Atiku Abubakar, Panama Papers and Lagos-Calabar Superhighway
In a prison court docket in Panama, the trial of the primary batch of 27 people accused of cash laundering associated to the worldwide “Panama Papers” revelations started on Monday, the eighth of April, 2024.
The homeowners of the Mossack-Fonseca authorized enterprise, which was central to the key doc leak in 2016, are amongst these on trial.
A compilation of 11 million confidential monetary information from the Panama Papers reveals how among the wealthiest individuals on the planet conceal their wealth.
The revelations had far-reaching results, resulting in the resignation of Iceland’s prime minister and heightened worldwide scrutiny of Russian President Vladimir Putin, Chinese language legislators, and the governments of Argentina and Ukraine.
At quantity 68 on the checklist of uncovered former high authorities officers within the Panama Papers is Atiku Abubakar, former Vice President of Nigeria. Mossack Fonseca is accused by US federal prosecutors of plotting to interrupt US legal guidelines to guard its purchasers’ riches and conceal taxes that ought to have been paid to the IRS.
They claimed that the plan, which started round 2000, featured shell companies and fictitious foundations within the British Virgin Islands, Panama, and Hong Kong.
Curiously, whereas investigations are reportedly ongoing on the subsequent batch of people listed within the Panama Papers which can embrace the Waziri Adamawa, the two-time presidential candidate of the Individuals’s Democratic Get together (PDP) is waging his personal conflict of attrition, demanding transparency within the procurement technique of the economically strategic Lagos-Calabar coastal street.
We now have noticed the forwards and backwards between Waziri Abubakar and the Federal Minister of Works, Senator Dave Umahi, on this curious public activism initiated by the previous Vice-President.
Our concern, nevertheless, is the deliberate obfuscation that’s sadly being clothed as grounds to traduce the financial and social foundation of the graduation of the coastal street.
We take into account this an unhealthy, diversionary, and deliberate manoeuvre to discredit the entire essence of the Lagos-Calabar coastal undertaking.
Indubitably, the Lagos-Calabar Coastal Freeway, as it is usually known as, is a grand undertaking. It’s designed to attach 9 states and areas at each the nationwide and worldwide ranges, serving as a significant hyperlink between South West, South East, South-South, and different areas of the nation. It is going to additionally combine with present federal roads, selling financial and social improvement throughout the nation along with the mixing on the nationwide degree for Southwest, Southeast, and South-South, together with the Niger Delta area.
It is going to join with Federal Roads going from Badagry in Lagos to Sokoto. From Warri to Kaduna, from Port Harcourt to Kano/Maiduguri, and from Calabar to Maiduguri. Beginning at Victoria Island close to Eko Atlantic Metropolis, the Lagos-Calabar Coastal Freeway will cross via the Lekki Coastal Highway, Lekki Free Commerce Zone, and the Dangote Refinery, connecting Ogun, Ondo, Delta, Edo, and reaching Calabar.
The Lagos-Calabar Coastal Highway is a 700km freeway that will be constructed in phases, with the finished sections being opened to be used and toll assortment. The undertaking, described as formidable, will join the Lagos-Badagry Expressway, the Fourth Mainland Bridge, Lekki Deep Sea Port Highway, and varied factors in Northern Nigeria via the Ogoja-Ikom axis.
It’s anticipated to stimulate tourism and embrace industrial clusters, comparable to resorts, factories, housing estates, and different facilities, together with rail traces operating in the course of the principle carriageways.
In response to Umahi, the street is to be constructed with 11 inch thick concrete and 20-millimetre reinforcement. The progressive use of concrete and metal reinforcement will enhance native cement manufacturing and enhance metal manufacturing from Ajaokuta. It is going to additionally make the most of Nigeria’s considerable bitumen sources. It’s acknowledged {that a} mixture of development strategies, together with pile-supported decks, sand filling, and retaining partitions, will probably be employed to beat the challenges of such undertaking since it can minimize via mangroves, mashy land, flood plains, and varied soil varieties.
Certainly, we agree with analysts and pundits who had submitted that the Lagos-Calabar Coastal Freeway is a groundbreaking undertaking and ranked as the primary of its variety in Africa.
