draining development.pdf - Khazar University

The Kleptocrat’s Portfolio Decisions 419The methodology was almost comically simple. Between March 1994and April 1998, Gwarzo wrote some 45 letters to Abacha. The first, datedMarch 25, 1994, was, as the letter itself stated, “very modest”; it read:Request for Special AllocationI am constrained to request very modestly US$2m (Two million dollars)for very urgent operation (sic) overseas.I will appreciate your kind approval for this amount to enable thisimperative operation to commence immediately. 9The entire sum was approved by Abacha, who countersigned the letter,which was then taken to the CBN, and the CBN paid out to Gwarzosix tranches of traveler’s checks totaling US$2 million on the same day.Thomas Cook traveler’s checks issued by the CBN under license were afavorite instrument used extensively by government ministers to makeoverseas payments during the time of the Abacha regime.The scheme with the traveler’s checks worked so well that Abacha andGwarzo moved on to obtain direct cash withdrawals from the CBN.Between February 1995 and May 1996, 33 cash withdrawals or telegraphictransfers were made. The cash withdrawals were made mainly inlarge denomination dollar bills delivered personally to Gwarzo. The telegraphictransfers were made mainly to accounts held at European banksby offshore entities beneficially owned by the Abachas.By April 1998, Gwarzo’s letters were much more ambitious: the last ofthese letters referred to Abacha’s “charismatic leadership and a vote ofconfidence from all five political parties.” However, it said there were“insincere voices” that felt “others should be given a chance to run therace with you. These sorts of characters,” the letter said, “are being aidedand abetted by some foreigners who do not wish this nation any good.”Therefore, the letter went on, “we should put on an aggressive publicenlightenment and mount strategies of countering these miserable miscreantswith a view to furthering the solidity of your teaming (sic)admirers both at home and abroad.”The letter finished by stating: “A lot of resources will be needed for useboth at home and abroad. I recommend as follows one hundred millionUS Dollars ($100m), fifty million-pound sterling (£50m) and five hundredmillion Naira (N500m). Kindly consider and approve.”