Emmanuel Akomaye

7/28/2019 Emmanuel Akomaye

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Nigeria

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POPULATION: 167 million (47% of the West African Sub-Region)GDP: 7.68% (real growth rate); $2,600 (per capita)


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Introduction

Nigerias corruption rating by Transparency Internationalin the last six(6) years witnessed an improvement in 2008and thereafter suffered, a steady decline

Coincidentally, the last six years also witnessed thereinvigoration of enforcement actions by the various anti-corruption agencies

The seeming contradiction can be explained within thecontext of the legacy corruption cases that are yet to beresolved and also fresh investigations that have beenlaunched into new cases

Overall, corruption remains a major governance challengein an emerging economy such as Nigeria. Consequently, itis only with sustained enforcement actions and extensivegovernance reforms over time that will improve thesituation

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6 years Scorecard on the Transparency International CPI

YEAR SCORE RANK

2006 2.2 142 of163

2007 2.2 147 of179

2008 2.7 121 of 180

2009 2.5 130 of180

2010 2.4 134 of170

2011 2.4 143 of183

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Corruption Trends

Revenue from Hydro carbons/oil & gas continue toprovide a major opportunity for corrupt practicesparticularly in the public sector with a strong privatesector conspiracy and facilitation

Procurement contract abuses either through bribes,inflation or bid rigging using

Outright embezzlement by senior public officialsmanaging agencies or departments with huge revenuesor budgets

Abuses relating to the management of security votes

Utilization of complex web of Special Purpose Vehicles(SPVs)

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Corruption Trends Contd.

The corrupt seem to be shifting destination from the safeheavens in Europe to Asia and the middle east in hidingtheir proceeds of corruption

Others choose to invest part of the proceeds of crime inexpensive real estates domestically

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Legal Framework

Nigerian is a signatory to the UNCAC

UNCAC has been domesticated through the creation of theIndependent Corrupt Practices & Other Related OffencesCommission (ICPC)Act, 2000 and the Economic &

Financial Crimes Commission (EFCC) Act, 2004 There is also the Code of Conduct Bureau (CCB) created

under the Constitution of Nigeria, 1999 to managedeclaration of assets by public officers

Other complimentary anti-corruption bodies include theNigerian Financial Intelligence Unit (NFIU) and theBureau of Public Procurement (BPP), 2007

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Legal Framework Contd.

The Nigerian Extractive Industries Transparency Initiative(NEITI) Act, 2007

Nigeria is also signatory to the African Union (AU)Convention against corruption and the EconomicCommunity of West African States (ECOWAS) Protocol onGood Governance

The above anti-corruption laws/instruments are

collaboratively enforced by the national anti-corruptionauthorities

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Responses to Corruption Trends in Nigeria

Further to the provisions of UNCAC and otherinternational instruments, Nigeria has responded by:

Criminalizing corruption/Money laundering

Embarking on sustained investigation and prosecution of

offenders particularly PEPs Tracing and recovering tainted assets and

Institution of prevention measures through wideinstitutional reforms

Approaching the anti corruption fight as part of itsnational economic and political reforms strategy-thetransformational agenda

Ongoing effort to strengthen existing legislation

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Responses Contd.

Investigation/Prosecution/Asset Recovery

DSP Alameyesiegha Case - Involved in looting of the BayelsaState treasury and money laundering in the UK. Successfullyinvestigated by the EFCC in collaboration with the MET Police,

tried, convicted and sentenced. Assets of over USD$40 Millionrecovered domestically and internationally

Tafa Baloguns Case- Looting of public treasury and moneylaundering. Investigated/Prosecuted and sentenced in Nigeria.

Assets of over USD$5 Million recovered domestically.

Prosecution of illegal oil bunkerers in the Niger Delta region andthe confiscation and recovery of several vessels worth millions ofDollars

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Responses Contd.

The Value of International cooperation in fightingcorruption

The Raj Bhojwani Case (Part of Abacha loot)-Nigeria and Jerseycollaborated effectively to investigate, prosecute and sentence Mr.Bhojwani for money laundering offences arising from corruption

using SPVs. Approximately USD$40 Million recovered andreturned to Nigeria through a sharing arrangement

The Alamieyeseigha case. The EFCC and the MET Policecollaborated in the investigation leading to his sentence inNigeria and the recovery of over $40 million from assets in UK,

South Africa and Nigeria etc The Ibori Case. Sentenced in April 2012 to 7 years imprisonment

by a London court for money laundering. Confiscation of assetsworth over $35 million in progress

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Responses Contd.

