Countryfile

NIGERIA

President Yar’Adua’s election campaign was built around the concept of zero tolerance towards corruption, and recent legal cases seemed to indicate that he was matching words with action. Then came the announcement that the anti-corruption chief had been sent off on a sabbatical. What does all this mean? Anver Versi and Neil Ford report.

The Ribadu conundrum

Recent anti-corruption cases in Nigeria, one involving a major international company, seemed to confirm that the government of President Umaru Yar’Adua was fulfilling its promise to crack down on instances of bribery and other financial irregularities. Contracts have been cancelled with large foreign firms and officials are now under investigation. Nigerian intellectual and writer Wole Soyinka echoes the views of the majority of Nigerians when he describes corruption as “the cancer that is eating the heart of our people”. But, against this encouraging backdrop, came the news that Nigeria’s ‘corruption Czar’, Nuhu Ribadu – the man who is alleged to have “struck terror in the hearts of every crooked official” – has been effectively asked to vacate his post. “Just what is happening?” asked Lagos commentator Milton Okpara. “If this government is serious about defeating corruption, why has the spearhead been removed?” In October, German IT and telecoms company Siemens was found guilty by a German court of pay

The chairman of Nigeria’s Economic and Financial Crimes Commission, Nuhu Ribado, has led probes investigating the probity of 30 former state governors. Has he been pushed out into the cold?

ing €10m ($14.75m) in bribes to Nigerian officials to secure lucrative contracts between 2001 and 2004. The firm was fined €248m ($364.5m) and two employees were given suspended sentences for bribery and breach of trust. Siemens accepted the court’s judgement, resulting in the resignation of both the company’s chief executive and chairman. An investigation by the company itself revealed that at least €1.3bn ($1.91bn) had been paid in various suspicious transactions, while courts in the US could impose huge fines if the German company is found to have broken any US legislation. The trial prompted Yar’Adua to order an enquiry into the case in Nigeria. Although those Nigerian officials and former ministers

named by the German court deny any involvement in the bribery, further investigations are to be carried out and a $1.1m Siemens contract for the supply of power generation accessories was cancelled in December. The Nigerian minister of information and communications John Odey said: “Council cancelled the contract bid won by Siemens Nigeria because of the current investigation against the company relating to corrupt practices. Government will not have any dealings with Siemens Nigeria in terms of contracts until the investigation is concluded and the company is exonerated or otherwise.” A presidential spokesperson commented: “In this Siemens scandal, as in all cases that border on good governance and transpar

ency, there will neither be sacred cows nor a cover-up for anybody found culpable of breaching the law”. The Independent Corrupt Practices and Other Related Offences Commission (ICPC) had questioned more than 10 officials over the scandal.

Ribadu’s one-year ‘sabbatical’ While investigations into the case continued, news came that Nuhu Ribadu, the head of the Economic and Financial Crimes Commission (EFCC), has been asked to take a year’s study leave. Although the government of President Olusegun Obasanjo promised a war on corruption, very little progress was made for most of Obasanjo’s eight years in power. It was only towards the end of his second term of office, with Ribadu in charge of the EFCC, that culprits were brought to book. The head of the anti-corruption body attracted a great deal of praise for his efforts. An announcement by police chief Mike Okiro at the end of December that Ribadu had been sent on “a one year policy and strategic studies course” caused uproar in the media and among the public. “Why, why, why?” demanded a banker. “Just when we thought we were moving forward, this happens. Is it back to square one again?” Nigeria’s dynamic business community, particularly its increasingly world-class bankers, have been among the fiercest campaigners against the cult of corruption that has tainted this country’s reputation all over the world. “In the world of business, particularly in finance, reputation is all. It is

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worth billions,” a leading banker told African Business. “We are losing millions by the minute because of the greed of a handful of corrupt officials and politicians. They are robbing all of us! We are all, from the wealthy to the middle class to the poor, worse off because of these people! They are fifth columnists. We should treat them like traitors!” Under Ribadu’s direction, 30 former state governors are now under investigation out of just 36 states, so Okiro’s insistence that there are no ulterior motives behind the move has failed to convince anyone. Rather than seeking to broaden his mind, it seems that Ribadu’s investigations may have upset the wrong people. The EFCC arrested the former governor of Delta State, James Ibori, in December. Ibori was charged by the federal high court and is also under investigation by the British police for money laundering. Assets worth an estimated $35m have been frozen in the UK. It was reported prior to Ibori’s arrest in Nigeria that the Nigerian authorities were attempting to delay British efforts to bring the former governor to justice. London’s Metropolitan Police is investigating seven former Nigerian governors and has asked Nigerian officials to provide evidence that the money could have been secured through legitimate means. The salary of a Nigerian state governor is about $25,000 a year. Britain’s director of public prosecutions, Ken MacDonald, commented: “The difficulty and lack of progress in obtaining hard evidence from Nigeria is causing major difficulties in relation to the court proceedings in the United Kingdom and putting these other cases in jeopardy.” Reaction to the apparent ‘dismissal’ of Ribadu has been strong as the remarks from the banker indicate. Alhaji Abubakar Tsav, a politician in Benue State and a well known anti-corruption activist, said: “President Yar’Adua is not yet as committed to the fight against corruption as he wants us to believe. The recent sacking of

