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FG Sues Oil Firm Over $3bn Unpaid Taxes

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The Federal Government, through the Office of the Attorney-General of the Federation, has commenced legal proceedings against Addax Petroleum Development Nigeria Ltd, a Chinese-owned oil firm, over the company’s alleged under-remittance of $3billion in taxes and royalties.
Documents before Justice Mojisola Olatoregun showed that the funds are outstanding claims against the company under the Petroleum Profit Tax Act and Petroleum (Drilling and Production) Amendment Regulation 2003 over Oil Mining Leases (OMLs) 123, 124, 126, and 137.
Joined as respondents are Addax Petroleum Development Nigeria Ltd, Addax Petroleum Exploration Nigeria Ltd, the Nigerian National Petroleum Corporation (NNPC), the Ministry of Petroleum Resources, Department of Petroleum Resources, and the National Petroleum Investment and Management Services (NAPIMS).
D.A. Awosika and Partners, counsel representing the Federal Government, stated that the $3billion unremitted funds came as a result of the oil multinational’s illegal and irregular reliance on side letters dated November 21, 2001, December 20, 2001, and August 24, 2004, that were never gazetted.
The government moved to recover the funds from Addax after report on how the Chinese firm allegedly paid millions of dollars in bribes to Nigerian officials to secure juicy contracts in the oil industry.
In 1998, Addax Petroleum, a subsidiary of China’s Sinopec Group, one of the world’s largest oil and gas producers, entered into a Production Sharing Contract (PSC) with the NNPC (as concessionaire) in respect of OPL 98/118 and OPL 90/225.
Four years later, the company discovered oil in commercial quantities and the OPLs were converted into Oil Mining Leases (OMLs) 123/124 and 126/137.
The PSC entered by the two parties required Addax Petroleum to pay royalties on any oil produced from the relevant oil blocks at the rate of 20 per cent as stipulated by law. It also provided that the Petroleum Profit Tax Act (PPTA) applicable to the contract areas shall be 65.75 per cent for the first five years, starting from the first day of the month of the first sale of the oil, and 85 per cent thereafter.
D.A Awosika & Partners are insisting that Addax Petroleum fraudulently obtained a side letters in 2001 and 2004 that were “never gazetted” and which they used in calculating their taxes and royalties.
The calculations in the side letters fixed the PPT payable by the company at 60 per cent, and rather than the 20 per cent flat rate of royalty, provided for a graduated rate depending on the volume of oil produced from the oil blocks.
The said letters were signed by then Special Assistant on Petroleum and Energy to former President Olusegun Obasanjo, Mr. Funsho Kupolokun, in 2001 and the then Director General/Special Adviser on Budget to the President in 2004, Mr. Olabode Agusto.
“Several objections and protests were raised by Federal Inland Revenue Service (FIRS), NNPC, and DPR to the reliance on these side letters by the defendants to bypass, supplant, and subvert the process,” the government’s lawyers stated.
“In 2003, in order to give effect to the graduated royalty regime stated in the side letters, the Minister of Petroleum Resources (Obasanjo) issued the Petroleum (Drilling and Production) Amendment Regulations, which provided for graduated royalty rates for onshore and shallow offshore PSC which did not account for royalty by tranches.
effect from the first day of January, 2000, which was the same date of commencement of the graduated royalty rates contained in the side letters.”
Several meetings between Nigerian government officials – represented by the FIRS, DPR, and NNPC – and representatives of Addax Petroleum reassess and resolve the latter’s “colossal underpayment” to the government between 2007 and 2012 yielded no results.
But Addax Petroleum maintained its right to the use of the side letters for computing the taxes on its operations and dragged the government over accusations of a breach of their 1998 PSC on the oil blocks.
In suit FHC/ABJ/CS/1099/2014 filed before former Chief Judge of Federal High Court Ibrahim Auta, the company sought a judicial approval towards their continued use of the side letters to compute its financial obligations to the Nigerian government.
However, on May 26, 2015, three days before the administration of the then president, Goodluck Jonathan, handed over to his successor, Muhammadu Buhari, the government negotiated a controversial out-of-court settlement with Addax Petroleum, agreeing to pay the company $3.4billion (about N1trillion).
Court papers filed by the Nigerian government’s lawyers stated that Addax Petroleum “surreptitiously teamed up” with some officials of DPR, FIRS, and NNPC to execute certain terms of settlement that were eventually made the Consent Judgment of court, notwithstanding the pendency of several applications yet to be heard by the same court.
“In executing the said terms of settlement, the authorities were not sought, no approval at Federal Executive Council level was given, the governing boards of the FIRS, NNPC and DPR did not authorise those officers that executed the bogus terms of settlement to so act,” the lawyers argued.
However, when President Muhammadu Buhari’s assumed office, the NNPC in a letter to Addax Petroleum endorsed by the president and dated September 7, 2015, reversed the agreement entered into by the previous administration.
In the ongoing suit before Justice Olatoregun, the federal government is seeking an order directing the NNPC, Ministry of Petroleum/DPR, and NAPIMS from further allocation of crude oil explored from OMLs 123, 124, 126, and 137 to Addax Petroleum pending when the company furnishes the court verifiable Bank Guarantee from Nigerian banks to cover the monetary claims of the plaintiff.
Other prayers sought by the Nigerian government include an order restraining the NNPC, Petroleum Ministry, and NAPIMS from dealing with Addax Petroleum, as well as stopping them from transferring or assigning their interest in the OMLs to another person.
Also, an order compelling the Nigerian agencies to file an affidavit of fact detailing the company’s assets, properties, and funds.
On Friday, Justice Olatoregun granted an order for the government’s lawyers to serve court papers to the NNPC, the third respondent in the suit, whose office is situated in Abuja, outside the court’s jurisdiction.
She thereafter adjourned the suit till May 3, 2018.

