General News
HSBC Fingers Garuba, Agom in $182m Halliburton Bribery Scandal
Leaked records from HSBC, a huge global bank based in London, has indicted chief of staff to former military Head of State, General Abdulsalami Abubakar, now retired Major General Chris Garuba, and a former board member of the ruling Peoples Democratic Party (PDP), the late Andrew Agom, in the $182 million Halliburton bribery scandal.
The leaked files, obtained by the French newspaper, Le Monde and the International Consortium of Investigative Journalists (ICIJ), revealed that Garuba, a former governor of Bauchi State, is now chairman of Obekpa Petroleum, a Nigerian oil company.
Agom, a senior government official, was killed in an attack on his motorcade years back. The files also revealed new details about the HSBC’s role as a conduit for the bribes and new details about how indicted British lawyer Jeffrey Tesler’s operated.
The indictment of the high-ranking Nigerians not previously named publicly in connection with the scandal, according to the French newspaper, raised the possibility of renewed questions about Nigeria’s handling of the affair.
A network of secretive banks and offshore tax havens was used to funnel $182 million in bribes to Nigerian officials in exchange for $6 billion in engineering and construction work for an international consortium of companies that included the then Halliburton subsidiary.
Before his death, Agom was a board member of the PDP, which controlled the government when the scandal unfolded.
In 2010, Nigeria indicted former United States Vice- President Dick Cheney, who was CEO of Halliburton before he was elected, only to later clear him when Halliburton worked out a $35 million settlement.
Agom was, according to the Le Monde, the beneficial owner of an HSBC account linked to a Gibraltar- based company, Hemisphere Services Limited, which held a maximum amount of $797,377 at one point between 2006 and 2007.
Africa Confidential magazine previously named a company, Hemisphere Services (Nigeria), as a “recipient of largesse” from Tesler after viewing documents disclosed to the magazine during a French corruption investigation.
Agom’s account was opened in 1991, on the same day that an account was opened in the name of former Nigerian Air Force Chief, Abdullahi Dominic Bello. A Nigerian government investigator has previously described Swiss accounts held by Bello as a conduit for “slush funds”. The investigator did not specifically mention HSBC.
The HSBC files identified Garuba and his wife, Rita, as HSBC clients; their names are listed along with Tesler’s in an account named Bridlington Enterprises Limited, for which Tesler acted as an attorney.
“The files show that the account was opened the year before Tesler sent his first bribe payment to Switzerland, although the files do not show that Tesler transferred money into the Bridlington account, which held as much as $367,547 in 2006 or 2007,” the newspaper reported. Chris and Rita Garuba did not respond to ICIJ’s requests for comment.
In Nigeria, anti-corruption campaigners continue to call on authorities to identify and prosecute Nigerian citizens involved in the scandal. While never publicly released, a 2010 Nigerian government document reportedly included three Nigerian presidents, a vice-president, a minister, intelligence chiefs and corporate titans in a list of bribery beneficiaries. The report did not name Garuba or Agom.
“In terms of the personalities and the amount of money involved it is probably the biggest scandal in Nigeria’s history,” Dauda Garuba, Nigeria coordinator at the Natural Resource Governance Institute, said in an interview with ICIJ. Garuba has no connection to the Garuba family in HSBC’s files.
“Although we’ve seen the indictment and conviction of foreign companies and their top executives in Europe and America, Nigeria’s own government has not taken action in the very country in which the corruption took place,” Garuba said.
Tesler was sentenced to 21 months in prison and he forfeited $149 million from his Swiss accounts to the US government for serving as the go-between for bribes paid to secure contracts for KBR, the former Halliburton subsidiary, and the other consortium members, the Japanese firm JGC Corporation, Paris-based Technip, as well as Italy’s ENI S.p.A. and its Dutch subsidiary Snamprogetti Netherlands B.V.
The Halliburton Bribery Scandal dates to 1994 when the Nigerian government launched ambitious plans to build the Bonny Island Natural Liquefied Gas Project. Tesler began planning the bribe payments in 1994 and transferred small amounts of money through Switzerland in July 1996.
But by 2003, his role had escalated. In one brazen episode in Abuja, Tesler directed the drop-off of a travel bag stuffed with $1million in $100 bills in the foyer of a luxury hotel where the pernight cost of a suite can exceed the nation’s average annual income of $3,000. It was one of at least 20 money transfers that Tesler made or directed.
The cash was destined for PDP via the Nigerian National Petroleum Corporation (NNPC), according to an official Nigerian report.
The files obtained by Le Monde and ICIJ show that nine people, including members of the Tesler family and Nigerian nationals, held a variety of roles with accounts at HSBC Private Bank (Suisse) between 1990 and 2003 — months before the completion of the gas plant.
Nine of the 12 accounts instructed HSBC to keep all correspondence under lock and key in a bank safe. In response to ICIJ’s questions, an HSBC spokesman said the bank does not comment on specific clients.
Bank staff also responded to a request from Agom’s widow to unfreeze her husband’s account, whose post was sent to Tesler’s North London law firm and which was marked as subject to criminal investigations into Tesler.
The files do not indicate whether or not the account was ultimately unfrozen.
Tesler did not respond to ICIJ’s requests for comment.
Central Bank of Nigeria (CBN) has yet to publish its annual financial statements beyond the 2022 financial year, despite legal provisions requiring the apex bank to release its audited accounts annually.
An annual report is a comprehensive report on a company’s activities throughout the preceding year.
Annual reports are intended to give shareholders and other interested people information about the company’s activities and financial performance.
The most recent annual report and financial statements of the CBN available to the public remain those for the 2022 financial year.
