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About two years after foreign law enforcement agencies slammed punitive fines in the US and Germany on Siemens for bribing officials of foreign countries – including Nigeria – to secure contracts, no Nigerian has been prosecuted.

As
Nigerian law enforcement agencies engage in what appears to be an
everlasting investigation of government officials indicted abroad for
corruption, one country, the United States, is busy raking in massive
revenue on account of Nigeria’s dereliction.

Nigeria’s bribery
misfortune has so far generated over N300 billion (approximately $2
billion) in revenue for the United States government, from fines it
imposed on companies which bribed Nigerian officials to corner
government contracts. Our analysis of the three current major
international bribery scandals (Siemens, Halliburton/TSKJ, Daimler)
involving Nigerian officials, indicates no traction or indictment from
the Economic and Financial Crimes Commission (EFCC), the agency that
leads investigations relating to economic and financial crimes.

This
finding also coincides with the release of a business survey on crime
and corruption in our country, which indicates that Nigerians have
“little trust in anti-corruption authorities.”

The report is a
collaboration between the National Bureau of Statistics (NBS), the
Economic and Financial Crimes Commission (EFCC), the European Union
(EU), and the United Nations Office on Drugs and Crime (UNODC).

“It
is hard to have any confidence in these agencies, and all these endless
investigations point at nothing but a case of dereliction, and probably
collaboration, or both,” said Jiti Ogunye, a leading public interest
lawyer in Lagos, who wondered angrily “how come that 19 years after
Siemens, (the Germany-based multinational electrical firm) agreed to
pay fines to both the US and German authorities for bribing officials
of foreign countries – including Nigeria – to secure contracts, no
Nigerian has been prosecuted?”

Another attorney, Abuja-based Charles
Musa, said if the US government is fining its own citizens, and its
companies, it is unfortunate that Nigeria, where all the bribery took
place, be it Anammco or Halliburton, is just grandstanding and playing
to the gallery, and not serious about prosecuting its citizens.

“In
a proper country, those companies should have been fined themselves,
and they’ll be blacklisted. It’s unfortunate that we don’t have the
political will to prosecute any crime in this country as long as it
doesn’t involve a poor man. These people are well known, they (their
names) are on the Internet, they are in US court papers, and nothing
has happened to them. It is unfortunate,” he said.

US revenue

The
revenue made by the United States represents fines paid by bribe
givers: Siemens, Kellogg Brown & Root, Technip and Daimler AG, to
the U.S. Securities and Exchange Commission and the Department of
Justice in settlement agreements, for giving kickbacks to Nigerian
officials in exchange for multibillion dollar contracts. And by the
time investigations are completed in the $182 million Halliburton
bribery scandal, which has so far yielded $917 million dollars for the
U.S. government, the country is likely to rake in an additional N68
billion (approximately $449million) in fines from a former Halliburton
executive Albert Jackson Stanley, two United Kingdom citizens, Jeffrey
Tesler and Wojciech Chodan, and ENI of France, a member of the infamous
TSKJ consortium.

Already, Mr Stanley has been sentenced to seven
years in jail and he is to pay $10.8 million in restitution. Tesler and
Chodan, who allegedly coordinated the elaborate bribery scheme on
behalf of the TSKJ consortium, have also been indicted by a federal
grand jury in Houston and might forfeit $132 million to the American
government.

Investigations into ENI’s involvement in the bribery
scheme is still ongoing but in anticipation of its indictment, the
company has already set aside 250 million euro, an amount it plans to
deploy in a settlement agreement with the SEC and the Department of
Justice.

America has accused the company of violating its Foreign
Corrupt Practices Act, which forbids “certain classes of persons and
entities to make payments to foreign government officials to assist in
obtaining or retaining business.”

Unwilling Nigeria

But
while the U.S. is prosecuting its citizens involved in the scams and
compelling concerned companies to pay huge fines, Nigeria, where the
offences were committed and whose citizens received the bribes, has
failed to properly investigate the cases and punish those involved.

