Select Committee on International Development Written Evidence


Memorandum submitted by Mr Femi t'Oluwa, Odutola & Co. (Solicitors), Nigeria

HILARY BENN SHOULD GIVE THE WITHHELD £50 MILLION TO THE WORLD BANK IMMEDIATELY AND TENDER A PUBLIC APOLOGY TO THE BANK

  1.1  Hilary Benn, MP, Secretary of State for International Development has reportedly thrown a direct challenge to Paul Wolfowitz's leadership of the World Bank. He has withheld a £50 million payment in protest at the conditions attached to aid for poorer countries.

  1.2  Mr Benn reportedly criticised the World Bank's pressure on poorer countries to pursue privatisations and trade liberalisation and went on to say, "when it comes to economic policy choices I don't think it's right that we should be telling other countries."

  1.3  Supporting the Benn offensive, an anonymous World Bank source had this to say—"They are trying to impose their own economic and political model on Africa—without recognising the reality of the situation on the ground."

  1.4  Mr Benn is wrong. His action is a disheartening reminder of a troubling phenomenon. The dwindling commitment of many European political office holders to the world view to which we all owe the greatest economic emancipation and personal freedoms human beings have ever known. As for the imposition of an "economic and political model on Africa" an American can be forgiven for asking the world to do things the American way. All around the world, even those who express the most blood-curdling hatred of the West and of the United States would still, at the first opportunity, anyone would have noticed, choose to go and live in the US or the UK.

  1.5  I will restrict my submission, to a large degree to the African experience. Most of the countries requiring the World Bank's facilities cannot reform peacefully, from within. The impetus for reform must necessarily, come from outside. Endless crises and in some cases, implosion are best avoided by giving those in authority incentives to carry out necessary reforms.

  1.6  For historical and pragmatic reasons, those who live in corrupt countries are not in a position to rile against it. The developing world needs a Wolfowitz character who can administer the bitter medicine. To take an example from industry, when Ghosyn arrived in Japan and reduced Nissan's workforce, there was shock all round. Nissan, of course has never looked back.

  1.7  The vague call on the World Bank to simply concentrate on building institutions is slightly disingenuous. For, what sort of institutions can be expected in places where persons from the world of drug-dealing can buy sufficient acclaim to enable them occupy public positions where they appoint judges?

  1.8  Corruption, the brazen, large-scale theft of public funds is, second only to violent religious exhortations, the most retrograde force on earth.

  2.1  In the last 20 years, hundreds of millions of people in Malaysia, Taiwan, Indonesia, South Korea, Singapore, Costa Rica, Chile and many others have made tremendous economic progress as a result of development assistance.

  2.2  China and India have re-defined themselves as powerhouses of high-volume industrial production. China has notched up a US$650 billion trade surplus with the US alone. Its docile factory workforce made up of hundred of millions of rural poor. Productive workers, most of them earning just the very "dollar a day" used to describe African poverty. Thousands of western manufacturers have either torn out their plants to relocate them in China or simply outsourced production to the Chinese.

  2.3  Clearly, aid can work. But investment from rich countries and a political commitment to order, livable communities and prosperity works better. Business people are not persuaded by moral crusades to invest somewhere. They invest in livable communities where money can be made. And it is investment, ultimately, that brings know-how, free-markets, well-organised economic activity and prosperity.

  2.4  Corruption per se is not the reason why nothing has worked for black Africa or in politically-correct language, the "poorest African countries". Neither is it the authoritarian governments. Corruption is more pervasive in India than in most African countries and decades of dictatorship did not stop Indonesia from moving along.

  2.5  The complexity and enormity of the obstacles in the path of black African prosperity cannot be treated here. Afro-Caribbean Haiti has remained poor for 200 years. Those who wish to pull black African societies out of the mire may have to be somewhat more adventurous in their approach.

  2.6  We should ignore all the simplistic talk of "telling other countries what to do" and sovereignty and let Mr Wolfowitz do his job. These abridged examples may well explain our dilemma. It explains how low societies can sometimes sink.

