Identifier
Created
Classification
Origin
07LAGOS183
2007-03-13 14:37:00
CONFIDENTIAL
Consulate Lagos
Cable title:
CITIBANK SUFFERS WHIMS OF THE WELL-CONNECTED
how-toVZCZCXRO1192 PP RUEHPA DE RUEHOS #0183/01 0721437 ZNY CCCCC ZZH P 131437Z MAR 07 ZFR ZFR ZFR FM AMCONSUL LAGOS TO RUEHC/SECSTATE WASHDC PRIORITY 8602 INFO RUEHZK/ECOWAS COLLECTIVE RUEHUJA/AMEMBASSY ABUJA 8427 RUEHWR/AMEMBASSY WARSAW 0192 RUEHCD/AMCONSUL CIUDAD JUAREZ 0172 RUEHIT/AMCONSUL ISTANBUL 0173 RULSDMK/DEPT OF TRANSPORTATION WASHDC RUEKJCS/SECDEF WASHINGTON DC RUEAIIA/CIA WASHINGTON DC RUCPDOC/DEPT OF COMMERCE WASHDC RHEBAAA/DEPT OF ENERGY WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHDC RHEFDIA/DIA WASHINGTON DC
C O N F I D E N T I A L SECTION 01 OF 03 LAGOS 000183
SIPDIS
SIPDIS
DEPT PLEASE PASS TO JAMES WILLIAMS, OPIC
DEPT PLEASE PASS TO TDA
E.O. 12958: DECL: 02/20/2017
TAGS: ECPS ECON EINV EIND PGOV PREL NI
SUBJECT: CITIBANK SUFFERS WHIMS OF THE WELL-CONNECTED
LAGOS 00000183 001.4 OF 003
ZFR///////////////////ZFR//////////////////// //////ZFR
PLEASE ZFR/CANCEL ABOVE LAGOS 183 IMI LAGOS 183 DTG
P 131437Z MAR 07. AND BLANK ALL ASSOCIATED MCNS.
ZFR///////////////////ZFR//////////////////// /////ZFR
BROWNE
LAGOS 00000183 002.2 OF 003
gave him time to access a secondary exit and leave the
premises. Perturbed at not apprehending Emuwa, the officers
arrested three other bank officials, including the bank's
in-house attorney, although these officials were not subject
to any outstanding warrants. (For days after, Emuwa stayed in
seclusion and did not return to the bank.) The police stated
they would not release the arrestees unless Mr. Emuwa
appeared. Knowing he would be arrested, Emuwa did not appear
at the police station. Emerah had arranged for press to be at
the police in order to write a story on Emuwa's arrest.
Although Emerah did not net the fish he most wanted, negative
press stories were published in the local media.
-------------- ---
Despite High-Level Intervention, Matter Persists
-------------- ---
7. (C) Upon being contacted by Emuwa, the Consul General
placed phone calls to Police Inspector Ehindero (IGP) and to
the Assistant Inspector General Okiro, whose mobile phones
were conveniently turned off. With this avenue closed,
working together with local Citibank officials, we contacted
EFCC Chairman Nuhu Ribadu, who promised to look into the
case. We also contacted Federal Capital Territory (FCT)
Minister El-Rufai and the Special Advisor to the Foreign
Minister, who, in turn, engaged the Foreign Minister. Foreign
Minister Joy Ogwu subsequently spoke with Attorney General
Bayo Ojo, who was out of the country at the time. Ojo
discovered that attorneys within the DPP connived with Emerah
to file the unfounded criminal case against Citibank.
8. (C) The Foreign Minsiter and FCT Minister brought this
issue directly to the President. President Obasanjo ordered
the police and DPP to desist from arresting Citibank
officials. Upon further looking into the case, the President
ordered Chief Emerah's arrest, which was done. During this
period, Dr. Uba disavowed any involvement and stated he was
unaware that anyone from his office had helped instigate the
criminal case. Believing the case had been settled, the
President then diverted his attention to other matters, such
as the impending election. With the President's attention
elsewhere, the case was resurrected.
9. (C) During the last week of February, the Inspector
General of Police summoned both Citibank officials and Emerah
to produce all documentation supporting their claims. It
appeared the IGP was still attempting to help Emerah. During
their meeting, the IGP recommended to Citibank that they
should "settle with Emerah". Citibank MD Emuwa coincidentally
is also from Anambra State and is younger than Emerah. DPP
officials, police and others have pressed Emuwa that he was
not giving proper social deference to Chief Emerah. Emuwa's
retort has been that social status does not obliterate a debt
legally contracted and that Emerah, as the judgment debtor,
should be seeking to settle with Citibank, not the obverse.
Apparently still assisting Emerah, the DPP filed new criminal
charges against Citibank. Emuwa stated the new charges were
so sloppily crafted that the DPP inaccurately accused him of
engaging in fraud although he never had any personal
involvement in the loan transactions and was not in Nigeria
at the time. The DPP knows he was not involved in the matter
yet charged him nonetheless. Emuwa questioned how they could
charge him with criminal liability for something he did not
do. He is now considering suing the DPP attorneys for
malicious prosecution.
--------------
Comment
--------------
9. (C) Despite widely-touted economic reforms aimed at
creating a better business operating environment, the
country's highly personalized legal system can make simple
business transactions and legal decisions subject to the
caprice of well-connected adversaries. Citibank, which is no
minor player itself, fell victim to one such player.
