The Cartoon of the Week is from Bribery abroad: A tale of two laws published in The Economist of September 17th 2011, on America’s anti-corruption law deters foreign investment.
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Showing posts with label Foreign Corrupt Practices Act. Show all posts
Showing posts with label Foreign Corrupt Practices Act. Show all posts
Thursday, September 22, 2011
Cartoon of the Week: Bribery Abroad
The Cartoon of the Week is from Bribery abroad: A tale of two laws published in The Economist of September 17th 2011, on America’s anti-corruption law deters foreign investment.
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Wednesday, August 17, 2011
Thursday, July 8, 2010
Snamprogetti Netherlands B.V. Agrees to Pay $240 Million Penalty in Nigeria LNG Bribery Scandal
7 Jul 2010 18:01 Africa/Lagos
Snamprogetti Netherlands B.V. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $240 Million Criminal Penalty
$1.28 Billion in Total Penalties Obtained to Date for Scheme to Bribe Nigerian Government Officials to Obtain Contracts
WASHINGTON, July 7 /PRNewswire-USNewswire/ -- Snamprogetti Netherlands B.V., (Snamprogetti) has agreed to pay a $240 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for its participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement and construction (EPC) contracts, the Department of Justice announced today. The EPC contracts to build liquefied natural gas (LNG) facilities on Bonny Island, Nigeria, were valued at more than $6 billion.
The department filed a deferred prosecution agreement and a criminal information today against Snamprogetti in U.S. District Court for the Southern District of Texas. The two-count information charges Snamprogetti with one count of conspiracy and one count of aiding and abetting violations of the FCPA. During the relevant time period, Snamprogetti, a Dutch corporation headquartered in Amsterdam, The Netherlands, was a wholly owned subsidiary of Snamprogetti S.p.A., an Italian EPC company headquartered in Milan, Italy.
Snamprogetti, Kellogg Brown & Root Inc. (KBR), Technip S.A. (Technip) and an engineering and construction company headquartered in Yokohama, Japan, were part of a four-company joint venture that was awarded four EPC contracts by Nigeria LNG Ltd. (NLNG), between 1995 and 2004 to build LNG facilities on Bonny Island. The government-owned Nigerian National Petroleum Corporation (NNPC) was the largest shareholder of NLNG, owning 49 percent of the company.
According to court documents, Snamprogetti authorized the joint venture to hire two agents, Jeffrey Tesler and a Japanese trading company, to pay bribes to a range of Nigerian government officials, including top-level executive branch officials, to assist Snamprogetti and the joint venture in obtaining the EPC contracts. At crucial junctures preceding the award of EPC contracts, Snamprogetti's co-conspirators met with successive holders of a top-level office in the executive branch of the Nigerian government to ask the office holders to designate a representative with whom the joint venture should negotiate bribes to Nigerian government officials. The joint venture paid approximately $132 million to a Gibraltar corporation controlled by Tesler and more than $50 million to the Japanese trading company during the course of the bribery scheme. According to court documents, Snamprogetti intended for these payments to be used, in part, for bribes to Nigerian government officials.
Under the terms of the deferred prosecution agreement, the department agreed to defer prosecution of Snamprogetti for two years. Snamprogetti, its current parent company, Saipem S.p.A., and its former parent company, ENI S.p.A. (ENI), agreed to ensure that their compliance programs satisfied certain standards and to cooperate with the department in ongoing investigations. If Snamprogetti and its current and former parent companies abide by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In related cases, KBR's former CEO, Albert "Jack" Stanley, pleaded guilty in September 2008 to conspiring to violate the FCPA for his participation in the bribery scheme, while KBR's successor company, Kellogg Brown & Root LLC, pleaded guilty in February 2009 to charges related to the FCPA for its participation in the scheme to bribe Nigerian government officials. Kellogg Brown & Root LLC was ordered to pay a $402 million fine and to retain an independent compliance monitor for a three-year period to review the design and implementation of its compliance program. In addition, Tesler and Wojciech Chodan, a former salesperson and consultant of a United Kingdom subsidiary of KBR, were indicted in February 2009 on charges related to the FCPA for their alleged participation in the bribery scheme. The United States has requested these defendants' extradition from the United Kingdom. In another related criminal case, the department filed a deferred prosecution agreement and criminal information against Technip on June 28, 2010. According to that agreement, Technip agreed to pay a $240 million criminal penalty and to retain an independent compliance monitor for two years.
Today, Snamprogetti and ENI also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC), charging Snamprogetti with violating the FCPA's anti-bribery provisions, falsifying books and records, and circumventing internal controls and charging ENI with violating the FCPA's books and records and internal controls provisions. As part of that settlement, Snamprogetti and ENI agreed jointly to pay $125 million in disgorgement of profits relating to those violations
"The resolutions in this investigation demonstrate the U.S. government's commitment to identifying and holding accountable all companies and individuals who scheme to bribe foreign government officials to win business," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Snamprogetti and its joint-venture partners conspired to pursue lucrative contracts through a massive bribery scheme - a scheme that has led to more than $1.28 billion in criminal and civil penalties to date. The monetary penalties and enforcement actions that have resulted from this investigation should send a clear message to companies and their employees that using foreign bribery as a means of winning contracts abroad will be punished."
