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Why Atiku avoided America for 13 years

Published

5 years ago

January 18, 2019

For more than 13 years, Alhaji Atiku Abubakar, former Vice President of Nigeria and now presidential candidate of the Peoples Democratic Party, kept away from the United States.

Once, the US even turned down his request for a visa.

But on Thursday, he landed in Washington DC for talks with some American officials on his campaign in Nigeria. His visit, said to have been facilitated by his former boss, President Olusegun Obasanjo and other lobbyists, threw up questions as to why he had avoided America in the first place.

What is known is that nine years ago, there was a US Senate Committee report detailing money laundering activities against him, including being a recipient of a bribe by Siemens.

The Committee known as the Senate Permanent Subcommittee on Investigations was chaired by Senator Carl Levin.

The probe was motivated by US government concern about corruption in the Third World and its corrosive effects on the development of honest government, democratic principles, and the rule of law.

“It is also blamed for distorting markets, deterring investment, deepening poverty, undermining international aid efforts, and fostering crime. Some have drawn connections between corruption, failed states, and terrorism. Corruption also continues to be a massive problem. The World Bank has estimated that $1 trillion in bribes alone exchange hands worldwide each year,” the committee noted in its bulky report.

Abubakar was not the only foreign Politically Exposed Person(PEP) probed by the committee. He had company in Teodoro Nguema Obiang Mangue, now the 48-year-old son of Teodoro Nguema Obiang Mbasogo, the President of Equatorial Guinea (EG), late President of Gabon, Omar Bongo and three Angolan PEP accounts, involving an Angolan arms dealer, an Angolan government official, and a small Angolan private bank.

The committee submitted its report on 4 February 2010, three years after Abubakar left office as Nigeria’s vice president.

The report unveiled violations of US laws by Abubakar and his fourth wife, Jennifer Douglas. It also included revelations about Siemens bribe paid into one of the accounts, and it possibly provided the basis for Abubakar being barred from entering the United States, since then.

This Report examines how politically powerful foreign officials, their relatives, and close associates – referred to in international agreements as Politically Exposed Persons (PEPs) – have used the services of U.S. professionals and financial institutions to bring large amounts of suspect funds into the United States to advance their interests. Using four case histories, this Report shows how some PEPs have used U.S. lawyers, real estate and escrow agents, lobbyists, bankers, and even university officials, to circumvent U.S. anti-money laundering and anti- corruption safeguards. This Report also offers recommendations to stop the abuses.

Here is a summary of the report:

Abubakar Case History.

From 2000 to 2008, Jennifer Douglas, a U.S. citizen and the fourth wife of Atiku Abubakar, former Vice President and former candidate for President of Nigeria, helped her husband bring over $40 million in suspect funds into the United States through wire transfers sent by offshore corporations to U.S. bank accounts.

In a 2008 civil complaint, the U.S. Securities and Exchange Commission alleged that Ms. Douglas received over $2 million in bribe payments in 2001 and 2002, from Siemens AG, a major German corporation.

While Ms. Douglas denies wrongdoing, Siemens has already pleaded guilty to U.S. criminal charges and settled civil charges related to bribery and told the Subcommittee that it sent the payments to one of her U.S. accounts.

In 2007, Mr. Abubakar was the subject of corruption allegations in Nigeria related to the Petroleum Technology Development Fund.

Of the $40 million in suspect funds, $25 million was wire transferred by offshore corporations into more than 30 U.S. bank accounts opened by Ms. Douglas, primarily by Guernsey Trust Company Nigeria Ltd., LetsGo Ltd. Inc., and Sima Holding Ltd.

The U.S. banks maintaining those accounts were, at times, unaware of her PEP status, and they allowed multiple, large offshore wire transfers into her accounts. As each bank began to question the offshore wire transfers, Ms. Douglas indicated that all of the funds came from her husband and professed little familiarity with the offshore corporations actually sending her money.

When one bank closed her account due to the offshore wire transfers, her lawyer helped convince other banks to provide a new account. In addition, two of the offshore corporations wire transferred about $14 million over five years to American University in Washington, D.C., to pay for consulting services related to the development of a Nigerian university founded by Mr. Abubakar.

American University accepted the wire transfers without asking about the identity of the offshore corporations or the source of their funds, because under current law, the University had no legal obligation to inquire.

