A major US engineering and military contractor
has agreed to pay more than $500-million in penalties and fees to settle
bribery allegations against one of its subsidiaries that operates in
Nigeria.Halliburton Company, which
until 2007 controlled the Houston, Texas-based KBR (also known as Kellogg,
Brown, and Root), has agreed to pay $382-million of a $402-million fine and
$177-million in fees incurred through US federal charges lodged against KBR by
the Securities and Exchange Commission (SEC).
KBR will pay $20 million.
SEC alleges that KBR disbursed millions of dollars in bribes to Nigerian
officials to win contracts for building a $6-billion gas liquefaction plant on
Nigeria’s Bonny Island.In 2005, KBR was
able to emerge from US Chapter 11 bankruptcy and show profitability as a
corporation.In spinning off KBR two
years later, Halliburton agreed to cover the contingent liabilities of its
Nigerian journalist Chido Nwangwu, who publishes USAfrica Online, says that the liquefaction plant is in some
ways detrimental to Nigerian economic gains in that it facilitates and
encourages international oil giants to ship Nigerian crude out of the country
for refining, which lowers the profit that the Africans can obtain for their
refining capacity and the refining competence has been a major problem in
Nigeria.The sad part of it is that some
people would rather have the crude oil to be refined abroad and re-imported
into Nigeria so that they will make more money,” he noted.
alleged bribes took place over a decade, between 1994 and 2004.During part of that time, KBR’s parent
company, Halliburton was headed by Dick Cheney, who stepped down as CEO in 2000
to become Vice President of the United States.
While neither KBR nor its parent company are admitting or denying
wrongdoing under this week’s settlement, Chido Nwangwu explains that
Halliburton’s payment of the bulk of the fines and the additional fees is an
acknowledgement of gross misappropriation of overseas spending by a US firm.
the end of the day, spinning it off reflected their later-day efforts to mask a
number of the operational excesses, corporate deviousness, corruption imposed
and fertilized by the firm, which clearly violate the US Foreign Corrupt
Practices Act,” he said.
relies heavily on its oil and gas-related resources, which account for 87
percent of its foreign exchange. Coincidentally, Houston, which is a major oil
industry center in the United States, has attracted a large Nigerian expatriate
community, some of whom are employed by the corporate oil giants headquartered
there.Nwangwu points out that neither KBR
nor most of the Houston oil companies have set up significant community institutions
or charitable services to help revitalize Nigerians, either in Texas or in the
oil-rich Niger Delta, who have endured the foreign extraction of their local resource
sad part of it is that these companies do not show any level of clear conscience
or commitment or efforts in building the communities of African peoples or
Nigerians.There are some minor efforts
by Shell.Companies like Exxon-Mobil
don’t show up at all, Chevron….You
know, there are, of course, some Nigerians who work for them.But in terms of throwing the weight of the
massive profits that they make towards creating an institutional structure for
Nigerian youth in different parts of Houston or in the United States, on a
scale of one to ten, many of them score 1.5. It’s that bad,” he said.
for the political impact of the bribes being felt in Nigeria itself, Nwangwu
looks to the administration of President Umaru Yar’Adua to address future concerns
that would make Nigerian government more responsible for monitoring and
regulating corrupt mishandling of national projects and illegitimate pocketing
of public funds.
Yar’Adua government should see to the fact that foreign organizations do not
corrupt even more so, the structures of economic revitalization of Nigeria,” said
He indicates he is hopeful that a
reform-minded Yar’Adua government will see fit to implement an initiative to
monitor the performance of multinational oil companies and the local partners
they work with in the Niger Delta. Such a body, Nwangu suggests, would ensure
that contracts will be honored and that those who extract massive wealth from
the region will replenish structures and rehabilitate the population that has
contributed so much to the companies’ profits.