Michael Howard to meet SFO over Somalia oil deal
Crime agency has confirmed no suspicion attaches to former Tory leader, company says
Michael Howard, David Cameron's predecessor as leader of the Conservative Party, is to meet officials from the Serious Fraud Office in connection with a criminal investigation into Soma Oil and Gas, the company for which he acts as non-executive chairman.
The SFO launched its investigation last week. On Monday it emerged the basis for the probe is a United Nations report alleging conflicts of interest related to oil exploration in Somalia. In particular the report is critical of payments worth almost $600,000 to the Somali oil ministry and further amounts to its legal advisers, which were made in the year after it signed an exclusive deal in August 2013.
The Financial Times notes the exploration deal itself, the first to be signed by the country's Western-backed government, which was at the time just one year old, had been criticised over concerns it was reached without an open tender process and despite the UN recommending a moratorium on oil exploration. The paper noted at the time that Lord Howard had "spearheaded" the negotiations.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Soma said in a widely quoted statement that the SFO had confirmed "no suspicion whatsoever attaches to Lord Howard" and that it has "always conducted its activities in a completely lawful and ethical manner".
Reuters states that the UN report is particularly critical of payments totalling $590,000 to the oil ministry for "capacity building arrangements", which were to be used to provide technical assistance including paying salaries for specialists. It alleges at least six officials who drew Somali government salaries were also on the payroll, which would "in some cases have almost trebled their salaries". Around $100,000 was earmarked for construction of a "data room" that was never completed, it adds.
The paper also cites a payment of $495,000 to Petroleum Regimes Advisory, a Canadian law firm which acted as legal adviser to the Somali government when it was negotiating the exploration contract.
Soma has said the UN report "fundamentally misunderstood the nature, purpose and destination of the payments". It denies there was any conflict, saying the contract was agreed with the Somali cabinet and not the oil ministry, that no individual member of the Government was paid directly and that "appropriate due diligence" had been undertaken and "legal safeguards" put in place.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
5 fact-checked cartoons about the VP debate
Cartoons Artists take on civil disagreements, admissions, and more
By The Week US Published
-
The Japanese villages where time stood still
The Week Recommends Up to 200 villagers cooperate to thatch a roof in a single day, preserving this beautiful tradition
By The Week UK Published
-
Crossword: October 6, 2024
The Week's daily crossword
By The Week Staff Published
-
Labour shortages: the ‘most urgent problem’ facing the UK economy right now
Speed Read Britain is currently in the grip of an ‘employment crisis’
By The Week Staff Published
-
Will the energy war hurt Europe more than Russia?
Speed Read European Commission proposes a total ban on Russian oil
By The Week Staff Published
-
Will Elon Musk manage to take over Twitter?
Speed Read The world’s richest man has launched a hostile takeover bid worth $43bn
By The Week Staff Last updated
-
Shoppers urged not to buy into dodgy Black Friday deals
Speed Read Consumer watchdog says better prices can be had on most of the so-called bargain offers
By The Week Staff Published
-
Ryanair: readying for departure from London
Speed Read Plans to delist Ryanair from the London Stock Exchange could spell ‘another blow’ to the ‘dwindling’ London market
By The Week Staff Published
-
Out of fashion: Asos ‘curse’ has struck again
Speed Read Share price tumbles following the departure of CEO Nick Beighton
By The Week Staff Published
-
Universal Music’s blockbuster listing: don’t stop me now…
Speed Read Investors are betting heavily that the ‘boom in music streaming’, which has transformed Universal’s fortunes, ‘still has a long way to go’
By The Week Staff Published
-
EasyJet/Wizz: battle for air supremacy
Speed Read ‘Wizz’s cheeky takeover bid will have come as a blow to the corporate ego’
By The Week Staff Published