Skip to main content
1000Reasons

Reason3162019

Alleged

Olusegun Obasanjo

Olusegun Obasanjo is one of the most consequential and most controversial figures in Nigerian political history, having held supreme executive power on two separate occasions: as Military Head of State from February 1976 to October 1979, when he completed the assassinated Gen. Murtala Mohammed's transition programme and handed power to a civilian (Shehu Shagari) in 1979 — a then-unprecedented voluntary military handover; and as elected civilian President from 29 May 1999 to 29 May 2007, the first head of the Fourth Republic. Between those tenures he became an international statesman, was imprisoned under Gen. Sani Abacha (1995-1998) after a secret military tribunal convicted him of concealment of treason in an alleged coup plot — a conviction widely condemned by Amnesty International and Western governments as politically motivated and procedurally indefensible (his co-accused Shehu Musa Yar'Adua died in detention) — and emerged from Yola prison after Abacha's June 1998 death to become PDP's consensus candidate and win the 1999 election. His eight-year civilian presidency is associated with debt-relief negotiations (the Paris Club deal of 2005-06), GSM-licensing reforms, the EFCC's creation, and the National Economic Empowerment and Development Strategy (NEEDS); but it is equally associated with a dense cluster of corruption allegations that he has never been criminally tried over in Nigeria. The most internationally documented is the Halliburton/KBR/TSKJ FCPA scandal: between 1994 and 2004 the TSKJ joint venture (KBR, Technip, Snamprogetti/Eni, JGC) paid about US$180 million through UK middleman Jeffrey Tesler to win the Bonny Island LNG Trains 1-6 contracts. The US Department of Justice and SEC obtained guilty pleas and deferred-prosecution agreements from KBR/Halliburton (Feb 2009, $579m), Snamprogetti/Eni (July 2010, $365m), Technip (June 2010, $338m), JGC (April 2011, $218.8m) and Tesler personally (Feb 2012, 21 months prison plus $149m forfeiture). KBR's ex-CEO Albert 'Jack' Stanley pleaded guilty and reportedly told US investigators he met President Obasanjo in 2001 over the LNG Train-6 contract; a Nigerian Federal Government Task Force led by IGP Mike Okiro and a House of Representatives ad hoc committee both named Obasanjo among bribe recipients, with Sahara Reporters publishing details of an alleged $74m payment shared with VP Atiku Abubakar and NNPC executives Funso Kupolokun and Gaius Obaseki. Obasanjo categorically denies ever taking a Halliburton bribe — in his 2010 letter to President Jonathan he wrote that he 'did not participate directly or indirectly in the negotiations for the award of contracts of the LNG in Bonny' and has repeatedly said 'I don't deny their reports about Halliburton — but not me.' No Nigerian prosecutor has charged him. He has separately been entangled in the PTDF (Petroleum Technology Development Fund) controversy of 2006-07 with VP Atiku Abubakar, in which both men publicly accused each other of diverting PTDF funds via Trans-International Bank (TIB), Equatorial Trust Bank and other vehicles, with allegations that PTDF money funded Obasanjo's Transcorp shareholding and the failed 'Third Term' constitutional-amendment campaign of 2006; the EFCC, then led by Nuhu Ribadu, produced a controversial report that critics said exonerated Obasanjo while indicting Atiku. Funding of the Olusegun Obasanjo Presidential Library (OOPL) in Abeokuta — the first presidential library in Africa — generated additional concern after a single 2005 fundraiser raised roughly N6-7 billion in cash and pledges from federal contractors, oil-sector firms and serving public officials including Mike Adenuga (N250m), Aliko Dangote (N211.6m) and Femi Otedola (N200m), prompting widely-aired allegations of donations-for-favours. The 2008 House of Representatives Power Probe led by Hon. Ndudi Elumelu alleged that approximately US$16 billion budgeted for power infrastructure (NIPP and PHCN contracts) between 1999 and 2007 was spent with little to no electricity result, recommending Obasanjo and several ministers for EFCC/ICPC investigation; in 2019 EFCC announced a fresh probe of the same expenditures. Obasanjo has consistently denied wrongdoing, has never been convicted of any civilian-era offence, and remains an active elder statesman whose open letters frequently shape Nigerian political discourse.

