The
Halliburton scandal case instituted in 2010 is still foot-dragging in court
while former President Olusegun Obasanjo, former Head of State, Abdulsalami
Abubakar, former Group Managing Directors, Nigeria National Petroleum
Corporation, NNPC, Gaius Obaseki and Funso Kupolokun walk free.
Abdulkadir
Abacha, a brother of the late Head of State, General Sani Abacha and 80 other
prominent politicians especially from the People’s Democratic Party, PDP, were
all listed as beneficiaries of the huge bribe money and they are all yet to be
put behind bars.
A former Chief
of Air Staff, Air Vice Marshal Dominic Bello; former federal Permanent
Secretary and Intercellular boss, Ibrahim Aliyu; a former Secretary to the
board of LNG, Mrs. Anthony were also fingered in the fraud.
Mr. Jeffery
Tesler, a Halliburton official, arrested in 2009 is currently serving a 21
Months Jail term in the United States. Tesler had listed top Nigerian
officials who hugely benefitted from the bribes. He had confessed that he used
Julius Berger as a conduit for the bribes.
Julius Berger,
the Construction giant, neck-deep in the scandal had paid $26. 5million in a
plea-bargain arrangement. The whereabouts of the plea bargain money remains
unknown.
General
Abubakar’s share of the illicit bribe funds, a total of $37.5 million, was
allegedly wired to him through accounts in the American Express Bank Annex at
the Towers World Financial Centre, New York, the Seaway National Bank, Chicago,
and the Bank of New York.
Abubakar, who
served as military ruler after the death of General Sani Abacha, operated
several bank accounts that period which included A/C No 187765 Chips VID 250517
(in the name of Maizubi Holdings, Minna), A/C No 0074952045, Routing Number
071001216, Foundation Inc., A/C No 9800263826 Swift/Sort Code GHBAGRAA001 and
A/C No 0039342923-21 Routing Number 052001533.
Former
President Olusegun Obasanjo’s aide, Mr. Bodunde Adeyanju had confessed to an
investigating team that he collected the sum of $6million from Chief Obaseki
while he was lodging at TRANSCORP HILTON and handed the money over to Mallam
Lawal Batagarawa, former Minister of State for Defence, who further handed same
to Chieftains of the PDP.
Former
Air-Vice Marshal Abdul Dominic Bello allegedly distributed part of the bribe
money using accounts such as: Lloyds Bank of London, A/C No 736827, Bank of
Credit and Commerce International, London, American Express Bank, A/C No
2101653, HSBC, A/C No 31505024, and Lloyds Bank, A/C No 0737041. All
transactions were done using a company called Tri-Star
President
Goodluck Jonathan had approved a five-man inter-agency panel headed by the
Inspector General of Police, including EFCC, SSS, and ICPC, to travel to
France, United Kingdom, Switzerland and Spain to confirm the foreign leg of the
investigations which mostly involves wiring of the funds, the amounts and the
account holders.
No word yet on
the outcome of the teams visit to Europe on the scandal while those linked,
indicted or mentioned in the financial crime are yet to face trial or jail
term.
A Chronology
of Key Events in the Unfolding Bribery Scandal
1988: Dresser
Industries acquires M.W. Kellogg, ten years before Dresser merges with
Halliburton. September 1994: M.W. Kellogg and three other companies form a
partnership known as TSKJ, incorporated in Medeira, Portugal. Each partner owns
a 25 percent equal share. Kellogg’s three other partners are Technip of France,
Italy’s Snamprogetti, and Japan Gasoline Corp. The partnership submits a bid to
Nigeria LNG to build a natural gas plant in Nigeria. The Nigerian government
and Royal Dutch/Shell Group own Nigeria LNG. TSKJ’s $2 billion bid is not
immediately accepted even though it was 5 percent lower than a bid submitted by
competitor, Bechtel Group, Inc.
November 1994:
As TSKJ awaits Nigeria’s decision on the bid, Wojciech Chodan, an executive at
Kellogg and later a consultant for Kellogg Brown & Root, meets with London
lawyer Jefferey Tesler, who is known for his contacts and friendly relations
with the Nigerian government, including its dictator Gen. Sani Abacha. During
the meeting, they discussed channeling $40 million to Gen. Abacha through Mr.
Tesler’s firm Tri-Star, based in Gibralter, Spain.
March 1995:
TSKJ formally hires Mr. Tesler as agent; Nigeria LNG has still not accepted
TSKJ’s bid. An M.W. Kellogg executive on behalf of the TSKJ partnership signs
Mr. Tesler’s employment contract. Mr. Tesler had been working on behalf of TSKJ
prior to March 1995 and the employment contract was given to Mr. Tesler as a
reward for his prodding of Nigerian officials. The employment contract provided
that Mr. Tesler would be paid $60 million if Nigeria awarded the construction
contract to TSKJ. Mr. Tesler’s Tri-Star was contracted to receive at least $160
million in five agreements signed between 1995 and 2002, and the funds were
directed to bank accounts in Switzerland and Monaco.
