NIGERIA: COUNTERFEIT MEDS ENFORCEMENT TRAINING IN LAGOS

UNCLAS SECTION 01 OF 03 ABUJA 000746 SENSITIVE SIPDIS DEPARTMENT PASS TO USTR FOR AGAMA AND VETERE; PTO FOR HICKEY; LOC FOR USCO PPINHA; AID FOR GWEYNAND AND SLAWAETZ BAGHDAD FOR MCCULLOUGH TREASURY FOR PETERS, IERONIMO AND HALL USDOC FOR 3317/ITA/OA/KBURRESS AND 3130/USFC/OIO/ANESA/MCREED DOJ FOR MKOUAME E.O. 12958: N/A TAGS: KIPR ETRD ECON EINV EAID PGOV NI SUBJECT: NIGERIA: COUNTERFEIT MEDS ENFORCEMENT TRAINING IN LAGOS REF: 08 LAGOS 405 ABUJA 00000746 001.2 OF 003 SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRO OUTSIDE USG ¶1. (SBU) Summary: During a April 7-9 three-day counterfeit products and investigative techniques workshop, Nigerian government (GON) agencies made progress in better understanding what intellectual property rights (IP) are, how counterfeit medicines enter Nigeria, and what steps should be taken to increase detection of counterfeits at the border. In addition, major U.S and international private sector companies participated in an IP trade fair to inform GON officials of the major counterfeit products entering Nigeria, demonstrate detection mechanisms and share intelligence for future collaboration. Participants were unanimous that Nigeria is a major problem area for IP protection because of corruption and porous borders. The expert from the World Customs Organization (WCO) asserted that Nigeria is the number one destination in Africa for counterfeit products and that criminal networks linked with terrorist organizations smuggle goods into and out of Nigeria. All of the Nigerian agencies expressed appreciation for the program and said the workshop helped build interagency cooperation, and increase awareness. The USG interagency team traveled to the Nigerian-Benin border on April 6 to observe Customs operations to better prepare for the three-day workshop. That visit will be reported by septel. The GON has been slow to adequately address IP issues in Nigeria and this is part of series of workshops since 2007 to build awareness, increase GON capabilities and foster interagency, public-private cooperation. The most active agency in the GON is the Nigerian Customs Service (NCS),which has been aggressive in seeking training, technical assistance and building links with the private sector and is the lead agency on IP enforcement, particularly at the border. The USG will sponsor additional workshops in late June focused solely on NCS and increasing its capacity to detect counterfeit products at the border. End Summary. . Robust Participation by GON and Private Sector -------------- - . ¶2. (U) From April 6-9 in Lagos the U.S. Mission sponsored an interagency team, with representatives from the U.S. Department of Justice and the U.S. Department of Homeland Security to observe and provide training on criminal enforcement of intellectual property (IP) at the borders. Up to 107 Nigerian government officials and private sector stakeholders participated in the three-day workshop. The workshop built on practical issues regarding counterfeit products and investigative techniques. The workshop follows builds upon the USG sponsored August 2008, June 2008, January 2008 and November 2007 IP workshops held in Nigeria. The goal of the April workshop was to develop investigative skills that are specific to counterfeit medicine and consumer products detection at Nigeria's ports and borders and build cooperative relationship between GON agencies and the private sector. This cooperative approach emphasized the importance of coordinated inter-agency action to effectively combat IP piracy. ¶3. (U) Participants were drawn from the Nigerian Customs Service (NCS),the Federal Intellectual Property Law Association of Nigeria (IPLAN),the Standards Organization of Nigeria (SON),and the National Agency for Food and Drug Administration and Control (NAFDAC). Officials from all the major border posts, ports and airports attended. In addition, a cross section of companies attended the IP trade fair - Eli Lilly, Proctor & Gamble, GlaxoSmithKline, Bic, Johnson & Johnson, Janssen-Cilag, Pfizer, Wahl Razors, Beiersdorf, Unilever, Novartis and Sanofi-Aventis. Experts from the World Border Organization, World Customs Organization and Ghanaian Customs Excise and Preventive Service provided their expertise. The Economic and Financial Crimes Commission (EFCC) was invited to participate at the working level but did not. . Topics Covered -------------- . ¶4. (U) The specific topics covered during the workshop included a general introduction to IP and why it matters; an update on what is happening around the world at the borders; an overview of Nigeria's enforcement process for health and safety; case studies on what law enforcement needs from Customs to build strong evidence backed cases; latest tools on risk analysis for criminal enforcement; and ABUJA 00000746 002.2 OF 003 in-class exercises geared to applying what had been learned during the workshop. Multi-agency panels led each segment, a structure which allowed participants to compare and contrast different practices by different agencies. . The Case For Maximum Deterrence -------------- . ¶5. (SBU) Serge Rinkel, Director of the Technical Committee for Borderpol and an Official of the WCO, asserted that counterfeiters are a major problem in Africa and especially Nigeria because of their involvement with criminal networks that also traffic in illegal drugs and weapons. Africa and Nigeria are particularly vulnerable because of porous borders, corruption and minimal effectiveness of law enforcement agencies. He said counterfeit malaria medications resulted in the deaths of approximately 400,000 Africans yearly. Another two million Africans die yearly from treatable diseases because of the counterfeit medications they ingest either kill them or fail to treat the ailment. Africa is the favored route of smugglers to transit counterfeits to Europe from Asia and India. The number one counterfeit product sold in