Monday, 24 January 2011

Where the money goes (Nigerian Edition)

An interesting little extradition appeal has just been heard and dismissed by the High Court; Jeffrey Tesler is being extradited to Texas to face corruption charges there. Tesler's act - which no one seems greatly exercised to dispute - was to be the bagman for an international consortium that paid $132m in bribes to senior Nigerian government officials, notably in the Nigerian National Petroleum Corporation, to win $6bn of LNG facilities construction work. The consortium was headed by Kellog Brown Root, Technip of France, Milan company Snamprogetti (does HE have shares?) and Nippon firm JGC Corporation. 

You can be sure the Nigerians didn't get $6bn of facilities, of course. My guess is they got maybe $4bn worth of construction at 'normal' OH&P level , paid off the bribes fund and divvied up the remainder of the loot. The corrupt Nigerian officials were bought very cheaply, but no doubt Tesler was employed precisely because he was good at beating them down. The US government has also taken its own stake of the graft; KBR and its parent Halliburton happily handed over a wedge of $402m to the US government and a further $177m to the SEC as their share. And said sorry. 

Winners all round, really. Except the Nigerian people, and poor Jeffrey Tesler, who it now appears will spend much of his life in a Texas jail. 


Anonymous said...

"You can be sure the Nigerians didn't get $6bn of facilities, of course."

And how much worth of gas do you imagine the Italians get from a "€6bn" gas import contract with the Russians?

Anonymous said...

On the subject of Nigeria and gas...

What's the opposite of an offshore wind turbine?

We're being hectored and finger wagged and fined for our supposed contribution to a likely non problem.

It's the Indy (apologies for this)but flaring is occurring on an epic scale.