House Alleges Oil Companies Operating in Nigeria without CAFA Certificate

Invites Shell, Total, others over  fraud allegation

Udora Orizu in Abuja

The House of Representatives adhoc committee investigating the Joint Venture (JV) businesses and Production Sharing Contracts (PSCs) of the Nigerian National Petroleum Company Limited (NNPCL) has said that most oil  companies in Nigeria were operating without Certificate of Acceptance on Fixed Assets (CAFA).

The lawmakers claimed they were operating without the CAFA certificate issued by the Ministry of Trade and Investment to legalise their operations.

Chairman of the Committee, Hon. Abubakar Fulata, who made the disclosure  yesterday at the resumed investigative public hearing of the committee, stated that most of them were making claims of capital allowance from the government without the certificate and as such may be compelled to make necessary refund to the government coffers.

Fulata also fingered Shell, Chevron, Agip, Total, other oil companies in a malfeasance amounting to billions of dollars.

While reeling out the names of the affected oil companies at the hearing, he said that they must appear before the committee to clear the allegations.

He also said that tax evasion by the oil companies was central to the committee’s investigation which covered a period of 32 years.

He said: “All companies in Nigeria do not have the CAFA certificates and they are enjoying capital allowance amounting to millions of dollars. Things they can’t do in their country they are doing in Nigeria. Unless you clear the malfeasance of this allowance, the committee would be compelled by the relevant agency to recover this money. I will like to urge the stakeholders in this investigation to appear as a matter of necessity to defend themselves against flagrant violation of Nigeria’s tax laws. For example, Total is to appear with evidence to defend itself against a malfeasance of $5.3 billion, in respect of OML 130. Total is also to appear to defend itself against malfeasance of $7.3 billion in respect of OML 130 PSC.

“The first one is Total Upstream Limited, the second one is Total Upstream Nigeria Limited. Number three, Addax Petroleum is expected to appear before this committee to defend itself against malfeasance of $2.8 billion in respect of OML 123 and 124 PSC. In addition, Total is requested also to appear to defend itself against allegations of $11.2 billion in respect of OML 138. Then AGIP Energy and Natural Resources Limited is expected to defend itself against malfeasance of $62 million in respect of OML 116, Plc. Nigeria Agip again is expected to appear and defend itself against malfeasance of $1.595 billion in respect of OML 125 and 134. Then, Shell Nigeria Exploration and Production company is expected to appear before this committee and defend itself against malfeasance of $7.557 billion. Addas Petroleum is expected to appear to defend itself against allegation of malfeasance amounting to $1.29 billion.”

Fulata directed the Clerk of the committee to invite the Registrar General of the Corporate Affairs Commission (CAC), Alhaji Garba Abubakar to the next sitting to answer to some concerns of the the lawmakers.

Earlier, the Committee grilled the Managing Director of Seplat Oil Company, Ayo Olatunde on a wide range of issues which included the number of oil blocs it operated and for how long; amount of money paid for acquisition of OMLS and from whom it was paid to; joint venture partnership with NNPC or NPDC; the basis for which the company received cash call of 5 million dollars from the federation in 2017; the contribution of cash call as a counterpart funding and what was received as capital allowance from the inception of the company’s engagement till date.

To this end, the panel, asked the company to provide it with the details of its payments, the amount paid, the banks, account numbers and statements.

The oil company was also asked to make details of all the jobs it has awarded from 2010 till date.