Settlements/Deferred/Non Prosecution AgreementsNigeria has also adopted the settlement strategy to bring toclosure some of the major corruption cases involvingforeign multinational companies.

The TSKJ USD$180 Million bribery scandal involving the

USD$6 billion Nigerian Liquefied Natural Gas (NLNG)Project in Bonny

A total of USD$157,000,000 was recovered from theconsortium and a local conspirator through settlement

Siemens telecoms fraud- Euros 34,000,000 recoveredthrough settlement

Bribery of foreign public officials by multinationals relatingto Temporary Import Permits (TIPs) -Shell, Transocean,and Noble Drilling. Over USD$20,400,000 recovered

through settlement/DPA/NPA 12


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Responses Contd.

The driving philosophy for all these settlements has beenin keeping with public policy and public interestconsiderations to save time and cost of litigation and

effectively combating and deterring crime and makingsubstantial recoveries of the proceeds of crime in thequickest and most efficient manner

It must be noted that while Nigeria was the country

harmed by these bribery scandals, it was not involved inthe settlement processes that occurred in otherjurisdictions that were enforcing anti-bribery laws in thoseother countries

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Preventive Measures

Enhanced enforcement actions against PEPs in particular isserving as a preventive tool, reminding senior public officialsthat nobody is above the law

Enforcement actions has also ramped up public awareness whichhas triggered a flurry of whistle-blowing on corrupt practices

particularly by civil societies The institution of due process by the Bureau of Public

Procurement has also helped reduce contract frauds and bidrigging

The enactment of the freedom of Information Act, 2011

empowering civil society as an effective anticorruption watchdog The establishment of a Transaction Clearing Platform (TCP)by

the EFCC has equally helped prospective foreign investors fromfalling into fraudulent business proposals and demand forfacilitation payments which are unknown to Nigerian law

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Challenges

The bulk of evidence in foreign bribery cases is notlocally available. Most of the negotiation and payments

were made abroad and many jurisdictions are not disposedto sharing such evidence even on intelligence basis. Those

that are disposed, insist that the normal MLAT processmust be followed

The slow justice system is a major challenge makingprosecution of corruption cases windy and frustrating

The legal framework today recognizes only convictionbased system making asset recovery a difficult task.

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Challenges Contd.

Safe financial heavens abroad have also made the problemof fighting corruption challenging for law enforcementAgencies in victim States. Proceeds of crime stashed inforeign Banks are never spontaneously reported until acriminal investigation is launched at which time a lot of the

proceeds have been dissipated or layered and moved to yetother jurisdictions making tracing even more difficult The 2010 Global Witness Report chronicled how British

Banks HSBC, RBS, NATWEST and USB facilitatecorruption and money laundering in Nigeria andEquatorial Guinea.

Victim States including Nigeria are not involved in thesettlement of foreign bribery cases and there is emergingdiscourse that seem to confuse who the real victim is in abribery case and the principle ofdirect proximate harm

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Challenges Contd.

The drive for revenue by countries enforcing anti briberylaws on the supply side seem to be gradually whittlingdown the real value of international cooperation withcountries on the demand side where transactions for thesebribes took place

There is equally emerging the argument on doublejeopardy canvassed by multinational companies whoconsider the payment of fines/compensation in several

jurisdictions as double punishment.

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Moving Forward

Sustaining the investigation and prosecution of corruptofficials and their collaborators in the private sector

Combine the settlement and the criminal convictionoption to recover assets

Push for the passage of a non-conviction based legislationto compliment the conviction based system

Collaborate with countries whose multinationals areinvolved in bribery of Nigerian public officials to bring

them to justice in accordance with the spirit of UNCAC. Ensure the enforcement of transparency codes by

Multinationals

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Conclusion The supply and demand sides are still largely working

in silos and even in cases where they collaborate, thereis mutual suspicion which prevent the exchange ofvital information. This is a negation of the spirit ofUNCAC. The gap must be closed if the global fightagainst corruption must succeed.

THANK YOU

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Conclusion

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Contact

ECONOMIC AND FINANCIAL CRIMES COMMISSION

No. 5 Fomela Street,

off Ademola Adetokunbo Crescent

Wuse II, Abuja

Tel/Fax: +234- 9- 4604603

Email: [email protected]

Website:www.efccnigeria.org

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Emmanuel Akomaye

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