Reps query $325.68m revenue diverted to OICs’ accounts

The House Committee investigating the alleged $17 billion stolen crude oil and Liquified Natural Gas to foreign destinations on Tuesday queried the diversion of multi-million dollars revenue accrued from oil liftings into the accounts of some International Oil Companies (OICs) by marketers.

While giving update on the ongoing investigation, Abdulrazak Namdas, chairman of the Ad-hoc Committee, disclosed that the committee has so far established a lot of facts regarding the corruption in the various transactions involving the Nigerian National Petroleum Corporation and International Oil Companies (OICs).

The lawmakers also assured the Petroleum Industry Governance Bill when passed into law will address the challenges of corruption and impunity being perpetuated in the oil and gas industry.

According to him, most of the OICs that participated in the oil lifting between 2011 and 2015 confirmed that payments were made through major operators while Federal Inland Revenue Service (FIRS) explained that it relied on NNPC’s advise on the revenue accrued into the Petroleum Profit Tax (PPT) due to government.

“We have been able to establish a lot and made reasonable progress. FIRS told us that whatever they do they get the advise of NNPC. But when you are talking to the IOCs, they will tell you that the FIRS has been coming to their offices to cross check documents.

“There are issues with companies who said they pay taxes but not in their names but in the names of their operators. Meanwhile,the receipt read their names. Sorry here are things we really need to clarify. We should be able to know who to hold responsible.

While reacting to the ongoing litigation between Federal Government and some OICs including Shell, Namdas noted that the Legislative arm of government was empowered by section 88 and 89 of the 1999 Constitution to summon and arret anybody on any investigative matter, adding that there are clarity on the principles of Separation of Power.

While responding to inquiry on the payment of the sum of $53 million into a certain account, Funmi Olafimihan, Shell’s representative cannot confirm or deny the content of the document presented by the Ad-hoc Committee.

To this end, the Ad-hoc Committee directed that Shell should provide this information within 24 hours.

Speaking on behalf of UBA Bank, Abdulrazaq Shittu affirmed that the Bank made payments on taxes and royalties on behalf of our clients to the tune of $426.5 million in 2013.

In her presentation, Joke Aliyu, NAOC representative noted that company is constrained by the ongoing suit instituted by the Federal Government on the subject matter.

In swift reaction to her submission, Namdas who emphasised the relevance of doctrine of Separation of Power, noted that the Legislature has the power to probe any issues of national importance since there was no Court order restricting the House from probing the subject matter.

Namdas who alleged that the IOC are using Nigerians to subvert the system, observed that “Federal Government took you to court to recover shortfall to compel you to pay why you refused to pay, ours is to uncover corruption. Moreover ours is between 2011 and 2015, Federal Government’s was for 2013,” he stressed.

While ruling, Namdas directed the IOCs and oil marketers to provide documents on all the Letter of Credits (LCs) of all payments related to the crude oil lifted and evidence of taxes paid to FIRS and all other regulatory agencies within the period under review.

KEHINDE AKINTOLA, Abuja