Why Nigeria won’t go far in reopening Malabu oil deal

There is a strong indication that the attempt to reopen probe into the award of controversial Oil Prospecting Licence (245) better known as Malabu Oil deal, costing Nigeria about $2.2 billion, may not go too far, going by feelers from both local and international institutions on the matter.

The House of Representatives had recently resurrected the case when it mandated its adhoc committee set up for the purpose to launch a fresh investigation into the alleged corrupt malpractice and breach of due process in the award of the licence to multiple firms.

But a senior official of the Economic and Financial Crimes Commission (EFCC) told Ripples Nigeria that getting little or no positive end will come from the new probe because there was no loose-end created by those that entered into the contract.

Hear him: “The 7th Assembly had earlier investigated the matter and hit the rock, which saw its report on the investigation dying on arrival such that even to have it tabled before the floor was impossible.”

He stated that even international courts in France, Italy and US had delved into the case but could not find any reason to fault the deal

He added, “All of this does not mean that Nigeria was not shortchanged one way or the other in the deal but how to establish and sustain it is difficult as at today pending when a new lead is found.”

Read also: N26bn suit: AMCON groans over loss to Capital oil in courts

But the committee’s chairman, Razak Atunwa, has maintained that nothing will deter his committee from digging into the case to expose what he tagged lack of transparency surrounding the award of the licence, which has cost Nigeria more than $1.1 billion.

He said even if Nigeria had recovered the $110 million currently being held by the United Kingdom authorities as proceeds from illegal charges from Italian prosecutors, who had received the funds from the deal in Swiss accounts, Nigeria would have made up part of the controversial deal.

Another sign that the committee’s work may be frustrated was the reported cross firing of memos between the House committee and the EFCC Acting Chairman, Ibrahim Magu, on Wednesday. It was over whether he had been properly briefed by the committee inputs from the Commission.

This is in addition to assertion from Shell Oil Plc, also mentioned in the deal, but which through its lawyer; Chief Richard Akinjide (SAN) is insisting that the committee has no power to investigate the matter.

The OPL 245 has remained stewed in controversy with allegations that Dan Etete, the Minister of Petroleum Resources under the Sani Abacha administration awarded the license to himself in 1998.
In attempt to officially resolve the transaction, a deal was struck which transferred OPL 245, first from Malabu to the Nigerian government and then from the government to Shell and Eni.

The agreement was signed by past Attorney -General of the federation, Mohammed Adoke, and former Petroleum minister, Diezani Alison-Madueke on behalf of the federal government with $800million allegedly paid into accounts controlled by Etete, instead of the federation account, from a deal of $1.1billion struck with Shell and Nigeria Agip Exploration ( NAE).

Investigators claim that the payment to Malabu was then spirited into various foreign bank accounts.

Ripples Nigeria…without borders, without fears

By Emma Eke.

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