LNG $180m Scandal: US Firm Sacks 2
thisdayonline.com
Embattled Halliburton has terminated the services of the former chairman and another employee of its subsidiary company, over the alleged payment of $180 million bribes to win contracts for the construction of the Nigeria Liquefied Natural Gas (LNG) plant.
The subsidiary, Kellogg Brown and Root (KBR), is one of four partners in the TSKJ consortium that first won the contract to build the first two-trains of the $3.8 billion Bonny LNG plant in 1993.
Halliburton said yesterday it terminated ties with Albert Jack Stanley, who recently retired as KBR chairman, and a second former employee who was not named.
The US-based oil services company said the the move had become necessary "because of violations of Halliburton's and Dresser's codes of business conduct," which it claimed, involved the former chairman Stanley and the unnamed employee taking improper personal benefits.
"While we do not know all of the facts related to the issue, we are taking these actions in response to the facts that we do have and to protect our investors, employees, customers and vendors as several investigations proceed," said Dave Lesar, Halliburton chairman, president and chief executive.
"It is important to the company that clients, suppliers and host countries know Halliburton's code of business conduct is expected to be followed in every country in which the company operates," Lesar said.
Halliburton added that it was also probing payments made by TSKJ consortium in connection with the building of Liquefied Natural Gas (LNG) plant in Nigeria.
The three other equal partners in TSKJ are Technip of France, Snamprogetti of Italy and JGC of Japan.
Halliburton said while it does not believe it violated the Foreign Corrupt Practices Act, it plans to ask TSKJ to terminate immediately all services of TSKJ's agent, Tri-Star Investments.
Tristar is operated by a British lawyer, Jeffrey Tesler, known to be lawyer to several Nigerians, including Chief Dan Etete, former Petroleum Minister under the late General Sani Abacha whose administration awarded the contract.
Checks on Tesler's bank records from Swiss authorities, reportedly showed several large payments into the bank account of the sacked Stanley.
The Houston company, which also faces accusations that KBR overcharged the U.S. government for work in Afghanistan and Iraq, said it severed all ties with another consultant and former employee, who was not named, for the same reason.
Last week, the United States Security and Exchange Commission (SEC) launched a formal investigation into the alleged payment of the $180 million bribes by KBR and its partners.
The SEC alleged that the partners paid the $180 million in bribes to Nigerian officials. Investigators have asked Halliburton for access to information reviewing the payments in light of the requirements of the US Foreign Corrupt Practices Act.
The Nigeria LNG Limited (NLNG), owners of the plant, has denied knowledge of any payments of the bribes. Company officials however, expressed worries yesterday, on the effect of the matter on the handling of the expansion of the LNG Plant by TSKJ.
TSKJ the Portugal-registered consortium is one of the few reknowned LNG contractors the world over, and had handled construction of the first-three trains (production line) of the Bonny LNG plant on target and to budget.
The US Justice Department first launched investigations into the alleged bribe last January. A French magistrate is also investigating the matter.
The Federal Government equally ordered an investigation last February and lawyers have since been studying the payments.
Halliburton was first enmeshed in bribe saga in Nigeria last year when it was discovered that it paid $2.4 million to some people to evade the payment of tax running to $5 million.
The Federal Inland Revenue Service (FIRS) revealed recently that the oil service firm had paid $3.1 million out of its tax liabilities. The company is expected to pay additional taxes in excess of $10 million), which included income tax and value added tax (VAT) that was arrived at after the audit carried out by KPMG, the tax consultant to the FIRS.
Early this week, the Federal Government said it was Halliburton Energy Services Ltd (HESNL) over the disappearance of some radioactive substances the oil service firm was alleged to have brought into the country in 2002. |
