Connect with us

National

Finance minister allegedly awards contract to foreign company under investigation

Published

on

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed has been accused of awarding a revenue collection contract for the Federal Government to a foreign company currently being investigated for bribery, corruption and economic crimes in over 14 different countries.

The foreign firm, SICPA SA with its headquarters in Prilly, Switzerland, our investigations have revealed, has been variously indicted for heavily bribing government officials for contracts in the various countries where it operates and is even currently undergoing probe in several others.

Some of the 14 countries are Egypt, India, Kazakhstan, Pakistan, Senegal, Vietnam, Venezuela, Ukraine, Columbia and Brazil.

The company’s investigation, it was further learnt has been extended to various countries in addition to those mentioned above.

In furtherance of its investigations, Swiss security agents were said to have conducted a search on the company’s headquarters in Prilly in the suburbs of Lousanne, Switzerland in 2016.

It was also learnt that due to its involvement in large scale bribery and corruption, a Brazilian shutter on the company to wind down its operations in the country exists in addition to the confirmation of several other criminal procedures in progress against it.

Our correspondent learnt that SICPA SA made its foray into Nigeria in 2016 after Kibo Laboratories LLC, based in Washington DC, United States of America,
submitted an unsolicited proposal to the Federal Ministry of Finance, under the then Minister of Finance, Kemi Adeosun, for the Procurement, Development of an Electronic Tax Stamp and System for Tobacco and Alcoholic Beverages and Other Excisable Products under its tax and anti-contraband programme. It was learnt that Kibo LLC actually submitted the unsolicited proposal for a Public Private Partnership (PPP) to the Ministry, but the Ministry officials hijacked the firm’s initiative, inspite of the law regulating all PPP procurement clearly stating that contracts should be awarded on a “first come, first served” basis.

In June 2017, after the representatives of both SICPA SA and Kibo Laboratories LLC visited Nigeria on the invitation of the Federal Ministry of Finance and made presentations of their individual companies’ Automated Security Solutions of Track and Trace Systems to be deployed for excise tax collection, before the then Minister, both firms were recommended to the Bureau of Public Procurement (BPP) and their profiles forwarded for the BPP’s review and subsequent consideration for selective tendering for the Automation of Excise Tax collection.

The BPP subsequently granted Due Process “No Objection” Certificate to the Federal Ministry of Finance, as requested by the Ministry, to adopt Selective Procurement Method in favour of both SICPA SA and Kibo Laboratories LLC, in September 2017.

But corrupt Nigerian Ministry officials and SICPA SA allegedly hijacked the entire process and side lined Kibo Laboratories, which introduced the programme to the Ministry and initiated the entire procurement process.

Kibo Laboratories, it was learnt passed through all due processes for the contract with all relevant agencies, including the Nigeria Customs Service as evidenced by official documents obtained by our correspondent.

Suspicious of the entire process, Kibo Laboratories, through its lawyers, Tri-NASR Solicitors, Advocates and Legal Consultants, in November 2017, petitioned the Permanent Secretary, Federal Ministry of Finance, alleging “skewedness of the procurement process.” Kibo Laboratories lawyers also copied the petition to the Bureau of Public Procurement.

BPP in its response to the petition, placed the procurement process on suspension “until the Bureau settles the matter.” The BPP’s reply to the lawyers to Kibo Laboratories was signed by Engr Ishaq Yahaya, Director (Compliance, Certification and Monitoring) for the for the Bureau’s Director-General.

But corrupt Ministry officials recently again sold SICPA SA to the Minister of Finance, Mrs Zainab Ahmed as the only firm to execute the revenue collection contract.

The Swiss firm, it was gathered, is allegedly being used as a front by corrupt Ministry officials, to fleece the Federal Government of Nigeria, unknown to the Minister, who was said to have approved the contract for SICPA SA.

One of the Minister’s Special Advisers said to have featured prominently in all the “transactions” regarding the procurement, is said to be “major go-between” between the Federal Ministry of Finance officials and SICPA SA officials.

