Halliburton and Corporate Malfeasance in Nigeria

By

Kingsley Dike

The recent revelation of allegations of $180million bribery scandal, theft of $10million worth of radioactive materials belonging to the Nigerian government and admission of payment of $2.4million bribe to evade tax by Halliburton, the U.S.oil contracting giant,has brought to fore the ignoble role of multinational corporations in entrenching corruption in Nigeria and subverting the laws of the country.

 

While many has expressed surprise at the volume of money involved in the disclosures, discerning minds know that this is just a tip of the iceberg in the long history of corporate malfeasance by western concerns in Nigeria. From the pre-colonial activities of the Royal Niger company to the modern-day exploits of companies like Halliburton, western companies have showed very little respect and less concern for either the short-term or long-term well-being of their host societies. Rather their motivation remains extraction of resources, sustenance of uninterrupted flow of such resources and repatriation of profit and more profit.

 

In the process they have ruined lives, rendered communities desolate and corrupted the value system of such societies. You do not need to look far in Nigeria before you see such concrete examples of community’s encounter with this form of brazen corporate irresponsibility. In the Niger-Delta alone you have the Ogoni tragedy and ignoble role of SHELL/BP in funding the Abacha’s regime sustained war of attrition in its goal of decimating the Ogoni population for protesting the dangers wrought to their environment by the exploration activities of the Anglo-Dutch oil giant. AGIP/ENI have through a deliberate policy of divide and rule allegedly funded one group against the other in a still raging war that have claimed several lives in Kwale, Delta state. The same can be said of the role of CHEVRON and again SHELL/BP in the Warri conflict involving the Ijaws, Urhobo’s and Itshekiris, hitherto peaceful neighbours with long-time history of inter-marriages and other cordial interactions.

 

The Nigerian experience with western capital has led to a gradual evolution of an extreme variant of capitalism (that is not even practiced in western societies) that sees the only purpose of capital as maximization of returns for shareholders by any means. This is originally alien to the people but has over time taken a life of its own. So now it does not matter how a contract is won, whether the rules are followed, and probity and transparency guaranteed.

 

In fact there are no rules and entrenched foreign interest with few local participants usually serving or retired public servants in the top echelons of the military and bureaucracy or their fronts appropriates all opportunities and privileges. Thus when contracts are won in Nigeria, a closer look would reveal a confounding web of bribery and kick-back payments siphoned out of the country through a network of secret foreign bank accounts in western capital cities. More recent example is the national identity card scheme where the French company SGM allegedly dispensed over $200million in bribery payments to senior officials of the present government.

 

The French are becoming quite notorious in corrupt cases in Nigeria. Apart from the muffled whispers of complicity by several French concerns in the Abacha graft, ,it was a French government inquiry into the activities of the French consortium, Technip that blew the lid open on the alleged $180million dollar slush fund offered to Nigerian officials to influence contract award for the construction of Nigeria Liquefied Natural Gas (NLNG) base trains 1 and 2 involving Halliburton (U.S.) through Kellog Brown and Root( KBR) its subsidiary, Snamprogetti (Italian), and Japanese Gas corp.

 

In spite of the serious nature of these allegations, western media commentaries deliberately isolates the parties to the crime and disproportionately puts the blame not only at the door steps of the yet to be named Nigerian officials but the Nigerian people and society as haven for corruption. Tucker Carlson of CNN Crossfire had dismissed the culpability of Halliburton with the off-hand statement "what do you expect when you have to bribe officials to go to the bathroom in Nigeria" This is most unfair. Yes, the alleged Nigerian officials must be condemned and brought to justice, but the debate must not be coloured to look like Nigeria as a country and Nigerians as a people are under trial.

 

Rather a crime is alleged to have been committed against the Nigerian people and laws of the state willfully violated by both the Nigerian officials and the multinational corporations. In the case of Halliburton, if proven liable, it violated not only Nigerian laws but the U.S. foreign corrupt practices act that provides for both civil and criminal penalties in connection with payment of bribes and can result in holding senior executives liable for actions taken or not taken.

 

And this factor adds an interesting dimension to the unfolding drama and flurry of investigations launched by France, the U.S. and Nigeria, given the fact that U.S .Vice-President Dick Cheney was the CEO of Halliburton between 1995 and 2000,the period the alleged bribes were believed to have been offered. It is yet to be seen how this will play out in an election year in the U.S. but indications are that Halliburton will remain a reference point in the debates over accusations of cronyism in contract awards and the role of special interest in direction of government policy.

 

And here is where you at once begin to admire the western system and society. They will be sustained debate over this issue and different views presented to the court of public opinion. The whole scenario will play itself out in the public, including the investigations and at the end of the day the role played by everybody will be established. Justice will not only be done but final closure is brought to the case.

 

I wish the same can be said of the Nigerian investigations. Western capital have long realized the inherent weaknesses in the Nigerian system and played along these fault-lines to maintain their hold and influence to the extent that it might not be surprising that an investigation into a bribery allegation on this scale may wind-up turning another embarrassing case of bribery allegations within the so-called infestation team. And this is sad. We have lost the capacity for self regulation and exposed our country to foreigners to come in and violate our system, committing all forms of atrocities that they dare not contemplate in their countries.

 

Corruption like a cankerworm is eaten deeply into our society that it is taken a uniquely Nigerian flavor and ingenuity that is at the core of the Nigerian crisis of underdevelopment by encouraging foreign concerns to brazenly flout the laws and subvert the system. And this did not happen overnight.

 

I remember growing up in Kwale in Delta state years ago and how my first impressions of the very nature of our society were coloured by the lifestyles of western expatriate staffs of multinational oil companies , their contracting firms and local patrons. In the evenings many of the young men drives into town in their fanciful trucks from the vast gas plant and oil flow station as welcomed guests and toast of our women ,all hanging out around the few hotels and bars in town. They remain isolated and detached from the local population and yet enjoys disproportionately the gains of oil to the exclusion of locals whose environment is being destroyed. Meanwhile, some of the best structures in town were owned by the few associated with the multi national oil companies while every other person languished in poverty. In a very quiet civil service town where the local elites were mainly the principals of the two secondary schools, the divisional police officer (DPO) in charge of the local station, the head of the prison, the bank manager of the community bank , the few medical doctors at the general hospital, the daily display of affluence by these foreign workers and their emerging clientele of local chiefs who oils the oil machine represents all that is wrong with corporate practice and structure in Nigeria ,especially those involving multinational corporations.

Dike, a journalist wrote from Atlanta,GA .

 

March 2004