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Group Doles out N13m To Market Women In Isiama 

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The peaceful Town of Isiama in Andoni Local Government Area of Rivers State was at the weekend agog with activities following the donation of over N13million to market women by Engr. Justus Ngerebara in partnership with Fast Track Development Initiatives, a non-governmental organization, as part of its first phase empowerment programme.
According to Justus Ngerebara, who is also the Executive Director of the organization, the women, numbering 108, will receive various sums based on their business proposal.
He stated that the organization will carry out an annual review of the performances of the beneficiaries, with a view to rewarding those who put the money into good use.
According to him, the initiative was a collaborative effort between himself and his wife, Dr. Unyime Ngerebara, in partnership with Fast Track Development Initiative (FDI), an organization committed to youth capacity building and community development.
He said the family believe deeply in the transformative power of women’s empowerment as a catalyst for economic growth, especially in rural communities.
“As the saying goes, when you empower a woman, you empower a community. This truth resonate strongly with us, knowing that empowered women uplift households and inspire generational change”, he stated.
Ngerebara described the programme as the beginning of more things to come and urged the beneficiaries to view the gesture “as a reflection of our deep love for the community and our commitment to easing the burdens of economic hardship.
“We encourage you to invest wisely, channel these resources into your business not frivolities.
“We will continue to follow up with each participant to monitor progress and Offer guidance.
“It is our goal to see thriving business, creative solutions to households hunger and a ripple effect of prosperity through Isiama.
“We also call on the men to stand beside their spouses, offering support and encouragement to ensure these resources are maximized for growth”, he said.
In an interview, Ngerebara said the second phase of the empowerment programme will start very soon, stressing that since inception the organization has done so much for the community.
He listed some of the programmes carried out by the group in the community to include the installation of solar powered lights, and solar powered water.
While declaring the event open, a former coymmissioner for Works in Rivers State, Engr. Sampson Ngerebara, described the event as the first of its kind in the community.
Engr. Ngerebara said the programme will go a long way to improve the conditions of not only the beneficiaries, but also the entire Isiama Community.
He also charged them against wasting the resources on frivolities, adding that their success will attract more of such empowerment programme to Isiama community
Giving a brief talk on women empowerment, a lecturer at the Ignatius Ajuru University of Education, Dr. Awajimogobo Felix MacLean, warned the beneficiaries to justify the effort of the donor by avoiding wastages.
Dr. MacLean also urged them to be consistent in their line of business as well as avoid unnecessary competition.
She also stressed the need for them to network among themselves, while working out ways of helping the community to develop.
Guest of Honour at the occasion, Professor Uriah Oboada Alafonye, said Engr Justus Ngerebara, the initiator of the programme, has set a standard for present and future generations of leaders both in the community and the rest of Andoni to follow.
Prof Alafonye who is of the department of Arts Education, Ignatius Ajuru University of Education, also appealed to the beneficiaries to seize the opportunity provided by the programme to reduce poverty in the community.
Speaking, one of the beneficiaries, Mrs. Hebron Mercy Fyneface, a crayfish seller and an interior designer, said it was the first time she was receiving such gesture from any organization or government.
She thanked Engr Justus Ngerebara for remembering the women of Isiama and urged others to emulate him.
By: John Bibor
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Fubara’s Return Excites NCSU … As Hope Rises For Civil Servants 

