CHEVRON NIGERIA AND THE EFCC REFUTE LIBELOUS ALLEGATIONS!

Chevron Nigeria Ltd and the Economic and Financial Crimes Commission (EFCC) of Nigeria have refuted the libelous allegations of the ABZ Integrated Ltd.

We are publishing the latest public statements of Chevron Nigeria Ltd and the EFCC. And we have decided to stop anymore publication on this case.

Public Statement By:

CHEVRON NIGERIA LIMITED
Operator of the NNPC/Chevron Joint Venture


RE: ABZ LIMITED'S OPEN LETTER TO MR. PRESIDENT



ON TAX EVASION, FRAUD AND CORRUPTION

1. The attention of Chevron has been drawn to a paid advertisement by ABZ Integrated Limited (ABZ), which claimed to be a consultant to the Economic and Financial Crimes Commission (EFCC). In the advert, which appeared in the Thisday newspaper of Friday, July 1, 2005, ABZ attempted to link our company's name to several allegations of tax evasion and related offences. This advert contained statements which were both false and misleading.

2. The fact is that the EFCC carried out an exhaustive investigation last year into Petroleum Profits Tax (PPT) and Royalties paid by companies within the Chevron group to the Federal Government. There was no finding of any fraud by the EFCC at the conclusion of this investigation.

3. Chevron is one of the frontline supporters of the Federal Government's Extractive Industries Transparency Initiative (EITI). We welcome scrutiny and are subject to frequent audit by relevant government agencies. Our support for EITI and our internal governance practices are geared towards ensuring that issues such as tax evasion, corruption and fraud are eliminated.

Chevron remains a committed partner for the long-term economic development of Nigeria. We meet the highest ethical standards of accountability and transparency in all our business dealings. We aim to earn the admiration of all stakeholders -- investors, host governments, employees, etc. -- not just for the goals we achieve but, equally important, for the way in which we achieve them.


PRESS STATEMENT BY EFCC

RE: $10.8 BILIJION TAX EVASION,

FRAUD AND CORRUPTION IN THE OIL SECTOR.

The attention of the Economic and Financial Crimes Commission (EFCC) is drawn to a highly publicized Petition to President Olusegun Obasanjo by ABZ Integrated Limited making all kinds of wild and unsubstantiated allegations against the Chairman and members of the EFCC, Hon Minister of Finance and members of the Federal Inland Revenue Service (FIRS) over alleged $10.8 billion tax evasion, fraud and corruption in the oil sector in general and the Chevron Ltd in particular as well as the non-payment of consultancy fees/commission to them. Messrs ABZ Integrated Ltd through its MD/CEO Mr. Fidelis Uzonwanne brought themselves sometime in 2003 to the EFCC with all kinds of allegations of tax frauds against a number of oil companies including Chevron, promising to assist EFCC to recover alleged unpaid taxes and penalties for the Federal Government of Nigeria. In April 2004, Mr, Uzonwanne started attending the meeting of its Committee on Government Revenue Fraud that includes officials of CBN, FIRS and other government agencies. In August 2004, he was engaged like any other informant (and they are many) to the commission to render consultancy services in the areas of specialized investigation. The arrangement clearly stated that EFCC would make appropriate recommendation on their behalf to the relevant authorities to pay their tees/commission on any recoveries made directly through their efforts. This was in response to the ABZ's request for the payment of 10 percent commission that EFCC made very clear to him that it cannot tamper with any monies that might be recovered because it goes directly to the Federal Government’s Federation Account. Meanwhile, EFCC has paid the sum of Two Hundred and Ninety One Thousand (N291, 000:00) to Mr. Uzonwanne as sitting allowance and other reimbursable expenses to facilitate his participation in the work of the committee.

The committee commenced investigation in earnest over all the allegations and information supplied by ABZ including officials from Directorate of Petroleum Resources (DPR) and inviting Chevron to defend the allegations against them. Even though the investigation is still on, ABZ submitted its claims on the six million, five hundred and Sixteen thousand, six hundred and forty four United States Dollars ,$6.516.644.00) that was purportedly recovered. This sum came from an already existing dispute between FIRS and Chevron that the committee made Chevron to pay up while they are still negotiating the balance. It therefore has nothing to do with any information supplied by ABZ L.T.D. Hence, when Uzonwanne made his claims of six hundred and fifty one thousand six hundred and forty four United States Dollars ($651,644.00) being ten per cent of the recovered money, EFCC made it clear that he did not deserve any kobo as the recovery was not directly attributed to him. Secondly, EFCC has no right to use any part of tax money recovered as it goes directly to the Federation Account as earlier mentioned. Thus, after sending several people to intercede on his behalf to the EFCC chairman, he resorted to the campaign of calumny in the media.

We therefore note with dismay the campaign of calumny being waged by ABZ Integrated Ltd against the Chairman of EFCC and other government agencies insinuating corruption. For the record, the Chairman of EFCC, Nuru Ribadu has never privately met the Chairman or any other official of Chevron. The only time that he met Chevron officials was when he addressed the investigating committee in the presence of Mr. Uzonwanne in order to speed up its work, he said to them, 'You must do things like you do it in America'.

The document ABZ is currently parading as a "Report" of its investigation is at best a mere compilation of allegations that have not been verified. The "Bounty Hunting” mentality of ABZ is highly condemnable as it borders on cheap blackmail. Members of the public are therefore advised to be wary of Mr. Fidelis Uzonwanne who has perfected a scheme as a rubble rouser by making wild allegations of tax evasion and fraud against companies in order to blackmail them. We have only recently discovered his antecedents in blackmailing and intimidating government officials and agencies as exemplified in his past relationships with FIRS, Education Tax Fund (ETF), the Nigeria Police and the Office of the Accountant General of the Federation.

MEDARD EHIMIKA
Media and Publicity Unit

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