Following this latest development, Kibo LLC’s Executive Vice President, on June 8, 2022, fired another petition to the Finance Minister and other relevant Nigerian government officials on the procurement contract.

But while the Finance Minister has yet to respond to Kibo LLC’s latest petition, officials of the Federal Ministry of Finance, it was gathered, have been working assiduously underground to secure and perfect the contract for SICPA SA, the internationally indicted foreign firm that is fronting for them to fleece Nigeria of hard-earned revenue.

Some legal documents, including those of the Judiciary Section of Rio De Janeiro, 82 Federal Criminal Court, Federal Public Ministry, Brazil, sighted by our correspondent, indicated that SICPA SA has been indicted and is also undergoing multiple probe for bribery and corruption of public officials in the South American country.

In Switzerland, the owner of SICPA SA, Phillippe Amon, is also undergoing similar investigations for bribery, corruption and other economic crimes.

In Zurich, the Swiss capital, prosecutors of the Public Ministry of the Confederation (MPC) have extended “the corruption investigation launched in 2015 against the Vaud security ink specialist to the General Manager of the company.”

The SICPA SA owner is accused of “corruption of foreign public officials.”

The Prilly-based company has however declined to comment on a “Swiss procedure following its course.”

The Public Ministry’s investigation, it was learnt, concerns the alleged payment of bribes in various countries, “including Brazil and Columbia.”

Our correspondent gathered that the investigation launched by the prosecution targets SICPA SA, its owner and boss as well as a former employee.

Charges against a second employee were said to have been dropped in September 2020.

This legal development coincides with the signing by SICPA in Brazil of a “leniency agreement” involving the payment of a total amount of 762million Swiss Francs (USD135.5million) in fines and reimbursements, according to a press release published by the Vaud-based company. The payment will be spread over a period of 20 years.

The agreement signed with the Federal Comptroller General and the Federal Attorney General of Brazil, comes to sanction the irregularities noted in the contracts for services related to the beverage production control system (Sicobe).

Several investigations are also said to be underway to establish whether Amon, SICPA SA owner, who is also a security specialist, paid bribes.

Economic Crime

In Switzerland in the past six years, the company, SICPA Holding SA, has been under investigation by the Public Ministry of the Confederation, which suspects the firm of bribery of foreign public officials.

This investigation, it was gathered, was recently extended to the Managing Director and owner of the family company, Phillippe Amon.

The existence of criminal proceedings in progress against Amon, who is a specialist in security inks – supplier of the Swiss national Bank, employing some 2400 people worldwide and with a turnover estimated at one billion francs – has been known since 2019, it was learnt.

It was also learnt that the Swiss Public Ministry of Confederation (MPC) and SICPA have all confirmed the existence of an investigation targeting at least two people, including , for the MPC, that opened against Phillippe Amon, the owner of the firm.

Currently, various investigations exist in different countries seeking to establish whether SICPA SA and its owner, Phillippe Amon actually actively bribe officials in order to obtain contracts.

For instance, a case opened in Brazil had established that a former vice president of the company had paid $15million to a tax official for five years and had resulted in the conviction of the ex-employee of the company sentenced to 11 years and a half in jail.

The procedure opened against SICPA was said to have ended on June 7 with the conclusion of an amicable agreement by which the company acknowledged making the payment but declining to admit to being aware of the reasons for these payments.

SICPA SA nevertheless paid some 135million francs as fine.

Efforts by our correspondent to get the reaction of the Minister of Finance proved abortive.

Commenting on the development, an international financial expert, Dr Eben Nwachukwu, said, “This sadly has to do with the company fronting for the Nigerian officials. SICPA SA is a company that is used across the world to wreck economies; it is notorious for this.Investigations have shown that this company has been indicted by several countries and currently undergoing investigations. The company’s modus operandi is to completely destroy the economy of any nation that accepts to embrace it. No wonder the Nigerian economy is like this through this type of corrupt Ministry officials.”

