NOSA EGHAGHA
Ad-Hoc Committee of the House of Representatives, investigating Joint Venture (JV) businesses and Production Sharing Contracts (PSCs) of the Nigerian National Petroleum Company Limited (NNPCL) has said that oil companies in Nigeria are operating without Certificate of Acceptance on Fixed Assets (CAFA).
The Committee also disclosed that these oil companies operate without CAFA certificate, issued by the Ministry of Trade and Investment to legalise their operations, thereby, depriving the nation of its genuine revenue.
Chairman of the Committee, Rep Abubakar Fulata, made this disclosure at the resumed investigative public hearing of the committee in Abuja on Tuesday.
CAFA is issued to legal oil companies as evidence of approval from IID, for the purchase of assets valued at N500,000 and above, while capital allowance is granted to companies that have incurred qualifying capital expenditure for the purposes of trade or business to generate taxable capital.
The committee further stated that most of them were making claims of capital allowance from the government without certificate and as such, may be compelled to make necessary refund to the Federal Government coffers.
Fulata further reeled out names of the affected oil companies at the hearing saying; “they must appear before the committee to clear the allegations against them.”
The indicted oil companies are; Shell BP, Chevron, AGIP, Total oil companies amongst others, saying they committed malfeasance, amounting to billions of dollars.
He stressed that tax evasion by the oil companies was central to the committee’s investigation which covered a period of 32 years, precisely from 1990 to date adding that; “the companies were withholding information from the committee.
“Let me make it very clear that the issue of tax evasion is at the core of this investigation. We have given you ample time to respond but most of the companies deliberately remain adamant.
“All companies in Nigeria do not have the CAFA certificates and they are enjoying capital allowance amounting to millions of dollars. Things they can’t do in their country they are doing in Nigeria. Unless you clear the malfeasance of this allowance, the committee would be compelled by the relevant agency to recover this money.
“I would like to urge the stakeholders in this investigation to appear as a matter of necessity to defend themselves against flagrant violation of Nigeria’s tax laws.
“Total Oil is to appear with evidence to defend itself against a malfeasance of $5.3 billion, in respect of OML 130. It’s also to appear to defend itself against malfeasance of $7.3 billion in respect of OML 130 PSC.
“The first one is Total Upstream Limited, the second one is Total Upstream Nigeria Limited.
“The third one is Addax Petroleum, expected to appear before this committee to defend itself against malfeasance of $2.8 billion in respect of OML 123 and 124 PSC.
“In addition, Total is requested also to appear to defend itself against allegations of $11.2 billion in respect of OML 138.”
He also said Stardeep (Chevron) would appear to defend itself against $14.9 billion in respect of OML 127 and SO Exploration and Production to appear and defend itself against malfeasance of $6.6 billion in respect of OML 133 and Star Oil Nigeria Limited to appear and defend itself against malfeasance of $3.28 billion.
“AGIP Energy and Natural Resources Limited is expected to defend itself against malfeasance of $62 million in respect of OML 116, Plc.
“Nigeria AGIP again is expected to appear and defend itself against malfeasance of $1.595 billion in respect of OML 125 and 134. Then, Shell Nigeria Exploration and Production company to appear and defend itself against malfeasance of $7.557 billion.
“Addas Petroleum is expected to appear to defend itself against allegation of malfeasance amounting to $1.29 billion.
“In addition, Shell is expected to come and defend itself against malfeasance of $2.2, 572, 818,633 billion. Chevron is invited to defend itself against malfeasance of $14, 674, 269,399 billion. Total, again, is expected to present itself and defend malfeasance of $1.385,302,139 billion.
“Amin International is asked to appear before this committee and defend itself against the malfeasance of $302,159,600 million.
“Now, Star Deep Exploration and Production Limited is asked to appear to defend itself against malfeasance of $1.497 billion in respect of OML 143. And then, Addas, again, to appear to defend itself against malfeasance of $3, 288, 233. 83 billion.
“These are just a few because the data is not yet completed. This is just a tip of the iceberg in terms of the malfeasance perpetrated by oil companies in Nigeria.”
The committee also directed Clerk of the committee to invite the Registrar General of the Corporate Affairs Commission, (CAC), Alhaji Garba Abubakar to the next sitting to answer to some concerns of the lawmakers.
Earlier, the Committee grilled the Managing Director of Seplat oil company, Ayo Olatunde on a wide range of issues which included number of oil blocs it operated and for how long; amount of money paid for acquisition of OMLS and from whom it was paid; joint venture partnership with NNPC or NPDC; basis for which the company received cash call of $5 million from the federation account in 2017; contribution of cash call as counterpart funding and what was received as capital allowance from inception of the company’s engagement till date.
To this end, the committee, asked the company to provide it with the details of payments, amount paid, banks, account numbers and statements.
The oil company was also asked to make details of contract jobs awarded from 2010 to date available; “to enable us see things dome, the proper way,” the committee chairman added.
