The House of Representatives Ad hoc Committee Investigating the Structure and Accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCs) of NNPC, Says it is worrisome for a project that cost $1.8 billion in Qatar to be awarded to Chevron in Nigeria at $10.5 billion
The House of Representatives Ad hoc Committee Investigating the Structure and Accountability of the Joint Venture (JV) Businesses and Production Sharing Contracts (PSCs) of NNPC on Monday accused the Chairman, Federal Inland Revenue Service, Mohammed Mamman Nami of collaborating with oil companies to deny Nigeria of trillions of Naira.
The committee’s chairman, Hon. Abubakar Hassan Fulata and other members of the probe panel expressed their anger over the inability of Nami to appear before them today to make clarifications regarding the allegation of tax evasion by oil companies.
The committee then directed the FIRS Chairman, Mohammed Nami to appear in their sitting or risk being compelled by the security agencies to appear before it in line with the power given to them by the provision of the Constitution of the Federal Republic of Nigeria.
The probe panel which is investigating NNPC joint venture from 1990 to date insisted that several oil companies are milking Nigeria dry.
The Chevron Nigeria Ltd representatives who appeared before the panel on Monday confirmed that they have no CAFA Certificate despite enjoying capital allowances over the years.
The lawmakers said enjoying capital allowance without CAFA Certificate is a gross violation of Nigeria law stating that ignorance of law is not an excuse in the law.
An executive director of Chevron Nigeria Ltd, Monday Ovuede led the company’s delegation to the probe panel on behalf of the Managing Director/CEO who is on leave in abroad.
The probe panel which is investigating NNPC joint venture from 1990 to date insisted that several oil companies are milking Nigeria dry.
The Chevron Nigeria Ltd representatives who appeared before the panel on Monday confirmed that they have no CAFA Certificate despite enjoying capital allowances over the years
According to Chevron, the Nigeria EGTL was initially awarded at $2.9 billon but later reviewed to $10.5 billon to its sub contractors.
Monday said the projects which commenced in 2005 was expected to be completed in 2009 but it dragged on till 2014.
According to him Chevron is still collecting Capital allowance on the project.
The lawmakers said for Chevron on its own to review a project from around $2.9 billon to $10.5 billon to its sub contractors and expect Nigeria government to pay it in the name of joint venture with NNPC is a clear sign of shady deal and sharp practices in the oil and gas industry.
They argued that Chevron is is a USA based company but American government will never tolerate that kind of practice where a company in partnership with a government agency will unilaterally review cost of contract.
The panel aldo directed the chief executive officer of Total, Shell and few other companies to appear before it by tomorrow, Tuesday 22nd November, 2022.