Sources

SOURCE-01Halliburton Investor Relations (2009-02-11)
Halliburton Investor Relations, 11 February 2009ir.halliburton.com/news-releases/news-release-details/halliburton-announces-settlement-department-justice-and
SOURCE-02US SEC EDGAR (2008-09-03)
US SEC EDGAR, 3 September 2008www.sec.gov/Archives/edgar/data/0000045012/000004501208000407/stanleypleaagmt.htm
SOURCE-03Stanford Law FCPA Clearinghouse
Stanford Law FCPA Clearinghousefcpa.stanford.edu/investigation.html?id=150
SOURCE-04Premium Times (2012-02-23)
Premium Times, 23 February 2012www.premiumtimesng.com/news/3938-halliburton-bribe-middleman-tesler-jailed.html
SOURCE-05Sahara Reporters (2010-05-18)
Sahara Reporters, 18 May 2010saharareporters.com/2010/05/18/obasanjo-shared-74million-halliburton-bribe-okiro-panel-says-%E2%80%A2-obj-also-pocketed-another
SOURCE-06Sahara Reporters (2009-04-23)
Sahara Reporters, 23 April 2009saharareporters.com/2009/04/23/halliburton-scandal-jack-stanley-admits-meeting-obasanjo-face-face-2001
SOURCE-07Sahara Reporters (2012-11-16)
Sahara Reporters, 16 November 2012saharareporters.com/2012/11/16/halliburton-bribery-scam-million-dollar-bribes-were-wired-abdulsalami-abubakar-julius
SOURCE-08allAfrica / This Day (2009-04-10)
allAfrica / This Day, 10 April 2009allafrica.com/stories/200904100195.html
SOURCE-09The Nation Newspaper
The Nation Newspaperthenationonlineng.net/halliburton-four-ex-heads-state-89-others-indicted/
SOURCE-10TheCable
TheCablewww.thecable.ng/fact-check-did-obasanjo-say-atiku-stole-money-that-can-feed-300m-people-for-400-years/
SOURCE-11The Nation Newspaper
The Nation Newspaperthenationonlineng.net/atiku-obasanjo-owe-nigeria-explanations-on-ptdf-tinubu/
SOURCE-12Sahara Reporters / TheNEWS (2006-09-24)
Sahara Reporters / TheNEWS, 24 September 2006saharareporters.com/2006/09/24/objatiku-scandal-what-efcc-failed-disclose-thenewssaharareporters
SOURCE-13OOPL official
OOPL officialoopl.org.ng/donor-list/
SOURCE-14Wikipedia (encyclopaedic context)
Wikipedia (encyclopaedic context)en.wikipedia.org/wiki/Olusegun_Obasanjo_Presidential_Library
SOURCE-15University of Minnesota Minitex
University of Minnesota Minitexminitex.umn.edu/news/resource-sharing-delivery/2022-05/first-presidential-library-africa-olusegun-obasanjo
SOURCE-16Punch Newspapers
Punch Newspaperspunchng.com/reps-to-probe-obasanjo-yaradua-jonathan-power-contracts/
SOURCE-17TheCable
TheCablewww.thecable.ng/flashback-obasanjo-said-2008-16bn-allegation/
SOURCE-18The Nation Newspaper
The Nation Newspaperthenationonlineng.net/efcc-begins-probe-of-obasanjo-govts-16bn-power-project/
SOURCE-19SERAP Nigeria (2019-08-18)
SERAP Nigeria, 18 August 2019serap-nigeria.org/2019/08/18/serap-backs-efccs-probe-of-obasanjo-govts-16bn-power-project/
SOURCE-20Vanguard
Vanguardwww.vanguardngr.com/2020/12/nipp-intervention-and-challenges-of-electicity-privatisation/
SOURCE-21BusinessDay NG
BusinessDay NGbusinessday.ng/energy/power/article/16-years-of-national-integrated-power-project-nipp-and-challenges-of-it-privatisation/
SOURCE-22Punch Newspapers
Punch Newspaperspunchng.com/why-i-was-jailed-by-abacha-obasanjo/
SOURCE-23Amnesty International / UNHCR Refworld (1995)
Amnesty International / UNHCR Refworld, 1995www.refworld.org/reference/countryrep/amnesty/1995/en/95539
SOURCE-24US State Department
US State Department1997-2001.state.gov/global/human_rights/1996_hrp_report/nigeria.html
SOURCE-25Encyclopaedia Britannica
Encyclopaedia Britannicawww.britannica.com/biography/Olusegun-Obasanjo

Right of reply: corrections@1000reasons.vote