  2.7  In need of a pliant populace, usurper and despot, Sani Abacha deliberately destroyed Nigeria's industrial base. Busy at it with some relish between 1993 and 1998, it was easy. He starved industry of energy—electricity from a largely already disabled national grid and the diesel they would have used to fuel their stand-by electricity generators. Thousands of factories and cottage industries folded. Believing that recovery was just around the corner and convinced that surely, no government can wish to destroy them, many kept extending themselves with their banks until they were prostrate. The well-orchestrated power failure had other benefits for Abacha. Lack of power for their pumps meant water corporations could not pump water. Then, the refineries too were allowed to fall into disrepair. He starved his countrymen of electricity, water, fuel, gas and gainful activity. He successfully ground the population to a whimpering halt.

  2.8  Diabolical enough to withhold policemen's salaries for months at a time, he made sure that evil, truly, stalked the land. Testimony given at a public inquiry after his demise has it that he sometimes buried up to 50 people alive in voodoo rituals he believed would keep him in power. Families of the possibly hundreds of such victims have never been compensated.

  2.9  He then thought it fit to help himself to $5 billion of public funds. To date $3billion has been recovered from his family. Scotland Yard figures reveal that $1.3 billion of this was kept in UK banks. His finance minister whilst all this was going on was one of Nigeria's most distinguished chartered accountants. The gentleman had left his position as the resident Managing Partner of Peat Marwick to work for Abacha. The dictator also set up a powerful National Economic Intelligence Committee to "nip corruption in the bud". An Economics Professor with socialist credentials was put in charge of that. This is the kind of charade of which African rulers and their cronies are ever so fond.

  2.10  He set Nigeria back 40 years. For every dollar he stole, his cronies almost certainly stole five. They will for many decades, by various means, remain in charge of the commanding heights of the Nigerian political and economic landscape. They got away with it.

  2.11  Abacha's son, who, like Saddam Hussein's Uday, sometimes supervised torture sessions, was held by the current elected government for a while. Ethnic allies insisted that Abacha's son be released without trial. Whilst lawyers wrote opinions to each other, the Attorney-General, a principled man of the old school, was murdered in his bed. Shortly thereafter, Abacha's son was released and a further gift of $100 million from public funds made to him.

  2.12  Today, amongst other public monuments, a football stadium is proudly named after Abacha. The defining thoroughfare of Nigeria's new capital—Sanni Abacha Way—is named after him. Abacha is still generally referred to in the local media as "the late Head of State, General Sani Abacha". Something akin to Germans choosing to remember Hitler, not as a psychopathic tyrant but as "the late Fuhrer, President Adolf Hitler". In the eight years since Abacha died, not one voice has been heard to say that leaving his name on public facilities is morally reprehensible. Societies are obviously different in their values.

  2.13  What Nigeria's current President recently wrote (May 2006) of Abacha's government and its total capture of society and our media is quoted in extenso—"Nigeria . . . was reduced to a police state . . . where intimidation, assassination, and deprivation were the instruments of misgovernance. The question on everybody's lips was: why ? The answer lies in the gradual but steady erosion of moral and ethical standards that took place during the earlier military administration of General Ibrahim Babangida . . . civilian political leaders acquiesced and abandoned their responsibility. As a result, the economy was shattered during the 1980s. Whether you were a politician, a businessman . . . the easy avenue for personal economic gain was to accept a job from the military or to seek favour from or support from the military. With the pillaging of society and the destruction of moral and ethical standards, those who might have been expected to try to sustain such standards—the by-now bought-up, co-opted and corrupted members of civil society: politicians, intellectuals, journalists, business people—made excuses . . . . . .

  The press and publishers who were not directly under government control were corrupted; they in turn hired and corrupted writers who pretended to be objective and independent, but who vigorously and viciously attacked opponents of the military regime. " (Emphasis mine).

  2.14  The irony of the President's write-up appears alarming when we remind ourselves of the following facts. The said, General Ibrahim Babangida is a member of the ruling party. He remains, by virtue of being an ex-ruler, a member of the Nigerian Council of State. The sum of US$6 billion remains unaccounted for in public records of his tenure in office. He is reportedly worth a few billion dollars. He has declared his intention to run for the office of President in elections coming up within the next few months. Notwithstanding this and other issues, newspaper owners yearly take out full page advertisements to wish him many happy returns on his birthday. Public monuments remain named after him. The need for a Mr Wolfowitz becomes clearer when it is understood that a vocal section of the media wants Ibrahim Babangida back in office as President.

