SHELL the international oil gaint, is planing a purge of executives in Nigeria following the discovery of a 'black hole of corruption" involving the payment of millions of dollars in bribes and kick backs to tribal chiefs community and the military in the troubled Ogoni region.
An Insight investigation by uncovered serious allegations of corruption against Shell claim including the claim that a senior army officer, accused of ordering the murder and torture of Ogoni dissidents, was on Shell's payroll.
Shell, the largest foreign oil company in Nigeria has repeatedly denied any involvement in its politics The company was heavily criticised for Its role in the country after the execution last month of Ken Saro Wiwa and eight other prominent Ogoni activists.
But documents from Shell the military and government source obtained by The Sunday Times indicated aa close relationship between local br anches of the otl comp any and General Sani Abacha 's brutal military regime.
The most damaging claim is that Shell officials paid Lieutenant Colonel Paul Okuntimo, who was responsible for crushing civil unrest in Ogoniland and opposition to Shell's presence. Okuntimo is accused of waging s campaign of murder, rape and torture throughout Ogoniland. In a memo memo to the administrator of Rivers State Okuntimo urged "wasting sting operations coupled with psychological tactics of displacement against Ogonis. He advised "Shell operations still impossible unless ruthless military operations are undertaken for smooth economic activities to commence".
Interviewed by The Sunday Times in Nigeria last week, Okuntimo initially admitted being paid by in while he was in ch arge of crushing Ogoni protests against the company "Shell contributed to the logistics through fin ancial support To do that, web needed resources and Shell provided these," he added. He later denied the comments
The evidence against him is supported by conversation between Okuntimo and Nick Ashton-Jones a british environmentalist and Oronto Douglas a Nigerian journalist, in June last year. Ashton-Jones who had worked for Shell in eastern Nigeria said the colonel, then a major, felt badly let down by Shell.
Ashton-Jones recalled "he said he was doing a wonderful job for the government and he was disappointed tha t Shell had stopped pa ying him He sa id that everything he was doing was for Shell " Douglas published his account of the meeting three days later corroborating Ashton-Jones views.
Ledum Mittee, the lawyer who stood trial with Saro-Wiwa and was the only defendant acquitted, built up a close relationship with Okuntimo during his detention. Mittee said "He admitted he was being paid by Shell. He said he was angry with Shell because they were no longer pa ying as much for the upkeep of his boys. He felt they were not grateful enough " Mittee explained that Shell provided vehicles for military operations and rewarded Okuntimo personally.
Brian Anderson, managing director of Shell Nigeria, who has pledged to clean up the company's opera tions said of Okuntimo: "From what I hear of his recent past he is a fairly brutal person. I'd like to know if we were involved with somebody like that so we could stamp it out "
A Shell report on its Nigreian operations, written by independent auditors, highlight the role played by Steve Lawson-Jack, head of Shell's public and governmental affairs in the eastern region and the man cited by Mittee and as the link with Okuntimo.
Lawson-Jack , who has been on leave for six weeks,is held "culpable" by the auditors for his part in arranging N1m (œS0,0001 compensation claim against the company for a bogus oil spill. Yesterday he denied any wrongdoing "I have no personal links with Okuntimo but my job sometimes involves meeting government personnel," he added.
Anderson said he was considering Lawson-Jack's future. He said 20 Shell employees could be dismissed as a result of internal investigations."It's Iike a black hole of corruption, acting that like gravitythat is pulling us down all the time " A European Shell executive who wanted to remain anonymous sa id "I would go so far as to say that we spent more money on bribes and corruption than on on community development protects."
The picture that emerges from the Insight investigation b of a company that let whole sections of its operations rampant. While Shell International cites a figure of £125rn a year spent on community its by its Nigerian subsidiary much of this money ended up in the pockets of Shell officials, community leaders and military officers.
The role of Lawsonjack and his department is increasingly under scrutiny "Shell, through Steve Lawson-Jack gave me every opportunity to become a small millionaire said Saturday Kpakol,an Ogoni community leader. Kpakol detailed how in 1990, as an unemployed teacher, he set up a pressure group called Council for Concerned Indigents in order to try to cut a deal with Shell.
"We had a series of meetings with Lawson-Jack detailing demands such asproviding water to our village, equipping our health centre and providing us withscholarships. Then in 1992 we joined up ~with Mos op {the movement for the Survival of Ogoni People} and stopped some Shell operations" he said "Lawson-Jack called me to come and gave me a contract form, saying why don't you forget about these protests and join us. He offeredto give me a contractfor N1Million to install waterpipes outside the village. He said it would only cost N500,000 and we could split the difference"
Anderson insisted that Shell had not sought military or police protection for its workers since 1990.
But Precious Omuku, head of public relations for Shell in eastern Nigeria, admitted the company had called for military protection in Ogoniland in 1993 and approved a request from one of the company'scontractors to seek the protection of Okuntimo's men for workers laying a pipeline.
A memo from J. Udofia, then Shell general manager east, to the state governor, makes a request for 'the usual assistanc' in restoring order. Omuku admits that in Ogoniland this inevitably led to the involvement of the military.
A spokesman for Shell in London said:"Shell Nigeria has not authorised any financialsupport to the military. If there is any evidence that it has happened, we will look at it" Insight:Frank Kane, Steven Haynes, and in Nigeria, Christina Lamb