Nevertheless, Waziri Abubakar holds an enormous grudge towards this undertaking regardless of immense advantages of the undertaking. He has continued to precise his grouses, profiting from the mass media via press statements.
We now have reviewed every of those statements and the assorted responses to them by the Minister of Works. Coming from this, we word that the statements are manifestations of errors of judgment, deliberate misrepresentation and an absence of contextual understanding of due processes. We clearly discern apparent confusion with points pertaining to the eras of former Presidents Goodluck Jonathan and Muhammadu Buhari on the Coastal Rail, which was misrepresented as these of the Coastal Freeway. There clearly has been a transparent indication of not being attentive to particulars of the undertaking as presently conceived.
Be that as it might, as a result of we subscribe to the totality of the social and financial essence of the Coastal Highway and Rail tasks, and want to interrogate any type of obscuration by any of the events concerned within the public spat because it had turned out, with intent at resolving the contentious points being bandied about, we determined to evaluate actual points and sentiments across the undertaking that’s being controverted by Waziri Abubakar.
Beginning with the statements issued within the identify of Waziri Abubakar Atiku, we distilled his expressed resentments into three broad spectra. First is that the award of the contract for the development of the Coastal Highway didn’t undergo the required public procurement processes as outlined within the Public Procurement Act 2007 and, his insistence to the impact that the essence of a aggressive bidding will make sure that Nigerians can get the most effective worth for cash.
In response to the Waziri: “It’s so as to examine costs and choose the corporate that may afford …the undertaking.” The Waziri has a degree right here. However apparently, due to an absence of consideration to particulars, he ignored the implication of the preamble to Half IV of the Act in Part 16 (1) which asserts that: “Topic to any exemption allowed by this Act, all public procurement shall be performed by open aggressive bidding; in a fashion which is clear, well timed, equitable for guaranteeing accountability and conformity with the Act and regulation deriving there from.” Waziri Abubakar decidedly ignored the implication of Part 16 (1) and determinedly made Part 16 (c) and (d) the substance of his argument to attain his level. Undeniably, the Act offers for 2 broad exemptions, one as acknowledged in Part 40 (1a) which notes that: “Topic to the approval by the Bureau, a procuring entity might for causes of financial system and effectivity have interaction in procurement by way of restricted tendering if: The products, works or providers can be found solely from a restricted variety of suppliers or contractors.
The Federal Ministry of Work, which is the procuring entity, relied on this sub part to award the contract to Hitech Development Firm, Nigeria. His consideration will need to have been ultimately directed to Part 40 (2a), which states that: “The place a procurement entity engages in restricted tendering on the idea that the products, works and providers can be found solely from a restricted variety of suppliers of contractors, it shall invite tender from all of the suppliers and contractors who can present the products, works, or service. If there was just one succesful contractor to ship on the work.”
In averting his thoughts to it in a subsequent press launch he issued in response to the Minister of Works reference to the part, he would, reasonably, the bid was opened to firms exterior the nation as he insists that: “It’s incorrect for him (Minister of Works) to have concluded that solely Hitech may deal with this undertaking when such a undertaking has been carried out by different respected corporations in america, China and South Africa.” To this extent, Waziri Abubakar didn’t additionally reckon with Part 34 (1) of the identical Act which concludes that: “A procuring entity might grant a margin of desire within the analysis of tender, when evaluating tenders from home bidders with these from international bidders or when evaluating tenders from home suppliers providing items manufactured domestically with these providing items manufactured overseas.”
This must be taken along with Part 34 (2) which asserts that: “The place a procuring entity intends to permit home preferences, the biding paperwork shall clearly point out any desire to be granted to home suppliers and contractors and the data required to determine the eligibility of a bid for such desire.” The implication of this subsection, speaks, ab-initio, to the Federal Authorities’s desire for awarding contracts to certified home firms.
Although Waziri Abubakar had raged in his press statements that the one motive Hitech received the job was due to its proprietor, Gilbert Chagoury’s relationship with President Bola Ahmed Tinubu, this, in our consideration, is reasonably pedestrian. Our checks present that Chagoury, who’s a Nigerian by delivery, has pals in very excessive locations together with Waziri Abubakar himself who was one in all his visitors on seventh of July, 2007, when he had a marriage organized in Monaco.
