A former speaker of Delta State House of Assembly, Mr Victor Ochei
has been named in United Kingdom bribery inquiry.
Britain’s Serious Fraud Office (SFO) has widened its investigation into Rolls-Royce (RR.L) to examine allegations of suspected bribery in Nigeria, the Financial Times reported on Thursday.
The world’s second-largest maker of aircraft engines is being investigated over a venture that cost Delta State more than $100m but has never been completed and has been plagued by corruption claims. The $4 billion Delta State Independent Power Project (IPP) is located in Oghara, Ethiope West Local Government Area
The project was awarded in 2009 to Davnotch Nigeria, a company founded by Victor Ochei, a flamboyant former speaker of the Delta state house of assembly.
Victor Ochei (Born 25 February 1969) from Ogbekenu Delta State Nigeria was elected Speaker, Delta State House of Assembly, on 6 June 2011 as the representative of Aniocha North constituency.
Rolls-Royce said in 2013 that the SFO had launched a formal investigation into concerns about possible bribery and corruption in China and Indonesia.
Now the Financial Times has reported that the probe has now been extended to look at Rolls’ former energy operations in Nigeria.
The report said the SFO was investigating whether Rolls or its agents were involved in any bribery of government officials in Nigeria up to 2013 in connection with energy tenders in the country and a Nigerian company called PSL Engineering & Control.
PSL acted for Rolls-Royce on projects in Nigeria to supply gas turbines to power plants in the oil states of Bayelsa and Delta, according to PSL’s website.
One focus of the SFO investigation is a Delta state government project known as the Oghareki power plant.
The venture has cost more than $100m but has never been completed and has been plagued by corruption claims, according to Nigerian media reports.
The project was awarded in 2009 to Davnotch Nigeria, a company founded by Victor Ochei.
Norbert Osodi, Davnotch’s managing director, said by email that the company was not aware of the SFO investigation. He said Davnotch had won the Oghareki tender through proper processes. He added that past allegations of corruption against the project were “not credible” and had been mounted by Mr Ochei’s political enemies.
Mr Osodi said there was no conflict of interest between Mr Ochei’s simultaneous holdings of a majority shareholding in Davnotch and his political seat, because the parliamentary position was part-time. Mr Ochei divested his interest in Davnotch in June 2011, when he became house speaker.
Attempts to reach Mr Ochei were unsuccessful. Neither he nor the Delta state government responded to requests for comment submitted through their websites
The company has faced a tough trading environment, with orders from oil industry customers for power systems being cancelled due to the falling crude price. It has issued a number of profit warnings and earlier this year cut its dividend payout for the first time in 25 years.
Rolls-Royce sold its energy business to Siemens of Germany in 2014, after the period under investigation, and it no longer does business with PSL.
In January 5, 2015, the IPP Equipment was gutted by fire. The equipment arrived at the project site about two years ago and not much had been done about the project that had gulped so much money.
The equipment went up in flames in mysterious circumstances, we gathered that the fire started at about 4:00pm. The cause of the fire was not known as at the time of filing this report, but according to our sources it is being attributed to sabotage.
Firefighters, according to our sources, are battling to put the raging fire under control, but the harmattan was not helping matters.
The Delta state Independent Power Project (DIPP) has achieved a high point with the submission of its electricity application for consideration and approval by the Nigerian Electricity Regulation Commission (NERC) through Delta Energy Generating Company Limited (DELGENCO), Delta Energy Transmission Company Limited (DELTRANSCO) and Delta Energy Distribution Company Limited (DELDISCO) for a private sector led generation, off-grid transmission and off-grid distribution of 2,500MW power.
The Delta state IPP which is estimated to cost 4 Billion Dollars to be funded wholly by the private sector has UBA, Oceanic Bank as local lead arrangers, with UBS, Barclays and Bank Paribas for the international syndicate with 30 month completion circle. It is worthy to note that this project will be funded and operated by private investors.
The phase of 2,500 MW is the first phase of the state’s energy strategy, which on completion shall see the commencement of the second phase that will culminate in the prod
ELOMBAH