Another financial expert, Kunle Olokodana, said the Federal Government should urgently intervened by cancelling the whole process and inviting fresh proposals.

He, however, called on the government to punish all the Ministry officials involved in the scandal to serve as a deterrent to other corrupt public officials.

Olokodana said, “This project has been on for close to seven years now. Federal g
Government should immediately intervene in the spirit of equity, fairness and accountability.

“The whole process should be cancelled and fresh proposals invited. All those involved should be heavily sanctioned to serve as deterrent to others.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

National

Strike: NASS Leadership, Labour Leaders, others in closed meeting to avert industrial action

Published

on

By

In last minute effort to prevent indefinite industrial action declared by Nigeria Labour Congress ( NLC) and affiliate bodies from tomorrow, Monday, June 3, 2024 , the leadership of the National Assembly led by the President of the Senate, Godswill Akpabio and Speaker of the House of Representatives, Hon Tajudeen Abbas, are currently in closed door meeting with the labour leaders and some Ministers at the Senate Wing of the National Assembly
The Secretary to the Government of the Federation, Senator George Akume, Minister of Finance , Wale Edun, Minister of Information and National Orientation, Alhaji Mohammed Idris Malagi and some other Ministers are also at the Emergency meeting.
Labour welcomes negotiations for “survival wage “NOT “starvation wage” for workers. Akpabio cautions Labour to be mindful of possible “collateral damage” that might lead to massive job loss
Thesewere just before they went into a closed door meeting.
The National Assembly had had earlier indicated that it would engage the organized labour as part of moves to avert the industrial action due to commence on Monday.
It said its decision of to intervene followed the deadlock between the federal government and the Labour Unions in agreeing on a new national minimum wage and reversal of the recent hike in electricity tariffs. The National Assembly stressed that both parties have tenable reasons for their respective positions.
A statement issued Sunday and jointly signed by the spokesperson of the Senate, Senator Yemi Adaramodu and the spokesperson of the House, Akin Rotimi revealed that the President of the Senate, Senator Godswill Akpabio, and Speaker of the House of Representatives, Hon. Abbas Tajudeen, are taking proactive steps to mediate and avert the impending industrial action.
The legislative arm was of the opinion that the strike action would have severe repercussions on the populace and economy

It said: “The National Assembly acknowledges the announcement by Organised Labour, including the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC), to commence an indefinite strike action from Monday, June 3, 2024, nationwide.

“In view of this, the National Assembly Leadership and the Chairmen of the Senate and House Committees on Labour, Employment and Productivity respectively, Senator Diket Plang, and Rep. Adegboyega Adefarati, are looking to engage both parties in constructive dialogue and explore a variety of solutions in addressing the issues at hand.”

It added that the 10th National Assembly was committed to ensuring that the interests of all parties are fairly represented.

Continue Reading

National

Strike is not in the interest of Nigerians, Labour Minister cautions organised labour

Published

on

By

The Minister of State for Labour and Employment, Barr. Nkeiruka Onyejoecha, has caution the organised insisting that embarking on a nationwide strike is not in the best interest of the country and its people.
In a statement by her Special Adviser (Media) Emameh Gabriel the minister
Minister advised the workers unions to have a rethink as declaring a strike in the middle of ongoing negotiations would not only compound the economic woes but also exacerbate the suffering of millions of Nigerians who are already struggling to eke out a living from their daily endeavors.
Explaining further the Minister noted that the “government has consistently demonstrated commitment and goodwill throughout the negotiations with organised labour.
She pointed out that the government’s proposals were carefully crafted, taking into account the country’s economic realities and incorporating innovative solutions.

