The ad-hoc committee of the House of Representatives investigating the Joint Venture (JV) businesses and production sharing contracts (PSCs) of the Nigerian National Petroleum Company Limited (NNPCL) has said that all the oil companies in Nigeria were operating without Certificate of Acceptance on Fixed Assets (CAFA).
It expressed anger over the failure of the oil firms to appear before it to clarify their alleged involvement in tax evasion in the last 32 years.
The chairman of the committee, Hon Abubakar Fulata, stated this yesterday at the resumed investigative public hearing of the committee.
He said that tax evasion by the oil companies was central to the committee’s investigation which covered a period of 32 years, precisely from 1990 to date.
He stressed that the companies were withholding information from the committee.
“Let me make it very clear that the issue of tax evasion is at the core of this investigation. We have given you ample time to respond but most of the companies deliberately withheld information.
“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,” he said.
CAFA is issued as evidence of approval from IID for the purchase of assets valued at N500,000 and above, while capital allowance is granted to companies that have incurred qualifying capital expenditure for the purposes of a trade or business to generate taxable.
The committee further 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 a necessary refund to the government coffers.
The committee also indicted Shell BP, Chevron, AGIP, Total Oil Companies amongst others, saying they committed a malfeasance amounting to billions of dollars.
Fulata who reeled out the names of the affected oil companies at the hearing said that they must appear before the committee to clear the allegations.
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