"Today's resolution is yet another example of the FBI's willingness to aggressively investigate individuals and businesses that engage in corrupt conduct around the globe," said Kevin L. Perkins, assistant director of the FBI's Criminal Investigative Division. "Those who elect to expand or protect their business interests through the payment of illegal bribes to foreign public officials should know that they are not beyond the reach of the FBI. Together, with our law enforcement partners around the world, we will identify these bad actors and work with the Justice Department to prosecute them under the Foreign Corrupt Practices Act and other appropriate federal statutes."
The criminal case is being prosecuted by Acting Assistant Chief William J. Stuckwisch and Deputy Chief Patrick F. Stokes of the Criminal Division's Fraud Section, with investigative assistance from the FBI-Houston Division. The Criminal Division's Office of International Affairs provided substantial assistance. Significant assistance was provided by the SEC's Division of Enforcement and by authorities in France, Italy, Switzerland and the United Kingdom.
Source: U.S. Department of Justice
CONTACT: U.S. Department of Justice, +1-202-514-2007 or +1-202-514-1888
(TDD)
Web Site: http://www.justice.gov/
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Snamprogetti Netherlands B.V. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $240 Million Criminal Penalty
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Sunday, April 11, 2010
The Untold Story of the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies
Update on the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies 1
On 1st July, 2005, ABZ Integrated Limited, a Nigerian company based in Abuja broke the news of the $10.8 billion tax evasion and fraud by the Nigerian branch of the Chevron Corporation (NYSE: CVX Euronext: CHTEX), an American multinational energy corporation headquartered in San Ramon, California, (see annexure 1b).
Following the disclosures, ABZ was duly engaged by the Economic and Financial Crimes Commission (EFCC) of Nigeria under the Executive Chairmanship of Mallam Nuhu Ribadu (see annexure 1a) as a consultant for the recovery of the unpaid taxes from Chevron Nigeria Limited. The Nigeria Extractive Industries Transparency Initiative (NEITI) under Dr. (Mrs.) Obiageli Ezekwesili acknowledged the engagement and financial entitlement of ABZ Integrated Limited (see annexure 5b).
In the last quarter of 2005, the House Committee on Petroleum Resources (Upstream), under the chairmanship of Dr. Cairo Ojougboh, had a public hearing on the allegation of $10.8 billion tax evasion and fraud against Chevron Nigeria Limited. And in September 2006, the Chairman vindicated ABZ and confirmed that Chevron evaded tax as alleged and was ordered to refund the sum of $492 million. NEITI’s auditors also validated the claims of ABZ. But Chevron has only refunded a fraction of the total Petroleum Profit Tax (PPT) evaded, without paying the penalties required by PPT Act. And ABZ has not been paid its entitlements since Chevron has refunded the sum of $866 million of the Petroleum Profit Tax (PPT) evaded so far.
This is the untold story of the whole financial scandal as reported by Fidelis Uzonwanne, the Managing Consultant of ABZ Integrated Limited.
~ Nigerians Report
UPDATE ON THE ALLEGATION OF $10.8 BILLION TAX EVASION AND FRAUD AGAINST CHEVRON AND ITS ASSOCIATED COMPANIES BY ABZ INTEGRATED LTD
THE UNTOLD STORY
In July 2005, when ThisDay Newspaper published ABZ Integrated Ltd’s open letter to the President of the Federal Republic of Nigeria, on the allegation of $10.8 Billion tax evasion and fraud against Chevron Nigeria Ltd, some Nigerians believed it. Some took it with a pinch of salt. While some dismissed it with utmost disbelief.
Before ABZ took that bold step, an in-dept investigation of the activities of Chevron had been painstakingly undertaken. This culminated in a 106 –page report being forwarded to EFCC on the 12th of May 2005, with over 400 page annexures (Annexure 4).
The way and manner the relevant government agencies in Nigeria reacted to the issue was very shocking and unbelievable. Organizations such as the Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR), Nigeria National Petroleum Corporation (NNPC) and its subsidiary NAPIMS, Central Bank of Nigeria (CBN) etc, stood in stout defense of Chevron’s position and treated ABZ with disdain and scorn. We were undaunted because we were very sure of what we stated and were prepared to defend it till the last day.
Following our publication, the Nigeria Extractive Industries Transparency Initiative (NEITI), under the chairmanship of Dr. (Mrs.) Obiageli Ezekwesili, held a meeting of stakeholders in Nicon Hotel on the 9th of August 2005. NEITI issued a press release (Annexure 5a) on the outcome of the meeting confirming inter alia:
(i) That ABZ was duly engaged as consultants by EFCC and that ABZ’s effort led to the recovery of $6.5 million
(ii) That the information provided by ABZ (i.e. the report) has been referred to the Hart Group to verify the claims made therein.
Other confirmations of ABZ’s efforts and entitlements are enclosed herewith as (Annexures 5b, c, d & e).
+TO+FIDELIS+UZONWANNE+OF+ABZ.JPG)
Recall that field work on the ABZ’s investigation of Chevron under EFCC Committee on Government Revenue Fraud was done between December 2003 and January 2005. FIRS and other Government agencies were answering questions on their respective roles relating to Chevron’s operations and their culpability thereon (Annexures 6a, 6b, 6c & 7a, 7b).
