By Chris Zumani Zimba
In another sad development that magnify continued looting and plundering of African public resources between foreign investors and local politicians, two Western oil companies i.e. Eni and Shell have been found ‘guilt’ of depriving poor Nigerians $6bn from ‘corrupt’ oil deal linked to fraud. Note that this corruption scandal does not involve nor affect Chinese, an empirical proof that the ongoing exploitation, embezzlement, plundering and looting of African resources is not linked to any specific country, nationality, race or region but mainly tied to some bad and crooked human elements from within African states and their overseas collaborators.
Below is a detailed account of the Nigerian Shell and Eni story by Russell Padmore, a business reporter from BBC World Service as reported on 26th November, 2018:
A court in Milan is considering charges of corruption against Eni and Shell in a controversial oil deal that led to Nigeria losing an estimated $6bn.The campaign group Global Witness has calculated the OPL 245 deal in 2011 deprived Nigeria of double its annual education and healthcare budget.
Eni and Shell are accused of knowing the money they paid to Nigeria would be used for bribes. The Italian and Anglo-Dutch energy giants deny any wrongdoing. This unfolding scandal, which is being played out in an Italian court, has involved former MI6 officers, the FBI, a former President of Nigeria, as well as current and former senior executives at the two oil companies.
The former Nigerian oil minister, Dan Etete, was found guilty by a court in France of money laundering and it emerged he used illicit funds to buy a speed boat and a chateau. It is also claimed he had so much cash in $100 bills that it weighed five tonnes. Global Witness has spent years investigating the deal which gave Shell and Eni the rights to explore OPL 245, an offshore oil field in the Niger Delta.
It has commissioned new analysis of the way the contract was altered in favour of the energy companies and concluded Nigeria’s losses over the lifetime of the project would amount to $5.86bn, compared to terms in place before 2011. The analysis was carried out by Resources for Development Consulting on behalf of Global Witness, as well as the NGOs HEDA, RE:Common and The Corner. The estimated losses were calculated using an oil price of $70 a barrel as a basis. Eni has criticised the way it was calculated because it ignores the possibility that Nigeria had the right to revise the deal to claim a 50% share of the production revenues.
Chris Zumani Zimba is a prolific Political Scientist, Analyst, Author, Blogger, PhD Scholar, Researcher and Consultant. Besides being the CEO and Managing Consultant at Chrizzima Democracy University (CDU) in Zambia, he analyses African politics weekly on Voice of the Cape Town, South Africa every Wednesday at 16:45hours CAT. So far, he has authored more than 10 political and academic books as well as published over 100 well researched articles.