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The umbrella body of civil servants in Rivers State, the Nigeria Civil Service Union(NCSU) has expressed delight over the lifting of emergency rule in the State and the return to office of Governor Siminalayi Fubara, his deputy, Prof Ngozi Nma Odu and members of the State House of Assembly, saying, the development portends good omen for workers, the people and the State.
The Rivers State Chairman of NCSU, Comrade Chukwuka Richman Osumah, who gave the indication in an interview in Port Harcourt, said the return of the Governor to office portends good omen and better days for civil servants in particular, stressing that the union heartily welcomes the Governor back to office, to resume his good works in the State, after six months of the emergency rule, as well as his deputy and members of the House of Assembly.
He noted that civil servants in the State are not only elated over the development but are also full of hope that the Governor would start from where he stopped in attending to their welfare needs.
He contended that the political crisis that recently engulfed the State and the six-month emergency rule had for over one year pulled the State backwards, but expressed delight that a permanent solution has been found to stem further political upheavals in the State, and thanked President Bola Ahmed Tinubu for making this possible; the Minister of the Federal Capital Territory and leader of the State, Chief Nyesom Wike; Governor Fubara; Speaker of the State House of Assembly, Rt Hon Martin Amaewhule; members of the House; and other stakeholders for agreeing to amicably resolve all contending issues.
The labour leader said this is the right time for all political gladiators in the State to bury the hatchet, work together and embrace peace and genuine reconciliation in the overall interest of the State.
He described as too hasty the resolution of the House, mandating the Governor to present a supplementary budget to it, and pleaded with members of the House to be calm, to tread with caution, and harmoniously work with the Governor.
He said the return of democratic governance in the State would fast-track progress and development in the State, and enjoined the people of the State, particularly civil servants to continue to give their support and cooperation to the Fubara administration.
Osumah expressed optimism that Governor Fubara would give prompt attention to challenges facing civil servants in the State, being a former civil servant himself, stressing that the workers truly have hope, now that the Governor has returned to office, and knowing the kind of Governor he is.
According to him, he is going to look into the controversial and contentious contributory pension scheme; rehabilitation of the State Secretariat Complex; recruitment into the state civil service; extension of service and retirement years for civil servants; provision of vehicles to industrial unions; as well as provision of befitting staff quarters for civil servants; among others.
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NDDC Organizes ADR Capacity Building for Staff

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The Niger Delta Development Commission (NDDC) has organized a one-day sensitization program for its personnel on Alternative Dispute Resolution (ADR) approaches to promote workplace compliance on transparency and due process.
The workshop, themed “Promoting Transparency and Due Process in the Workplace using ADR Approaches in Building a Culture of Accountability and Integrity,” aimed to equip staff with the skills to resolve disputes effectively.
Declaring the event open on thursday in port Harcourt,The NDDC Managing Director/Chief Executive Officer, Dr. Samuel Ogbuku, emphasized the importance of using ADR mechanisms to resolve conflicts in the workplace.
Dr. Ogbuku  represented by his chief of staff,Rev Omeya Oworibo,noted that ADR approaches can encourage a culture of honesty, fairness, transparency, trust, and reduce conflicts among staff, ultimately promoting efficiency and productivity.
He averred that those disputes and quarrels if not proper resolved can derail the vision and objectives of the commission to the people, noting that the commission must as a team and unity as service provider in order to render a profitable service delivery to the people.
 “ADR approach will encourage culture of honesty,fairness, transparency ,trust  and reduce back bitting and the workforce, noting that such tendency would in turns promote efficiency and increase results in workplace.
 when integrity and honesty becomes the operandi of an organisation and employees begins to trust that their matters will be handled with fairness it will breed team work and increase in productivity.”he stated
He commended the department of DCR for organising the workshop and urged the participants to make good use of the opportunity and imbibe the culture of tolerance, integrity and teamwork in workplace.
Also speaking,the NDDC acting director of DCR ,Mr Godwin Ayewumi Ogedegbe noted that the theme of the captures the core of what the commission seeks to achieve a workplace where every action is expected to be guided by openness, fairness, and a steadfastness commitment to due process, where conflicts are not merely resolved, but prevented through structured,principled processes , and where accountability and integrity are not aspirational ideals but every day practice.
In his  keynote presentation on the theme “workplace Ethics and alternative Dispute Resolution Correlation,
Prof. Sylvester Odion Akhaine of the Department of Political Science, University of Lagos, delivered a keynote presentation on “Workplace Ethics and Alternative Dispute Resolution Correlation.” He stressed the importance of due process, transparency, integrity, and accountability in the workplace, noting that these values are essential for productivity and organizational goals.
The workshop aimed to promote a culture of accountability and integrity in the NDDC workplace. By equipping staff with ADR skills and promoting transparency and due process, the commission can build a more efficient and productive work environment.
By: Akujobi Amadi
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