Okonjo-Iweala: Why Recovery of€185m Abacha Loot is Delayed

Dr. Ngozi Okonjo-Iweala
• Accuses Leichtenstein, Abacha-linked firms of delay tactics
•World Bank to participate in the recovery process
Tokunbo Adedoja, Kunle Aderinokun and Ndubusi Francis in
Washington DC
The federal government has thrown more light on the
challenges it is facing in the recovery of the €185 million
stashed away by the late Head of State, General Sani
Abacha, in banks in Liechtenstein, one of the smallest
countries in the world, located in central Europe.

The Coordinating Minister for the Economy and Minister of
Finance, Dr. Ngozi Okonjo-Iweala, told journalists in
Washington DC, United States that the government of
Liechtenstein was not disposed to returning the loot to the
Nigerian government.
She said the German-speaking country, through shell
companies, commonly called front companies, had put up
legal challenges, in a bid to ensure that its banks benefited
from the proceeds of the loot.
The finance minister said: "When we identified this money
14 years ago, we set up a series of steps to try and get it
back. It was going through several courts.
"The companies and their representatives have always
thrown legal challenges every step of the way. It got to a
stage where the court in Liechtenstein had litigated that the
money should be returned.
"However, those companies have taken the case to the
European Court of Human Rights, saying that the
Liechtenstein Government had violated their human rights
by allowing this money to be taken away from them.
"As you know, that charge does not obtain but by taking it
to that court, that means another two or three years delay.
They are just using delay tactics. The delay tactics suits the
Government of Liechtenstein because their banks get to
keep the money. And what do they do? They will invest it
and make money out of it."
She disclosed that the federal government had taken several
legal steps, through its lawyer, Mr. Enrico Monfrini, a Swiss
national, and the Attorney-General of the Federation,
Mohammed Adoke.
But the efforts, according to her, had always been met with
stiff opposition from the Liechtenstein Government, which is
now asking for a third-party guarantee from the Nigerian
Government.
This, she pointed out, was after she had signed an indemnity
on behalf of Nigeria, that the federal government would
pay a fine if the European Human Rights Court - where the
shell companies fighting against the release of the loot, filed
a case - found any reason to penalise the country for
releasing the funds.
"If this thing keeps being delayed, it will be denying Nigeria
its rightful possession and the Liechtenstein Government
asked us to sign a guarantee that if the European Court of
Human Rights fined them for any reason, we will indemnify
them; that means we will pay that fine.
"We said fine, because the likelihood of paying for acting in
this way was very limited. So we signed the indemnity, I
signed it with the approval of Mr. President and after
receiving it, they now turned and said no.
They need a
third-party guarantee; they need a bank in another country
to guarantee them," she explained.
According to her, the delay tactics by Liechtenstein was
aimed at ensuring the proceeds accruing from the loot are
enjoyed by the banks, to the benefit of the economy of
Liechtenstein but to the detriment of Nigeria, the rightful
owner of the stolen money.
Okonjo-Iweala argued that requesting Nigeria for a third-
party guarantee was unacceptable, stating that the federal
government would fight hard to recover the money, which is
rightfully owned by the country.
Speaking further, Okonjo-Iweala stated:
"We said to them if
they have a problem with how the money will be used, we
will do a similar thing with them, the way we did when the
Swiss Government returned $500 million equivalent to us
under President Obasanjo's regime.
"We had the World Bank work with us with our own NGOs
and Swiss NGOs to monitor the use of this money. We put
the money to specific projects that were beneficial to
Nigerians, in rural areas, like rural roads, health clinics and
all of them were specified and monitored.
"And today, that has set the track record for the way these
returned monies can be used. We have said to the
Liechtenstein Government that we are prepared to do a
similar thing and the World Bank has agreed to participate
in it.
"There is a unit at the World Bank, which I set up during my
time called, The Stolen Asset Recovery Unit, and they do
these kind of things with countries.
"They can help you monitor the use of returned assets, they
can help support you in recovering your money. We are
glad to have the World Bank, so they should return our
money and it would be used in a very transparent way for
projects that Nigerians will be happy about.
"President Goodluck Ebele Jonathan has pledged himself in
this respect, and that's what we are asking them."
Nigeria had embarked on a vigorous campaign over a
decade ago for the return of the €185 million looted by
firms linked to Abacha but harboured in Liechtenstein.
In 2000, the federal government made a formal request to
Liechtenstein for the return of the looted funds channelled
into the tiny country through shell companies linked to the
former maximum ruler.
Criminal investigations and subsequent forfeiture
proceedings had established that the funds originated from
bribes paid by Germany's Ferrostaal AG to companies
linked to General Abacha, with the looted funds said to be
connected to a grossly inflated contract for the construction
of an aluminium smelter.
About $2.4 billion of these stolen assets, a chunk of which
was laundered through European banks had been traced.
So far, Nigeria has recovered $1.3 billion, with the largest
tranche of $500 million coming from Switzerland in 2005.
An additional $1.1 billion, traced and harboured in France,
United Kingdom, Luxembourg and the Channel Island of
Jersey, is still trapped in legal action.
Source:Thisday
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