AFRO-NETS> Halliburtons Tax Evasion Scandal in Nigeria - A Health Perspective

[A Odutola <chpss_abo@yahoo.com>]

Halliburtons Tax Evasion Scandal in Nigeria - A Health Perspective
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By its own admission and according to publicly available reports, 
Halliburton ­ the US based multinational oil services company once 
headed by current Vice President, Dick Cheney ­ disclosed to the US 
Securities and Exchange Commission in a regulatory filing that it 
made "improper payment" of US$ 2.4 million dollars between 2001 to 
2002 to a Nigerian entity in an attempt to evade US$ 5.0 million dol-
lars in tax liability. (1)

The Guardian newspaper, a leading national daily in Nigeria reported 
that in the filing on Thursday May 8, 2003, Vice President Cheney's 
former company said its [Kellogg Brown Roots] KBR subsidiary "made 
improper payments of approximately US$ 2.4 million to an entity owned 
by a Nigerian national who held himself out as a tax consultant when 
in fact, he was an employee of a local tax authority". 

To put this scandal clearly in a health perspective, consider the 
following statement from UNICEF Nigeria:

"Do you know that net proceeds from the purchase of 1 pack of [eight 
UNICEF greeting] cards [retailing for N350 Naira in local currency or 
the equivalent of US$ 2.70 by official rate of exchange] can buy 
enough vaccine to immunize 15 children against life-threatening mea-
sles; or 8 children against the crippling effects of polio; or enough 
vitamin A supplement to protect 60 babies from Vitamin A deficiency 
blindness?"

Now, have you ever wondered why in Nigeria:
* 1 child dies every 4 seconds from malaria?
* 76 of every 1000 live babies born die before reaching age 1?
* 184 of every 1000 live babies born die before reaching the age of 
  5?
* 1 in every 16 women suffers a lifetime risk of dying during the 
  process of giving birth?
* Overall immunization rate is as low as 30%?
* Less than 40% of people have access to clean water?
* Most primary health centers and hospitals are often out-of-stock on 
  most basic and essential drugs like chloroquine and paracetamol 
  (acetaminophen)?
* Many health professionals migrate to countries of the North for 
  lack of professional satisfaction?
* Poverty is so endemic and reportedly over 70% of people live on 
  less than US 1.00 dollar a day?

Put the blame on the likes of Halliburton, local and foreign, for 
perpetrating economic sabotage of the Nigerian nation state by paying 
an "entity"/individual US$ 2.4 million dollars to evade the payment 
of US$ 5.0 million dollars in taxes to the state.

Since this story broke, no public information has been made available 
in Nigeria regarding any official investigation into the scandal for 
purposes of identifying the Nigerian beneficiary of this scandalous 
payment and bringing the "entity"/individual and the Halliburton sub-
sidiary to expeditious justice.

To facilitate the dispensation of justice and hopefully improve fund-
ing for health among other social services, please write to 

President Olusegun Obasanjo
mailto:presidentobasanjo@nigeriagov.org
or 
mailto:getthingsbetter@presssec-babainfo
or
Fax: +234-9-234-7546 or +234-9-523-2136. 

Let him know that you are dismayed to learn that Kellogg Brown Roots 
­ a Halliburton subsidiary company operating in Nigeria paid out US$ 
2.4 million dollars to an "entity"/individual to evade the payment of 
US$ 5.0 million dollars to the state in taxes. Let him know that tax 
evasion in general and such magnitude of tax evasion in particular 
contribute to economic adversity generally and inability of the state 
to provide needed social services in good roads, water, health, edu-
cation and other welfare services to the people of Nigeria. Let him 
know how important it is for him to take immediate action and direct 
appropriate agencies of his government to investigate the scandal and 
bring the perpetrators to speedy justice publicly. 

References: 
1. How Nigeria lost $5m to American oil firm. The Guardian. Sunday
   May 11, 2003. By Laolu Akande from New York 
2. UNICEF. The Punch. Wednesday May 28, 2003. page 33 
3. World Bank. Better Health in Africa. Washington DC. 1999

--
A. Odutola
Centre for Health Policy & Strategic Studies (CHPSS)
Lagos, Nigeria
mailto:chpss_abo@yahoo.com
http://www.expage.com/chpsshomepage
http://www.datelinehealth-africa.net
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