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Govt blacklists U.S. oil firm, Halliburton
From Martins Oloja, and Madu Onuorah (Abuja)

CITING negligent conduct, the Federal Government has blacklisted an oil service company linked to the current United States Vice President Dick Cheney, Halliburton Energy Services Nigeria Limited (HENSL).

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The company is currently facing probe over alleged fraudulent deals in Nigeria and Iraq. The House of Representatives early this month urged the Executive to sanction the oil firm.

It has also been indicted over the loss of two ionizing radioactive materials from Nigeria in 2002 and lack of co-operation with the Federal Government in ensuring the return of the materials to the country.

The Secretary to the Government of the Federation, Chief Ufot Joseph Ekaette, who announced the decision yesterday in a statement in Abuja, said that President Olusegun Obasanjo had approved the ban until further directives on the matter.

The statement was issued to all ministries and heads of 17 other federal agencies, including the Central Bank of Nigeria (CBN), Head of Service, Police Service Commission (PSC), National Assembly, Service Chiefs and the Inspector-General of Police (IGP).

It read: "The Federal Government has decided to place an embargo on the patronage of Halliburton Energy Services Nigeria Limited arising from its negligent conduct, which led to the loss of two ionizing radioactive sources from Nigeria in 2002".

The statement added: "Additionally, the company, among other infractions, has refused to co-operate with government authorities in ensuring the return of the sources to Nigeria and the ultimate resolution of the issue".

The Attorney-General of the Federation, Chief Akin Olujinmi, had on June 15 disclosed in a statement that the government was taking some actions "in respect of two high risk radioactive sources recently missing from Nigeria".

The radioactive materials were imported into the country in 2002 by Halliburton in a deal permissible under the Nuclear Safety and Radiation Protection Act 1995, the Act for companies in the Petroleum industry, which require such radioactive materials for industrial radiography, nuclear well-logging and gauging.

According to the June 2004 account by the Minister of Justice, Halliburton on December 24, 2002 reported the loss of the two materials.

The minister said that as required by the Convention on Early Notification and Assistance, a report of the loss was quickly made to International Atomic Energy Agency (IAEA) whose Emergency Response Team thereafter visited Nigeria from 16 to 20 February 2003.

The IAEA in turn brought the matter to the attention of the international community.

The minister revealed that on March 5, 2003, the Nigerian Nuclear Regulatory Authority (NNRA) formally suspended Halliburton from carrying out any activity in the country involving the use, importation, transport and transfer of radioactive sources until and unless the two sources were recovered.

Olujinmi said that investigations by the government had revealed that the radioactive sources were found to have been smuggled out of Nigeria and intercepted by German authorities at a steel recycling plant in the state of Bavaria, Germany.

Consequently, the Federal Government on October 28, 2003 requested the German authorities to repatriate the radio-active sources to Nigeria after concluding the case in Germany.

The Attorney-General said that the measure was to enable the prosecution in Nigeria of those who might be implicated in the stealing and unlawful exportation of the sources.

Thereafter, an inter-ministerial committee was set up by the government to handle all investigations connected with the radioactive sources, including the prosecution of those found culpable.

The minister disclosed that the panel interrogated and arrested suspects from Kaduna, Lagos and Warri, adding however that all the detainees had been released on bail.

He disclosed that as investigations continued, it had been confirmed that a Nigerian firm, Cabomet International Metal Trade that deals in scrap metals before the September 2003 ban was used in carrying out the illegal deal. Olujinmi said that the company belongs to one Mr. Babatunde Kosegbe who had since fled the country but had been declared wanted by the Police.

The preliminary report showed that the radioactive materials were labelled as "Stainless Steel" and exported by Messrs Richard and Associates to Eldelstahl Recycling GMBH Germany via Antwerp in Belgium.

The committee visited Germany from January 18 to 23, 2004 with a view to seeking the repatriation of the radioactive sources and to monitor the trial proceedings of all the suspects.

While in Germany, the panel was shocked to discover that Halliburton, USA had on January 16, 2004 taken possession of the radioactive materials and exported them to the United States, two days before the Nigerian delegation was billed to arrive in Germany.

The Federal Government, the minister disclosed, had protested to the German government against the abrupt and unilateral discontinuation of the criminal investigation. The government also complained about the improper lifting of the seizure on the materials and their release to Halliburton USA despite the manifest registration of the Nigeria's interest in the matter.

Based on the report of the inter-ministerial committee that visited Germany, President Olusegun Obasanjo constituted a six-man panel in February 2004 with the Attorney-General as chairman to, among others, "identify persons/corporate bodies involved within Nigeria and abroad."

From May 3 to 7, 2004, the Committee received in audience the IAEA International Nuclear Safety Advisory Mission during their visit to Nigeria.

The Justice Minister assured that: "All those who are implicated in the stealing and exportation will be made to face appropriate actions. In addition, Halliburton USA will definitely be brought to justice".

The Senior Special Assistant to the President on Media Affairs, Mrs. Remi Oyo, told State House Correspondents that the government had no option but to sanction the U.S. company given its proclivity for corruption and refusal to co-operate with Nigeria on the matter.

She said: "The Federal government and Halliburton have been on a running battle for several years due to the corrupt tendencies of the company and the various bribery scandals trailing the operations of the American firm in Nigeria."

Oyo said that projects currently being executed by the company would be handled by legal experts, who would ensure that no breaches were recorded.`