[size=14pt]ON WATCH: JTF oil theft complicity[/size]
By Stephen Davis

[img]http://234next.com/csp/cms/sites/dt.common.streams.StreamServer.cls?CONTENTTYPE=image/jpeg&STREAMOID=tgB1fRVuCAU68ct2hRpPiy6SYeqqxXXqBcOgKOfTXxTk8Am8FrjQIqedG7k3qmT2nW_PgxgftuECOcfJwS6Jtlp$r8Fy$6AAZ9zyPuHJ25T7a9GKDSxsGxtpmxP0VAUyHL6IDcZHtmM2t7xO$FHdJG95dFi6y2Uma3vSsvPpVyo-[/img]

February 19, 2011 10:32PMT

There has been much indignation expressed over a Dutch parliamentarian’s accusations of JTF complicity in oil theft.

No doubt I will be accused of slurring the JTF by merely discussing the issue in this column. But let’s slow down and look at the situation that we face. While the specific instances of JTF involvement in bunkering alluded to by the Dutch parliamentarian are not clear there is no denying 14 Naval personnel are among those persons currently being investigated over theft of equipment worth millions of naira from vessels allegedly involved in illegal oil bunkering. These 14 were whittled down from an original group of 60 naval personal initial suspected of involvement.

This is not a new situation. In recent years some vessels arrested for illegal oil bunkering have simply disappeared while under Navy charge. Two Admirals have been court marshalled. There have been periods when Nigeria’s naval forces showed little interest in pursuing vessels transporting stolen oil either inshore or offshore. Barges ferried stolen oil from wellheads to waiting tankers with seeming impunity.

[b]The Army has also been the subject of allegations of corruption. Brigadier General Elias Zamani, head of the JTF in the Niger Delta was removed from his post in March 2006 on suspicion of involvement in the theft of crude oil. The removal of General Zamani was seen as a vindication for militants who accused Zamani, among other top military officers, of being behind the trade in stolen oil. Zamani was removed because of evidence of his involvement in bunkering. Some of Zamani’s soldiers were also indicted because he didn’t act alone. It was also alleged at that time that Zamani, as Joint Task Force Commander for Operation Restore Hope, was also involved in charging oil companies a ‘stipend’ for protecting oil company facilities. This included fuel, stores and estimated N40million per month in cash from international oil companies – there was no audit of this stipend or the Defence funding allocation to the JTF.

This week the Joint Task Force is again the subject of accusations of complicity in oil theft and violence in the Niger Delta region.[/b]

The JTF dismissed the claims of the Dutch parliamentarian, Sharon Gesthuizen, “as misplaced and malicious.” The JTF spokesman went further saying its “personnel are not involved in any act of illegality, be it stealing of oil as was alleged or any other activity which is not in consonance with its mandate in the Niger Delta.” Corruption and collusion with criminals in the national and state security forces renders law enforcement largely ineffective in dealing with issues such as illegal oil bunkering and theft. In the judiciary political interference and bribery reduces people’s confidence in the courts and legal system. Corruption at these levels undermines the rule of law and fosters a climate where the use of illegal arms will increase and conflict will continue to be blight the local population many of whom are poverty stricken and barely able to feed their children in the midst of an abundance of oil wealth.

In an area such as oil production, which is so very lucrative, it would be foolish to believe there is no corruption. In August 2007 the president of the Corporate Council on Africa, said Nigeria was losing $14 billion a year to illegal oil bunkering. Make no mistake, this is big business and very profitable.

There is no doubt the JTF has been conducting an outstanding campaign against oil theft. In July 2008 the Joint Task Force destroyed 111 small scale illegal refineries, each with an estimated N1million construction cost. The JTF estimated there were a further 300 such illegal refineries in Delta and Bayelsa States with 200 barges alleged to be involved in the illegal oil business in the creeks of the Niger Delta.

More recently the JTF has managed to contain further outbreaks of conflict and constrain the illegal bunkering cartels. The NSA, General Azazi, has made it clear he has zero tolerance for corruption but it will take time to substantially reform the military. Meanwhile it would be foolish to believe that Nigeria’s military forces are free of corruption when it comes to illegal bunkering.

Hitting out at a Dutch parliamentarian who has raised the issue does little to assist the situation. Maybe the Dutch, having raised the issue, could be persuaded to assist in developing and partnering with Nigeria in delivering a solution. For example, where there is large scale illegal bunkering the oil must go to refineries for processing. Would the Dutch support Nigeria in an international campaign to stop overseas refineries processing illegally bunkered oil from Nigeria? This would likely mean introducing electronic bills of lading to replace the current paper bills of lading that can be easily forged. It could also mean certifying refineries to process “legal oil”. Such a campaign would be a major disincentive for illegal bunkerers and could lead to savings of billions of dollars for Nigeria.

Neither Dutch accusations nor Nigerian denials are particularly helpful. It is time for constructive solutions from partners willing to improve the situation.



http://234next.com/csp/cms/sites/Next/Opinion/5678684-182/story.csp