BNP inked deal with NIKO thru corruption

Two 'marginal' gas fields, Chhatak East and Feni, although they were two new gas fields as no gas had been extracted but handed over through an unauthorized deal to NIKO, an errant Canadian Company, through corruption during 2002-2006 tenure of Bangladesh Nationalist Party-led government.
The Anti-Corruption Commission filed two cases with the Tejgaon police on December 9, 2007 - one against Awami League president Sheikh Hasina, now the prime minister, and eight others and the other against former prime minister Khaleda Zia, also the Bangladesh Nationalist Party chairperson, and seven others - accusing them of causing huge losses to the state by awarding Niko two gas fields declaring them abandoned through corruption.
However, on March 11, 2010, the High Court quashed the case filed against Sheikh Hasina and six others. The case against Khaleda Zia and several others is pending with a Dhaka Special Judge's Court.
As evidence of Niko's corruption, Bapex and Petrobangla filed an affidavit from Corporal Duggan of the Canadian police who investigated Niko's activities in Bangladesh.
Meanwhile, Canadian police conducted an investigation into Niko's activities and charged Niko with directly and indirectly providing improper benefits to Bangladeshi public officials in order to further their business objectives.
In 2010, in a writ petition filed by Bangladesh Environmental Lawyers Association (Bela), the Bangladesh High Court passed a judgment directing Niko to compensate for the blowouts and restraining Petrobangla from making any payments to Niko till settlement of the compensation claims. In 2010, Niko filed two ICSID arbitration cases - one for the payment of gas supplied to Petrobangla and the other seeking a declaration of non-liability for the blowouts.
An international arbitration tribunal - International Centre for Settlement of Investment Disputes (ICSID) - has issued an order on May 26, 2016 that it will examine, on a priority basis, whether Niko procured a Joint Venture Agreement (JVA) and a Gas Purchase and Sale Agreement for the Chattak and Feni gas fields through corruption.
It would also examine a claim of two contracting agencies, state-run Petrobangla and its subsidiary BAPEX, that they were not corrupt but were instructed by corrupt member of the government to execute the two contracts, according to ICSID procedural order issued on March 23, 2017.
According to the Energy Division, Niko had signed a lucrative joint venture agreement with the BAPEX through corruption in 2003 for developing Chhatak East, popularly known as Tengratila, near Indian border-with a potential of 700 to 800 bcf of gas there.
"Niko was disqualified since they got the lowest marks for technical and financial capacities. Having failed in the competitive process, Niko submitted an unsolicited proposal in 1998 which was rejected by the Bangladesh government," Professor Dr. Samsul Alam told the daily Observer on Thursday following the HC verdict that declared ordered to scrapped two gas deals with Canada-based Niko Resources.
Niko managed to secure a JVA for Chattak and Feni gas fields on October 16, 2003. When they started drilling the Chattak gas fields, despite not having adequate technical competence, two blowouts occurred causing significant loss and damages to the gas fields, to the environment, and to the health of the surrounding population.
"The nexus was so powerful, thus Niko could be able to sign a joint venture agreement with Bapex in 2005, although two blowouts occurred during drilling destroying Tangratila gas field and damaging environment around it. Despite the blowouts, Niko also managed to secure a gas purchase and sale agreement (GPSA) with Bangladesh Oil Gas and Mineral Corporation or Petrobangla on December 27, 2006.
Niko allegedly aggressively proceeded to secure its business interests in Bangladesh by resorting to corruption. A nexus comprising with political high ups and top government officials-influential people in different arena of the society were involve with this unholy activity.
"I'm very glad today, I became taller today as we proved that we are an independent nation. We should stood up on our own feet..it was said that the International Oil Companies are abide by the Production Sharing Contract and Joint Venture Agreement which was designed for them. This verdict proved that we can raise our voice against any one whoever whatever they are, Professor Alam said.
Furthermore, Bapex lodged a claim for US$137.4 million and Petrobangla sought US$1.05 billion as compensation for the blowouts caused by Niko.
Since September 2005, Petrobangla withheld payments to Niko for the gas it supplied from the Feni field.
The Bangladesh co-counsel in the ICSID arbitration cases, Barrister Moin Ghani, said, "Substantial evidence of Niko's corruption has recently been submitted to the ICSID tribunal. However, we will submit a copy of the HC's verdict before the ICSID within a week. This verdict will prompt the tribunal to conduct a full inquiry," he added.