Between September and November 2005, the House Committee on Petroleum Resources (Upstream), under the chairmanship of Dr. Cairo Ojougboh, carried out a public hearing on the allegation of $10.8 billion tax evasion and fraud against Chevron. About September 2006, the report of the Committee’s investigation was laid before the plenary. The chairman in a press conference confirmed to the whole world that indeed Chevron evaded tax as alleged and was ordered to refund the sum of $492 million (Annexure 8).
On November 9, 2006, Segun Adeniyi, a former Editor of ThisDay Newspaper, Spokesperson to President Umaru Musa Yar’Adua, and then a member of the National Stakeholders Working Group (NSWG) of NEITI, confirmed to the whole world that ABZ had been vindicated because NEITI’s auditors had confirmed to them the veracity of ABZ’s claims (Annexure 9a). Please find enclosed an except from Hart Group report dated 14th August, 2006 for more details (Annexure 9b).
We want to confirm to you that the harassment Ribadu’s EFCC was giving to ABZ in 2005 was merely a decoy to shield the main issues from people’s prying eyes. This dummy sold by Ribadu’s EFCC enabled the trio of FIRS, Chevron and EFCC to conceal the recoveries being realized from Chevron through ABZ’s effort. Recent events have confirmed that the maneuvers were intended to enable them dip their fingers into the official tills. Their campaign then was that ABZ was making false claims, that Chevron never evaded tax and no money was refunded. Unknown to so many people was the fact that as at that time (July 2005), Chevron had refunded over $130 million and part of it diverted.
By a letter dated 6th October 2008, the Executive Chairman of FIRS, Mrs. Ifueko Omouigui-Okauru, in response to Nigeria’s House of Representative’s Ad-hoc Committee’s inquest, claimed that the sum of $131 million had been recovered from Chevron but that it was not from ABZ’s effort (Annexure 10). At the time of this claim (i.e. October 2008), ABZ, through its own information network was aware that Chevron had refunded $491 million (Annexure 11). ABZ, through its Solicitors, Messrs Fountain Advocates, petitioned Farida’s EFCC, alleging a diversion of $360 million. The petition was dated 17th November, 2008, with all the necessary attachments including bank statements treasury receipts, correspondences from Chevron (Annexures 12a, b, & c). Two reminders dated 12th January 2009 and 14th January 2010 have been sent to Farida’s EFCC and mum is the answer (Annexures 13 & 14).
As at December 2008, Chevron had refunded the sum of $866 million of the Petroleum Profit Tax (PPT) evaded (Annexure 15). The relevant penalties based on the provisions of PPT Act is three times the tax evaded i.e. $2.598 billion (Annexure 16). FIRS has no choice than to abide by the law. There’s no evidence that FIRS is prepared to make this demand on Chevron. Besides, ABZ is still willing and prepared to provide a report that will turn in additional recoveries of $2.0 billion from Chevron.
As at today, ABZ has not been paid its fees for this assignment. Instead, FIRS and Chevron have been busy plotting how to silence ABZ. One way they thought they could achieve this was to encourage Chevron to seek ICAN’s (The Institute of Chartered Accountants of Nigeria) support to “deal” with the Managing Consultant of ABZ. Chevron petitioned ICAN that ABZ’s report was baseless, unprofessional and that Fidelis Uzonwanne, the Managing Consultant of ABZ, should be charged with professional misconduct. The company represented to ICAN that it never refunded any tax evaded (Annexure 17a, b & c). This is contrary to its various letters evidencing refunds e.g. letters of January 24, 2005, November 29, 2005 and receipts obtained (Annexures 17d, e, f & g). True to type, ICAN set to work through malicious advertisement of the fact that Fidelis Uzonwanne was facing ICAN investigating Panel without first writing him as a member. He is currently facing trial at Disciplinary Tribunal for exposing corruption and helping his country to recover $866 million of lost revenue (Annexures 18a, b & c). That is the sorry state of the Nigerian Nation.
Over $400 million out of the $866 million recovered from Chevron through ABZ’s effort has been diverted by FIRS and their collaborators in CBN (Annexures 19 & 20). Farida’s EFCC does not appear prepared to bring the criminals to book despite all the information made available to it (Annexures 21a, b & c). See Annexure 25 for more details on diverted funds. Instead, the conspirators have vowed not to pay ABZ its dues and will prefer the option of eliminating Fidelis Uzonwanne by any means. Yes, the plot to assassinate Fidelis Uzonwanne is thickening and he is aware of it. What is his offence? He led a team that exposed tax evasion and fraud perpetrated by Chevron. The first process of his annihilation is through financial strangulation by denying his company its dues. The next in the chain is to make sure he stops practicing his profession by using forged documents, falsehood and undue influence to get ICAN do its bidding. The final is assassination.
Please ventilate this to the whole world. The Nigerian economy is seriously being threatened by the cabal in government revenue agencies, who have vowed not to allow any of their own go down no matter how corrupt. The anti-corruption crusade is at its lowest ebb. Nigeria’s economic future is getting dimmer with every passing day. The Executive Chairman of FIRS, who supervised and managed the looting of the money recovered from Chevron in a letter with reference no FIRSB/MD/001/130 of 4th February, 2009 requested CBN, its accomplice, to give her a clean “bill of health”. CBN, by its letter dated 12th February 2009, with reference no. FOD/DIR/GA/SEC/012/68, acted accordingly (Annexure 22). The duo made a fruitless attempt to conceal a diversion of $112 million. ABZ, by its letter of 2nd December, 2009, knocked the bottom off the unwholesome arrangement (Annexure 23). The same goes for the office of the Accountant-General of the Federation (OAGF) (Annexure 24). It set up a committee to investigate the allegation of fraudulent diversion of $360 million, concluded its investigation and attempted to give Ifueko a clean “bill of health” without inviting the company that made the allegation (Annexure 25). Although the OAGF confirmed a diversion of $8.6 million, those indicted are still sitting comfortably on their seats and using tax payers’ money to campaign and launder their image.
