Bayelsa State government on Thursday reported multinational oil companies to the federal government for alleged tax evasion.
In a letter, Governor Henry Seriake Dickson appealed for the intervention of the Presidency over alleged tax evasion, flagrant disregard to laws and non-compliance with the rules and regulations of the country.
Among the oil companies identified as major culprits in tax evasion were Shell Petroleum Development Company, Nigerian Agip Oil Company Limited, Chevron Nigeria Limited, Consolidated Oil, Conoil Producing, Brass LNG and Aiteo Energy.
Dickson, in a letter he personally wrote to President Muhammadu Buhari and Vice President Yemi Osinbajo (SAN), dated April 18, 2016 and obtained by State House correspondents on Thursday in Abuja, pleaded that the government should not support the oil companies.
He said: “Our further position is that the Federal Government and its agencies should not condone or support irresponsible behaviour by these companies whose conduct subvert and undermine the authority of the State and our economy especially in the areas we have legislative authority such as Development Control, taxes permitted by Federal Laws and other legislations within the residual powers of the State.”
He specifically complained about defaults by oil and gas companies operating in the state to pay taxes and levies over time.
Dickson, therefore, urged the President to use his good offices to prevail on the companies concerned, who are licencees of the Federal Government, to comply with the laws of the state and that of the country.
It would be recalled that SPDC’s facility in Gbaran Ubie Integrated Oil and Gas was recently sealed over charges of default in the payment of taxes and levies.
The Executive Secretary of Bayelsa State Physical Planning and Development Board, Boro Ige-Edaba, had in a statement earlier this week announced the sealing of the property, relying on an eviction order issued by the State High Court in Yenagoa.
Ige-Edaba said the eviction order had granted the government of Bayelsa State leave to effect the eviction of SPDC and all occupants of the premises to enable the Physical Planning and Development Board conduct environmental, health, technical integrity and safety checks on the facility.
Ige-Edaba contended that the facility was built without a building permit (called Development Permit) as required by Law.
The Court had also directed the Commissioner of Police, the Commander of the Joint Task Force and all security agencies to facilitate the enforcement of the eviction.
Dickson, in his letter, chronicled the various negative exploration activities of the oil and gas companies operating in the state over a long period of time by refusing to pay land use service charges and development levies, thereby impinging on the environment, especially through spillage and indeed economy of the state.
Dickson emphasised the strategic nature of Bayelsa State as host community and the concomitant tremendous impact on the expenditure outlay of the state government in terms of security, community relations and other related expenditure as it strives to ensure a conducive and peaceful environment for the operators who are mostly multinationals.
He regretted, however, that the major oil firms have not been realistic by contributing proportionally to the economy and development of the state.
“Sadly, the compliance level of the oil and gas exploration and production companies in payment of levies and taxes is very low and in fact, pitiable,” he stated.
While insisting that the situation contravened the relevant legislations in the state, the governor accused the affected companies of not employing indigenes of the state nor awarding contracts to them.
Dickson also claimed that these companies do not have offices in the state, while only a negligible percentage of their staff pay the Pay As You Earn tax as a basic legal obligation.
“Our State has clearly borne the brunt of the operations of all these multi-nationals all these years. Our position as a federating unit under the Constitution and laws of the Federal Republic of Nigeria is that the mining and Operating Licences, exclusively granted by the Federal Government, cannot be used as a basis for avoiding responsible behaviour required by the laws of Bayelsa State.
“Our further position is that the Federal Government and its agencies should not condone or support irresponsible behaviour by these companies whose conduct subvert and undermine the authority of the State and our economy especially in the areas we have where we have legislative authority such as Development Control,taxes permitted by Federal Laws and other legislations within the residual powers of the State.
“The Government of Bayelsa State assures Mr. President that its agencies and officials will follow due process in the enforcement of all the laws of the State in this regard. In all cases, the laws of the State have made provisions for judicial intervention where parties shall have opportunities to ventilate their grievances if dissatisfied.
“It is our expectation that the Federal Government will instruct all our Federal Agencies, particularly the Security Forces, not to obstruct the due processes of enforcement of our state laws or be used to harass or intimidate State officials or citizens involved in the process of enforcement of the Tax and other laws of the state.
“In any such event to contrary, we shall have no option than to seek judicial redress to preserve our integrity as a State and guarantee our economic survival.
“Mr. President, under these circumstances, I humbly urge you to use your esteemed and good office to prevail on these companies, who are licensees of the Federal Government, to comply with the laws of the State and of our Country.”
- DailyPost
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