March 20,
1995: Dan Etete replaces Nigeria’s former oil minister, who has a falling out
with the dicatator, Gen. Abacha. “In an interrogation of Mr. Tesler, a French
magistrate described the London lawyer’s transfer of $2.5 million into Swiss
bank accounts held by Mr. Etete under a false name between 1996 and 1998. Mr.
Tesler confirmed making the payments but told the magistrate that the money was
for an investment in offshore oil exploration leases in Nigeria and that he
wasn’t aware the accounts belonged to Mr. Etete, according to people familiar
with the interrogation.” (Wall Street Journal, Sept. 29, 2004.)
June 1995:
Albert Jack Stanley is promoted to president and chief operating officer of
M.W. Kellogg after serving as executive vice president since 1991 and various
positions since 1975.
August 1995:
Dick Cheney is hired as CEO of Halliburton, three years before he directs the
merger of Halliburton with Dresser Industries and M.W. Kellogg. He serves as
CEO until August of 2000.
December 1995: TSKJ is finally awarded the $2 billion contract from Nigeria
LNG.
July 1996:
M.W. Kellogg promotes Albert Jack Stanley to chairman, president and chief
executive officer; he also becomes vice president of operations for the parent,
Dresser Industries.
February 1998:
Halliburton and M.W. Kellogg’s parent, Dresser Industries, agree to a $7.7
billion merger directed by Dick Cheney. M.W. Kellogg is merged with
Halliburton’s Brown & Root subsidiary to form Kellogg, Brown & Root.
Albert Jack Stanley is named as chairman of the new subsidiary. The Independent
(UK) reported that “Mr Stanley had been appointed to his senior role at
Halliburton by Mr Cheney when he was chief executive between 1995 and 2000.”
(The Independent, Oct. 3, 2004.) The Wall Street Journal confirmed that Cheney
“named Mr. Stanley to a top post at the company in 1998.” (Wall Street Journal,
Sept. 29, 2004.) Cheney told the Middle East Economic Digest in 1999 that, “We
took Jack Stanley to head up the organization and that has helped
tremendously.” (Middle East Economic Digest, April 9, 1999.)
1999: The TSKJ
partners, with Kellogg Brown & Root acting as the lead partner, agree to
reappoint Mr. Tesler as its agent during a meeting in London. Kellogg wanted
Mr. Tesler, with whom it had a long-term relationship, to attend. But the
representative from the French partner, Technip, wanted a different agent and
insisted that Mr. Tesler be excluded from the meeting.
William
Chaudan, the Kellogg representative at TSKJ, said Mr. Tesler had been selected
on Kellogg’s recommendation and over Technip’s “strong opposition.” (Financial
Times, London, Sept. 16, 2004.) Halliburton officials in Houston deny that
Kellogg Brown & Root demanded Mr. Tesler’s participation. Three new
contracts with Mr. Tesler required TSKJ to pay his firm, Tri-Star, $32.5
million for his services in Nigeria. Richard Northmore, a sales manager for M.W.
Kellogg in England, signed contracts with Mr. Tesler for TSKJ. Syed Nasser,
M.W. Kellogg’s legal director, acted as counsel to the TSKJ consortium,
approving Mr Tesler’s role. Bhaskar Patel, a sales and marketing vice-president
who works in Kellogg, Brown & Root’s office in England, also worked with
Mr. Tesler.
March 1999:
Halliburton announces the Nigerian government awarded a $1.2 billion contract
to TSKJ to expand the construction of the natural gas plant from two trains to
three trains in order to increase the plant’s capacity by 50 percent. At the
time, Stanley declared the contract award exemplifies Kellogg’s “project
execution skills.” (Halliburton press release, March 11, 1999.)
October 1999:
First shipment of liquefied natural gas is shipped from Nigeria.
October 2003:
French magistrate initiates investigation of suspicious payments made by TSKJ
after a former executive with one of TSKJ’s partners, Technip of France, said
Mr. Tesler is “directly linked to corruption in Nigeria.” (Financial Times,
London, Sept. 16, 2004.) Halliburton admitted that TSKJ paid $132 million in
“advisory fees” to Mr. Tesler and that under Tesler’s contract with the company
the money was not to be used for bribery. But the French investigator said the
payments to Mr. Tesler “appear completely unjustified.”
(Wall Street
Journal, Sept. 29, 2004.) The money was paid to Mr. Tesler between 1995 and
2002, more than half of which came after 1999. Under French law, Mr. Cheney
could be subject to a charge of “abuse of corporate assets” even if he knew
nothing about the alleged improper payments during his tenure as Halliburton’s
chief executive. The U.S. antibribery law applies only to executives who are
aware of illicit payments to foreign officials. (Dallas Morning News, Sept. 8,
2004.) The Wall Street Journal reported that French authorities don’t have
jurisdiction over Halliburton in this case but are sharing information with
U.S. authorities. (Wall Street Journal, Sept. 29, 2004.) “A preliminary
investigation by the Police Judiciaire of France found that LNG Servicos, a
company indirectly owned by the four partners in the Nigerian joint venture,
made four payments totaling at least $166 million at times that roughly
coincide with the award of contracts. The payments went to a Gibraltar company
owned by a London attorney to a Swiss bank account that was later closed at the
request of the bank.” (Dallas Morning News, Jan. 25, 2004.)