Like all other financial scandals that have rocked Nigeria, this would have fizzled out long time ago but because of the plan of the treasury looters to “kill the goose that lays the golden egg”. If the same Chevron project had been awarded to a foreign firm, the Federal Government would have easily parted with hundreds of millions of Dollars as professional fees with the perquisites attached thereto. Believe it or not, no foreign company would have been able to match ABZ’s achievements. After ABZ’s investigation of Chevron what happened next? Other oil companies are still enjoying their illicit funds.
Since the exit of Dr. (Mrs.) Obiageli Ezekwesili from NEITI, the agency has since joined the band wagon of other government agencies who are more interested in budgetary allocations than performing the role for which they were established. ABZ by a letter dated 20th April, 2009, alerted the organization of several issues that it should ordinarily make effort to know (Annexure 26). The organization never even bordered to respond. The reason is very simple. The Executive Chairman of FIRS, Mrs. Ifueko Omouigui-Okauru has pocketed the organization and has ensured no further audits are carried out especially 2006 audit of the oil & gas industry in Nigeria, because of the unprecedented fraud by FIRS that year. The Nation lost over $3 billion of PPT and Royalty revenue to fraud.
By Fidelis Uzonwanne
Managing Consultant of ABZ Integrated Limited,
Abuja (FCT),
Nigeria.
EDITOR'S NOTE:
ALL THE REMAINING DOCUMENTS ON THIS CASE FOLLOW BELOW.
On 1st July, 2005, ABZ Integrated Limited, a Nigerian company based in Abuja broke the news of the $10.8 billion tax evasion and fraud by the Nigerian branch of the Chevron Corporation (NYSE: CVX Euronext: CHTEX), an American multinational energy corporation headquartered in San Ramon, California, (see annexure 1b).
Following the disclosures, ABZ was duly engaged by the Economic and Financial Crimes Commission (EFCC) of Nigeria under the Executive Chairmanship of Mallam Nuhu Ribadu (see annexure 1a) as a consultant for the recovery of the unpaid taxes from Chevron Nigeria Limited. The Nigeria Extractive Industries Transparency Initiative (NEITI) under Dr. (Mrs.) Obiageli Ezekwesili acknowledged the engagement and financial entitlement of ABZ Integrated Limited (see annexure 5b).
In the last quarter of 2005, the House Committee on Petroleum Resources (Upstream), under the chairmanship of Dr. Cairo Ojougboh, had a public hearing on the allegation of $10.8 billion tax evasion and fraud against Chevron Nigeria Limited. And in September 2006, the Chairman vindicated ABZ and confirmed that Chevron evaded tax as alleged and was ordered to refund the sum of $492 million. NEITI’s auditors also validated the claims of ABZ. But Chevron has only refunded a fraction of the total Petroleum Profit Tax (PPT) evaded, without paying the penalties required by PPT Act. And ABZ has not been paid its entitlements since Chevron has refunded the sum of $866 million of the Petroleum Profit Tax (PPT) evaded so far.
This is the untold story of the whole financial scandal as reported by Fidelis Uzonwanne, the Managing Consultant of ABZ Integrated Limited.
~ Nigerians Report
UPDATE ON THE ALLEGATION OF $10.8 BILLION TAX EVASION AND FRAUD AGAINST CHEVRON AND ITS ASSOCIATED COMPANIES BY ABZ INTEGRATED LTD
THE UNTOLD STORY
In July 2005, when ThisDay Newspaper published ABZ Integrated Ltd’s open letter to the President of the Federal Republic of Nigeria, on the allegation of $10.8 Billion tax evasion and fraud against Chevron Nigeria Ltd, some Nigerians believed it. Some took it with a pinch of salt. While some dismissed it with utmost disbelief.
Before ABZ took that bold step, an in-dept investigation of the activities of Chevron had been painstakingly undertaken. This culminated in a 106 –page report being forwarded to EFCC on the 12th of May 2005, with over 400 page annexures (Annexure 4).
The way and manner the relevant government agencies in Nigeria reacted to the issue was very shocking and unbelievable. Organizations such as the Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR), Nigeria National Petroleum Corporation (NNPC) and its subsidiary NAPIMS, Central Bank of Nigeria (CBN) etc, stood in stout defense of Chevron’s position and treated ABZ with disdain and scorn. We were undaunted because we were very sure of what we stated and were prepared to defend it till the last day.
Following our publication, the Nigeria Extractive Industries Transparency Initiative (NEITI), under the chairmanship of Dr. (Mrs.) Obiageli Ezekwesili, held a meeting of stakeholders in Nicon Hotel on the 9th of August 2005. NEITI issued a press release (Annexure 5a) on the outcome of the meeting confirming inter alia:
(i) That ABZ was duly engaged as consultants by EFCC and that ABZ’s effort led to the recovery of $6.5 million
(ii) That the information provided by ABZ (i.e. the report) has been referred to the Hart Group to verify the claims made therein.