  2.15  Much more than anyone would ever have thought possible, Nigeria's current President for instance, Olusegun Obasanjo has used the law and various institutions to discourage the large-scale theft of public funds. Yet even he, with all the powers of his office, can do no more than write in newspapers against some of the better known destroyers of our institutions. This is no tirade against corruption. In all walks of life, human beings are extremely fallible. However, those who want to continue with this brazen theft of public funds anticipate his inevitable exit from office next year, with controlled excitement. (He tenure expires after two terms of office.)

  2.16  From then, we may then have only Mr Wolfowitz to speak up for us.

  2.17  Having very successfully co-opted the media as Mr Obasanjo wrote in 2.13, corruption has made sure that the betrayal of the public in societies like ours is total.

  2.18  It is pertinent to ask what sort of institutions would emerge on a foundation like this.

  2.19  There is a simple response to Mr Benn's simplistic notions that "when it comes to economic policy choices I don't think it's right that we should be telling other countries what to do". Had an Abacha surfaced in an economy where the power sector, water corporations, energy sector, communications, were privately-owned and housing development had a flourishing private-sector led sector to it, he would not have cowed his countrymen so completely.

  2.20  The advent of Abacha was of course the arrival of the evil day for Nigeria. One of the points in favour of privatisation for developing economies is that it creates pockets of independent authority. This then dilutes the power and tyranny of the men who are hell-bent on larceny.

  2.21  Granted, in weak societies, it may not necessary lead to a "share-owning democracy". The urge is always there to simply sell up the common wealth to a motley crowd of "preferred bidders". With the conspicuous consumption and sudden wealth of the public servants put in charge of privatisation in weak societies, what has been going on is anybody's guess.

  2.22  Ghali Na'Abba was lately the Speaker of Nigeria's House of Representatives. He joyfully thundered in a recent newspaper interview—"There is no way that you can be a politician in Nigeria and extricate yourself from corruption. It is not possible. There is nothing you can do as an elected representative or a minister when you go to your house and find hundreds of people waiting for you and asking you for one thing or the other, and because there is so much poverty you have to continue to give them what you have, and when it finishes you have to look for money from somewhere else to oil the system."

  2.23  Poverty and this mode of discretionary almsgiving by politicians and soldiers serve their interests most effectively and will continue to make reform a dangerous venture. Across Africa, it has created a mob of the destitute, always willing to do the givers' bidding. Much in the same way as the control of almsgiving out of offerings gave a medieval Bishop power.

  2.24  The effect of all this depraved, bare-faced robbery can be imagined. In 2004 a national paper carried a terse half page advertisement from the University College Hospital, Ibadan Nigeria. The hospital gave the public its last chance to claim whichever was whoever's of the enormous pile of corpses which had exhausted its mortuary facilities. The advertisement went on to inform the public that a mass burial of the corpses will be effected of corpses not collected by their next-of-kin. Some will never believe 25 years ago it was the pride of Nigeria's health service and the premier teaching hospital in West Africa. People come into hospitals like this and die for lack of medication that could be bought for $10.  If a family couldn't afford inexpensive medication, obviously, they wouldn't be able to afford transport to a place where they could bury the body either. So corpses will always pile up in Government hospitals.

  3.1  Apart from the dearth of capital, there are a variety of societal obstacles in the path of black African prosperity.

  3.2  A great number of those who run most black African countries do not need a prosperous National economy for their own prosperity. They are neither business people nor salaried employees (in the real sense) of anybody. They are not mortgage-paying types or shareholding types to who the finer indices of the economy are of great concern. They are largely, simple thieves who cream off large chunks of the national budget every year and share what they will with whom they choose.

  3.3  Many black African rulers and their officials would appear to need a poverty-stricken populace to live their dreams. A joint subjugation of all by colonial masters effectively destroyed any serious notions of hierarchy based on ancestry, learning or ability in these societies. This can mean different things to different people but should not be considered a point against the colonial experience per se. A major prerogative of wealth, in poor societies has always been, a reservoir of fawning, obedient and servile individuals. Wealth, and its conspicuous enjoyment, then becomes the major factor by which men can consider themselves distinguished.

