Nigeria

1. Responses to Emerging Corruption Trends In NigeriaByEmmanuel Akomaye, MFREconomic and Financial Crimes CommissionAtThe 5th ICAC Symposium9 – 11 May, 2012Hong Kong

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

3. Introduction • Nigeria’s corruption rating by Transparency International in the last six(6) years witnessed an improvement in 2008 and thereafter suffered, a steady decline • Coincidentally, the last six years also witnessed the reinvigoration of enforcement actions by the various anti-corruption agencies • The seeming contradiction can be explained within the context of the legacy corruption cases that are yet to be resolved and also fresh investigations that have been launched into new cases • Overall, corruption remains a major governance challenge in an emerging economy such as Nigeria. Consequently, it is only with sustained enforcement actions and extensive governance reforms over time that will improve the situation

4. 6 years Scorecard on the Transparency International CPI

5. Corruption Trends • Revenue from Hydro carbons/oil & gas continue to provide a major opportunity for corrupt practices particularly in the public sector with a strong private sector conspiracy and facilitation • Procurement contract abuses either through bribes, inflation or bid rigging using • Outright embezzlement by senior public officials managing agencies or departments with huge revenues or budgets • Abuses relating to the management of security votes • Utilization of complex web of Special Purpose Vehicles (SPVs)

6. Corruption Trends Contd. • The corrupt seem to be shifting destination from the safe heavens in Europe to Asia and the middle east in hiding their proceeds of corruption • Others choose to invest part of the proceeds of crime in expensive real estates domestically

7. Legal Framework • Nigerian is a signatory to the UNCAC • UNCAC has been domesticated through the creation of the Independent Corrupt Practices & Other Related Offences Commission (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 manage declaration of assets by public officers • Other complimentary anti-corruption bodies include the Nigerian Financial Intelligence Unit (NFIU) and the Bureau of Public Procurement (BPP), 2007

8. 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 Economic Community of West African States (ECOWAS) Protocol on Good Governance • The above anti-corruption laws/instruments are collaboratively enforced by the national anti-corruption authorities

9. Responses to Corruption Trends in Nigeria • Further to the provisions of UNCAC and other international 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 wide institutional reforms • Approaching the anti corruption fight as part of its national economic and political reforms strategy-the transformational agenda • Ongoing effort to strengthen existing legislation

10. Responses Contd. Investigation/Prosecution/Asset Recovery • DSP Alameyesiegha Case - Involved in looting of the Bayelsa State treasury and money laundering in the UK. Successfully investigated by the EFCC in collaboration with the MET Police, tried, convicted and sentenced. Assets of over USD$40 Million recovered domestically and internationally • Tafa Balogun’s Case- Looting of public treasury and money laundering. Investigated/Prosecuted and sentenced in Nigeria. Assets of over USD$5 Million recovered domestically. • Prosecution of illegal oil bunkerers in the Niger Delta region and the confiscation and recovery of several vessels worth millions of Dollars

11. Responses Contd. The Value of International cooperation in fighting corruption • The Raj Bhojwani Case (Part of Abacha loot)-Nigeria and Jersey collaborated effectively to investigate, prosecute and sentence Mr. Bhojwani for money laundering offences arising from corruption using SPVs. Approximately USD$40 Million recovered and returned to Nigeria through a sharing arrangement • The Alamieyeseigha case. The EFCC and the MET Police collaborated in the investigation leading to his sentence in Nigeria 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 assets worth over $35 million in progress

12. Responses Contd. Settlements/Deferred/Non Prosecution Agreements Nigeria has also adopted the settlement strategy to bring to closure some of the major corruption cases involving foreign 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 the consortium and a local conspirator through settlement • Siemens telecoms fraud- Euros 34,000,000 recovered through settlement • Bribery of foreign public officials by multinationals relating to Temporary Import Permits (TIPs) -Shell, Transocean, and Noble Drilling. Over USD$20,400,000 recovered through settlement/DPA/NPA

13. Responses Contd. • The driving philosophy for all these settlements has been in keeping with public policy and public interest considerations to save time and cost of litigation and effectively combating and deterring crime and making substantial recoveries of the proceeds of crime in the quickest and most efficient manner • It must be noted that while Nigeria was the country harmed by these bribery scandals, it was not involved in the settlement processes that occurred in other jurisdictions that were enforcing anti-bribery laws in those other countries

14. Preventive Measures • Enhanced enforcement actions against PEPs in particular is serving as a preventive tool, reminding senior public officials that nobody is above the law • Enforcement actions has also ramped up public awareness which has 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 bid rigging • 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 from falling into fraudulent business proposals and demand for facilitation payments which are unknown to Nigerian law

15. Challenges • The bulk of evidence in foreign bribery cases is not locally available. Most of the negotiation and payments were made abroad and many jurisdictions are not disposed to sharing such evidence even on intelligence basis. Those that are disposed, insist that the normal MLAT process must be followed • The slow justice system is a major challenge making prosecution of corruption cases windy and frustrating • The legal framework today recognizes only conviction based system making asset recovery a difficult task.

16. Challenges Contd. • Safe financial heavens abroad have also made the problem of fighting corruption challenging for law enforcement Agencies in victim States. Proceeds of crime stashed in foreign Banks are never spontaneously reported until a criminal investigation is launched at which time a lot of the proceeds have been dissipated or layered and moved to yet other jurisdictions making tracing even more difficult • The 2010 Global Witness Report chronicled how British Banks – HSBC, RBS, NATWEST and USB facilitate corruption and money laundering in Nigeria and Equatorial Guinea. • Victim States including Nigeria are not involved in the settlement of foreign bribery cases and there is emerging discourse that seem to confuse who the real victim is in a bribery case and the principle of ‘direct proximate harm’

17. Challenges Contd. • The drive for revenue by countries enforcing anti bribery laws on the supply side seem to be gradually whittling down the real value of international cooperation with countries on the demand side where transactions for these bribes took place • There is equally emerging the argument on double jeopardy canvassed by multinational companies who consider the payment of fines/compensation in several jurisdictions as double punishment.

18. Moving Forward • Sustaining the investigation and prosecution of corrupt officials and their collaborators in the private sector • Combine the settlement and the criminal conviction option to recover assets • Push for the passage of a non-conviction based legislation to compliment the conviction based system • Collaborate with countries whose multinationals are involved 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

19. Conclusion • The supply and demand sides are still largely working in silos and even in cases where they collaborate, there is mutual suspicion which prevent the exchange of vital information. This is a negation of the spirit of UNCAC. The gap must be closed if the global fight against corruption must succeed. • THANK YOU

20. Conclusion

21. Contact ECONOMIC AND FINANCIAL CRIMES COMMISSION No. 5 Fomela Street, off Ademola Adetokunbo Crescent Wuse II, Abuja Tel/Fax: +234- 9- 4604603 Email: eakomaye@efccnigeria.org Website: www.efccnigeria.org