Other confirmations of ABZ’s efforts and entitlements are enclosed herewith as (Annexures 5b, c, d & e).
+TO+FIDELIS+UZONWANNE+OF+ABZ.JPG){kind=spacer}
Recall that field work on the ABZ’s investigation of Chevron under EFCC Committee on Government Revenue Fraud was done between December 2003 and January 2005. FIRS and other Government agencies were answering questions on their respective roles relating to Chevron’s operations and their culpability thereon (Annexures 6a, 6b, 6c & 7a, 7b).
Between September and November 2005, the House Committee on Petroleum Resources (Upstream), under the chairmanship of Dr. Cairo Ojougboh, carried out a public hearing on the allegation of $10.8 billion tax evasion and fraud against Chevron. About September 2006, the report of the Committee’s investigation was laid before the plenary. The chairman in a press conference confirmed to the whole world that indeed Chevron evaded tax as alleged and was ordered to refund the sum of $492 million (Annexure 8).
On November 9, 2006, Segun Adeniyi, a former Editor of ThisDay Newspaper, Spokesperson to President Umaru Musa Yar’Adua, and then a member of the National Stakeholders Working Group (NSWG) of NEITI, confirmed to the whole world that ABZ had been vindicated because NEITI’s auditors had confirmed to them the veracity of ABZ’s claims (Annexure 9a). Please find enclosed an except from Hart Group report dated 14th August, 2006 for more details (Annexure 9b).
We want to confirm to you that the harassment Ribadu’s EFCC was giving to ABZ in 2005 was merely a decoy to shield the main issues from people’s prying eyes. This dummy sold by Ribadu’s EFCC enabled the trio of FIRS, Chevron and EFCC to conceal the recoveries being realized from Chevron through ABZ’s effort. Recent events have confirmed that the maneuvers were intended to enable them dip their fingers into the official tills. Their campaign then was that ABZ was making false claims, that Chevron never evaded tax and no money was refunded. Unknown to so many people was the fact that as at that time (July 2005), Chevron had refunded over $130 million and part of it diverted.
By a letter dated 6th October 2008, the Executive Chairman of FIRS, Mrs. Ifueko Omouigui-Okauru, in response to Nigeria’s House of Representative’s Ad-hoc Committee’s inquest, claimed that the sum of $131 million had been recovered from Chevron but that it was not from ABZ’s effort (Annexure 10). At the time of this claim (i.e. October 2008), ABZ, through its own information network was aware that Chevron had refunded $491 million (Annexure 11). ABZ, through its Solicitors, Messrs Fountain Advocates, petitioned Farida’s EFCC, alleging a diversion of $360 million. The petition was dated 17th November, 2008, with all the necessary attachments including bank statements treasury receipts, correspondences from Chevron (Annexures 12a, b, & c). Two reminders dated 12th January 2009 and 14th January 2010 have been sent to Farida’s EFCC and mum is the answer (Annexures 13 & 14).
As at December 2008, Chevron had refunded the sum of $866 million of the Petroleum Profit Tax (PPT) evaded (Annexure 15). The relevant penalties based on the provisions of PPT Act is three times the tax evaded i.e. $2.598 billion (Annexure 16). FIRS has no choice than to abide by the law. There’s no evidence that FIRS is prepared to make this demand on Chevron. Besides, ABZ is still willing and prepared to provide a report that will turn in additional recoveries of $2.0 billion from Chevron.
As at today, ABZ has not been paid its fees for this assignment. Instead, FIRS and Chevron have been busy plotting how to silence ABZ. One way they thought they could achieve this was to encourage Chevron to seek ICAN’s (The Institute of Chartered Accountants of Nigeria) support to “deal” with the Managing Consultant of ABZ. Chevron petitioned ICAN that ABZ’s report was baseless, unprofessional and that Fidelis Uzonwanne, the Managing Consultant of ABZ, should be charged with professional misconduct. The company represented to ICAN that it never refunded any tax evaded (Annexure 17a, b & c). This is contrary to its various letters evidencing refunds e.g. letters of January 24, 2005, November 29, 2005 and receipts obtained (Annexures 17d, e, f & g). True to type, ICAN set to work through malicious advertisement of the fact that Fidelis Uzonwanne was facing ICAN investigating Panel without first writing him as a member. He is currently facing trial at Disciplinary Tribunal for exposing corruption and helping his country to recover $866 million of lost revenue (Annexures 18a, b & c). That is the sorry state of the Nigerian Nation.
Over $400 million out of the $866 million recovered from Chevron through ABZ’s effort has been diverted by FIRS and their collaborators in CBN (Annexures 19 & 20). Farida’s EFCC does not appear prepared to bring the criminals to book despite all the information made available to it (Annexures 21a, b & c). See Annexure 25 for more details on diverted funds. Instead, the conspirators have vowed not to pay ABZ its dues and will prefer the option of eliminating Fidelis Uzonwanne by any means. Yes, the plot to assassinate Fidelis Uzonwanne is thickening and he is aware of it. What is his offence? He led a team that exposed tax evasion and fraud perpetrated by Chevron. The first process of his annihilation is through financial strangulation by denying his company its dues. The next in the chain is to make sure he stops practicing his profession by using forged documents, falsehood and undue influence to get ICAN do its bidding. The final is assassination.
