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Senate Probes Brass LNG Over $784m Fraud …As Reps Indict FG On Poor TSA Implementation
The Senate has mandated its committees on public accounts and gas to investigate the alleged $784,265,947.54 fraud and other activities of Brass Liquefied Natural Gas (BLNG), including an illegal account in the name of the Federal Government.
Drawing the attention of senators to the issue, last Wednesday, Dino Melaye (Kogi-APC) accused the Nigerian National Petroleum Corporation (NNPC) of operating a fraudulent account in the name of the government.
Presenting a motion titled “Monumental Corruption at the NNPC”, Melaye noted that the Brass LNG was incorporated by the Corporate Affairs Commission on December 9, 2003, and limited by shares of $1million.
He said: “The Senate observes that the shareholders of this company are: the Federal Government (NNPC) represented by Mr Funsho Kupolokun with $490, 000 shares, Philip Brass Limited whose address is in Cayman Island, British West Indies represented by Mr R.L. Smith with a share capital of $170, 000, Eni International B.V. with address in Amsterdam, Netherlands represented by Mr A. Forzoli with share of S170, 000, while the fourth shareholder – Chevron Texaco Brass LNG Limited with address in Bermuda is represented by Mr J.R. Pryor with a share of $170, 000.”
Melaye said the board of directors of the company was composed of foreigners and five Nigerians, all NNPC staff or ex-staff members.
He listed them to include former Group Managing Directors of NNPC, Gauis Obaseki-Jackson and Yakubu Andrew; Ibogomo Gbeyansa, Dawa Joseph Thlama, Ige David, and Buba Mohamman, all staff of NNPC.
Melaye added: “The Senate observes that from the Memorandum of Understanding, Brass LNG is supposed to be a Joint Venture Company with NNPC having the controlling shares and their account domiciled with the CBN.
“The Senate is surprised that the account of this company is with Keystone Bank opened on August 1, 2012, with account number 1005825168; a USA domiciliary account with a closing balance of $137, 086, 462:54 currently, while $648, 179, 487 was recorded as the account’s last inflow on September 19, 2016, and a withdrawal of $4million was effected on the 18th November, 2016, without BVN.”
He stated that there was an urgent need to define the position of the company, its operation, management and mandate in order to halt the seeming corruption.
The Senate in its resolution mandated its committees on public accounts and gas to carry out a ‘holistic investigation into the activities of the Brass LNG and the complicity therein as well as the level of corruption that has taken place, and report back within four weeks.’
Meanwhile, the Chairman of the House of Representatives Ad-Hoc Committee on the Treasury Single Account (TSA), Abubakar Danburam Nuhu has indicted the Federal Government for poor ownership and implementation of the TSA policy, even though it is frequently highlighted by the Presidency as one of its greatest achievements.
He said that the TSA lacks a coordinated office in charge of its implementation and monitoring.
“Issues are being raised by so many people and they do not have answers to them. Who should be responsible for implementation and monitoring?” he asks.
Nuhu, therefore, called for the establishment of a TSA agency to be headed by a director.
He made this point, yesterday, as a guest on Channels Television Business Morning Show, where he was joined by an Economic Analyst from Proshare Nigeria, Babalola Tope, to discuss some of the unfinished businesses surrounding the TSA policy.
The lawmaker said although TSA has been of great benefit to the government, curtailing corruption, blocking leakages and cutting off arbitrary charges previously collected by commercial banks, “The unfortunate thing with the TSA is that there are so many issues that are lingering and affecting the smooth implementation of the account.
“My committee has been doing a lot of work in terms of trying to investigate the TSA for quite some time now but the challenges that are there need to be resolved.”
Stating some of the challenges, he said “For the last two years, the TSA has not been audited and when we called the Auditor General (AuGF), it seems that he has not been part of the TSA implementation. He had to confess to us that there hasn’t been any audit in the last two years.
“Also, there has been no reconciliation between the office of the Accountant General of the Federation (AGF) and the Central Bank of Nigeria (CBN).”
