WHO SAYS AMERICANS DO NOT KNOW ABOUT GOVERNMENT-COLLUDED SMUGGLING BUSINESS IN NIGERIA 

Reference ID Created Released Classification Origin
08ABUJA320 2008-02-21 06:06 2010-12-08 21:09 SECRET//NOFORN Embassy Abuja
S E C R E T SECTION 01 OF 02 ABUJA 000320

SIPDIS

NOFORN
SIPDIS

STATE FOR INR/AA, INR/B

E.O. 12958: DECL: 02/18/2033
TAGS: PGOV PINR KCOR NI
SUBJECT: (S/NF) NIGERIA: KANO BUSINESSMAN ALLEGES YAR'ADUA
CORRUPTION

REF: 07 ABUJA 2627

Classified By: Political Counselor Walter Pflaumer for Reasons 1.4 (b,
c, & d).

¶1. (S//NF) SUMMARY: XXXXXXXXXXXX alleged a close
association between President Yar,Adua and Katsina native
and rumored smuggler Dahiru Mangal. XXXXXXXXXXXX claimed Mangal
is the President's "Mr. Fix It," taking care of "anything
filthy" Yar'Adua needs done in addition to smuggling items
for several wealthy Nigerian businessmen through Niger into
Kano. Another Kano business contact corroborated XXXXXXXXXXXX 's
allegations, but observed that Mangal no longer deals openly
in illicit activity since Yar'Adua named him a special
advisor earlier this month. As well, XXXXXXXXXXXX maintained that
he had been approached by a man claiming to represent First
Lady Turai Yar'Adua and seeking an USD 2 million pay-off.
While Post cannot independently authenticate these
allegations of corruption by the President or First Lady,
Post has heard rumors of an emergent "Katsina clique" in the
Presidential Villa. END SUMMARY.

¶2. (S//NF) Kano real estate entrepreneur and longtime Mission
contact XXXXXXXXXXXX told PolOff February
10 that Katsina native Dahiru Mangal, who XXXXXXXXXXXX contends
deals in illicit smuggling of goods into Nigeria, is also
known as President Yar'Adua's "Mr. Fix It." XXXXXXXXXXXX alleged
a close association between the President and Mangal, dating
to the former's tenure as governor of Katsina, and claimed
the latter remains to this day Yar'Adua's "go-to man" to
accomplish "anything filthy that Yar'Adua needs done."
Mangal, XXXXXXXXXXXX said, is also the "go-to" for any wealthy
Nigerian, who wants to import "just about anything" into
Nigeria. He declined to state whether Mangal smuggled
weapons, drugs, or persons into Nigeria. (On February 17,
PolOff queried another Kano business contact, who
corroborated XXXXXXXXXXXX 's accusations, however claimed Mangal no
longer goes by "Mr. Fix It" since Yar'Adua officially named
him a special advisor earlier this month. Allegedly,
Yar'Adua instructed Mangal to cease any illicit activity if
Mangal wished to enjoy official recognition by the President.
The contact implied this may connote, inter alia, that
Yar'Adua desires to maintain at least the appearance of
respect for rule of law, and thus, does not want any of his
close advisors openly involved in suspect activity.)

¶3. (S//NF) XXXXXXXXXXXX told PolOff XXXXXXXXXXXX
several Nigerian businessmen who have employed Mangal's
services over the past several years. Reportedly, Mangal owns a warehouse across
the Niger border (likely close to the Katsina border with
Jibiyya and Maradi) in which he stores hundreds of 40-foot
shipping containers. XXXXXXXXXXXX claimed Mangal is able to
import goods from around the world, including China. In
return, Mangal requests a flat fee of 2 million naira (USD
17,000), excluding the cost of goods. Approximately 100
containers per month are brought into Kano, and goods are
then delivered to clients or sold in Kano's Kurmi market.

¶4. (S//NF) Mangal also operates several legitimate
businesses, XXXXXXXXXXXX asserted, including Mangal Airlines. The
National Hajj Commission of Nigeria contracted Kabo,
Bellview, Meridian, and Mangal Airlines for the December 2007
hajj operations, which transported approximately 100,000
Nigerians to Saudi Arabia for the annual pilgrimage. (Note:
Many Nigerian Muslims have criticized the GON's handling of
the 2007 hajj claiming several thousand Nigerians were left
stranded in Saudi Arabia and could not return to Nigeria,
except without extraordinary hardship, and several others
were never airlifted from Nigeria at all. End Note.)

¶5. (S//NF) Moreover, XXXXXXXXXXXX said XXXXXXXXXXXX
XXXXXXXXXXXX had been approached recently by a man claiming to speak on
behalf of First Lady Turai Yar'Adua. The person, who arrived
at the meeting with XXXXXXXXXXXX in a Peugeot with a
"presidential" license plate, told XXXXXXXXXXXX the First Lady
would "allow" them to construct the homes so long as she is
given an advance payment of 250 million naira (USD 2
million). XXXXXXXXXXXX said he was willing to offer the First

ABUJA 00000320 002 OF 002


Lady twenty plots of land instead, to which the presumed
emissary grimaced. The negotiations, XXXXXXXXXXXX told PolOff,
continue.

