By Raphael Ekpang
It was an operation fire for fire as the House of Representatives Ad hoc Committee investigating the Structure and Accountability of the Joint Venture (JV) Business and Production Sharing Contracts (PSCs) of the NNPC drilled the representatives of the Nigerian Agip Oil Company Ltd on Wednesday in Abuja.
The company’s representatives were drilled by the panel with the intention to establish whether in the course of their operations over the years they have not short-changed the nation by way of profit tax, capital allowance they have enjoyed and all other of their activities.
The ad hoc Committee Chairman, Hon. Abubakar Hassan Fulata made it clear that they are not ‘witch-hunting’ anybody but it will be unfair for oil companies to evade taxes at a time the country is borrowing to fund budget.
The lawmakers noted that almost all the oil companies in the country have no Certificate of Acceptance of Fixed Assets (CAFA) yet they have been enjoying capital allowance claims in violation of the nation’s law.
The representatives of Agip which was led by Director, and General Manager, Public Affairs, Mr. Barry Nwibani said over the years they have relied only on Petroleum Tax Act for payment of taxes.
However, the lawmakers said the oil companies do not have the right to choose the law their can obey and the ones they cannot obey. They stressed that ignorance of the law cannot in any way absolve them.
GLovanni Grugni, Vice Chairman/Managing Director, Nigeria Agip Oil Company Ltd in a letter dated November 29, 2022 addressed to the committee’s chairman, pleaded with the lawmakers to allow Nwibani and 4 others to represent him at the investigative hearing.
The letter which was read by Fulata said “due to unforseen circumstances, I’m yet to arrive Nigeria. Consequently, I’m unable to attend the meeting in person.”
The probe panel allowed the representatives to answer questions regarding the tax payment, NNPC joint Venture and. PSCs among others.
The representatives of the company said Agip at the moment is operating oil on four oil blocks, OML 60, 61, 62, and 63.
They also promised to furnish the committee with necessary documents in exception of CAFA certificate in their next appearance.
The lawmakers resolved that the MD, Grugni must appear in person before the conclusion of the investigation.
The probe panel had earlier given 7 days ultimatum to the Chairman, Federal Inland Revenue Service, Muhammad Mamman Nami to appear before it.
The lawmakers who accused Nami of conniving with oil companies to evade taxes ruining to trillions of Naira said he has been consistently ignoring the invitation.
They directed the clerk of the House of Representatives, Yahaya Danzaria to write a letter to Nami to appear on Wednesday December 7, 2022.
They also threaten to direct inspector general of police to compel him do so if he fails to appear on Wednesday.