December 2003:
Albert Jack Stanley retires as chairman of Kellogg Brown & Root, but
retains a position as consultant for Halliburton.
June 2004:
Halliburton fires Albert Jack Stanley after investigators say he received $5
million in “improper” payments from Mr. Tesler. It also fires William Chaudan,
the Kellogg representative at TSKJ. Halliburton spokesperson, Wendy Hall, said
that during the years he ran KBR, Mr. Stanley reported to David Lesar,
Halliburton’s president and chief operating officer at the time and CEO today.
Mr. Lesar reported to Mr. Cheney when Cheney was chief executive. (Dallas
Morning News, Sept. 8, 2004.) (Important Note: Lesar is an accountant and
former Arthur Andersen partner, meaning he may have been in a position to know
about the purpose of payments to Tesler when they occurred.) According to the
Dallas Morning News, “Mr. Cheney ran Halliburton when one of four suspicious
payments occurred.” (Dallas Morning News, Sept. 8, 2004.)
June 2004: It
is reported that Tesler put $1 million into an account held by William Chaudan,
the Kellogg representative at TSKJ. “The company has since learned that even
larger sums may have gone into the accounts of Mr. Stanley and Mr. Chaudan.”
(Dallas Morning News, Sept. 3, 2004.) Chaudan retired from M.W. Kellogg Co. in
1998, but had continued as a consultant. (Dallas Morning News, June 19, 2004.)
August 2004:
Nigeria’s parliament votes unanimously to summon Halliburton CEO, David Lesar,
to answer questions over its bribery investigation. It issues a report
recommending that Halliburton and TSKJ be disqualified from bidding on future
government projects. It denounces what it calls Halliburton’s “hide-and-seek
games” to avoid questions from government investigators.
September
2004: TSKJ severs all ties to Mr. Tesler and his firm, Tri-Star.
September
2004: The Wall Street Journal reports on newly disclosed evidence by
Halliburton, including notes written by M.W. Kellogg employees during the
mid-1990s in which they discussed bribing Nigerian officials. The Financial
Times of London said the evidence “raises questions over what Mr Cheney knew –
or should have known – about one of the largest contracts awarded to a
Halliburton subsidiary.” (Financial Times, Sept. 16, 2004.) The written notes
were discovered by Halliburton’s lawyer, James Doty, a lead partner in the
Houston law firm Baker Botts. The “Baker” in Baker Botts is Bush family lawyer
James Baker, the same lawyer credited with winning Florida for Bush Jr. over
Gore. Baker also served as President George H. Bush’s Secretary of State. Doty
was general counsel to the Securities and Exchange Commission (SEC) under the
senior President Bush. He was SEC general counsel when the SEC investigated
Bush Jr. for insider trading. Doty recused himself from the case, which was
eventually closed without action. Bush Jr. was never interviewed. Although
Bush’s lawyers gave the “smoking gun” in that case to the SEC the day after it
closed the investigation, Doty refused to reopen the case. (Washington Post,
Nov. 1, 2002.)
September
2004: Nigeria’s President Olusegun Obasanjo officially bans Halliburton from
bidding on future government contracts because it violated safety regulations
for nuclear material. The president accuses the company of negligently causing
the disappearance of two highly sensitive radioactive devices used to take
measurements in oil wells. The ban is apparently not related to the ongoing
bribery investigations.
October 2004:
Revelations about Halliburton’s central role in the bribery investigation
forces United Kingdom’s Export Credit Guarantee Department (ECGD) to consider
withdrawing its support of a 133 million (British pounds) loan made last year
to Kellogg. ECGD said it originally supported the loan on the basis that
Halliburton was merely a “subcontractor to the [TSKJ] consortium and financial
arrangements were not their responsibility,” but it was maintaining a “watching
brief” on the French investigation. (The Independent, Oct. 3, 2004).
October 22,
2004: Investigators with Nigeria’s parliament complain that Halliburton is not
being cooperative in their investigation of the alleged bribery. The
investigators say Mr. Tesler paid bribes on behalf of TSKJ to Nigerian
government officials. The bribes were paid in installments: $60 million in
1995, $37.5 million in 1999, $51 million in 2001 and $23 million in 2002.
June 20, 2005:
The French newspaper LeFigaro reports that a U.S. Justice Department official
held “lengthy” meetings with French authorities in Paris on the issue of TSKJ
bribes. It said an unnamed U.S. source asserted that the bribery scandal is
“probably the most significant file of corruption” known in Washington today.
Sept. 22,
2006: A former Halliburton employee says he has evidence proving the company
has embarked on a campaign to cover-up all wrongdoing, including attempts to
mislead federal investigators.