10. (C) With the elections on the horizon, politicians are
LAGOS 00000183 003.2 OF 003
increasingly likely to influence the judicial process to
favor the likes of a Chief Emerah who can mobilize votes. In
this case, the police and judiciary were, at the least,
encouraged, if not pressured, to pursue Citibank.
Fortunately, Citibank has its own political connections as
well as having justice on its side in this matter. Yet, even
presidential intervention has not ended this matter. This
could have been a martial blow for a smaller firm that did
not have the clout and connections of Citibank. For the time
being, business as usual remains an unusual exercise in
Nigeria. End comment.
BROWNE
SIPDIS
SIPDIS
DEPT PLEASE PASS TO JAMES WILLIAMS, OPIC
DEPT PLEASE PASS TO TDA
E.O. 12958: DECL: 02/20/2017
TAGS: ECPS ECON EINV EIND PGOV PREL NI
SUBJECT: CITIBANK SUFFERS WHIMS OF THE WELL-CONNECTED
LAGOS 00000183 001.4 OF 003
ZFR///////////////////ZFR//////////////////// //////ZFR
PLEASE ZFR/CANCEL ABOVE LAGOS 183 IMI LAGOS 183 DTG
P 131437Z MAR 07. AND BLANK ALL ASSOCIATED MCNS.
ZFR///////////////////ZFR//////////////////// /////ZFR
BROWNE
LAGOS 00000183 002.2 OF 003
gave him time to access a secondary exit and leave the
premises. Perturbed at not apprehending Emuwa, the officers
arrested three other bank officials, including the bank's
in-house attorney, although these officials were not subject
to any outstanding warrants. (For days after, Emuwa stayed in
seclusion and did not return to the bank.) The police stated
they would not release the arrestees unless Mr. Emuwa
appeared. Knowing he would be arrested, Emuwa did not appear
at the police station. Emerah had arranged for press to be at
the police in order to write a story on Emuwa's arrest.
Although Emerah did not net the fish he most wanted, negative
press stories were published in the local media.
-------------- ---
Despite High-Level Intervention, Matter Persists
-------------- ---
7. (C) Upon being contacted by Emuwa, the Consul General
placed phone calls to Police Inspector Ehindero (IGP) and to
the Assistant Inspector General Okiro, whose mobile phones
were conveniently turned off. With this avenue closed,
working together with local Citibank officials, we contacted
EFCC Chairman Nuhu Ribadu, who promised to look into the
case. We also contacted Federal Capital Territory (FCT)
Minister El-Rufai and the Special Advisor to the Foreign
Minister, who, in turn, engaged the Foreign Minister. Foreign
Minister Joy Ogwu subsequently spoke with Attorney General
Bayo Ojo, who was out of the country at the time. Ojo
discovered that attorneys within the DPP connived with Emerah
to file the unfounded criminal case against Citibank.
8. (C) The Foreign Minsiter and FCT Minister brought this
issue directly to the President. President Obasanjo ordered
the police and DPP to desist from arresting Citibank
officials. Upon further looking into the case, the President
ordered Chief Emerah's arrest, which was done. During this
period, Dr. Uba disavowed any involvement and stated he was
unaware that anyone from his office had helped instigate the
criminal case. Believing the case had been settled, the
President then diverted his attention to other matters, such
as the impending election. With the President's attention
elsewhere, the case was resurrected.
9. (C) During the last week of February, the Inspector
General of Police summoned both Citibank officials and Emerah
to produce all documentation supporting their claims. It
appeared the IGP was still attempting to help Emerah. During
their meeting, the IGP recommended to Citibank that they
should "settle with Emerah". Citibank MD Emuwa coincidentally
is also from Anambra State and is younger than Emerah. DPP
officials, police and others have pressed Emuwa that he was
not giving proper social deference to Chief Emerah. Emuwa's
retort has been that social status does not obliterate a debt
legally contracted and that Emerah, as the judgment debtor,
should be seeking to settle with Citibank, not the obverse.
Apparently still assisting Emerah, the DPP filed new criminal
charges against Citibank. Emuwa stated the new charges were
so sloppily crafted that the DPP inaccurately accused him of
engaging in fraud although he never had any personal
involvement in the loan transactions and was not in Nigeria
at the time. The DPP knows he was not involved in the matter
yet charged him nonetheless. Emuwa questioned how they could
charge him with criminal liability for something he did not
do. He is now considering suing the DPP attorneys for
malicious prosecution.
--------------
Comment
--------------
9. (C) Despite widely-touted economic reforms aimed at
creating a better business operating environment, the
country's highly personalized legal system can make simple
business transactions and legal decisions subject to the
caprice of well-connected adversaries. Citibank, which is no
minor player itself, fell victim to one such player.
10. (C) With the elections on the horizon, politicians are
LAGOS 00000183 003.2 OF 003
increasingly likely to influence the judicial process to
favor the likes of a Chief Emerah who can mobilize votes. In
this case, the police and judiciary were, at the least,
encouraged, if not pressured, to pursue Citibank.
Fortunately, Citibank has its own political connections as
well as having justice on its side in this matter. Yet, even
presidential intervention has not ended this matter. This
could have been a martial blow for a smaller firm that did
not have the clout and connections of Citibank. For the time
being, business as usual remains an unusual exercise in
Nigeria. End comment.
BROWNE