  3.4  Men who are accustomed to excessive deference when in authority also realise that the deference is due in part to their apparent state of affluence. They then feel a great need to steal as much as they can whilst in office. This is done to remain relevant in their societies and so that they may not thereafter live in greatly and intolerably reduced circumstances. Sadly, they are tolerated if not always cheered on by the ignorant multitudes who readily accept their generosity. Those who disagree are too few to make a difference. Widespread ignorance of the true nature of the robbery is encouraged by two factors. Living in amenity-starved, chaotic cities or rural poverty, the populace is wearied by the hardships of day-to-day living. The media, knowing that murderers are generally never caught, learns to restrain itself.

  3.5  In such societies, very little can be changed from within. What is needed exactly is a Wolfowitz character who would risk the opprobrium of the confused but disproportionately vocal and say, "No !"

  3.6  Since the well-documented robbery of the past is in part celebrated, there is naturally, a great, irresistible incentive for others to follow.

  3.7  The result of all this stupendous corruption is poverty. Poverty, as Bernard Shaw said,—"the greatest of evils and the worst of enemies". Logically, public services are minimal where they exist at all. On this scale of robbery, corruption is a misnomer. Theft on this scale was bound to become a weapon of mass destruction. Mass burials et al.

  3.8  A gravely debilitating state of insecurity. Ritual murders. The absurdity of the widely-held belief in South Africa that forced intercourse with babies will somehow cure HIV-AIDS pales in comparison to the obsession with ritual killings. In January 2005 extra United Nations peacekeepers were sent to south-eastern Liberia following violent protests by the populace against ritual killings. The leader of Liberia's transitional government, Gyude Byrant, must be applauded. He went on national radio on 29 June, 2005 to tell Liberians, "If you killed because you want to make a sacrifice to be President or Senator, you fool yourself. Stop ritualistic killings, it will not pay you anything, it will not make you rich, it will not give you jobs". When the ambitious or able members of a society, the ones who want to become President, Senator, get rich or get the best jobs are the very people bent on ritual murders, a very terrible problem exists. Not many black African rulers think this is a problem deserving of special and concentrated attention. Idi Amin, for instance, infamously kept the dismembered limbs of his opponents in the refrigerator. Amin was a laugh, but it wouldn't be quite so funny if his type are in charge of a country and you are resident. Particularly, when it is these characters who appoint judges and police chiefs and there is that eerie darkness at night.

  3.9  It will be nice to have all black African rulers and public officials tell us exactly where they stand on the question of ritual murders. South Africa is still the only African country to have a dedicated occult-murder squad in its police force.

  3.10  Need anyone be told that manufacturing plants are most competitive when they do three shifts. In no country can manufacturing plants work three shifts if workers are simply terrified of walking the streets at night.

  3.11  Sadly, this is exactly how the mostly nefarious characters who muscle their way into power at different levels in many black African countries want things to remain. Chaotic cities with large, no-go areas may well be the kidnapping occult-murderers' delight. Obviously, this is hardly what investors are looking for.

  Many of these rulers cannot see the direct correlation between their actions and the mostly needless deaths they cause. Far too many people die of disease and misrule in Africa than should be acceptable.

  A few solutions are offered:

  4.1  Gate African rulers. It is the one sanction they all dread. What, many tyrants feel is the point of money, if it cannot be spent in the West? If it cannot be spent simultaneously with the enjoyment of the highest degree of personal freedom, expression and safety ever known to human beings. What, they feel would be the point, if your wife cannot shop for jewellery in Zurich and clothes on Kings Road. If the rulers and officials in these countries are faced with this simple sanction, they will steal a great deal less.

  Force African rulers and their children to live in the cauldron of chaos and personal insecurity they nurture. To hear of, even if they do not use them, the public hospitals they have destroyed. Gate them whilst they are in office. Keep them out of North America and the EU and encourage other countries to do the same. Future access being conditional upon asset declarations and a clean report of findings after their tenure. Gate them. More than anything else in their lives, they need to get out of their countries to efface the unpleasantness and dismal conditions they have created from their minds. They will not spend quality time on their own national issues if they are able to escape from these issues. Gate them.

  Mugabe certainly enjoyed coming to Paris. Where in the heat of the issues surrounding the removal of Saddam, he could at least stand next to Chirac and savour the quiet delusion of calling the shots. These visits and the pictures of them blatantly sponsored in the local media are imperative to every village tyrant's portrayal of himself as a statesman. A grand fellow it is indeed, who is able to get simple locals to see him as "opposite number to President Bush". An endorsement of the international community, no less.

