Tax evasion’: Reps probe N700b Shell gas project •EFCC officials in alleged N120m bribery scam The House of Representatives, on resumption from the Eid-el-Kabir break, is to investigate a N700 billion Shell gas project, following allegations of tax evasion. The project in Bayelsa State, is said to have contravened the Statutory Development Permit (commonly called Building Permit), as required under the Nigerian Urban and Regional Planning Act CAP 138, Laws of the Federation of Nigeria, 2004; the Petroleum Act of 1969 (CAP 350) First schedule Section 2 (3); Paragraph 35 and Petroleum (Drilling and Production) Regulations L.N 69 of 1969; Regulation 18. The probe follows a petition by Chidi David Adebanya, a former Interface Manager of the Shell Petroleum Development Company (SPDC), against officials of the Economic and Financial Crimes Commission (EFCC), who allegedly demanded N120 million bribe from him. The gas project, according to the 280-page petition sent to the House Committee on Public Petition, “is the largest Shell project in sub-Saharan Africa, costing $4.2 billion (N700 billion), occupying a land area of two million sq.m (about half of Lagos Island) and producing one billion scf (1,000,000,000 standard cubic feet) of gas and 100,000 barrels of oil per day, earning about $30 million (N5 billion) daily in revenue.” A member of the House, Peter Edeh, (Ezzah North/ Ishielu Federal Constituency), who brought the petition on behalf of Chidi David Adabanya, prayed “the House to investigate Mr. Chile Okoroma and Olaolu Adegbite, directors of the EFCC, who were allegedly involved in corrupt practices and official misconduct in connivance with the SPDC, to ensure transparency, equity and justice.” The investigation is conducted by the Ozor Azuibike-led Committee on Public Petitions. The petitioner alleged that Shell failed to pay taxes worth N7 billion to the Bayelsa State government as building permit fees on the Gbaran Ubie Integrated Oil and Gas project in Gbarantoro Local Government Area of Bayelsa State. Adabanya in the petition dated May 21, said: “Things took a bad turn in June 2010 when Forstech reported SPDC for underpayments to the Bayelsa State government wherein the then governor, Timipre Sylvia, cried out on the N4.1 billion underpayment to the Bayelsa State government by the SPDC. “To avert international reputation damage, which the Forstech allegation of fraud and tax evasion will cause, SPDC hurriedly put up a petition against me, alleging that I conspired with the Bayelsa State government to defraud it (SPDC) of the amounts so far paid and engaged the service of the EFCC to ‘help’ them recover the payments so far made to the consultant. It is not surprising that the EFCC was a willing collaborator, given the SPDC– styled cooperation with the EFCC.” Adabanya, who accused EFCC of corruption, said one of the EFCC directors, Chile Okoroma, in October 2011 “demanded N120 million from me to close the allegations of the SPDC against me.”
Posted on: Tue, 07 Oct 2014 08:26:06 +0000