The Attorney General of the Federation Government on Thursday described the controversial $1.1bn award of Oil Prospecting Licence 245, better known as ‘Malabu Oil Deal,’ as too complex, saying the govt has no conclusive position on the matter.
Malami stated this at the resumed hearing of the House of Representatives ad hoc committee on the investigation of alleged corruption, malpractices and breach of due process in the award of an oil block, OPL 245.
He said the had launched an ongoing investigation into the deal and would not take a position until all the “complexities” in the deal had been resolved.
According to Malami, multiple requests had been made internationally and locally without success.
He spoke of the Mutual Legal Assistance request to the United States, Italy and the United Kingdom.
He said even within Malabu Oil itself, there were divided and contending interests, making it difficult to ascertain which of the interests signed what agreement.
He said: “We have multiple contentions. There is Mohammed Abacha. We have Dan Etete, Atiku Abubakar, Hassan Adamu; they are all laying claims to entities.”
Though he presented a 16-page off-the-grid documents which he did not submit to the committee, the AGF said in the light of the constraints concerning the case, he had limited information because “investigation is ongoing” and “no conclusion is certain.”
“The field has not been covered. Investigation is ongoing nationally and internationally and what I say might alter the conclusion of the case,” Malami said.
He said he needed time to prepare a proper and fuller brief for the committee because “criminal investigations are still ongoing.
Malami added: “I took steps to write to the international agencies and government to consolidate on the available information. Only day before yesterday ( Tuesday), I forwarded response to the Mutual Legal request that has to do with Malabu in the U.S. We have to move with caution by allowing representations to be made.”
Abacha and Chief Oyewole Fasawe, who are shareholders in Malabu, were at the hearing but withdrew their submissions so as to present a more comprehensive and detailed presentation.
Abdullahi Haruna, Malabu’s lawyer who spoke for Abacha and Fasawe, said they had submitted documents to the 7th House on the same issue and wanted to know if they needed to start afresh.
The committee, which is chaired by an All Progressives Congress lawmaker from Kwara State, Mr. Razak Atunwa, has the mandate of the House to reopen investigation into the controversial sale of the oil block.
Committee Chair Razak Atunwa said though the event was not a substantive hearing, it was nonetheless important, adding that the 8th House is starting the probe afresh.
“This is a highly controversial allocation of perhaps the biggest oil bloc in Africa
There is a lot at stake on this issue and the credibility and revenue for this country is at stake.
“However complex the situation may be, the law is able to deal with it. The House is also able to make enquiries and make recommendation on the matter.”
He said part of the purpose is to identify culpability of persons and organisations in relation to award of OPL 245 and to consider the actions to be taken locally and internationally.
Razak said the committee is also to unveil the “processes that led to the award of the OPL 245.”
He added: “The powers of the former minister to award the oil block in not unfettered. The House has the power to examine.”
Recalling how the deal started, the committee said Chief Dan Etete, a former minister under the administration of the late Gen. Sani Abacha, awarded the block to himself in 1998, using Malabu Oil and Gas.
“He awarded it to himself for just $20m, out which he paid only $2m,” the committee stated.
It added that former President Olusegun Obasanjo revoked the deal, but it was later sold to Shell at $210m, a development, which sparked off a series of legal tussles.
The committee recalled that while Malabu was still in court, a former AGF, Mr. Mohammed Adoke, and a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, were alleged to have “contrived a series of complex agreements of a questionable nature.”
The development came as the House Committee on Financial Crimes chaired by Mr. Oladele Kayode, said the Proceeds of Crime Bill would be given accelerated attention by the House to strengthen the fight against financial crimes.
Malami stated that there were many “national and international litigations” arising from the series of transactions involving parties to OPL 245.
According to him, the Federal Government, Shell, Malabu Oil and Gas, Agip and many individuals had at one point or another, entered into litigation and agreements on the deal.
For example, he revealed that within Malabu Oil itself, there were divided interests, such that it was difficult to ascertain which of the interests signed what agreement.
“We have multiple contentions. There is Mohammed Abacha, we have Dan Etete, Atiku Abubakar, Hassan Adamu; they are all laying claims to entities,” he told the committee.
The AGF also said, in the “chequered history” of the oil well since 1998, the Federal Government revoked the licence and re-awarded it many times.
“So, whatever I am providing to this committee is provisional. The investigation is ongoing and it is not conclusive.
“There are many areas to look at. We will take a comprehensive position and revert to the committee as soon as possible,” he added.
However, Malami admitted that some information being investigated indicated that there had been alleged “irregularities.”
But Shell through its lawyer, Mr. Richard Akinjide, had since written to challenge the jurisdiction of the committee to investigate the deal on the grounds of the many litigations surrounding it.
The committee had noted that the “lucrative OPL 245 occupies an area of 1,958 square kilometres and holds up to 9.2 billion barrels of crude oil.”
Recalling how the deal started, the committee said Chief Dan Etete, a former minister under the administration of the late Gen. Sani Abacha, awarded the block to himself in 1998, using Malabu Oil and Gas.
“He awarded it to himself for just $20m, out which he paid only $2m,” the committee stated.
It added that former President Olusegun Obasanjo revoked the deal, but it was later sold to Shell at $210m, a development, which sparked off a series of legal tussles.
The committee recalled that while Malabu was still in court, a former AGF, Mr. Mohammed Adoke, and a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, were alleged to have “contrived a series of complex agreements of a questionable nature.”
Etete said, “The summary of the agreement was that Shell and Nigeria Agip Exploration paid $1.1bn to the Federal Government for the oil block.”
However, instead of paying the money into the Federation Account, the committee stated that Adoke and Alison-Madueke “caused the money to be transferred to Malabu, which then spirited the money to various foreign bank accounts.
