NIGERIAN HOUSE SPEAKER EMBROILED IN SPENDING

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001932

SIPDIS

SIPDIS

DOE FOR CAROLYN GAY

E.O. 12958: DECL: 09/05/2017
TAGS: PGOV KDEM KCOR NI
SUBJECT: NIGERIAN HOUSE SPEAKER EMBROILED IN SPENDING
SCANDAL

REF: ABUJA 1281

Classified By: Charge d'Affairs Robert Gribbin for reasons 1.4. (b & d)
.


1. (C) Summary: Patricia Etteh, the new Speaker of Nigeria's
House of Representatives, has been implicated in a scandal
involving unauthorized contracts allegedly totaling about USD
5 million to renovate her official residence and purchase
several luxury cars. Etteh, who was elected Speaker largely
at the behest of outgoing President Obasanjo (reftel),has
come under attack, not only from opposition parties, but from
senior House Members from her own party, the ruling PDP.
These Members have made clear they object to both the
extravagance of these contracts, and to what they see as her
organizing the House in a way which pays too little regard to
what they believe is their proper role and too much attention
to Obasanjo's interests. End Summary.

A FIVE MILLION DOLLAR "RENOVATION"
--------------

2. (SBU) In mid-July, apparently in consultation with only a
handful of close allies and senior House staff, newly elected
House of Representatives Speaker Patricia Etteh reportedly
approved contracts for 628 million Naira (approx. USD 5
Million) to renovate her official residence and purchase a
fleet of luxury cars, including two Mercedes which alone
totaled 50 million Naira (approx. USD 400, 000).


3. (SBU) When word of the contracts leaked out in late August
while Etteh was on vacation in the US, they elicited a storm
of protest at their sheer extravagance. Press commentators
pointed out that the residence had been renovated as recently
as 2003, and argued that a new luxury residence could be
built for less than was being spent to renovate this one.


4. (SBU) The Chairman of the ruling People's Democratic Party
(PDP) tried to defend Etteh, claiming she had done nothing
wrong and that the party was "one thousand percent" behind
her. He also claimed that the amount actually contracted to
renovate the residence was "only" about USD 2 million. Media
critics argued, however, that this lower number was reached
by subtracting parts of the contract such as those covering
renovation of the grounds and numerous outbuildings, and the
purchase of the vehicles. Attempts to rebrand the
renovations as "upgrades" were also dismissed.

UNHAPPINESS WITHIN THE PDP
--------------

5. (SBU) While opposition House Members were quick to echo
this criticism, senior Members of Etteh,s own party soon
took the lead in attacking her. Farouk Lawan, Chairman of
the Education Committee, and Halims Agoda, Chairman of the
Air Force Committee, both called for a full inquiry into the
awarding of the contracts. Lawan later formed a caucus (whom
he dubbed the "Integrity Group") which he claimed included
over 100 PDP House Members to push for an independent
investigation.


6. (C) In an August 31 conversation with PolCouns, Lawan
strongly attacked Etteh, charging that no such funds had ever
been appropriated, or even proposed for appropriation,
anywhere in the budget (FYI: Lawan was until June the
Chairman of the Appropriations Committee. End FYI),and that
the normal tendering process had been completely ignored. In
any case, he added, the expenditure was an "unseemly
extravagance" in a country where the large majority of people
lived on less than one dollar a day.


7. (C) When pressed, Lawan acknowledged that some PDP House
Members may have joined in the attacks on Etteh because they
believed she had treated them unfairly in the allocation of
House Chairmanships and other positions (Comment: We believe
Lawan himself is aggrieved at the loss of the powerful
Appropriations Chair. End comment). He described Etteh as a
"lightweight" who had been virtually imposed on the House by
outgoing President Obasanjo, to whom she was known to be very
close.


8. (C) PolCouns noted that it was Lawan himself who had
nominated Etteh for the Speakership. Lawan described his
action as a bid to restore PDP unity after last year's

ABUJA 00001932 002 OF 002


struggles over Obasanjo's bid for a third term (which Lawan
opposed). He had expected her to respond to this gesture by
acting in consultation with other senior House Members.
Instead, he argued, she had acted as if Obasanjo was still
calling the shots.


9. (C) Lawan said Etteh's position was greatly weakened by
President Yar'Adua's decision not to intervene on her behalf.
Lawan claimed Yar'Adua considered the contracts extravagant
and embarrassing, and had been particularly displeased by the
50 million Naira Mercedes cars. The President had declared
publicly that he expected the House to resolve the matter on
its own in accordance with its established procedures. Lawan
contrasted this with the behavior of former President
Obasanjo, whom he alleged would regularly and aggressively
lobby House Members, using threats and bribes if necessary,
to get his way. Yar'Adua was simply not doing that, and
Etteh was proving inadept at defending herself.


10. (C) Lawan concluded that, if Etteh wanted to hold onto
the Speakership, she would need to "show contrition" both by
canceling these contracts and by making clear she would in
the future run the house more in consultation with her senior
colleagues. (Comment: Lawan was clearly referring to
himself, along with a few others. End comment). She would
also have to avoid the appearance of being Obasanjo's agent,
he said.


11. (U) The House of Representatives reconvened September 4
after its Summer recess, but Etteh called almost immediately
for a one-day adjournment to mark the death of a former
Senate President, which occurred during the recess. Etteh's
supporters were able to prevail in the adjournment vote,
which some observers viewed as the first test of strength
between her and those calling for her ouster. Her critics,
however, plan to demand a formal inquiry at the next session
of the House.

Comment
--------------

12. (C) Etteh and her supporters will likely try to spin out
any inquiry as long as possible and deny her personal
responsibility for the renovation contracts. In our view,
however, the key question is not whether she holds onto the
Speakership, but whether the National Assembly comes to
function differently than it did under Obasanjo. The former
President persuaded, browbeat and sometimes bribed Senators
and House Members to do as he wanted, usually with success.
Indeed, the failure of his push to be allowed a third term
was his only significant failure in this regard, and he
punished many of those who opposed him by driving them out of
the PDP and office. If President Yar'Adua continues to
follow a more light-handed approach to the National Assembly,
as he seems to be doing here, it may become a more important
branch of the Nigerian Government than it has been
heretofore. We will watch closely. End comment.
GRIBBIN