The Chagoury wedding ceremony attracted former army Heads of State, Generals Ibrahim Babangida and Abubakar Abdulsalami, head of the interim authorities, and late Chief Ernest Shonekan
Additionally in attendance had been the then former Lagos governor, Bola Tinubu, and former Vice President Atiku Abubakar himself, who reportedly flew in from Dubai. Former Governor of Delta State James Ibori was additionally in attendance.
With this array of pals, if the rule is to not award Federal Authorities contracts to a person due to his hyperlink to individuals of affect, it can translate to Chagoury going hungry due to the character of his coterie of pals.
We don’t assume the Public Procurement Act harbours such intention.
To ascertain Hitech’s match into the capabilities to ship on the coastal street contract, we made each discreet and open enquiries on the corporate’s credentials and contracts portfolio and information. We will assert, primarily based on proof garnered, that Hitech might cross as the one Nigerian firm in a position to assemble the coastal street as conceived. The one different firm which will declare close to capability is the development behemoth, Julius Berger Plc. However over time, Hitech has proven a specialization in shoreline and coastal roads development than Julius Berger. A typical reference on this regard was the Bar Seashore shoreline contract awarded to the 2 firms at totally different instances and the way they carried out therein.
In June 2003, approval was given by President Olusegun Obasanjo for a everlasting answer to the menace of the Atlantic Ocean, which threatened at the moment to engulf main elements of Victoria Island, Lagos. Funds had been launched to Julius Berger and different contractors to place in place a everlasting construction to cease the ocean’s advance, which had ebbed main parts of the Ahmadu Bello Manner. Three years later, by April 2006, the analysis of the work carried out by Julius Berger confirmed that nothing had modified at Bar Seashore. Analysts, at the moment, submitted that: “Until the continuing restoration of the shore line of the depleted Bar Seashore in Victoria Island, Lagos is rapidly accomplished, the chance of stopping what could also be one other Tsunami catastrophe, akin to the one which occurred in Asia in a not too way back, may be very slim.”
As well as, the analysts averred that already, the ocean had claimed one lane of the ever busy Ahmadu Bello Manner, forcing motorists from either side to make do with the only lane, which was additionally not spared of threats by the ocean.
In 2009, the contract for the Bar Seashore seashore line administration was awarded to Hitech Development Firm. Development consultants have since submitted that handing over the undertaking to Hitech turned a strategic transfer for Nigeria as a result of not solely did the corporate stopped the flooding alongside the axis, it additionally reclaimed a variety of land and has turned the world into one other Dubai within the identify of our personal, Atlantic Metropolis. Apart from, Hitech has a robust presence in international locations of the West African area. In Togo, the corporate is chargeable for the rehabilitation of the Nationwide Route NR 14 – from Sokodé to the Benin border, that nation’s 85 kilometres coastal street. In Benin Republic, Hitech is setting up the 12.5 kilometres Cotonou Fisheries Highway Improvement Mission, one other coastal street.
As to the accusation regarding how the Lagos-Calabar Coastal Highway is shrouded in secrecy, our impartial investigation reveals that earlier than the contract was ultimately awarded to Hitech by the Federal Ministry of Works, officers of the corporate met with the Ministry’s administration workforce at varied instances. One in all such conferences was held on twenty fifth September, 2023, when Hitech engineers met with the Minister of Works and engineers within the Ministry to evaluate designs. At one other assembly in October 2023, the development settlement was ratified.
The second situation that Waziri Abubakar had raged about, has to do with the price of the undertaking. The previous Vice President, had variously controverted doable price of setting up what the Minister of Works had insisted is a 10-lane specific street which might begin from Victoria Island close to Eko Atlantic Metropolis and undergo Lekki Coastal Highway, Lekki Free Commerce Zone, Dangote Refinery, after which hyperlink Ogun, Ondo, Delta, Edo states as much as Calabar,Cross Rivers state.
