swift response and action on this matter.
Sincerely,
Olanrewaju Suraju
Chairman, Civil Society Network Against Corruption
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