Ghana

First gas from Nigeria arrives

Ghana has finally received its first supplies of natural gas through the West African Gas Pipeline (WAGP). The much publicised project has been subject to various delays since it was first mooted. Ghana is finally able to access Nigerian gas to feed its thermal power plants near the coast and hopefully also supply relatively cheap feedstock to industrial consumers. Speaking to journalists at the end of December, Ghana’s President John Kufuor said: “Only yesterday the long awaited West Africa Gas Pipeline came on stream with its first flow of gas. This is a more affordable source of energy than crude oil.” The gas will be used by the Volta River Authority’s (VRA) 330MW combined cycle thermal plant at Aboadze near Takoradi and also the Takoradi International Company’s (TICO) thermal power plant. The latter is being upgraded from a 220MW simple cycle facility to a 330MW combined cycle plant to take advantage of the WAGP gas. The WAGP operating company, WAGPCo, is owned by ChevronTexaco West African Gas Pipeline Ltd (36.7%), the Nigerian National Petroleum Corporation (NNPC) (25%), Shell Overseas Holdings Limited (18%), Volta

River Authority of Ghana (16.3%), Sociéétéé Beninoise de Gaz S.A. (2%) and Sociéétéé Togolaise de Gaz S.A. (2%). The completion of the project should provide a much needed boost to Ghana’s electricity consumers. Low rainfall during 2006 and much of 2007 cut production capacity at the Akosombo hydroelectric dam and resulted in power rationing across the country. In addition, the country’s existing thermal power plants relied on oil feedstock, the price of which fluctuates wildly but which has become very expensive over the past year. Electricity tariffs rose sharply during the final quarter of 2007 but the availability of WAGP gas could help to minimise future price rises. It is estimated that the switch from oil to gas will save Ghana between 20,000 and 30,000 barrels of oil imports a day. In the longer term, gas can also be piped to Togo and Benin via spur pipelines. The World Bank estimates that all three recipient countries can save $600m in energy costs over the next 20 years. Project costs have risen to an estimated $620m from $400m over the past few years but the World Bank has provided a $50m investment guarantee, while

Nigeria’s police chief, Mike Okiro, announced to the consternation and fury of many Nigerians that Ribadu had been sent on “a one year policy and strategic studies course”.

Ribadu is a clear example of his non-commitment to this menace which has eaten deep into the fabric of our nation, or else why should he take such a decision at this critical time in the life of a nation in dire need of edging out every form of corruption?” Externally, the ‘sacking’ has also generated criticism. The chairman of the US Senate foreign relations subcommittee on African Affairs, Russ Feingold, has asked Washington to put pressure on Abuja to reverse its decision on Ribadu. He said: “Despite running on a platform of zero tolerance for corruption and promising across-the-board improvements in governance, Nigerian President

an offshoot, the Multilateral Investment Guarantee Agency (MIGA), has provided a $75m political risk guarantee. Aside from the obvious benefits in terms of providing power sector feedstock, the completion of the WAGP also provides a statement of intent on West African integration. Promises of economic integration within the Economic Community of West African States (Ecowas) and power sector integration within the West African Power Pool (WAPP) have been made for many years but relatively little progress has been recorded. However, the development of the new pipeline required cooperation between the governments of Nigeria, Ghana, Togo and Benin, as well as with the companies involved. Despite the need to pass legislation in all of the jurisdictions involved, the necessary agreements were reached. The boost to Ghanaian generating capacity should encourage the construction of new transmission interconnectors to enable some development of the WAPP but the WAGP could be of even more importance in acting as a confidence building measure towards regional integration.

Umaru Yar’Adua has already failed to live up to this commitment during his first eight months in office. The most recent example of President Yar’Adua’s inconsistencies in combating Nigeria’s endemic corruption is the removal of Nuhu Ribadu ... despite a record of successful prosecutions.” President Yar’Adua cannot be held accountable for any acts of corruption that occurred before he came to power but his government’s attitude towards the fight against corruption certainly is his responsibility. At present, his resolve to tackle the problem in an impartial manner seems to have become compromised by the Ribadu episode.

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