¶6. (C//NF) NOTE: During a late January conversation with
PolOff, XXXXXXXXXXXXX said XXXXXXXXXXXXX
purchased an USD 10 million house in central London
approximately 7 years ago, XXXXXXXXXXXXX.
This house apparently was excluded from President
Yar,Adua,s public declaration of assets in June 2007, which
put his total wealth at approximately USD 7 million. END
NOTE.

¶7. (S//NF) COMMENT: While XXXXXXXXXXXX is a trusted, longtime
Mission contact who has provided veracious information in the
past, we cannot independently confirm his statements
regarding Mangal or the First Lady. Certainly, the man who
approached XXXXXXXXXXXXX seeking a pay-off may simply have been
attempting to exploit the First Lady's name for personal
enrichment. We have heard rumors of the emergence of a
"Katsina clique" in the Villa -- a group of individuals from
the President's home state of Katsina who reportedly
constitute Yar'Adua's inner circle and increasingly, control
access to him. The surfacing of this group may be a
corrollary to Yar'Adua's lack of national exposure (and
hence, his deficiently broad support base) and his inability
thus far to stamp his authority on the ruling People's
Democratic Party. Rumors abound alleging that the First
Lady, Special Advisor Tanimu Yakubu, and Minister of
Agriculture Sayyadi Ruma are involved in corrupt practices.
Reports of both the First Lady and Yakubu's taste for the
high life and tendencies toward illicit enrichment surfaced
during a December 2007 debrief by XXXXXXXXXXXXX
outlined problems he saw in the Villa and cases XXXXXXXXXXXXX
was closely watching (Ref A).
Several contacts from XXXXXXXXXXXXX, moreover, maintain that while
the President "appeared incorruptible" during his tenure as
governor, his wife siphoned off millions in public funds for
private use. Post will closely monitor these accusations and
report any new developments. END COMMENT.
SANDERS


