The Chairman of the Federal Inland Revenue Service, Muhammad Mamman Nami, has ignored invitations six times, according to the House of Representatives Adhoc Committee Investigating the Structure and Accountability of the Joint Venture (JV) Business and Production Sharing Contracts (PSCs) of the NNPC from 1990 to date.
During the committee meeting, the Investigative Committee’s Chairman, Hon. Abubakar Hassan Fulata, insisted that the panel would use its constitutional authority to order the Inspector General of Police to detain Nami, whom they accused of collaborating with oil companies to evade paying millions of dollars’ worth of taxes.
The four organizations we expect to see today are the Federal Inland Revenue Service, Shell Petroleum Development Company (SPDC), Chevron, and FAMFA Oil Ltd. The Chairman of FIRS is not present to respond to inquiries about the claims of tax avoidance, even though the three oil firms are.
“The subpoena has been delivered to the FIRS chairman by the Clerk of the House of Representatives. However, he declined to accept our invitation. We are left with no choice except to provide the police an arrest warrant against him so that they can detain him and bring him before this investigation committee, added Fulata.
Hon. Mark Gbila (Benue State) observed that some oil corporations’ claims that they are unaware of the CAFA certificate as the foundation for receiving capital allowances do not in any way excuse them from responsibility.
The committee reaffirmed that any oil businesses found to have paid taxes improperly or to have improperly benefited from capital allowances will be required to pay back the money to the federation account.
According to Fulata, several oil businesses that sought capital allowance as early as 1978 completed their Certificate of Acceptance of Fixed Assets (CAFA) and questioned why Shell, one of the oldest oil companies, if not the oldest, completely disregarded CAFA while still receiving capital allowance.
After asking Shell representatives a series of questions under the direction of director Bashir Bello, the lawmakers instructed them to provide the committee with additional relevant documents regarding their operations before or on Monday, December 12, 2022. They are also required to appear before the investigation panel on Monday, December 19, 2022.
Additionally, Chevron and FAMFA Oil were instructed to deliver their paperwork to the secretariat by Monday, December 12, 2022. On Monday, December 19, 2022, the CEO of Chevron and FAMFA are anticipated to testify before the committee.