The Halliburton scandal remains one of the biggest corruption scandals in the history of Nigeria. New reports from the Economic and Financial Crimes Commission (EFCC) has revealed  how $32.5 million of about $200 million fines from Halliburton Energy Services was allegedly paid into a private account.

 

The EFCC has claimed that it could not ascertain if the said amount was remitted into the Federal Government account or not. For this reason, the money had been declared missing by the Nigerian anti-graft agency.

According Sahara reporters, Mr. Roland Ewubare, who was one of the lawyers involved in the Settlement Agreement with Halliburton, has been given up to September 15 to submit a letter authorising him by the Federal Government  to open the private escrow account.

Mr Ewubare who is a top shot with the Nigerian National Petroleum Corporation(NNPC), told the EFCC that as the then Executive Secretary of the National Human Rights Commission (NHRC), he acted in national interest in opening the escrow account.

It will be recalled that the Halliburton scandal has lead to the arrest and investigation of  notable Nigerians and Foreigners alike as well as some companies.

One of those grilled by the EFCC is the Managing Director of Halliburton Energy Services in Nigeria, Henry Oki who revealed  the details of how agreements were signed between the Federal Government and Halliburton in London.

In line with the Halliburton’s scandal settlement agreement with the Federal Government, about five companies have paid fines. The breakdown is given below:

Julius Berger ($35m); Siemens (Euros 30m); Snamprogetti ($30m); Halliburton Energy Services ($32,500,000); and Japan Gasoline Corporation ($26, 500,000).

According to the EFCC, out of the total money paid about $32.5million is missing. The missing cash was paid into an account that was opened in the name of federal government but was discovered to be privately owned.

The detectives of the EFCC discovered that the missing $32.5million from the Halliburton scandal settlements was transferred by Halliburton into FGN JP Morgan Chase New York Swift BIC Code CHASUS 33, Account No. 000742501406865.

The account was said to be titled Madison Avenue/ Escrow /CBN/ FGN further Credit to FGN Litigation Settlement. Meanwhile, despite this title, the Nigerian anti-graft agency reportedly uncovered that the account was privately owned.

A top source from the EFCC had this to say about the Halliburton scandal “Out of over $200million fines paid, about $32.5million(N13,585,000, 000) is missing. Our team only succeeded in tracing the transfer of the cash into an account in New York but there is no record of whether or not  it was remitted into the Federal Government Consolidated Account.”

“We have raised issues on why the money was paid into a private account which led to the deduction of about 3.5% for some services.”

“When we confronted a top official of NNPC, Roland Ewubare (who was at the time of the agreement the Executive Secretary of the National Human Rights Commission), he said $20million out of the $32.5million  was remitted into the  Federal Government account. We are yet to confirm this transfer because there are no records.”

“We have given Ewubare up till September 15 to produce a letter from the Federal Government authorizing the payment of the $32.5million into a private escrow account and other documents relating to transactions in the account including the agreement on deduction of 3.5% for services out of the sum.”

“As I speak with you, Ewubare is in the United States to retrieve all these relevant documents. He told us that he acted in the interest of the country and he has nothing to hide. But we need these documents from him.”

Responding to a question, the source said: “We have confirmed that  other fines by Julius Berger ($35m); Siemens (Euros 30m); Snamprogetti($30m); and Japan Gasoline Corporation($26, 500,000) were paid into the Federal Government Consolidated Revenue Account.”

“But we have issues with Halliburton Energy Services($32,500,000). As a matter of fact, Halliburton rejected the first account given to it before the private account was provided as an alternative.”

Mr Ewubare in his testimony, however, defended the transparency of the opening of the account and the remittance of the $32.5million before the EFCC detectives.

Mr Ewubare wrote this in his statement of witness:

“The escrow agent or its nominees are typical signatories. The signatories were undisclosed nominees and myself.

“The escrow account was closed by JP Morgan after Japan Gasoline Corporation payment. The name of the escrow account is “Madison Avenue Escrow.”

Oki told detectives: “It is important to state that the person that communicated the Federal Government of Nigeria bank details as well as D.D. Dodo’s bank details was a prominent member whom the AGF delegated to engage with us in person of Mr. Roland Ewubare.”

Still on the Halliburton Scandal, Mr Ewubare went on to give details of how Halliburton paid the $32.5million into the escrow account:

“On the 11th of December 2010, the FGN and Halliburton entered into a Settlement and Non-Prosecution Agreement for the dismissal of the law suit in exchange for an ex-gratia payment of $32.5million into FG dedicated account.”

“Halliburton was also to shoulder the FG legal cost to its designated counsel with the assurance from the government that such payments were legal under Nigerian laws and regulations.”

“The agreements were signed by the AGF on behalf of the Nigerian government and in the presence of EFCC Secretary, Mr. Emmanuel Akomaye in London.”

“Halliburton’s Easter Hemisphere President signed the agreement in the presence of Mr. James Ferguson, the Senior VP and Deputy General Counsel.”

“The bank details in Schedule 1 and 2 of the agreement were found to be incomplete and incorrect by Halliburton Treasury and bankers(CITIBANK) on the 14th of December, 2010.”

“ Halliburton asked for the corrected bank information from the Federal Government and her legal counsel which was provided to us on the 16th of December by Roland Ewubare on the email provided.”

“The account is an escrow account. I am not sure at this point if the change in bank account details was by way of addendum. However, we were advised by the bank that this as a bonafide Federal Government of Nigeria account.”

The Halliburton scandal has been at the forefront of the Country’s quest to recover loots from the Government treasury. It is so important that Some members of the legal team were conferred with national honours for the recovery.

What ever happens with this Halliburton Scandal, Nigerians are eagerly waiting for the EFCC and the government to recover the money and put in their ailing economy.

The Nigerian economy which was the biggest economy in Africa has slipped into recession. The economy also lost its to the south African economy as the biggest African economy.

The Halliburton scandal has lingered for so long.  Nigerians hope that the proceeds from the Halliburton scandal will be used to revive the Nigerian economy.

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