Africa is Viagra, followed by vitamins, HIV/AIDS drugs, and condoms. He noted that in Africa, Nigeria ranks number one as a destination for counterfeit products. The number one origin of counterfeit medicines in Nigeria is India, followed by China, Seychelles, Thailand, and Philippines. ¶6. (SBU) Rinkel underscored that criminal networks exist in Africa, particularly Lebanese networks that ship drugs and counterfeit meds from Latin America and Asia into and through Nigeria. He said 60% of global terrorist organizations were involved in counterfeit medicines because the profit margins are much larger and penalties much smaller compared to illegal drugs. For example, counterfeit Viagra can be produced in China for 5 cents and sold for $15 in the market. Rinkel contended that the WCO has evidence that Hezbollah and HAMAS are involved in smuggling drugs, counterfeit medicines and weapons into and out of Nigeria via Nigerians citizens of Lebanese origin. For example, a ship that was tracked from Asia with known counterfeit cargo visited Nigeria three times in 2008. He reported that Nigerian law enforcement officials were notified but took no action. ¶7. (SBU) Within the West Africa region, Rinkel noted criminal networks smuggling counterfeit drugs, illegal drugs and weapons via Senegal, Ivory Coast, Mali and especially Nigeria. He alleged that criminal networks had encouraged Nigerian banks to establish branches in the Gambia in order to facilitate counterfeit goods transactions. In addition, among the sizeable 700,000 Nigerian population in South Africa, exist criminal gangs funneling counterfeit drugs into South Africa and Nigeria. ¶8. (SBU) Rinkel said that the Niger Delta region is particularly porous area and that there is evidence linking the region to weapons smuggling to Chad, the Darfur region, and the Democratic Republic of Congo. Moreover, he reported Algerian bombings on Feb. 22, 2009 were carried out with weapons moved from Nigeria through Mali and Niger to Algeria. . GON Inaction -------------- . ¶9. (SBU) Representatives from GlaxoSmithKline and Janssen-Cilag told Econ Deputy that counterfeiting is a major problem and that in order to get NCS or police to conduct raids, the companies had to provide monetary inducements. Janssen-Cilag reps reported that following a raid, Pirates paid the police unofficial "bail" and the criminals were released. NAFDAC prosecutors lamented that trials languished for many years and that there are several pending prosecutions that are ongoing for seven years. ¶10. (SBU) GON officials complained that prominent individuals connected to Nigerian traditional leaders' families, dignitaries and VIPs smuggle goods into the country with impunity. A GON official said that 300 trucks per week arrived in Nigeria from Niger belonging to a prominent Northern Nigerian businessman. This same businessman is alleged to have a close association with high-level government officials and is from Katsina. . IP Trade Fair ABUJA 00000746 003.2 OF 003 -------------- . ¶11. (SBU) At the IP trade fair, Eli Lilly, Proctor & Gamble, GlaxoSmithKline, Bic, Johnson & Johnson, Janssen-Cilag, Pfizer, Wahl Razors, Beiersdorf, Unilever, Novartis and Sanofi-Aventis set up stations. Groups of GON officials received 30 minute presentations on specific examples of counterfeit products being sold in Nigeria. The companies demonstrated how to tell the difference between counterfeit and genuine products, and provided check lists and contact information to contact them if officers come across questionable goods. For example, Procter & Gamble explained that legitimate "Pampers" diapers are produced locally in Ibadan and that the company does not produce nor import diapers from Asia to Nigeria. Therefore if Customs Officers observe a shipment of "Pampers" from Asia they should seize it immediately, contact Procter and Gamble and a company rep will come to the location to help with the investigation. ¶12. (SBU) The companies were happy to participate but lamented that much more needs to be done by the GON. Several reps said that from 50-80% of the drugs found in pharmacies in Nigeria are counterfeit. . Next Steps -------------- . ¶13. (SBU) NCS officials reported that the NCS will set up a work plan to increase officer's knowledge of counterfeit meds and that the NCS has undertaken to sign MOUs with British American Tobacco and Nokia to put in place a mechanism to share intelligence and resources. (Note: NCS, BAT and Nokia reps first were introduced at the June 2008 USG-sponsored workshop in Abuja as part of Mission efforts to increase cooperation between the GON and the private sector. End Note.) At the end of the workshop the GON reps issued a communique that committed each agency to collaborate in partnerships; to conduct joint-training programs; to develop an anti-counterfeiting campaign; to review the existing judicial system to ensure speedy trials for pirates; to increase motivation among law enforcement officials to discourage being compromised by the pirates; seek stricter penalties for pirates; strengthen the political will of policymaker; and to set up Public Private Partnerships with companies to improve communication. ¶14. (SBU) Comment: The extremely productive and well-attended workshop has further set in motion cooperation within the GON. Participants were particularly thankful, energetic and motivated to work with their colleagues to stop counterfeiting. The joint communique was a good first step. The key to progress is information and building cooperation within the GON and with the private sector. The USG will follow up this workshop with another workshop focused solely on NCS and training to take place at a border post, port and airport in late June. Based on Nigeria's size and reach within Africa, if the USG can turn the GON into effective ally we may see progress in strengthening enforcement across the region. End Comment. ¶15. (U) This cable was coordinated with ConGen Lagos. SANDERS