  4.2  Make African rulers and their children give detailed asset declarations.

  4.3  Put black African rulers and their cronies whose swag exceed a certain amount, on trial for crimes against humanity.

  4.4  An International Charter enabling the meticulous and complete, punitive dispossession of political office holders who steal, shall we say, more than £10 million whilst in office.

  4.5  The Charter must also enable the meticulous and complete, punitive dispossession of those who, under various guises launder money for them.

  4.6  Make the laundering of stolen African funds a strict liability criminal offence with a mandatory prison sentence of no less than 25 years. Hard labour, inclusive. There are in all developing countries a large number of otherwise lawful professionals and business people who make a living by obtaining credit from those who have stolen public funds.

  4.7  Advise African rulers to streamline public service personnel, employing only staff we can afford to pay. Introduce index-linked pensions for public officials. The now common spectre of retired public servants literally begging to be paid their pensions is awful to behold. With events like that so commonplace, anyone working in the public service will be a fool not to use his position to look after his future, as best he can. Reform on this issue will require grants to offset portions of current pension bills for a stated period. This is not asking for too much. Afterall, apart from the $50 billion in aid it has obtained from the American treasury since 1975, Egypt gets a cash handout of $200 million every year to do as it pleases.

  4.8  The World Bank should now lend for the kind of infrastructure projects—roads, power-generation plants, water projects, sewers—for which it was criticised in the past. China's incredible spurt of growth has shown one thing. These facilities make an environment livable for western companies who want to invest.

  4.9  Insist on an effective Whistleblower protection scheme in all countries receiving aid or investment.

  4.10  Whatever is done, money should not be handed over. It will only make the race for political office more bitter, cruel and murderous. The infusion of large amounts of money into weak societies requires a great deal of circumspection. In a recent quarrel between two Nigerian politicians, the son of one of the parties was butchered. The young man had a PhD. Anger still burning, the remains of the young man's grandfather was dug up and kicked to pieces. To help them with their enquiries, the police, are not looking for anybody ! It will do well to remember that the sudden gush of mineral wealth into African societies has not increased the per capita income. It only fuelled tyranny and murder.

  4.11  Insist that an International Criminal Commission be appointed to investigate all high-profile murders. This is most important. It will remove the debilitating and age-long culture of fear and silence. That culture allowed poverty-activators to reign for so long. Remember what such an appointment recently did for the political equation in Lebanon. We should ignore all the glib talk of racism and sovereignty and let African-American FBI agents do the job for the UN if necessary. Surely, if men control a police force and it is consistently unable to solve murders, it is reasonable to assume that they protect the Death Squads.

  4.12  Refuse all aid, loans and trade concessions to African countries whose rulers refuse these terms.

  5.1  Now, newspaper reports of Mr Benn's decision also made mention of animosity towards Mr Wolfowitz. Animosity based on his role as a promoter of military action to remove Saddam. Surely, that is not a logical reason for obstructing his World Bank policies. Besides, Saddam Hussein did hire the scientists who could arrange nuclear and biological weapons, made loud noises of his intention to use them aggressively and, I quite clearly remember watching him on CNN, just after 9/11, making a public offer of US$ 25,000 to the family of any suicide bomber who would strike Israel. Of course his audience understood that he also meant, the United States and its allies. To have left Saddam in power would have been irresponsible. If it turned out that his well-orchestrated and very public claims of military ardour was buffoonery, the Bush Administration is not to blame for that.

  5.2  We sincerely hope that in his objection to Mr Wolfowitz's policy, Hilary Benn may not have merely chosen to pander to the hate-filled, knee-jerk anti-American, anti-freedom, anti-semitic din of deep-seated covetousness that tries to brand itself as righteous world opinion.

  5.3  For these reasons, we ask the Committee to implore the Right Honourable Hilary Benn, MP to forward the withheld funds to the World Bank, tender a remorseful public apology to Mr Wolfowitz and henceforth resist any course of action that may perhaps unfairly portray him as a tool, a simple fellow-traveller of those who are determined to undermine the efforts of the Bank.

  5.4  Mr Benn's decision is morally reprehensible. In view of his muddled and doctrinaire conceptions of developing countries, he should ask himself if he is a fit and proper person to continue providing leadership and guidance for the great British public on International Development issues.

October 2006





 
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