Corruption in arms
trade is endemic. But the corruption surrounding the export of Dutch
gunboats to Nigeria is next level. The
Nigerian Premium
Times
published a series of articles on how Nigerian and Israeli
businessmen and high ranking officers enriched themselves by weapon
deals. In an article under the heading 'When generals turn bandits'
one of them called it “a
particular corruption ridden, hyper-inflated gunboats purchase
contract he masterminded.”
The most important
African client was Nigeria. In 2009 TPM received a deal from the
Nigerian armed force for 20 K-38 catamarans. This fast
attack craft can be armed with a 12.7mm
machine gun and according to the website of TPM - as reported
by Stop Wapenhandel in 2010 - even with
Hellfire missiles. The
boats were “ideally
suited
for
rapid response, amphibious deployment of commandos (…) can provide
covert striking power against critical targets.” They
were meant to control the creeks and small rivers of the Niger Delta
region. In answers to Parliamentary questions the
Dutch government bluntly
stated that the boats were important to protect oil platforms of
Shell in the Niger Delta.
Although violent repression of Niger Delta opposition groups was a
well-established fact, according to the government the gunboats could
not be used in human rights violations.
While
providing an arms export license the Dutch
authorities
stated that an end-user declaration was part of the deal and that
there was guarantee by the Nigerian government these ships would not
be resold without the consent of the Netherlands. One wonders if any
eyebrow was raised when the following fraud surfaced, if noticed at
all.
The K-38 story
starts on
October 6, 2008, when Amit Sade, a notorious Israeli contractor and
CEO of Doiyatech Nigeria Ltd., was asked to provide catamarans.
Without bidding the cost was NGN 3.1 billion (€ 19,5 million). Sade
was directly provided with 80
percent of the sum;
almost € 16 million, which was much more than the € 5 million
indicated on the
export license for TMP and
returned with 8 boats. It is unclear if anything was paid to TPM at
that time. TPM worked hard on quickly producing the other 12 boats.
These however were never collected by Sade. In vain TPM contacted the
Nigerian MoD about this. “Neither
the defence minister nor the ministry acted to recover either the
boats or monies paid out to Mr. Sade”
reports Nigeria's Premium
Times.
The
costs of storing 12 boats soon started to dig holes in the finances
of TPM in the Netherlands. Desperately, four years later they brought
them for auction in Amsterdam. Six of them were bought at giveaway
price by defence contractor Rabiu Hassan. He already had met in
London with the owners of TPM, Bjorn Neeven and Roland Kraft. Neeven
and Kraft did not want to sell the six ready boats directly to
Nigeria, because they were already sold to the Nigerian military.
Therefore a construction was set up with a middle company, using a
defunct company of a friend of Hassan, Hypertech UK ltd. Hassan sold
the boats to this company, not for the origional NGN 156 million, but
for NGN 49 million (€ 280.000). From there the boats were sold to
Salihu Atawodi, chairman of the Nigerian Presidential Implementation
Committee on Maritime Safety and Security (PICOMSS). The boats, once
made ready and armoured, were not meant for the Niger Delta this
time but to secure the Gulf of Guinea. Atawodi
flew to the Netherlands,
got a demonstration and “a
sales contract was drafted immediately.”
The costs of the six boats together, included armour, was NGN 620 million, an amount to be inflated with NGN 2.5 billion to be shared among those involved. As PICOMMS did not have access this amount of money, the help of Nigeria's National Security Adviser (NSA) was asked. This was General Andrew Azazi, who had become rich by issuing security contracts to repented warlords in the Niger Delta. Azizi was however was fired mid 2012 and replaced by Sambo Dasuki. Some pressure had to be put on him before he also bowed for the attractive deal.
The costs of the six boats together, included armour, was NGN 620 million, an amount to be inflated with NGN 2.5 billion to be shared among those involved. As PICOMMS did not have access this amount of money, the help of Nigeria's National Security Adviser (NSA) was asked. This was General Andrew Azazi, who had become rich by issuing security contracts to repented warlords in the Niger Delta. Azizi was however was fired mid 2012 and replaced by Sambo Dasuki. Some pressure had to be put on him before he also bowed for the attractive deal.
It
is unclear how much money changed pockets before friction between
Atawodi, Hassan and his friend at Hypertech made the deal starting to
fall apart. But NGN 620 million was credited to the bank account of
of Mr. Hassan and he was also paid NGN 174 million by Mr. Dasuki, who
backed away after this first trance. During an investigation by the
Economic and Financial Crimes Commission it was established none
of the six boats was ever
delivered
to the Nigerian armed forces.In the meantime TPM in the Netherlands
tried to shake of its bankruptcy creditors by stating the money
transfer was delayed because of “a
change in the political situation”
in
Nigeria which the management expected to be solved soon. (TPM
bankruptcy report 7, Hoorn, June 17, 2015) However the money never
came.
The
bankruptcy case of TP Marine – and a newly created company called
Dutch Marine – will come to a close in 2020. For
the Nigerian press the bankruptcy of a small Dutch company is not an
issue. Nigeria has bigger problems to report and TPM is was just one
of many companies attracted by the idea of easy money. That the Dutch
press missed this corruption case however is remarkable. What is left
of TMP is TP Marine
Algeria (with the same logo) still
active in 2018 and also
building the K-38. TPM Algeria was created in
2010 out of a desire to create quality rigid inflatables in Algeria
with the support of TP Marine in the Netherlands.
Written for Stop Wapenhandel