Nuhu also revealed that the foreign currency component of the TSA has yet to be activated for unknown reasons.
“Therefore no one knows exactly how Federal Government funds collected in the Diaspora are administered.
“This means all accounts which are foreign denominated are not yet part of the TSA. They are still sitting in banks, which are probably out of the country or even in Nigeria,” he emphasised.
As at March, 2017, the Minister of Finance, Kemi Adeosun, had revealed that the TSA has processed over N7trillion.
It was also revealed that over 20,000 commercial bank accounts where government revenue where previously stashed had been closed, saving the government about N4.7billion monthly in bank charges.
Although the TSA policy was partially implemented during the Dr Goodluck Jonathan era, the current administration led by President Muhammadu Buhari holds it up as its biggest economic reform strategy.
However, details emerging clearly show that the policy faces serious risks bothering on non-compliance by some agencies and failure to consolidate the policy – giving it a proper legislative backing such that its sustainability beyond the current administration is guaranteed.
Also, it was revealed that the service providers who are responsible for facilitating payments into the Treasury Single Account are being owed by the government.
The Rivers State Investment Promotion Agency (RSIPA) has unveiled measures to enthrone ease of doing business and win back the confidence of the business community.
The Director-General of the Agency, Dr Chamberlain Peterside, unveiled the plans at the Breakout Session of RSIPA at the ongoing 18th Port Harcourt International Trade Fair, at the Obi Wali International Cultural Centre, in Port Harcourt.
Dr. Peterside said the agency was poised to free the state from accumulation of wrong narratives that branded it over the years as unsafe for business.
He, however, admitted that many things had gone wrong in the past where regulators joined to make the business environment difficult for investors.
He announced that the agency was rather focused on actions, solutions, and results as adopted in the mission statement of the Board.
“Our task is no mean feat. We are dealing with the perception risk that over several years branded the state as unsafe. We are also faced with the challenges of dealing with the lack of cohesion amongst MDAs, policy inconsistencies, multiple taxation, incessant harassment by miscreants, red tape and delays in obtaining operating permits, high cost of operations and opaque public sector,” he said.
“It is about listening to the investors in the field and ensuring that MDAs are carried along, hence the imperative for the setting up of our One-Stop-Center”, he added.
In his remarks, the Commissioner for Commerce and Industry, Warisenibo Joe Johnson, who represented the state governor, said the Fubara administration was ready to listen to the business community to see ways of reducing impediments to investments.
He listed the stages of actions being undertaken by the governor as outlined in his 37-page blue print to revive the economy of Rivers State.
The Mayor of Housing, My-ACE China, who was presented at the event as a star investor and promoter of Rivers State reputation, said for the plans of the investment promotion agency to materialize, an enabling law should replace the Executive Order that established the Rivers State Investment Promotion Agency.
He said this would insulate the agency from political instability and remove fear in the minds of investors about its sustainability.
According to him, protection precedes promotion and Local Direct Investment (LDIs) is what attracts and promotes Foreign Direct Investment (FDIs).
“It is the rat at home that reveals to the one in the bush that there is fish in the kitchen”, he added.
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?The Mayor of Housing who is also the CEO of the Alesa Highlands Sustainable Green Smart City said that Port Harcourt is like a business empire under lock and key because it is not protecting its own and also not promoting its own enough for investors to come in.
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?In the area of land documentation and inventory, China urged Rivers State Government to borrow a leaf from Abuja and adopt the use of Geographic Information Systems (GIS) in dealing with land and property registration and documentation for ease of doing business.
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?He said Lagos understood the power of business information, adding “this creates the impression that if you are not doing it in Lagos, you are not doing it in Africa.
“We need to shout louder than Lagos, because we need more investments than Lagos and the structural integrity of Abuja. When you marry both, Rivers State would be wonderful and become green with investments,” he said.