Please ventilate this to the whole world. The Nigerian economy is seriously being threatened by the cabal in government revenue agencies, who have vowed not to allow any of their own go down no matter how corrupt. The anti-corruption crusade is at its lowest ebb. Nigeria’s economic future is getting dimmer with every passing day. The Executive Chairman of FIRS, who supervised and managed the looting of the money recovered from Chevron in a letter with reference no FIRSB/MD/001/130 of 4th February, 2009 requested CBN, its accomplice, to give her a clean “bill of health”. CBN, by its letter dated 12th February 2009, with reference no. FOD/DIR/GA/SEC/012/68, acted accordingly (Annexure 22). The duo made a fruitless attempt to conceal a diversion of $112 million. ABZ, by its letter of 2nd December, 2009, knocked the bottom off the unwholesome arrangement (Annexure 23). The same goes for the office of the Accountant-General of the Federation (OAGF) (Annexure 24). It set up a committee to investigate the allegation of fraudulent diversion of $360 million, concluded its investigation and attempted to give Ifueko a clean “bill of health” without inviting the company that made the allegation (Annexure 25). Although the OAGF confirmed a diversion of $8.6 million, those indicted are still sitting comfortably on their seats and using tax payers’ money to campaign and launder their image.
Like all other financial scandals that have rocked Nigeria, this would have fizzled out long time ago but because of the plan of the treasury looters to “kill the goose that lays the golden egg”. If the same Chevron project had been awarded to a foreign firm, the Federal Government would have easily parted with hundreds of millions of Dollars as professional fees with the perquisites attached thereto. Believe it or not, no foreign company would have been able to match ABZ’s achievements. After ABZ’s investigation of Chevron what happened next? Other oil companies are still enjoying their illicit funds.
Since the exit of Dr. (Mrs.) Obiageli Ezekwesili from NEITI, the agency has since joined the band wagon of other government agencies who are more interested in budgetary allocations than performing the role for which they were established. ABZ by a letter dated 20th April, 2009, alerted the organization of several issues that it should ordinarily make effort to know (Annexure 26). The organization never even bordered to respond. The reason is very simple. The Executive Chairman of FIRS, Mrs. Ifueko Omouigui-Okauru has pocketed the organization and has ensured no further audits are carried out especially 2006 audit of the oil & gas industry in Nigeria, because of the unprecedented fraud by FIRS that year. The Nation lost over $3 billion of PPT and Royalty revenue to fraud.
By Fidelis Uzonwanne
Managing Consultant of ABZ Integrated Limited,
Abuja (FCT),
Nigeria.
EDITOR'S NOTE:
ALL THE REMAINING DOCUMENTS ON THIS CASE FOLLOW BELOW.
Update on the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies 4
EXPOSED:
Friday, April 9, 2010
The Untold Story of the $10.8 Billion Tax Evasion and Fraud By Chevron Nigeria Limited and Its Associated Companies 7.
The Untold Story of the $10.8 Billion Tax Evasion and Fraud By Chevron Nigeria Limited and Its Associated Companies 7.
The following are 10 more documents on the case.
Related Reports:
How Multinational Corporations Dodge Taxes
U.S. Foreign Corrupt Practices Act
The following are 10 more documents on the case.
Related Reports:
How Multinational Corporations Dodge Taxes
U.S. Foreign Corrupt Practices Act
Friday, April 2, 2010
Daimler AG and Three Subsidiaries To Pay $93.6 Million in Criminal Penalties for Foreign Corrupt Practices
1 Apr 2010 21:17 Africa/Lagos
Daimler AG and Three Subsidiaries Resolve Foreign Corrupt Practices Act Investigation and Agree to Pay $93.6 Million in Criminal Penalties
Combined Criminal and Civil Penalties of $185 Million to be Paid
WASHINGTON, April 1 /PRNewswire-USNewswire/ -- Daimler AG, a German corporation, and three of its subsidiaries have resolved charges related to a Foreign Corrupt Practices Act (FCPA) investigation into the company's worldwide sales practices, the Department of Justice announced today.
At a hearing today before U.S. District Court Judge Richard J. Leon in the District of Columbia, Daimler AG's Russian subsidiary DaimlerChrysler Automotive Russia SAO (DCAR), now known as Mercedes-Benz Russia SAO, and its German subsidiary, Export and Trade Finance GmbH (ETF), each pleaded guilty to criminal informations charging the companies with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of violating those provisions. As part of the plea agreements, DCAR and ETF agreed to pay criminal fines of $27.26 million and $29.12 million, respectively.
Daimler AG entered into a deferred prosecution agreement and agreed to the filing of a criminal information charging that company with one count of conspiracy to violate the books and records provisions of the FCPA and one count of violating those provisions. Daimler AG's Chinese subsidiary DaimlerChrysler China Ltd. (DCCL), now known as Daimler North East Asia Ltd., also entered into a deferred prosecution agreement and agreed to the filing of a criminal information charging it with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of violating those provisions. In total, Daimler AG and its subsidiaries will pay $93.6 million in criminal fines and penalties.
