Union Petitions EFCC, ICPC Over Tax Fraud Allegations Against Daewoo, Saipem

The National Association of Plant Operators (NAPO), a recognized trade union, has petitioned the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the Minister of Labour and Productivity to urgently investigate alleged tax deduction fraud by the management of Daewoo E&C Nigeria Limited and Saipem Contracting Nigeria Limited.

The union, an affiliate of the Trade Union Congress (TUC), through its law firm, Everlaw Associates, Abuja office, raised an alarm about “unwholesome events” at the Nigerian LNG Limited Train 7 project site in Bonny, Rivers State.

The petition, signed by O. Marx Ikongbeh, Esq., the Principal of Everlaw Associates, and supported by a five-point affidavit deposed by NAPO President Mr. Harold Benstowe, alleges that the management of Daewoo E&C Nigeria Limited and Saipem Contracting Nigeria Limited has been making unusual deductions from workers’ salaries for Pay As You Earn (PAYE) purposes.

According to the workers, despite the deductions, the taxes have not been remitted to the Rivers State Inland Revenue Service (RIRS) to their credit. When the workers approached RIRS to process their tax clearance certificates, they discovered that the taxes had not been remitted.

The workers further alleged that the management of Daewoo E&C Nigeria Limited and Saipem Contracting Nigeria Limited misappropriated the deducted PAYE taxes, running into billions of Naira, for three years, to the detriment of both the federal and state governments.

The union urged the anti-graft agencies to investigate the management of NLNG Limited, Daewoo E&C Ltd and Saipem Contracting Nigeria Limited, and their subcontractors, to bring the perpetrators of this tax fraud to justice.

However, in a press statement, the management of Daewoo E&C Limited claimed that the tax matter had been completely resolved, stressing the company’s commitment to transparency, due process, and sound corporate governance, adding that the company remains dedicated to maintaining a compliant trust worthy and proactive working environment as it continues the successful delivery of the NLNG Train 7 project.

Akujobi Amadi