“These proposals include a comprehensive package featuring a wage increase to N60,000 for federal workers, the introduction of CNG-fueled buses, and enhanced financial access for Micro, Small and Medium Enterprises (MSMEs). “Additionally, the government has pledged investments in strategic sectors such as agriculture, manufacturing, education, healthcare and many others that are already in the pipeline.
She however cautioned that any new minimum wage must not lead to widespread job losses, particularly in the Organised Private Sector, which employs the bulk of the nation’s workforce

“This sector is crucial to the country’s economic growth and stability. The government’s stance is rooted in a deep understanding of the negotiations, demonstrating its dedication to finding a balance between the needs of workers and the economic realities of the country.
“The goal is to establish a minimum wage that is not only realistic but also sustainable, avoiding any potentially detrimental consequences for the economy.

“By adopting this approach, the government aims to safeguard the interests of both workers and employers, ensuring that any agreement reached is mutually beneficial and does not jeopardise the country’s economic progress.
“This balanced stance is crucial for maintaining harmony in the workforce and driving national growth”, she explained.

The Minister expressed disappointment that in a surprising turn of events, organised labour abruptly exited the negotiations yesterday, despite the government’s flexibility in rescheduling the meeting from Monday to Friday, May 31st, to accelerate the talks.
“Labour unions remained adamant in their demand for a staggering 1,547% wage increase, after the government’s proposed 100% increase, accompanied by various incentives for workers.

“It is widely acknowledged that the labour unions’ demands are unrealistic, given the country’s current economic position. The government takes into account the nation’s fiscal constraints and the need for sustainable economic growth. In contrast, labour’s demands seem disconnected from the economic realities, potentially jeopardising the very gains they seek to achieve”.

“The government’s willingness to engage in dialogue and its demonstrated flexibility in the negotiations underscore its commitment to finding a mutually beneficial solution. However, labour’s inflexibility and unrealistic expectations may hinder the progress made thus far, ultimately harming the workers they represent and the nation as a whole, the minister added.

She however, urged the unions to reconsider their decision and continue engaging in constructive dialogue to find a solution that benefits all, as strike will disproportionately harm the most vulnerable segments of our society. She concluded by asking
organised labour to continue to respect the principles of social dialogue, engaging in good-faith.

Continue Reading

National

Gov Yusuf Visits National Security Adviser, Ribadu

Published

on

By

Governor Abba Kabir Yusuf of Kano State on Thursday met with the National Security Adviser Malam Nuhu Ribado at his Office in Abuja
The meeting which was ocasioned by the recent happenings in Kano following the dissolution of five emirates by the Kano State House of Assembly through the repeal of the state emirate law, the governor’s assent and the subsequent restoration of Emir Muhammad Sanusi II by the
Governor.
The Governor’s spokesperson Sanusi Bature Dawakin Tofa, in a statement indicated that the two political leaders deliberated on various matters relating to state/national development and the peaceful coexistence of the nation during their discussions in Abuja.
Recall that the NSA had been accused of involvement in the Kano crisis for allowing a substantial military presence to protect the dethroned Emir Aminu Ado Bayero, a position the Office of the NSA debunked
The Kano State Deputy Governor, Comrade Aminu Abdussalam Gwarzo, had apologized to the NSA for his implication in the Kano crises, attributing the error to flawed intelligence.
Recognizing the respected professional background and integrity of the NSA throughout his time as an Officer and Anti-corruption campaigner, the state deemed it necessary to retract the allegation and offer a sincire apology.
In harmony with these events, the Governor’s meeting with the NSA coincided with Emir of Kano Muhammadu Sanusi II’s six-day stay at the Kano palace, where a significant majority of district heads and kingmakers already pledged their allegiance and loyalty to the newly consolidated Kano Emirate under the leadership of the 16th Emir.
The state assured that Kano has been characterized by peace and tranquillity, and thus urges all residents to continue their regular activities in compliance with the rule of law.
“It was a fruitful discussion between myself and the National Security Adviser, his role is critical for the harmonious existence of our nation, so I briefed him on the recent developments in Kano,” Governor Yusuf confirmed.

Continue Reading

Trending

Copyright © 2024 National Update