According to court documents, Daimler AG, whose shares trade on multiple exchanges in the United States, engaged in a long-standing practice of paying bribes to foreign government officials through a variety of mechanisms, including the use of corporate ledger accounts known internally as "third-party accounts" or "TPAs," corporate "cash desks," offshore bank accounts, deceptive pricing arrangements and third-party intermediaries. According to court documents, Daimler AG and its subsidiaries made hundreds of improper payments worth tens of millions of dollars to foreign officials in at least 22 countries - including China, Croatia, Egypt, Greece, Hungary, Indonesia, Iraq, Ivory Coast, Latvia, Nigeria, Russia, Serbia and Montenegro, Thailand, Turkey, Turkmenistan, Uzbekistan, Vietnam and others - to assist in securing contracts with government customers for the purchase of Daimler vehicles. The contracts were valued at hundreds of millions of dollars. In some cases, Daimler AG or its subsidiaries wire transferred these improper payments to U.S. bank accounts or to the foreign bank accounts of U.S. shell companies, in order for those entities to pass on the bribes. Within Daimler AG and its subsidiaries, bribe payments were often identified and recorded as "commissions," "special discounts," and/or "nutzliche Aufwendungen" or "N.A." payments, which translates to "useful payment" or "necessary payment," and was understood by certain Daimler employees to mean "official bribe." According to court documents, certain corrupt payments continued as late as January 2008, after the Department of Justice had begun its investigation. In all cases, Daimler AG improperly recorded these corrupt payments in its corporate books and records. Daimler AG admitted that it earned more than $50 million in profits from corrupt transactions with a nexus to the territory of the United States. Daimler AG also admitted that it agreed to pay kickbacks to the former Iraqi government in connection with contracts to sell vehicles to Iraq under the U.N.'s Oil for Food program.
"In a decade-long scheme involving tens of millions of dollars, Daimler AG and three of its subsidiaries brazenly offered bribes in exchange for business around the world," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Using offshore bank accounts, third-party agents and deceptive pricing practices, these companies saw foreign bribery as a way of doing business. The guilty pleas and deferred prosecution agreements entered today by Daimler AG and its subsidiaries should serve as a message to other companies subject to the FCPA and conducting business around the world that corrupt business is bad business."
In connection with its guilty plea, DCAR admitted that it made improper payments to Russian federal and municipal government officials to secure contracts to sell vehicles by over-invoicing the customer and paying the excess amount back to the government officials, or to other designated third parties that provided no legitimate services to DCAR or Daimler AG. When requested, DCAR or Daimler AG employees caused the wire transfer of payments from Daimler AG's bank accounts in Germany to, among other destinations, U.S. and Latvian bank accounts held by shell companies with the understanding that the money, in whole or in part, was for the benefit of Russian government officials.
In connection with its guilty plea, ETF admitted that it made corrupt payments directly to Croatian government officials and to third parties, including two U.S.-based corporate entities, with the understanding that the payments would be passed on, in whole or in part, to Croatian government officials, to assist in securing the sale of 210 fire trucks.
In connection with its deferred prosecution agreement, DCCL admitted that it made improper payments in the form of commissions, delegation travel, and gifts for the benefit of Chinese government officials or their designees in connection with sales of commercial vehicles and Unimogs to various Chinese government customers. DCCL admitted that in certain cases it used U.S.-based agents to facilitate the bribe payments.
Under the terms of its deferred prosecution agreement, Daimler AG agreed to retain an independent compliance monitor for a three-year period to oversee the company's continued implementation and maintenance of an FCPA compliance program, and to make reports to the company and the Department of Justice. DCAR, ETF and DCCL are covered by the monitoring provisions of the deferred prosecution agreement with their parent company Daimler AG. Daimler AG also agreed to fully cooperate with investigations by U.S. and foreign authorities of the company's corrupt payments.
Today, Judge Leon also entered a separate judgment against Daimler AG resolving a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC). Daimler AG agreed to pay $91.4 million in disgorgement of profits relating to those violations.
The criminal case is being prosecuted by Assistant Chief John S. (Jay) Darden and Deputy Chief Mark F. Mendelsohn of the Criminal Division's Fraud Section. The department acknowledges and expresses its appreciation for the significant assistance provided by the staff of the SEC during the course of this investigation. The department also acknowledges the significant contributions to this investigation by former Fraud Section Trial Attorney Amanda L. Riedel.
Source: U.S. Department of Justice
CONTACT: U.S. Department of Justice, +1-202-514-2008, TDD
+1-202-514-1888
Web Site: http://www.justice.gov/
Daimler AG and Three Subsidiaries Resolve Foreign Corrupt Practices Act Investigation and Agree to Pay $93.6 Million in Criminal Penalties
Combined Criminal and Civil Penalties of $185 Million to be Paid
WASHINGTON, April 1 /PRNewswire-USNewswire/ -- Daimler AG, a German corporation, and three of its subsidiaries have resolved charges related to a Foreign Corrupt Practices Act (FCPA) investigation into the company's worldwide sales practices, the Department of Justice announced today.
At a hearing today before U.S. District Court Judge Richard J. Leon in the District of Columbia, Daimler AG's Russian subsidiary DaimlerChrysler Automotive Russia SAO (DCAR), now known as Mercedes-Benz Russia SAO, and its German subsidiary, Export and Trade Finance GmbH (ETF), each pleaded guilty to criminal informations charging the companies with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of violating those provisions. As part of the plea agreements, DCAR and ETF agreed to pay criminal fines of $27.26 million and $29.12 million, respectively.
