Senate invites NNPC, CBN, FIRS others over $5bn tax fraud

The Senate has invited the heads of the Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), National Petroleum Investment Management Services (NAPIMS) and Chevron Nigeria Limited to provide detailed information about alleged $5 billion tax fraud.

The decision was taken by the Senate Adhoc Committee Investigating  Fraud Allegation Against Chevron.

Speaking at the inauguration of ‎the Adhoc Committee on Wednesday, Chairman of the panel, Magnus Abe vowed to unravel the truth about the alleged fraud.

According to him, “We are not coming‎ to this investigative hearing with any pre-judgement; the truth must be uncovered. We will be fair, thorough and quick in our assignment”.

Inaugurating the committee, Senate President Bukola Saraki urged the Committee to be independent in their assignment and be fair to all parties concerned.

Recall that  George Uboh of the Panic Alert Security System (PASS) petitioned the upper legislative chamber over alleged $5 billion fraud at the oil company.

Uboh, according to the petition, alleged that between 2001-2002, Chevron evaded tax to the tune of over $343 million through over bloating of its operational costs under Petroleum Profit Tax, using Carry Agreement with NNPC as a cover when such agreement never existed with the company.

“That Chevron Nigeria Limited recouped spurious loan of $235 million from the Nigeria Federation between 2002 and 2005 for overdue cash calls; that Chevron conspired with some oil producing companies, NNPC auditors and defrauded the Federation of Nigeria by over $3.6 billion by merely manipulating accounts and records which were also done under the umbrella of Carry Agreements,” the report added.

The report stated that the representative of Chevron, Uwakwe, had denied that the oil company recouped spurious loans from the NNPC or from any other entity.

“That Chevron Nigeria Limited received notice of Assessment for Education tax and Gas Income tax and later made payment of $38,259,021 via Citibank on 28th August, 2006 for the three assessments,” it added.

OWEDE AGBAJILEKE, Abuja