Corruption Fighter

Tax Free

German companies used the state visit of German President Horst Koehler to Nigeria, to expand their business relations with this West African nation. The state visit ended today, November 12. First in line was the Eon Corp., seeking to capture and transport the, previously unused, natural gas, released during oil drilling, of which a portion is destined to satisfy local energy needs, the rest - prepared through liquefaction - for shipment to Europe on Atlantic bound tankers or eventually by pipeline through the Sahara. Eon Corporation's activities are promising huge profits, especially since all investments in Nigeria for making natural gas usable, will be tax free for several years and include investment subsidies as well as other advantages.[1]

Progressed Further

The significance of Eon's business deals in Nigeria extend far beyond the monetary value in the sense that Nigeria holds the 7th largest reserves of natural gas in the world and therefore plays an important role in the worldwide competition for access to the limited energy resources. With the help of Nigerian gas, Berlin seeks to lessen its dependence on Russian gas supply and therefore supports Eon's gas project. In August, after a year of intensive preliminary work, the governments of Germany and Nigeria signed a memorandum of understanding [2] in Abuja known as the "Nigerian-German Energy Partnership." It provides for the expansion of the natural gas project, to cover energy production and the supply of electrical power. German enterprises are standing ready to take on these tasks. Political accompaniment activities are deemed necessary in Berlin, because rivals also have their eye on Nigeria's resources. For example the Russian energy giant, Gazprom, which is threatening to undercut German companies in North Africa, is also present in Abuja, seeking a comprehensive "energy partnership." But the negotiations with Germany have progressed further confirmed Nigeria's President Yar'Adua to Koehler, his German counterpart.[3]

Partner in Corruption

The German president's visit was made amidst accusations of corruption. Koehler, himself, called on the Nigerian government not to pocket the returns from the business deals but have them equitably distributed. But he does not call for the cancellation of financial privileges going to the rich Industrial nations' gas companies, and away from the Nigerian population. The president also criticized corruption within the Nigerian elite, but was silent about their western partners in this corruption. Human Rights Watch (HRW) had already pointed out in an open letter to Horst Koehler that high ranking representatives of the Nigerian Economic and Financial Crime Commission (EFCC) expressed their "preoccupation concerning cooperation" with the German government. This was in reference to "alleged money laundering through German banks or other institutions in Germany" in the context of influence transactions by the Julius Berger Nigeria construction company, a subsidiary of the German construction company, Bilfinger Berger Corp.[4]

Prevailing Global

Collisions between Nigeria's anti-corruption campaign and German expansionist interests most recently became apparent within the framework of the so-called energy partnership, allowing Berlin to assure the strategic access to the rich Nigerian natural gas resources. The bone of contention was the Siemens Corp. Last year, during court proceedings against Siemens Corporation managers, it became known that the Munich based company had spent large sums, said to reach into the double-digit millions, to win over politicians and ministry officials in Nigeria. The Nigerian officials reacted promptly, annulling the current contracts and blacklisting the German company. The German government brought the company back into the game. For the concrete implementation of the "Nigerian-German Energy Partnership," Siemens will be granted the contracts for the construction of Nigeria's energy power plants. Abuja had to again accept the company as a contract partner. The minister of information declared that he had received assurances that, in the future, Siemens would "abide by the prevailing global business practices."[5]

Close, Trustworthy

It is general knowledge among experts on West Africa that Siemens is no isolated case in Nigeria. "German companies or trans-national corporations with headquarters in Germany are actively involved in Nigeria's corruption-based economy," according to an analyses published by the German Development Institute "Deutsches Institut für Entwicklungspolitik -DIE).[6] "This is "notorious" in the case of the prosperous construction firm Bilfinger and Berger", or more precisely, of its Nigerian subsidiary Julius Berger Nigeria, the DIE writes. Of course, this firm denies the charges of corruption. Julius Berger Nigeria is one of the country's major enterprises and has constructed, among others, the presidential palace, several ministries, the senate and the national stadium. It was able to achieve this outstanding position thanks to Hans Wittmann, former member of the Bilfinger Berger Board of Directors, who established the "close, trustworthy contact (...) to the Nigerian government".[7] He developed these contacts already during the military dictatorship and received high honors from the Nigerian government and the German Federal Cross of Merit. He is still serving as "mediator" for Julius Berger Nigeria and was a member of the German president's entourage during his last visit.

Discreetly

The German airlines Lufthansa, to participate in the expansion of German-Nigerian economic relations, pursued by Horst Köhler during his visit in Abuja, has just concluded an agreement with Nigeria. It will begin daily direct flights to Abuja, therefore facilitating travel for German business representatives. There is also a project to upgrade the Abuja airport that was constructed by Julius Berger Nigeria to become an air traffic junction to other African nations. Currently, Lufthansa doesn't have the best reputation. Critics of its attempts to buy out Austrian Airlines, say that the transactions around the takeover have taken on "openly mafia-like characteristics."[8] In Nigeria the current deal was finalized without any major problems, due to the intervention of the German President, according to the business media: "Koehler discreetly acted behind the scenes."

[1] Nigeria bietet Chancen im Erdgassektor; Bundesagentur für Außenwirtschaft 06.11.2008
[2] see also Zentraler Zukunftsmarkt and Zugriff
[3] Köhler: Afrika in UN-Sicherheitsrat; Financial Times Deutschland 10.11.2008
[4] Köhler soll Korruption und Gewalt in Nigeria ansprechen. Brief von Human Rights Watch an den Bundespräsidenten; www.hrw.org
[5] "Baba Go-Slow". Im zweiten Jahr seiner Amtszeit wächst die Ungeduld mit Nigerias Präsident Yar'Adua; Hintergrundinformationen aus der internationalen Entwicklungszusammenarbeit der Friedrich-Ebert-Stifung 30.09.2008. Siemens hatte die Beträge aufgewandt, um in Nigeria Aufträge in der Telekommunikationsbranche zu erhalten. Von dem Konzern ist bekannt, dass er sich bei derlei Aufträgen gelegentlich der deutschen Auslandsspionage zur Verfügung stellt. See also Exchange of Information
[6] Ulf Engel: Entwicklungszusammenarbeit mit Nigeria - Eine Analyse aus der Ankerlandperspektive, Bonn/Berlin 2007
[7] Dr. Hans Wittmann für Nigeria-Engagement ausgezeichnet; Pressemitteilung der Bilfinger Berger AG 10.07.2002. See also Aufmerksam verfolgen
[8] see also Mafiotische Züge
[9] "Der Bundeshandelsreisende"; Financial Times Deutschland 11.11.2008