Sunday, December 12, 2010

WikiLeaks Cables: Shell's grip on Nigerian State Revealed

*US embassy cables reveal top executive's 

claims that company 'knows everything' about

 key decisions in government ministries



The oil giant Shell claimed it had inserted staff into all the main 
ministries of the Nigerian government, giving it access to politicians' 
every move in the oil-rich Niger Delta, according to a leaked US
 diplomatic cable.

The company's top executive in Nigeria told US diplomats that
Shell had seconded employees to every relevant department
and so knew "everything that was being done in those ministries".
She boasted that the Nigerian government had "forgotten" about
the extent of Shell's infiltration and was unaware of how much
the company knew about its deliberations.
The cache of secret dispatches from Washington's embassies
in Africa also revealed that the Anglo-Dutch oil firm swapped
intelligence with the US, in one case providing US diplomats
with the names of Nigerian politicians it suspected of supporting
militant activity, and requesting information from the US on
whether the militants had acquired anti-aircraft missiles.
The latest revelations came on a day that saw hackers
sympathetic to WikiLeaks target MasterCard and Visa over
their decision to block payments to the whistleblowers' website.
The website's founder, Julian Assange, spent a sixth night in
jail after a judge refused him bail prior to an extradition hearing
to face questioning over sexual assault charges in Sweden.
Campaigners said the revelation about Shell in Nigeria
demonstrated the tangled links between the oil firm and
politicians in the country where, despite billions of dollars
in oil revenue, 70% of people live below the poverty line.
Cables from Nigeria show how Ann Pickard, then Shell's
vice-president for sub-Saharan Africa, sought to share 
intelligence with the US government on militant activity and
business competition in the contested Niger Delta – and how,
with some prescience, she seemed reluctant to open up because
of a suspicion the US government was "leaky".
But that did not prevent Pickard disclosing the company's reach
 into the Nigerian government when she met US ambassador
Robin Renee Sanders, as recorded in a confidential memo from
the US embassy in Abuja on 20 October 2009.
At the meeting, Pickard related how the company had obtained
 a letter showing that the Nigerian government had invited bids
for oil concessions from China. She said the minister of state for
petroleum resources, Odein Ajumogobia, had denied the letter
had been sent but Shell knew similar correspondence had taken
place with China and Russia.
Nigeria is Africa's leading oil producer and the eighth biggest
exporter in the world, accounting for 8% of US oil imports. Although
a recent UN report largely exonerated the company, critics accuse
Shell, the biggest operator in the delta, and other companies, of
causing widespread pollution and environmental damage 
the region. Militant groups engaged in hostage-taking and sabotage
have proliferated.
The WikiLeaks disclosure was seized on by campaigners as
evidence of Shell's vice-like grip on the country's oil wealth.
"Shell and the government of Nigeria are two sides of the same coin,
" said Celestine AkpoBari, of Social Action Nigeria. "Shell is everywhere.
They have an eye and an ear in every ministry of Nigeria. They have
people on the payroll in every community, which is why they get away
with everything. They are more powerful than the Nigerian government."
The criticism was echoed by Ben Amunwa of the London-based oil
watchdog Platform. "Shell claims to have nothing to do with Nigerian
politics," he said. "In reality, Shell works deep inside the system, and
has long exploited political channels in Nigeria to its own advantage."
Levi Ajuonoma, a spokesman for the state-owned Nigerian National 
Petroleum Corporation, said: "Shell does not control the government
of Nigeria and has never controlled the government of Nigeria. This
cable is the mere interpretation of one individual. It is absolutely untrue,
 an absolute falsehood and utterly misleading. It is an attempt to demean the government and we will not stand for that. I don't think anybody will lose
sleep over it."
Another cable released today, from the US consulate in Lagos and dated
19 September 2008, claims that Pickard told US diplomats that two
named regional politicians were behind unrest in the Rivers state. She
also asked if the American diplomats had any intelligence on shipments
of surface to air missiles (SAMs) to militants in the Niger Delta.
"She claimed Shell has 'intelligence' that one to three SAMs may have
been shipped to Nigerian militant groups, although she seemed somewhat
skceptical of that information and wondered if such sensitive systems
would last long in the harsh environment of the Niger Delta,"
the cable said.
Pickard also said Shell had learned from the British government details
 of Russian energy company Gazprom's ambitions to enter the Nigerian
 market. In June last year, Gazprom signed a $2.5bn (£1.5bn) deal with
the Nigerian National Petroleum Corporation to build refineries, pipelines
and gas power stations.
Shell put a request to the US consulate for potentially sensitive
intelligence about Gazprom, a possible rival, which she said had secured
 a promise from the Nigerian government of access to 17trn cubic feet
of natural gas – roughly a tenth of Nigeria's entire reserves. "Pickard
said that amount of gas was only available if the GON were to take
concessions currently assigned to other oil companies and give them to
Gazprom. She assumed Shell would be the GON's prime target." Pickard
alleged that a conversation with a Nigerian government minister had
secretly recorded by the Russians. Shortly after the meeting in the
minister's office she received a verbatim transcript of the meeting
"from Russia", according to the memo.
The cable concludes with the observation that the oil executive
had tended to be guarded in discussion with US officials. "Pickard
repeatedly told us she does not like to talk to USG [US government]
officials because the USG is 'leaky'." She may be concerned that ...
bad news about Shell's Nigerian operations will leak out."
Shell declined to comment on the allegations, saying: "You are seeking
our views on a leaked cable allegedly containing information about a
private conversation involving a Shell representative'.

source:guardian.co.uk

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