Under Section 50 of the Central Bank of Nigeria (CBN) Act, the bank is required to prepare, submit and publish its audited annual financial statements.
Section 50(1) stipulates that the CBN must transmit its annual accounts, certified by an external auditor, to the President and the National Assembly within two months after the end of each financial year.
Section 50(2) further provides that the annual report submitted to the President and the National Assembly should be published in a manner determined by the CBN Governor, while Section 50(3) mandates the CBN Board to ensure the accounts are published in the Federal Government Gazette as soon as possible.
Despite these statutory requirements, the apex bank has not made public any annual financial statements after the 2022 reporting year.
The development comes after the CBN, on August 11, 2023, released its consolidated financial statements covering seven years the first such publication since 2015.
President Bola Tinubu appointed Olayemi Cardoso as Governor of the CBN on September 15, 2023, following the removal of former Governor Godwin Emefiele in June of the same year.
Emefiele is currently facing trial over alleged corruption-related offences.
Last week, the Supreme Court ordered the final forfeiture of several of Emefiele’s properties, along with $2.045 million in cash.
Dangote Petroleum Refinery and Petrochemicals has successfully completed a landmark US$2.5 billion private equity placement, in what is believed to be Africa’s largest publicly disclosed primary equity private placement by value.
This marks a major milestone in the company’s long-term expansion strategy.
In a statement issued on Thursday, the company said the offering was 3.7 times oversubscribed relative to its initial offer size, reflecting strong investor confidence in the refinery’s growth prospects and resulting in the issuance and allotment of approximately US$2.5 billion in new equity.
The fundraising follows the recent equity capital raise in which existing investors expanded their holdings alongside new institutional investors, strengthening the refinery’s capital base to support its next phase of growth.
According to the company, proceeds from the private placement will finance the continued expansion of its refining and petrochemical operations, reinforce its capital structure and enhance financial flexibility for future investments.
The transaction attracted broad participation from international and African institutional investors, sovereign-related investment vehicles, development finance institutions and long-term strategic partners.
Among the key investors were the Africa Finance Corporation (AFC) and India Infra Buildco, an investment vehicle facilitated by the African Export-Import Bank (Afreximbank). The offering also drew participation from a diverse mix of institutional and individual investors, underscoring strong market confidence in the refinery’s long-term strategy.
Chairman of Dangote Petroleum Refinery and Petrochemicals, Aliko Dangote, described the successful capital raise as a strategic move to deepen and institutionalise the company’s shareholder base while complementing internal cash flows and external financing.
“This further demonstrates our profound commitment to developing domestic refining and petrochemical capacity, reducing Africa’s reliance on imported refined products and strengthening the continent’s energy security,” Dangote said.
Managing Director and Chief Executive Officer of the refinery, David Bird, attributed the strong investor response to the company’s operational performance and leadership.
“The exceptional demand we saw is a testament to our operational excellence, execution capacity, and investor confidence in DPRP’s leadership,” he said.
Following the completion of the transaction, the company said it is well positioned to continue executing its long-term growth strategy by expanding world-class refining and petrochemical capacity while strengthening Africa’s energy security.
Once again, The Gathering on 100 Pitchathon has rewarded some of Nigeria’s most promising young entrepreneurs, with three startups sharing ₦5 million in funding.
Pitchathon
The pitchathon took place at the Abuja edition of the Gathering on 100 held between July 18 and 19, at This Day Dome, Central Business District, Abuja.
The competition brought together founders from different sectors to pitch their businesses before a panel of judges.
The Pitchathon remains one of the most sought after experiences at The Gathering on 100, an MTN Nigeria initiative that connects young Nigerians with opportunities for entrepreneurship, innovation and personal development.
Omolola Rebecca, founder of Agrovest, emerged overall winner, receiving ₦2.5 million for her agritech solution, which provides funding for farmers to improve access to capital and boost agricultural productivity.
Reacting to her victory, Rebecca said the recognition would give her business greater visibility and open doors to more investors. “Winning this competition means more people will notice what we’re building.
“It puts Agrovest in front of potential investors and partners, and gives us the opportunity to grow our impact by supporting even more farmers,” she said.
The second prize of ₦1.5 million went to Agbo Obinnaya, founder of Case Radar, a legal technology platform that uses generative artificial intelligence to simplify access to legal services in Nigeria.
The platform enables users to obtain legal guidance, understand legal documents and connect with legal professionals through a single digital platform.
Abdulmuiz Adam secured third place and ₦1 million with WaveBudget, a fintech platform that combines savings and responsible financing.
The platform allows users to save towards financial goals, access buy now, pay later services through partner merchants with a 50 per cent down payment, and manage their savings in one place.
Presenting the prizes to the winners, Lanre Coker, Manager, Customer Acquisition and Compliance, North-West, MTN Nigeria, said the initiative reflects MTN’s commitment to supporting young Nigerians with the resources they need to grow their ideas into sustainable businesses.
“The Gathering on 100 is about helping young Nigerians achieve the height of their endeavours, whatever they may be.
“We know there are brilliant ideas across the country, and through initiatives like the Gathering on 100, we are creating opportunities for innovators to access funding and the confidence to keep building,” he said.
The Abuja edition builds on the success of previous Pitchathons held during The Gathering on 100 across the country.
In Lagos, eight startups received a combined ₦45 million in funding, while three startups shared ₦5 million at the Aba, Enugu, and Kano editions. With the Abuja winners now joining the growing list of recipients, the Pitchathon continues to position itself as a platform for discovering and supporting the next generation of Nigerian entrepreneurs.
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