Host Oil Communities Defend Komolafe, Say Critics on Extortion Mission

*Disclose N53.2bn, $92.7m disbursed so far under new law

Emmanuel Addeh in Abuja

Host Communities of Nigeria (HOSCON) Producing Oil and Gas and Pipeline Impacted States in the Niger Delta, yesterday rose in defence of the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, against those they described as extortionists.
Briefing the press at the office of the organisation in Abuja, National Chairman of HOSCON, Dr. Mike Emuh, maintained that the unnamed petitioners against Komolafe, are persons the commission had stopped from cutting corners in the oil industry.

Some little known groups had recently flooded the media with unsubstantiated allegations against the NUPRC’s chief executive. But the host communities insisted that the insinuations were instigated by those affected by the changes in the operational ecosystem that has now denied them of corrupt practices.
“It is now fashionable for those who have failed in cutting corners in the oil industry, following extensive regulations in line with the Petroleum Industry Act (PIA), to resort to alleging corruption within the system and calling for the head of the commission chief executive.
“They are reactions from those affected by current wave of reforms in the Nigerian oil and gas industry which has made it impossible for business as usual. They are fighting back. Corruption is fighting back,” Emuh stated.

Stressing that the agenda was to hoodwink and extort the commission, the host oil communities stated that the detractors have failed in their mission.
“They were the same persons, who seven months ago, threatened to shut down production of crude oil when it became obvious that the commission would not dance to their tune and that of their paymasters.

“Their requests are outside the dictates of the PIA. PIA has appropriate structures for dealing with host community developments and entitlements. Komolafe has demonstrated significant leadership, transparency and accountability in the regulatory functions of the commission,” the group added.
HOSCON pointed out that Komolafe had delivered on his regulatory responsibilities, taking into account current status of PIA and its implementation, with recognition and attention being given to host communities, unlike in the past.

“The NUPRC chief executive and his management team are effectively implementing the regulations concerning the Host Communities Development Trust (HCDT) without let or hindrance, which is one of the reasons for the persistent attacks and petitions.
“The commission has diligently pursued the setting up of the Host Communities Development Trustees and subsequent release of the 3 per cent OPEX Trust fund, an aspect that most operators/settlors who have not complied with the conditions of setting up the board of trustees in accordance with the legal framework are trying to frustrate, by creating distractions through petitions,” Emuh stated.

He added that some personnel nominated into the commission were serving as agents to their godfathers, alleging that since they cannot carry on business as usual in the commission they had resorted to attacking the chief executive for refusing to act their script.
“The operators/settlers are not comfortable with the establishment and implementation of the Host Communities Digital Operational Platform, and they have variously voiced their resentment during our stakeholders’ consultative meetings.
“The platform is meant to cover all financial activities and records of the operational activities of operators/settlors. The determination of the commission to enforce this regulatory requirement has not gone down well with them.

“Within the short period of incorporation of the HCDT, we have also noted the engagement of 71 active upstream operators, 124 incorporated Trusts, 70 funded Trusts, 167 ongoing CDT projects as well as disbursements of N53,209,213,390 and $92,773,905.
“It would clearly be seen as an aberration and a maliciously wicked act for some elements within the oil and gas producing communities or states to think of pulling down the commendable achievements already recorded by the commission within this short period, instead of joining hands to improve the economic base of the country and making the Niger Delta area a more conducive and prosperous place,” HOSCON said.

It said it was unacceptable for a few disgruntled elements to continuously incite some gullible members of the host communities and the public to discredit Komolafe for being determined in discharging the requirements of his office as demanded by the PIA.