Another one: HOW GOVERNMENT GET 'SETTLED' BY MULTINATIONAL DRUG LABORATORY ON DEATH OF INNOCENT CHILDREN IN KANO STATE

Reference ID Created Released Classification Origin
09ABUJA671 2009-04-20 16:04 2010-12-09 21:09 CONFIDENTIAL Embassy Abuja
VZCZCXRO4305
PP RUEHPA
DE RUEHUJA #0671/01 1101600
ZNY CCCCC ZZH
P 201600Z APR 09
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 5783
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 1156
RUEHZK/ECOWAS COLLECTIVE
RUEHGB/AMEMBASSY BAGHDAD 0205
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
Monday, 20 April 2009, 16:00
C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 000671
SIPDIS
DEPT PASS TO USTR-AGAMA
DEPT PASS USAID AFR/SD FOR CURTIS AND ATWOOD
BAGHDAD FOR DUNDAS MCCULLOUGH
TREASURY FOR PETERS, IERONIMO AND HALL
DOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/CREED
EO 12958 DECL: 04/20/2034
TAGS ECON, EINV, EAID, ETRD, PGOV, NI
SUBJECT: NIGERIA: PFIZER REACHES PRELIMINARY AGREEMENT FOR
A $75 MILLION SETTLEMENT
Classified By: Economic Counselor Robert Tansey for reasons 1.4(B&)
¶1. (C) Summary. In an April 2 meeting with the Ambassador, Pfizer lawyers Joe Petrosinelli and Atiba Adams reported that Pfizer and the Kano State government had reached a preliminary settlement on lawsuits arising from medical tests conducted with Trovan (oral antibiotic) on children living in Kano during a meningitis epidemic in 1996. Petrosinelli said Pfizer has agreed to the Kano State Attorney General’s (AG) settlement offer of $75 million, including a $10 million payment for legal fees, $30 million to the Kano State government, and $35 million for the participants and families. According to Adams, several final details need to be worked out on the mechanism for payment. Pfizer strongly recommends setting up a $35 million trust fund for the participants to be administered by a neutral third party and for the $30 million for the Kano State government to be used for improving health care in the state. Pfizer underscored that the Nigerian representatives wanted lump sum checks and that Pfizer is concerned with potential transparency issues. The next step is a meeting between high-level Pfizer officials and Nigerian side at a neutral location to work out the final details. End Summary.
¶2. (SBU) On April 2 Pfizer lawyers Joe Petrosinelli and Atiba Adams and Pfizer Nigeria Country Director Enrico Liggeri met with the Ambassador and EconDep to discuss the status of settlement negotiations. Four lawsuits were brought against Pfizer stemming from medical tests with the oral antibiotic Trovan conducted on children living in Kano during a meningitis epidemic in 1996. In Kano State Court there is one civil suit and one criminal case and in the Federal High Court there is one civil suit and one criminal case. Since 2006, Petrosinelli and Adams have been briefing the Mission on the status of the cases.
Settlement Reached
------------------
¶3. (C) Petrosinelli reported that Pfizer had tentatively reached “an agreement in principle” on the Kano AG’s settlement offer of $75 million. Adams explained that the parties agreed that the $75 million would be broken down as follows - a $10 million payment for legal fees; $30 million to the Kano State government; and $35 million to participants and families. Petrosinelli noted, that Pfizer has worked closely with former Nigerian Head of State Yakubu Gowon and that he has played a positive mediation role with Kano State and the federal government. Petrosinelli said Gowon also spoke with Kano State Governor Mallam Ibrahim Shekarau, who directed the Kano AG to reduce the settlement demand from $150 million to $75 million. Adams reported that Gowon met with President Yar’Adua and convinced him to drop the two federal high court cases against Pfizer. (Comment: In 1966 Gowon became the head of state following a military coup that deposed Major General Johnson Aguiyi-Ironsi who had come to power via an earlier military coup. He was head of state from 1966 to 1975. He now plays an elder statesman role in Nigerian politics. End Comment.)
More Discussions Needed
-----------------------
¶4. (C) According to Adams, details need to be worked out on the mechanism for payments to the Kano State government and participants because Pfizer is unwilling to give a lump sum payment. Pfizer is concerned with transparency issues and is pushing for a $35 million trust fund for the participants to be administered by a neutral third party and the remaining $30 million to be used for improving health care in Kano state. Pfizer underscored that the Nigerian representatives were pushing for lump sum checks and Pfizer will not agree to that. Pfizer is considering rebuilding Kano’s Infectious Disease Hospital where the trial was conducted and working with health care nongovernmental organizations. Adams suggested that the trust fund for participants be administered by a neutral third party because he expects “additional” participants to come forward after they hear about the settlement. The Ambassador suggested Pfizer work with NGOs already working in Kano State and for Pfizer to consider working with local NGO implementing partners that the USG has used because of their transparency record.
ABUJA 00000671 002 OF 002
EconDep provided Pfizer a copy of the U.S.-Nigeria Framework for Partnership document as a guide for existing projects and partners in Kano. Petrosinelli explained that the next step was a meeting at a neutral location between high-level Pfizer officials and the Nigerian side to work out final details and conclude the settlement.
Pfizer Exposes Attorney General
-------------------------------
¶5. (C) In follow up to the April 2 meeting, EconDep met with Pfizer Country Manager Enrico Liggeri in Lagos on April 9. (Note: Liggeri has years of experience in Nigeria because his family operated a business in Lagos from the early 1960s to the late 1980s. He spent most of his childhood in Lagos. End Note.) Liggeri said Pfizer was not happy settling the case, but had come to the conclusion that the $75 million figure was reasonable because the suits had been ongoing for many years costing Pfizer more than $15 million a year in legal and investigative fees. According to Liggeri, Pfizer had hired investigators to uncover corruption links to Federal Attorney General Michael Aondoakaa to expose him and put pressure on him to drop the federal cases. He said Pfizer’s investigators were passing this information to local media, XXXXXXXXXXXX. A series of damaging articles detailing Aondoakaa’s “alleged” corruption ties were published in February and March. Liggeri contended that Pfizer had much more damaging information on Aondoakaa and that Aondoakaa’s cronies were pressuring him to drop the suit for fear of further negative articles.
¶6. (C) Liggeri commented that the lawsuits were wholly political in nature because the NGO Doctors Without Borders administered Trovan to other children during the 1996 meningitis epidemic and the Nigerian government has taken no action. He underscored that the suit has had a “chilling effect” on international pharmaceutical companies because companies are no longer willing to conduct clinical testing in Nigeria. Liggeri opined that when another outbreak occurs no company will come to Nigeria’s aid.
¶7. (C) Comment: Pfizer’s image in Nigeria has been damaged due to this ongoing case. Pfizer’s management considers Nigeria a major growth market for its products and having this case behind it will help in efforts to rebuild its image here. Final discussions on the $30 million and $35 million are likely to be tricky because the Nigerian side wants to control who gets the money, not Pfizer. The U.S. Mission will continue to advocate for transparency in settling the case and also note to GON authorities that Pfizer must abide by the U.S. Foreign Corrupt Practices Act and cannot simple hand over large sums of money to state and local officials. Petrosinelli and Adams will get back to the Mission on what further assistance may be needed. End Comment.
¶8. (U) This cable was coordinated with ConGen Lagos. SANDERS

@poster, Are u new on this forum This is old gist. Check very well b4 posting.

I have seen some different documents!