Executive Summary

Combating corruption is a key U.S. value and goal, due to its corrosive effects on the rule of law, economic development, and democratic principles. In 2001, the Patriot Act made the acceptance of foreign corruption proceeds a U.S. money laundering offence for the first time, and required banks to apply enhanced scrutiny to private banking accounts opened for senior foreign political figures, their relatives, and close associates. In 2003, the United States supported the United Nations Convention Against Corruption, now ratified by over 140 countries. Also in 2003, U.S. Immigration and Customs Enforcement (ICE) formed an investigative group dedicated to combating foreign corruption by PEPs. In 2004, President Bush issued Presidential Proclamation 7750 denying U.S. visas to foreign officials involved with corruption, and Congress later enacted supporting legislation. A 2009 study sponsored by the World Bank analyzed PEP controls worldwide and recommended stronger measures to reduce corruption.

The Permanent Subcommittee on Investigations (Subcommittee) initiated this investigation to learn how U.S. laws apply to PEPs utilizing the domestic financial system, and examine how foreign senior political figures, their relatives, and close associates may be circumventing or undermining anti-money laundering (AML) and PEP controls to bring funds that may be the product of foreign corruption into the United States. It is the latest in a series of Subcommittee hearings examining foreign corruption and its U.S. aiders and abettors.

During the course of its investigation, the Subcommittee staff conducted over 100 interviews, including interviews of lawyers, real estate agents, escrow agents, lobbyists, bankers, university professionals, and government officials. The Subcommittee issued over 50 subpoenas and reviewed millions of pages of documents, including bank records, correspondence, contracts, emails, property records, flight records, news articles, and court pleadings. In addition, the Subcommittee consulted with foreign officials, international organisations, financial regulators, and experts in anti-money laundering and anti-corruption efforts.

In addition, there was the case of Congressman William Jefferson who was jailed for accepting a bribe from a would-be Nigerian investor, Lori Mody, who was wearing a wire.

Jefferson told the investor that he would need to give then Nigerian Vice President Atiku Abubakar $500,000 “as a motivating factor” to make sure the company obtained contracts for iGate and Mody’s company in Nigeria.

The case put Atiku in bad spotlight, with his mansion in Potomac, Maryland searched by the FBI in 2005. But there was nothing incriminating found in the house.

About 12 years after the raid, Atiku sold the property.

News

NNPC E&P Ltd, NOSL Hit First Oil in OML 13, Akwa Ibom State

Published

5 hours ago

May 14, 2024

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NNPC E&P Ltd, NOSL Hit First Oil in OML 13, Akwa Ibom State

AJAGBE ADEYEMI TESLIM

News

NCDMB Exec Sec Visits Pipe Coating Firms, Pledges Support For Local Capacities

Published

5 hours ago

May 14, 2024

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NCDMB Exec Sec Visits Pipe Coating Firms, Pledges Support For Local Capacities

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Nigerian Content Development and Monitoring Board (NCDMB) has reassured stakeholders of the industry that oil and gas service companies that have established capacities in the country will continue to enjoy patronage through the award of contracts from operating companies in the industry.

The Executive Secretary NCDMB, Engr. Felix Omatsola Ogbe made this commitment on Friday in Port Harcourt, Rivers State when he led officials of the Board and Shell Petroleum Development Company of Nigeria (SPDC) to visit companies that deliver pipe coating and related services.

The team visited Brightwaters Energy Limited, formerly known as Willbros Nigeria Ltd, Solewant Nigeria Limited and Pipe Coaters Nigeria, managed by Tenaris Nigeria Ltd.

The Executive Secretary said the visits were to assess the companies’ facilities and determine how the Board can galvanize the industry to patronise them.

He underscored the importance of getting first-hand information on in-country capabilities before making key decisions on oil and gas projects.

He insisted that operating companies must support and patronise local oil and gas service companies in compliance with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

Ogbe emphasized that activities in the Nigerian oil and gas industry must be used to create employment opportunities for the nation’s teeming youths and help to resuscitate the economy, in line with the aspirations of President Ahmed Bola Tinubu.

The Chief Executive Officer of Brightwaters Energy Limited, Mr. Scott Gregory thanked the Executive Secretary for leading the visit while highlighting that Brightwaters, formerly Willbros carried out Nigeria’s first pipe coating in 1962.

He recalled that the facility had 3,000 employees some years back, executing various spheres of oil and gas projects. He conveyed the management’s aspiration to return the firm to those high-performance levels and sought the Board’s support to win oil and gas projects that would resuscitate the sprawling facility.

“We feel that we can be a positive contributor to Nigeria through the capacities that we have. We want to bring real, true value to the table,” he added. He admitted that the coating facility had suffered downtime, but assured that the plant would be up and running within 60 days of the award of a new contract.

The Chairman of Tenaris Nigeria, Dr. Ernest Nwapa welcomed the NCDMB’s team to PCNL’s facilities. He commended the efforts made by the agency to push local content in the industry, attributing it to the good culture that had been established at the Board over the years.

