Court documents filed by the United
Sstates, US, Department of Justice, in Houston, have revealed that
Nigeria’s former Oil Minister, Diezani Alison-Madueke, tried to warn
Kola Aluko and Jide Omokore, her business partners, against lavish
spending, including splashing millions of dollars on a yacht.
“If you want to hire a yacht, you lease
it for two weeks or whatever. You don’t go and sink funds into it at
this time when Nigerian oil and gas sector is under all kinds of watch”,
she said to Aluko in a recorded conversation.
However, her warning was not heeded, as Aluko went on to buy Galactica Star, a luxury yacht, for $80 million.
The yacht, a stupendous luxury on water,
was once rented by Jay Z and his wife, Beyonce, for close to a million
dollars, during a holiday last year. It also once hosted Beyonce’s 32nd
birthday, in 2013.
Both Aluko and Omokore are alleged to
have paid bribes between 2011 and 2015 to Diezani, who ensured that the
companies owned by the businessmen, received billion-dollar contracts to
sell Nigeria’s crude oil.
The oil swap contracts were a
controversial barter arrangement, which saw Nigeria use middlemen to
sell crude oil in exchange for refined products. With local refineries
under-performing, oil swap deals were used to shore up local demand for
Between 2010 and 2014, under Diezani’s
watch, Nigeria was estimated to have channeled over 352 million barrels
of oil, worth a total of $35 billion into oil swap deals.
Nonetheless, with the contracts mostly
opaque, Nigeria reportedly lost more than $900 million in crude oil swap
deals, between 2009 and 2012.
The deals came under severe scrutiny
with former Central Bank Governor, now Emir Muhammadu Sanusi, describing
them as “not properly structured, monitored, and audited.”
President Muhammadu Buhari cancelled the oil swap arrangement, in November 2015, seven months after taking office.
The US Justice Department, DOJ, lawsuit
has provided more insight into the scale of theft of Nigeria’s oil
riches, under Diezani Alison-Madueke’s watch.
The civil lawsuit, brought by DOJ’s
Kleptocracy Asset Recovery Initiative, is seeking to recover $144
million in assets, including a $50 million luxury condo apartment in New
York, and the $80 million yacht.
Prosecutors say both assets were
proceeds from bribes paid by two Nigerian Businessmen, for lucrative
Nigerian oil contracts. The lawsuit seeks the forfeiture of both assets.
Prosecutors claim that the Businessmen,
Kolawole Aluko and Olajide Omokore, laundered money through the US by
purchasing lavish assets.
The $50 million New York condo is at
One57, located opposite Carnegie Hall in midtown Manhattan. The building
currently holds the record for the most-expensive residential sale in
New York following a $100.5 million apartment purchase in 2014.
Aluko’s $50 million condo is the 8th
most expensive in the building, but following a loan default, his
mortgage lenders are set to auction the apartment on July 19.
Aluko is also said to have purchased
Galactica Star, a $80 million 65-meter yacht, which hosted Beyonce’s
32nd birthday bash in 2013.
Aluko’s yacht and penthouse are not the only items under scrutiny by the DOJ.
The government also alleges that Aluko, Omokore, and others, funded a lavish lifestyle for Alison-Madueke.
According to the allegations, they
conspired to purchase millions of dollars in real estate in and around
London for Alison-Madueke and her family members, then renovated and
furnished these homes with millions of dollars in furniture, artwork,
and other luxury items purchased at two Houston-area furniture stores at
According to Financial Times, the two
are accused of buying a total of four residential properties in and
around London, worth 11.45 million, and furnishing them with furniture,
artwork and other luxury items.
“n one day in May 2012, Mr. Aluko was
said to have wired $461,500 and $262,091 to two furniture stores in
Houston from a Swiss bank account, on behalf of Mrs. Alison-Madueke, the
civic complaint filed in the court claimed.
In return, the government alleges
Alison-Madueke used her influence to direct a subsidiary of the Nigerian
National Petroleum Corporation to award Strategic Alliance Agreements
(SAAs) to two shell companies created by Aluko and Omokore: Atlantic
Energy Drilling Concepts Nigeria Ltd. and Atlantic Energy Brass
Development Ltd. (the Atlantic Companies).
Under the SAAs, the Atlantic Companies
were required to finance the exploration and production operations of
eight on-shore oil and gas blocks. In return for financing these
operations, the companies expected to receive a portion of the oil and
However, according to the complaint, the
Atlantic Companies provided only a fraction of the agreed upon
financing or, in some instances, failed entirely to provide it.
The companies also failed to meet other obligations under the SAAs, including the payment of $120 million entry fee.
Nevertheless, according to the
allegations, the companies were permitted to lift and sell more than
$1.5 billion worth of Nigerian crude oil.
The government contends the Atlantic
Companies then used a series of shell companies and intermediaries to
launder a portion of the total proceeds of these arrangements into and
through the U.S.