Daimler AG entered into a deferred prosecution agreement and agreed to the filing of a criminal information charging that company with one count of conspiracy to violate the books and records provisions of the FCPA and one count of violating those provisions. Daimler AG's Chinese subsidiary DaimlerChrysler China Ltd. (DCCL), now known as Daimler North East Asia Ltd., also entered into a deferred prosecution agreement and agreed to the filing of a criminal information charging it with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of violating those provisions. In total, Daimler AG and its subsidiaries will pay $93.6 million in criminal fines and penalties.
According to court documents, Daimler AG, whose shares trade on multiple exchanges in the United States, engaged in a long-standing practice of paying bribes to foreign government officials through a variety of mechanisms, including the use of corporate ledger accounts known internally as "third-party accounts" or "TPAs," corporate "cash desks," offshore bank accounts, deceptive pricing arrangements and third-party intermediaries. According to court documents, Daimler AG and its subsidiaries made hundreds of improper payments worth tens of millions of dollars to foreign officials in at least 22 countries - including China, Croatia, Egypt, Greece, Hungary, Indonesia, Iraq, Ivory Coast, Latvia, Nigeria, Russia, Serbia and Montenegro, Thailand, Turkey, Turkmenistan, Uzbekistan, Vietnam and others - to assist in securing contracts with government customers for the purchase of Daimler vehicles. The contracts were valued at hundreds of millions of dollars. In some cases, Daimler AG or its subsidiaries wire transferred these improper payments to U.S. bank accounts or to the foreign bank accounts of U.S. shell companies, in order for those entities to pass on the bribes. Within Daimler AG and its subsidiaries, bribe payments were often identified and recorded as "commissions," "special discounts," and/or "nutzliche Aufwendungen" or "N.A." payments, which translates to "useful payment" or "necessary payment," and was understood by certain Daimler employees to mean "official bribe." According to court documents, certain corrupt payments continued as late as January 2008, after the Department of Justice had begun its investigation. In all cases, Daimler AG improperly recorded these corrupt payments in its corporate books and records. Daimler AG admitted that it earned more than $50 million in profits from corrupt transactions with a nexus to the territory of the United States. Daimler AG also admitted that it agreed to pay kickbacks to the former Iraqi government in connection with contracts to sell vehicles to Iraq under the U.N.'s Oil for Food program.
"In a decade-long scheme involving tens of millions of dollars, Daimler AG and three of its subsidiaries brazenly offered bribes in exchange for business around the world," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Using offshore bank accounts, third-party agents and deceptive pricing practices, these companies saw foreign bribery as a way of doing business. The guilty pleas and deferred prosecution agreements entered today by Daimler AG and its subsidiaries should serve as a message to other companies subject to the FCPA and conducting business around the world that corrupt business is bad business."
In connection with its guilty plea, DCAR admitted that it made improper payments to Russian federal and municipal government officials to secure contracts to sell vehicles by over-invoicing the customer and paying the excess amount back to the government officials, or to other designated third parties that provided no legitimate services to DCAR or Daimler AG. When requested, DCAR or Daimler AG employees caused the wire transfer of payments from Daimler AG's bank accounts in Germany to, among other destinations, U.S. and Latvian bank accounts held by shell companies with the understanding that the money, in whole or in part, was for the benefit of Russian government officials.
In connection with its guilty plea, ETF admitted that it made corrupt payments directly to Croatian government officials and to third parties, including two U.S.-based corporate entities, with the understanding that the payments would be passed on, in whole or in part, to Croatian government officials, to assist in securing the sale of 210 fire trucks.
In connection with its deferred prosecution agreement, DCCL admitted that it made improper payments in the form of commissions, delegation travel, and gifts for the benefit of Chinese government officials or their designees in connection with sales of commercial vehicles and Unimogs to various Chinese government customers. DCCL admitted that in certain cases it used U.S.-based agents to facilitate the bribe payments.
Under the terms of its deferred prosecution agreement, Daimler AG agreed to retain an independent compliance monitor for a three-year period to oversee the company's continued implementation and maintenance of an FCPA compliance program, and to make reports to the company and the Department of Justice. DCAR, ETF and DCCL are covered by the monitoring provisions of the deferred prosecution agreement with their parent company Daimler AG. Daimler AG also agreed to fully cooperate with investigations by U.S. and foreign authorities of the company's corrupt payments.
Today, Judge Leon also entered a separate judgment against Daimler AG resolving a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC). Daimler AG agreed to pay $91.4 million in disgorgement of profits relating to those violations.
The criminal case is being prosecuted by Assistant Chief John S. (Jay) Darden and Deputy Chief Mark F. Mendelsohn of the Criminal Division's Fraud Section. The department acknowledges and expresses its appreciation for the significant assistance provided by the staff of the SEC during the course of this investigation. The department also acknowledges the significant contributions to this investigation by former Fraud Section Trial Attorney Amanda L. Riedel.
Source: U.S. Department of Justice
CONTACT: U.S. Department of Justice, +1-202-514-2008, TDD
+1-202-514-1888
Web Site: http://www.justice.gov/
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