Nwapa, who was the pioneer Executive Secretary of NCDMB expressed delight that some of the oil and gas projects that had been pending for nearly ten years were now being developed and expressed hope that existing local capacities would be maximized in the execution of those projects.

The team was taken around the company’s facilities and shown the various equipment of PCNL in readiness for the award of new contracts. Nwapa pledged the commitment of the company to meet the expectations of clients as well as allow them to participate in the supervision of the work in their factory.

The PCNL facility covers an area of 160,000 m2 in the Onne Free Trade Zone. The company offers Anticorrosion, CWC, Thermal Insulation, Internal and Bends Coating plants as well as Double Jointing and Anode Installation Facilities.

At Solewant Group, an EPCI and Pipe Coating Company, the NCDMB delegation was shown round the company’s facilities as well as the new investments, such as the 5mega watts generators, procured to guarantee power supply to the facility.

Accompanying Engr. Ogbe on the facility visits were the Director Projects Certification and Authorization Division (PCAD), Engr. Abayomi Bamidele, General Manager PCAD, Engr. Maurice Iwhiwhu, Special Technical Assistant (STA) to the Executive Secretary, Engr. Mofe Megbele, Deputy Manager, Corporate Communications, Mr. Obinna Ezeobi, and other staff members of the Board.

The SPDC team was led by the General Manager, Nigerian Content Development, Mr. Lanre Olawuyi.

News

Halilu Tasks NASENI Finance Managers On Effective Resource Management

Published

5 hours ago

May 14, 2024

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Halilu Tasks NASENI Finance Managers On Effective Resource Management

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Executive Vice Chairman and Chief Executive Officer (EVC/CEO), National Agency for Science and Engineering Infrastructure (NASENI), Mr. Khalil Suleiman Halilu has underscored the importance of effective resource management, emphasizing the Agency’s responsibility in administering public funds for the benefit of Nigeria.

L-R: Coordinating Director, Engineering Infrastructure Directorate, NASENI, Prof Bagudu Gwandangaji; Support Officer/NASEN Desk Officer, OAGF, Mr. Mustapha Marafa; Deputy Programme Manager, System Support and Sustainability Directorate, OAGF, Mr. Jeremiah Asanato; Executive Vice Chairman/CEO of NASENI, Mr. Khalil Suleiman Halilu; Coordinating Director, Finance and Accounts, NASENI, Alh Ibrahim Baba Dauda; Coordinating Director, Science Infrastructure Directorate, NASENI, Prof Umaru Gaya during a one-day sensitization workshop on Government Integrated Financial Management Information System (GIFMIS) policy and guidelines for financial managers organised by the National Agency for Science and Engineering Infrastructure and the Office of the Accountant General of the Federation held at NASENI Headquarters in Abuja on Tuesday, May 14, 2024.

The EVC stated this while declaring open one-day sensitization workshop on Government Integrated Financial Management Information System (GIFMIS) policy and guidelines for financial managers of NASENI in collaboration with the Office of the Accountant General of the Federation (OAGF) held at the Agency’s headquarters in Abuja on Tuesday, May 14, 2024.

The workshop was aimed at enhancing financial management practices for NASENI principal officers, directors, managing directors and accounting officers system-wide.

Urging the participants to take the workshop with all sense of purpose, the EVC/CEO called for accurate financial record-keeping and the adoption of innovative processes which remain integral in the GIFMIS policy. He stressed the significance of staff training and capacity development to ensure the discharge of duties to make NASENI a preferred public sector employer in Nigeria.

While warning staff on classified documents, Mr. Halilu said confidentiality in financial management is a crucial aspect and called for strict adherence to public service regulations regarding the integrity of official information.

He further emphasized the Agency’s 3Cs initiative of Collaboration, Creation, and Commercialization as NASENI’s core operating principles, expressing confidence in achieving the Agency’s goals in alignment with the Renewed Hope Agenda of President Bola Ahmed Tinubu.

The Deputy Programme Manager, System Support and Sustainability Directorate, OAGF, Mr. Jeremiah Asanato, giving overview of the GIFMIS, said it is aimed at integrating budgeting and government expenditure. He emphasized that the policy will help to address irregularities, corruption, and other fraudulent activities in government Ministries, Departments and Agencies (MDAs).

In his vote of thanks, Coordinating Director,Finance and Accounts, NASENI, Alh. Ibrahim Baba Dauda, appreciated all Finance and Accounts Directorate staff from across NASENI centres system-wide for attending the workshop. He challenged them to start thinking of making NASENI an independent revenue-generating agency.