BNP leader Modud Ahmed played a key role behind Canada-based Niko securing the contract to explore gas fields in Bangladesh, according to US and Canada investigators.
After the BNP-led alliance government took office in 2001, Niko signed two deals with Bapex and PetroBangla.
A Joint Venture Agreement (JVA) with Bapex to develop two "marginal" gas fields in Sylhet’s Chhatak and Feni in 2003 and a Gas Purchase and Sales Agreement (GPSA) in 2006 with PetroBangla.
Moudud, a lawyer by profession, served as the minister of law, justice, and parliamentary affairs under the Khaleda Zia-led administration.
However, his law firm Moudud Ahmed & Associates was a consultant for Niko.
The Anti-Corruption Commission (ACC) stared a case against the then-prime minister Khaleda Zia and 10 others in 2007 during the military-controlled caretaker government.
They stand accused of causing the exchequer a loss of around Tk 137.77 billion by abusing power to award a gas exploration and extraction deal to Canadian company Niko during her 2001-06 prime ministerial tenure.
The others accused in the case are former minister Moudud Ahmed, former state minister AKM Mosharraf Hossain, former principal secretary Kamal Uddin Siddiqui, former secretary Khandaker Shahidul Islam, former senior assistant secretary CM Yusuf Hossain, former general manager of BAPEX Mir Moinul Haque, former BAPEX secretary Md Shafiur Rahman, businessman Giasuddin Al Mamoon, former president of Dhaka Club Selim Bhuiyan, and Niko vice-president for South Asia Qasim Sharif.
In 2007, the then caretaker government requested US assistance to investigate the matter, when its Department of Justice (DoJ) assigned the Federal Bureau of Investigation (FBI).
FBI agents Linda Samuel and Debra Griffith of its Asset Forfeiture and Money Laundering Section worked closely with Bangladesh investigators in the case until December 2015,
The Royal Canadian Mounted Police also probed Niko for offenses under its Corruption of Foreign Public Officials Act. In 2011, Niko pleaded guilty of bribing Bangladesh officials and agreed to pay a fine of $9.5 million.
RCMP Officer Kevin Duggan was the primary investigator, who was assisted by RCMP’s Lloyd Schoepp.
On Thursday, Bangladesh Attorney General Mahbubey Alam said they a moved a petition to the trial court to have FBI agent Griffith and the two RCMP officers testified in the case and that the report by these investigators was attached with the plea.
Bangla Tribune has obtained copies of the FBI agent Griffith’s witness statement filed with the US justice department and the affidavits of RCMP officers Duggan and Schoepp submitted to the Canadian court, which unravels the complex web of corruption and who had what role.
In her statement filed with the US justice department, FBI agent Griffith said that in late 2001, the Petrobangla and Bapex said that the joint venture agreement can be only issued without Chattak East gas field and it would have to be it would have to be subject to a “Swiss Challenge” process for competitive bidding. The state enteritis maintained the stance until 2003.
According to the FBI investigator, Niko refused to agree and the company would “most certainly” have lost to any bidder as it was not technically and financially sound.
“Khaleda Zia’s Law Minister, Moudud Ahmed, subsequently changed the position held by Petrobangla and Bapex through a legal opinion on the FOU. Moudud Ahmed had no competency in determining marginal or abandoned status of a yet unexplored virgin gas filed, as he did in his legal opinion as Law Minister.
He was, however, NIKO’s former lawyer, his firm, Moudud Ahmed and Associates continued to represent NIKO and Moudud Ahmed continued to receive payment from NIKO while he was the Law Minister,” reads the statement.
Griffith, a former FBI special agent, said that during investigation she found that on Jan 15, 2002, Niko transferred $8,315 to the bank account of Moudud, who served as the law minister from 2001 to 2006.
In August 2002, Moudud’s law firm ‘Moudud Ahmed & Associates’ wrote a letter arguing that Chattak East should be considered part of the Chattak Gas Field, according to the US investigator.
On Aug 25, 2003, Law Minister Moudud issued an opinion stating that Chattak East was a marginally producing gas field, Griffith said in the statement.
“I learned that this opinion was contrary to the opinions of BAPEX geologists, who claimed the East fields were unexplored and thus could not been deemed marginal,” it reads.
The FBI probe concludes that Moudud was “still literally” on Niko’s payroll while he was making decision in their favour while holding a public office.
“I obtained records which revealed that during this time frame, Moudud's wife, Hasna, purchased a $400,000 home in the US. Moudud Ahmed's government salary during this time frame was approximately $9,500 per year,” Griffith said in the statement.
The Canadian investigation also found Moudud’s involvement in Niko graft.
RCMP investigator Lloyd Schoepp said in an affidavit filed with the Canadian court that Niko Bangladesh Ltd’s Qasim Sharif told them the then-state minister for energy Mosharraf Hossain asked PetroBangla chief repeatedly why the project was not given the green light.
“The project was stuck on only one point, Chattak East and Chattak West. Petrobangla and Bapex were fully against Niko, they did not want to give up Chattak East,” it reads.
According to the Canadian investigator, it was then when the then-principal secretary to the PM Kamal Siddiqui intervened.
He called up PetroBangla chief to say that a decision on it was imperative and if it was negative then he has to explain why, said RCMP officer in his statement.
Quoting Qasim’s statement given to RCMP, the investigator said that Qasim received the PetroBangla chairman’s call who said the only thing to do was to ask for the law ministry’s legal opinion.
“Qasim Sharif stated that up until then they (Petrobangla and Bapex) did not want to do the project. Qasim Sharif stated that Niko would not do the project if they did not get Chattak East.
The matter was referred to the Law Ministry and the Law Ministry said that you cannot take Chattak East out of the Chattak gas field,” reads Schoepp’s statement to the Canadian court.