Reps To Probe $4bn Debt Owed NDDC By Oil Companies

The House of Representatives has resolved to investigate the flagrant disobedience of International Oil Companies to the Delta Development Commission (NDDC) Act which culminated in $4 billion indebtedness to the Commission.

This followed the adoption of a motion sponsored by Hon. Donald Kimikanboh Ojogo from Ondo State at plenary yesterday.  Moving the motion, the Ojogo said the indebtedness of the IOCs to the NDDC had culminated in the drive by the Economic and Financial Crimes Commission (EFCC) to commence the debt recovery process.

He expressed worry that EFCC in its recovery process, has continually held on to all such recovered monies without remitting same to the NDDC for the Commission to meet its obligations.

“The establishment of the NDDC Act, 2000 was in response to heightened agitations and violent yearnings for special intervention in the following oil- producing States: Abia, Akwa-Ibom, Anambra Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers as enshrined in Section 2 (1) of the subject under debate.

“Section 14 (1) of the NDDC Act states: The Commission shall establish and maintain a fund from which shall defrayed expenditures incurred by the Commission. There shall be paid and credited to the fund established under subsection (1) of this section: “(a) from the Federal Government, the equivalent of 15 percent of the total monthly statutory allocations due to member States of the Commission from the Federation Account; this being the contribution of the Federal Government to the Commission-(b)3 percent of the total annual budget of any oil producing company operating, onshore and offshore, in the Niger-Delta Area; including gas processing companies;

“While the Federal Government has adhered to Section 14 (1) (a), the IOCs have continually subjected Section 14(1)(b) to total neglect and distasteful disrespect, thereby putting the NDDC in a state of fiscal incapacity, culminating in serious indebtedness to contractors; more so, that, the NDDC is being owed $4 billion by the IOCs,” he stated.