In response to Umahi, the freeway will probably be delivered at a value of N4.329 billion per kilometre of normal gauge bolstered concrete throughout 10 lanes, with a lifespan of between 50 – 100 years. In response to the associated fee as introduced by Umahi, Waziri Abubakar declared that the tentative whole price of N14trillion was the equal of the full finances of all of the 36 states which is about N15.91 trillion and that it was outrageous.
Waziri Abubakar, regardless of his obvious present of shock over the associated fee as introduced by Umahi, is but to supply a doable actual price of the undertaking which he has sensationally described as “freeway to fraud and waste.” However is the costing actually a mirrored image of fraud? Our worldwide comparative evaluation of common street development price per kilometre reveals in any other case.
We’re of the opinion that Waziri Abubakar merely needs to scapegoat the undertaking and ultimately discredit the optimistic public picture accruable to President Tinubu from the implementation of the undertaking.
We word that there isn’t any unified commonplace pricing template for the price of constructing a kilometre of street wherever on this planet. The realities of street constructing have a lot to do with numerous variables: location, terrain, kind of development, variety of lanes, lane width, floor sturdiness, and the variety of bridges, to call a couple of. But, for the aim of engagement, we reviewed some price estimates in another international locations to determine the context of fraud or in any other case that Waziri Abubakar is attempting to throw up. To construct a 2-lane street of 12 metres huge of every lane with no bridges in states of North Japanese United States of America is $3.34m per km (when transformed to Naira utilizing the N1200/$ adopted by Umahi, it involves N4.08bn per km) whereas identical 2-lane street in South Japanese USA with no bridges is $3.78m per km (N4.53bn per km). In response to the Texas Division of Transportation, the common price of constructing a concrete street in rural areas is round $2.5m per mile, whereas in city areas it may price upwards of $5m per mile.
In California, the estimated price of constructing a concrete street ranges from $3m to $6m per mile, relying on location and different elements.
In Australia, common street undertaking prices had been round $5.1m (N6.12bn) per lane kilometre in 2017. However in Bangladesh, based on the World Financial institution, the estimated price of development is $6.6m (N7.92bn) per kilometre for the Rangpur-Hatikumrul freeway, $7m (N8.4bn) per kilometre for Dhaka-Sylhet freeway, $11.9m (N14.28 bn) per kilometre for Dhaka-Mawa freeway. This underscores price differentials in street development due to peculiarities in terrains.
These figures are far increased than the N4.329bn per kilometre of 10 lanes of Coastal Highway with very peculiar terrains that Umahi says Hitech has commenced development of.
For readability, a technical evaluation of the options of the street will suffice: The Lagos-Calabar Coastal Highway is designed to have 10 lanes with a complete pavement of 59.2 metres with 100 metres hall. Of this hall, there will probably be 5 lanes on the correct and 5 lanes on the left. This comes with a 25-metre practice observe. It is usually commendable that the Works Minister prudently diminished the price of the legacy design of the four-lane Lagos-Calabar freeway of the Niger Delta Improvement Fee (NDDC) from N8.52bn/km to N4.329bn/km.
On appropriation, we word that the previous Vice President referenced the N500m captured within the identify of the undertaking within the 2024 finances however finds fault with the approval of N1.06 trn by the Federal Govt Council (FEC) for the take-off of the undertaking. Once more, we consider that Waziri Abubakar intentionally selected to disregard the conference of anticipatory approval by which FEC can enhance funds allotted to a budgetary merchandise for exigency objective with intent at submitting identical to the legislative arm for consideration and approval.
Our basic submission is that Waziri Abubakar’s vaunted interrogation of the award technique of the Coastal Highway to Hitech Development Firm lacks substance and rational logic. It smacks of public exhibitionism to showcase his private various actuality.
We commend President Tinubu and his Works Minister for his or her prudence in lowering the associated fee outlay for the development of the Coastal Highway. We’re additionally impressed with the velocity and tempo of development for the reason that Federal Authorities awarded the contract to Hitech Development Firm Restricted, which has up to now accomplished 1.3 kilometres of the required filling.
Signed:
Chief Niyi Akinsiju Cifian
Chairman
Impartial Media and Coverage Initiative
seventeenth April, 2024