US embassy cable - 04ABUJA1119

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001119 
 
SIPDIS 
 
E.O. 12958: DECL: 06/23/2014 
TAGS: PGOV, PREL, KCOR, EFIN, NI 
SUBJECT: ICPC PRESSES MINISTERIAL CORRUPTION CASE, BUT HOW 
FAR WILL IT GO? 
 
REF: ABUJA 1074 AND PREVIOUS 
 
Classified By: AMBASSADOR JOHN CAMPBELL.  REASONS 1.5 (B & D). 
 
1.  (C) Summary:  The Independent Corrupt Practices and Other 
Related Offences Commission (ICPC) provided details on its 
highest-profile case to date, the national identity card 
project case that includes former Ministers among its 
defendants.  The trial will take place on July 19-21, but it 
is unclear whether the ICPC will be satisfied with this 
prosecution, or hunt for some bigger scalps.  End Summary. 
 
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The Arrests in Nigeria... 
------------------------- 
 
2.  (U) In December 2003, six individuals were arrested in 
Nigeria for receiving a total of over USD 2 million from a 
Nigerian business partner of the French firm Sagem S.A. to 
ensure Sagem won the USD 214 million National ID Card project 
contract.  The defendants included former Internal Affairs 
Ministers Mohammed SHATA and Chief Sunday AFOLABI, sitting 
Labor Minister Hussaini AKWANGA (who was sacked the day after 
his arrest), immediate past Secretary of the ruling People's 
Democratic Party (PDP) Okwesilieze NWODO, Internal Affairs 
Ministry Permanent Secretary Ms. Turei AKERELE, and Sagem 
country representative Niyi ADELAGUN. 
 
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...and One in the UK 
-------------------- 
 
3.  (SBU) A seventh individual involved in the case was 
detained in the UK earlier in 2003, Department of National 
Civic Registration director Christopher AGIDI.  Rather than 
pursue an expensive extradition case, the ICPC opted to allow 
Agidi to be tried in the UK on money laundering charges: 
Agidi had been arrested with GBP 160,000 on his person, and 
another USD 50,000 was found at his London residence.  Agidi 
claimed he had been paid for "computer consulting" by Sagem. 
ICPC Chairman Justice M. M. Akanbi told Poloff that Agidi had 
been the "driving force" behind the Internal Affairs 
Ministry's selection of Sagem. 
 
--------------------------------- 
A Death with Convenient Timing... 
--------------------------------- 
 
4.  (U) Chief Afolabi fell ill with a mysterious ailment in 
April and was taken to the UK for treatment, where he died in 
May.  His illness began shortly after he announced that he 
would "spill the beans" regarding the Sagem scam.  Many 
Nigerians, including his attorney, feel he was poisoned to 
keep him from testifying.  Afolobi had been alleged to have 
accepted USD 330,000 for his role in selecting Sagem. 
 
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...Makes the ICPC Start Over 
---------------------------- 
 
5.  (SBU) On June 2, the ICPC withdrew charges against the 
defendants.  Akanbi explained to Poloff that since the 
charges had been filed against the defendants as a group, it 
was possible for defense counsel to delay the case 
indefinitely because one of the defendants was not present. 
On June 3, all charges were re-filed against the remaining 
five defendants in three separate cases:  one case against 
Akwanga, Nwodo, and Akerele, one against Shata, and one 
against Adelagun. 
 
6.  (SBU) Akwanga was accused of receiving USD 30,000 via his 
daughters; Akwanga's attorney told Poloff on June 2 that this 
was true, but that it was "merely a gift," and Akwanga 
received no money himself.  Akerele received USD 500,000 paid 
into her bank account in London by Adelagun, but claims the 
money was due to the sale of a house in Lagos; the ICPC 
charged her for failing to disclose the foreign account. 
Nwodo was alleged to have accepted USD 160,000 for 
introducing Adelagun to Afolabi, and to have assisted in the 
distribution of the bribes.  He denies any knowledge of the 
payment.  Shata allegedly received USD 300,000 for his role 
in selecting Sagem, while Adelagun allegedly handled all the 
improper payments for Sagem. 
 
7.  (C) Akanbi told Poloff that Shata had confessed to his 
role, on tape, and had implicated others.  Akanbi said that 
Shata cannot claim that his confession was forced by the ICPC 
because Shata was in custody of the State Security Service 
(SSS), and ICPC was merely allowed to interview him. 
 
8.  (C) Akwanga's attorney, Chris Uche, told Poloff on June 2 
that his client was eagerly looking forward to tell his side 
of the story.  He said that Sagem had been chosen as a vendor 
only after Sagem representatives made a call on President 
Obasanjo, who then expressed preference for the choice of 
Sagem.  Although the contract with Sagem was cancelled when 
the scandal broke, Uche said, Sagem was re-selected by a new 
procurement committee, which Uche said showed that higher 
levels of government were involved in the decision. 
 
9.  (U) The trial is scheduled for July 19-21 (septel).  It 
had been delayed several times because the judge assigned to 
the case, Justice Oniyangi, had been working on election 
petition cases.  Akanbi explained that Oniyangi had been so 
successful with the election cases that he was asked to 
continue handling them. 
 
10.  (SBU) On June 16, Akanbi asked Poloff why the US Embassy 
is so interested in this case.  Poloff replied that Nigeria's 
anti-corruption efforts are important to the US because it is 
in the interest of the US for Nigeria to be a stable, safe 
place to do business, governed by the rule of law.  Akanbi 
expressed satisfaction with the reply and said, "then we all 
want the same thing." 
 
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Comment 
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11.  (C) With a confession, and with defendants eager to 
point the finger at one another (and others), it appears that 
ICPC should be able to win its first-ever convictions. 
However, the finger-pointing is likely to implicate the 
President and his wife directly in the case.  It remains to 
be seen whether the ICPC will pursue the allegations against 
higher levels of the GON, up to the President's office. 
CAMPBELL