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Africa
Ambassador, Presidency Officials in List of Daimler Bribe Takers
By Elor Nkereuwem and Idris Akinbajo, Nest 13/6/10
Jun 14, 2010 - 7:39:33 AM

Fresh evidence in the Daimler bribery scandal links key actors in the Nigerian presidency, heads of law enforcement agencies, and the top echelon of the Nigerian diplomatic community to a $15 million bribery spree in the half decade between 2002 and 2007. Ongoing investigations in the United States, where the German company has been indicted, has again slurred the image of Nigeria, highlighting the systemic structure of corruption that has permeated the Nigerian bureaucracy.

The U.S. investigation report obtained by NEXT names Sokari Egbuson, former Nigerian Ambassador to Brazil as one of the Nigerian officials who benefited from the slush funds dished out by Daimler AG, the German motor manufacturing company, in order to obtain government contracts in Nigeria.

According to US investigators, between 2002 and 2005, Daimler AG through its Brazilian subsidiary, DC do Brasil, paid Mr. Egbuson $60,000, which by current value amounts to N9 million, as ‘commissions’ for a contract to supply 10 buses to the Bayelsa State government. Mr. Egbuson allegedly carried out this business by using his privately incorporated company, Cascadas Nigeria Enterprises Ltd., which he co-owns with his wife, Titilope Egbuson.

The State House deal

Mr. Egbuson was not alone. Between 1998 and 1999, Daimler AG, through its Nigerian subsidiary, Anambra Motor Manufacturing Company (Anammco), paid about N270 million in bribes to the Nigerian presidency, then headed by former Military president, Abdulsalami Abubakar.

In return, the federal government granted Daimler AG a contract to supply 23 new Mercedes Benz passenger vehicles, and an armoured Mercedes Benz Pullman limousine. For this deal, Daimler inflated the wholesale price of the vehicles.

“Daimler charged the State House approximately 21 per cent over the wholesale price for the vehicles, parts, and services,” the US investigators said, and from the profits, made handsome payments to the relevant authorities.

“In connection with these sales to the State House, DAIMLER made 1,427,242.65 dollars in improper commission payments...with the understanding that these funds would be passed on, in whole or in part, to Nigerian officials to secure the State House Contract,” the investigators said.

In 1999, a total of about 1 million Deutschmarks were paid in two instalments to the London bank account of a high level ‘Executive Branch official,’ in Nigeria.

Furthermore, 50,000 Deutschmarks was paid to the administrative staff of the State House who signed the contract while another 50,000 was disbursed to “a delegation of State House Officials who were visiting a DAIMLER factory in Sindelfingen, Germany.”

The FIFA deal

In 1999, Nigeria hosted the World Youth Championship for the Federation Internationale de Football Association (FIFA). The FIFA Championship offered another opportunity for profits, both for Daimler AG and for corrupt Nigerian government officials.

In February of that year, Daimler landed another juicy deal to supply 54 buses to the Ministry of Industry, then headed by Onikepe Akande. For this deal, valued at almost N1 billion, Daimler paid a total of N13.4 million to government officials who helped the German company clinch the deal “without engaging in a public tender or bidding process”.

“The contract was dated February 12, 1999, and was signed by a senior Nigerian government official with the Ministry of Industry, and witnessed by another Ministry of Industry employee,” the investigators said, adding that these two officials were subsequently paid money in bribes in May, 1999 and September, 1999.

First comes the Police

In this N2.3 billion scandal, the Nigerian police was not left out. To be precise, the Nigerian Police was the first government entity which received money in bribes from Daimler AG, according to the US investigative report.

In 1997, Daimler AG entered into a contract with the Nigerian Police Force to supply a Master Lift Heavy-Duty Recovery vehicle. The Nigeria Police at this point was headed by Ibrahim Coomassie who was the Inspector General but, as NEXT investigations reveal, Mr. Coomassie was sidelined in the procurement and the contracting process was wholly handled by a bureaucrat of the executive branch who the American investigators listed as the ‘Permanent Secretary, Police Affairs Office, and the President’s office’.

Mr. Coomasie headed the office between 1993 and May 1999, and Mr. Musiliu smith succeeded him from May 1999 to March 2002. Though the contract was signed during the Coomasie administration, payment was made in 2000 during Smith administration.

The Permanent Secretary at the time was Abu Ogbe who later became head of service under the Obasanjo Administration but neither he nor Mr. Smith could be reached to comment on the claim of investigators for the story.

For this contract, however, Daimler paid, according to indictment documents of American investigators now available, a total of about N19 million (using current conversion rates) to a “member of the Nigerian Police Force” in two instalments. First, into the officer’s account in Germany and then by cash, according to the indictment papers.

Emmanuel Ojukwu, the Police spokesperson however told NEXT in Abuja that he was unaware of the US investigation report, adding that the Nigerian police is not carrying out any investigations into the Daimler bribery scandal.

“I am not sure that the police is working on the case. I don’t have any information on the matter. I cannot respond because I have not seen the US report. I need to see the report myself,” Mr. Ojukwu said.

Meanwhile, the Economic and Financial Crimes Commission (EFCC) says it has launched investigations into the matter and is looking to work with the US government to uncover the bribe takers.

“We opened investigations into the Daimler/ Anammco scam recently following a judgment in the U.S.” said Femi Babafemi, spokesperson for the agency last week, adding that “So far, we have interviewed about four officials and representatives of Daimler and Anammco in Nigeria.”

 



Source: Ocnus.net 2010