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Nigeria
Economy - Development | Politics

Nigeria suspends oil chief on corruption probe

afrol News, 17 June - Nigeria's Director of Department of Petroleum Resources (DPR) was sent to a compulsory leave on Monday pending investigations on alleged corruption in awarding of oil licensing last year.

Mr. Anthony Chukwueke’s suspension is expected to pave way for an independent probe of the 2007 oil blocks' bid awarded during reign of former President Olusegun Obasanjo's administration.

A probe is related to award of Chinese and Indian-led consortia given in May 2007 auction a fortnight prior to Mr Obasanjo retirement. May Auction which was expected to draw multinationals, failed to attract more investors as many shied away from bidding, fearing a new government would overturn new deals.

Energy Ministry Spokesman Mr Fidelis Osamor said government had suspended an official who helped lead bidding process and that an in-depth audit would be held to probe into corruption allegations.

If government investigations find any wrong doing, that would lead to invalidation of contracts, a process which would spell another hitch for an already troubled oil rich country basseted by militant attacks.

When he came to power, Nigeria's president, Umaru Yar'Adua, pledged to rid Nigeria of decades of corrupt practices. The investigation into May 2007 auction will be watched closely by Nigerians and international observers as it would be viewed as a measure of Mr Yar'Adua's desire to rid the country of corruption.

Mr Yar'Adua, who is from same political party as Obasanjo, has overturned several privatisation and other contracts Mr Obasanjo had organised during days of his administration that ended in May.

It is not the first time Mr Chukwueke has been embroiled in controversy. He was suspended in 2006 after awarding drilling rights to an unknown company which had not been involved in open auction process.

Nigeria has in the past been hailed as one of Africa’s big economies that have failed to benefit its citizens due to rife corruption.


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