In her speech, the President of Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Dr. Chinyere Nwoga, called on the state government to look into the menace of parked trucks now turning Trans-Amadi into a risk zone.
She outlined the activities of the PHCCIMA and invited investors and businesses to the Port Harcourt economic hub, saying peace has returned.
The Director, Investors Relations of the Nigerian Investment Promotion Council (NIPC), Mrs Lovina Kayode, urged Rivers State to make haste and catch up on Ease of Doing Business, saying the Council has come to help businesses in the state.
Mrs Kayode, who represented the Executive Secretary/CEO of NIPC, Aisha Rimi, commended the Mayor of Housing and his counterpart, Mr. Oliver Biedima of Rainbow Heritage Group, for their decision to invest in Rivers State, saying it is a proof that Rivers State is safe for investors and their investments.
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In his remarks, Oliver Biedemi of Rainbow Heritage Group urged government to give the private investors chance to develop the economy, saying ordinarily government does not have the funds to develop the economy.
Happy Birthday Chief Barr. Nyesom Ezenwo Wike CON
Honourable Minister Federal Capital Territory
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We’ll Drive Tinubu’s Vision in Rivers With Vigour – Fubara …Inaugurates Dualized Ahoada/Omoku Road ….Debunks Rift With RSHA
Rivers State Governor, Sir Siminalayi Fubara, has stated that he will lead Rivers people to galvanize support for President Bola Tinubu to drive the vision and objectives of the Renewed Hope Agenda in the State with vigour.
The governor, who joined the ruling All Progressives Congress (APC), on Tuesday, explained that his decision to join the APC was not for personal interest but for the overall benefit of Rivers State.
Fubara disclosed these while inaugurating the extension of the dualized Ahoada/ Omoku Express road in Ahoada East and Ogba Egbema Ndoni Local Government Areas of Rivers State.
He commended the contracting firm, Julius Berger, for timely delivery of the project, saying the project is a campaign promise fulfilled which will bring economic benefits to the people and tackle issues of insecurity associated with the route.
He said his administration has remained focused in delivering democratic dividends in the state despite facing glaring challenges.
The governor thanked the people of Ahoada East and Ogba Egbema Ndoni Local Government Areas for their continuous support, and urged his supporters to remain steadfast and also support President Tinubu who he said, has demonstrated love to Rivers State as a father.
Fubara denied having rift with the Rivers State House of Assembly, stating that his meeting with the lawmakers was stalled as a result of delay in the agreed meeting to be convened by former Governor Nyesom Wike and other stakeholders for him to meet with the state lawmakers.
“I have made every effort to meet with the Assembly members, but it is not within my leadership to initiate the meeting process.
“The arrangement was for my leader, Wike, and the elders led by Anabraba to call for a meeting with the the lawmakers.
“I’m a gentleman and principled. I can’t go behind to call them when we’ve already agreed. Whoever that tell them that I don’t want to meet with them, or I rejected proposal meant for them isn’t saying the truth,” Fubara said.
The Permanent Secretary of the Rivers State Ministry Works, Mr Austin Ezekiel-Hart, who gave the project description, said the delivery of the project was a fulfillment of long time dream by the people of Ahoada East and Ogba Egbema Ndoni Local Government Areas.
He said the road was previously a single lane and has now been dualised to 14.6 meters wide, complete with solar-powered streetlights with drainages.
He said the road significantly would reduce travel time between Ahoada and Omoku while improving economic activity in the region.
In his welcome address, Chairman of Ogba-Egbema-Ndoni Local Government Area, Hon. Chuku Shedrack Ogbogu, described the road as a symbol of unity, oneness, and development, thanking the governor for fulfilling his campaign promises.
On his part, the Managing Director of Julius Berger, Engr. Peer Lusbash, said the project was awarded to his company in 2023 with a completion period of 18 months which was achieved in best quality.
He added that Julius Berger enjoyed a good support from the Fubara administration, and assured to complete all ongoing projects being handled by Julius Berger on specification, especially the Ring Road project which is a legacy project.
