PIA: ‘Allegation of Embezzlement of HCDTF Politically Motivated’

Okon Bassey in Uyo

A member of the NNPC/MPN JV EMOIMEE Host Community Development Trust Fund (HCDTF) representing Esit-Eket Local Government Area of Akwa Ibom State, Mr Dan Abia, has refuted allegations of embezzlement of the Trust Fund in the local government,  describing it as politically motivated.

He said it is impossible for anyone to carry out any form of embezzlement because of the way the Petroleum Industry Act (PIA)is structured. 

Abia stated this in Eket Local Government   yesterday while reacting to allegations of mismanagement of funds and purchase of rickety buses as palliatives for beneficiaries. 

He said: “PIA is a specialised area and very novel. Every day we are learning and because we don’t want to make mistakes, the speed isn’t much because the checks mechanism is serious. In fact, the way the PIA is fashioned, it’s almost impossible to have any form of embezzlement.

“We have several layers of control. We have the Board of Trustees whose job and responsibilities are distinct from the Management Committee.“

“ The management committee also has it responsibility very distinct from that of the Advisory Committee

“The checks don’t even stop at that level, we have the Settlor, which is like the general overseer, then you have yet again the regulator, by this Act, there is only one regular and  that regulator is the Nigerian Upstream Petroleum Regulation Commission(NUPRC). The regulator regulates the settlor and the activities of the Trust.

“You cannot go outside the host community development plan, so you are guided by the PIA document. 

“It is specified by law that the Settlor should carry out the needs assessment and the bottom line is that both the needs assessment  and the host community development plan is done by the Settlor (Mobil) but in conjunction with the community.

“It’s impossible to do a project that is not contained in the document and that means you cannot invent any project. 

“These allegations are politically motivated and coming from people who are yet to benefit.”. 

Abia disclosed that since inauguration in August, 2024, the Esit Eket Trust Fund had only done two projects, the scholarship grant to students and purchase of 95 mini buses and 95 motorcycles to communities in Esit Eket local government area of Akwa Ibom State.

Reacting to allegations of rickety buses as palliatives, Abia said: “The prices were not determined by me or anyone of us, it was determined by the procurement team and it was uniform. 

“The price in Esit-Eket is the same as the price in Eket and any other place, these jobs were advertised and usually with Mobil, the lowest bidder gets the job and it was awarded at N3. 9 million for each bus.”