“What
that means is that Nigerian laws and institutions are not working and
we are paying dearly for that,” said Bunmi Aborisade, an adjunct
professor at the State University of New York. “If those fines had been
paid to our country, it would have gone a long way in alleviating
poverty among our people. But that is even if the fine proceeds are not
stolen again.”

Siemens was the first to enter into a settlement
agreement with the SEC and the American justice department. On December
12, 2008, in a charge brought against it in a US District Court for the
District of Columbia, the German company agreed to pay $350 million in
disgorgement to SEC and a $450 million criminal fine to the justice
department.

The company had earlier paid fines of 395 million Euro
(approximately $569 million) and 201 million Euro(approximately $285
million) to the office of the Prosecutor-General in Munich, Germany,
over the same charge that it bribed Nigerian officials to corner four
telecommunication contracts.

When Siemens first entered into these
plea agreements, the Nigerian government blacklisted it and suspended
it from handling government contracts. But the Umaru Yar’Adua
administration soon lifted the suspension, saying the company had
repented. The company did not pay any fine and nobody was prosecuted
for the crime.

Two months later, in February 2009, Kellog Brown and
Root parted with $177 million and $402 million in payments it made to
SEC and the department of justice for its role in the bribing of
top-level Nigerian officials in exchange for the contract to build our
$6 billion Nigerian Liquefied Natural Gas plant.

The two U.S.
agencies then went after German automaker, Daimler, and got it to cough
out a total $185 million in fines to settle charges that it compromised
Nigerian officials to award several vehicle supply contracts to it.

With
the announcement on Monday that Technip, a member of the TSKJ
consortium, had agreed to pay $338 million for its role in the bribery
of Nigerian officials, America’s total earning from enforcement
proceedings in the $182 million Halliburton bribery scam alone now
stands at $917 million (approximately N138 billion).

“The
resolutions announced today demonstrate once again the department’s
commitment to aggressively investigate and prosecute international
bribery by U.S. and foreign corporations alike,” the justice
department’s Principal Deputy Assistant Attorney General, Mythili
Raman, said in a statement. “The fact that Technip now must pay
criminal penalties and civil disgorgement totalling $338 million should
make clear that, in the end, bribery of foreign officials will have
consequences.”

Not finished

Yet the Americans
are not finished. ENI, another member of the TSKJ consortium, is being
investigated and both SEC and the Justice department are likely to file
separate charges against the company before long. The fourth member of
the TSKJ Consortium, JGC Corporation of Japan, may, however, escape
U.S. sanctions because it is not listed in the New York Stock Exchange.
It is listed in the Tokyo Stock Exchange.

The U.S. authorities said
it was determined to bring to book all those involved in bribing
foreign officials in exchange for business favours.

“The FBI is
committed to pursuing those who disrupt the level playing field to
which companies in the U.S. and around the world are entitled,” said
FBI Assistant Director Kevin L. Perkins. “This case (Technip’s)
demonstrates the FBI’s commitment to aggressively investigate
violations of this law. We will continue to investigate FCPA matters by
working in partnership with other law enforcement agencies, both
foreign and domestic, to ensure that both corporations and executives
who bribe foreign officials in return for lucrative business contracts
are punished.” Analysts say while America’s FBI and SEC are matching
words with action, Nigeria’s EFCC, responsible for the Nigerian end of
the investigation, is running round in circles and barking without
biting.

Not lifting a finger

“It is quite
unfortunate and pathetic that foreign countries have brought to justice
those who have engaged in bribery while doing businesses in Nigeria,
while Nigeria, the victim of these corrupt practices, has not lifted a
finger in such despicable acts against the country,” said Bukola
Oreofe, executive director, Nigeria Liberty Democratic Forum, a New
York-based pro-democracy group.

“One can only leave to the
imagination the number of schools, hospitals, roads, agricultural
development, avoidable deaths that would have been averted if Nigeria
had been protected from this fleecing or if the country, through her
own criminal statutes, could bring the local and foreign perpetrators
to justice.

“If the United States can earn millions from such punishment, it is sad that Nigeria looks the other way,” Oreofe said.

Idris Akinbajo and Elor Nkereuwem contributed to this report.