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$213m alleged fraud: Court gives EFCC approval to arrest Mobil Nigeria MD
A Federal High Court, Abuja has given the Economic and Financial Crimes Commission, (EFCC), the approval to arrest Mr. Richard Laing, Managing Director, ExxonMobil Nigeria. This follows failure of Laing to honour EFCC invitation in alleged contract fraud of $213 million.
At issue, is the fraudulent creation of Change Orders worth over $213million USD.
Justice Okon Abang on Friday January 29, 2021 granted the Commission’s application for a Bench Warrant to arrest the managing director of the international oil company.
The EFCC approached the Court for a Warrant after three invitations to Mr. Liang were rebuffed.
The Commission is investigating alleged procurement fraud in the Major Integrity Pipelines Project involving Mobile Producing Nigeria as the contracting company, Suffolk Petroleum Services Limited as the main contractor, Saipem Contracting Nigeria, Global Offshore Limited and Van Ord as sub-contractor to SPSL.
A recent publication revealed that ExxonMobil affiliates in Nigeria are surrounded by controversy over multiple layers of ownership and tax haven issues which are currently being investigated secretly by top tax officials of the Federal Inland Revenue Service ( FIRS) with the support of Nigerian National Petroleum Corporation ( NNPC) a major Joint Venture ( JV ) partner in the upstream sector of Nigeria’s oil and gas industry.
It will be recalled that the Company’s offices in Lagos, Akwa Ibom and Rivers States were shut down for up to ten weeks in 2018 because the company was unwilling to abide by the ruling of the Supreme Court against it in favor of hundreds of security personnel, after nearly twenty years that the company used legal maneuvers to deny that they were its employees, despite the fact that it recruited, trained and issued them employment letters. That shut in, one of the longest in recent history, resulted in a loss millions of dollars of revenue for NNPC and Nigeria, as did several other reckless disruptions that have become recurrent in the company’s operations.
Nigerian NewsDirect gathered that the recent decision by tax authorities to investigate revenue inflow of foreign players in the oil and gas industry follows higher revenue earned by telecom companies over impressive result of the FIRS during the first half of the year affected by COVID-19 lockdown.
According to an industry official, the investigation of upstream players on getting higher income from them follows recent legal successes against some of the upstream players in Nigeria’s courts which has become an eye opener for tax officials on how these companies are escaping tax payment. This, we gathered will become issues of discussion by Federal lawmakers with the submission of a new Petroleum Industry Bill ( PIB) in August 2020 to the NationalAssembly.
Also, tax officials are discussing issues on the sideline of the ongoing annual conference of the Chartered Institute of Taxation of Nigeria ( CITN) on how tax officials need to collaborate with the federal lawmakers for new laws that will help to bring upstream players more under the control of Nigeria’s government to check capital flight through papers obtained by these companies at tax haven countries.
For instance, officials are asking critically the questions such as if a foreign company doing business in Nigeria “is above Nigerian law? Can a multi-national corporation be sued in a Nigerian court for illegal actions done in the country? Should a corporation which is publicly quoted in a foreign country be shielded from being called to account under Nigerian law simply because it has created a web of private shell companies in exotic tax havens, as a multilayered buffer between itself and a private subsidiary in Nigeria? Should global giants be allowed to take refuge in a maze of shell companies in obscure tax havens to dodge legal, fiscal and stock market scrutiny? Is Nigeria, Africa and the developing world not being shortchanged for tax, law, investment and more, if such smokescreens are allowed to stand, however craftily woven?”
The questions also include whether it is right for a global corporation which is under the securities regulator in its home country to escape the Nigerian stock market regulator because it has conveniently hidden its business in a private company in Nigeria, or uses offshore alibis to escape legal and fiduciary challenge for its actions here? How would it be if the situation was flipped?
Investigation revealed that ExxonMobil for years sought to drag the Nigerian National Petroleum Corporation to US courts for mere commercial arbitration over oil lifting. In one instance, the ExxonMobil corporation which all but disowned its Nigerian subsidiary had no problem claiming that NNPC is one and the same as Nigerian government itself. No surprise, those gambits failed dramatically. The company has continued to battle the national assembly for years when it sought to compel the corporation to register its corporate existence with the Corporate Affairs Commission. And yet, peers such as Total have simple, easy to regulate structure that consolidates its subsidiaries, unlike ExxonMobil’s smoke-and-mirror arrangements by which it seeks to puzzle not just the legislature, the stock market regulator, if not the courts.
However, we gathered that several of the shell companies that Exxon listed as buffers between itself and the Nigerian subsidiary are allegedly registered in Delaware, a well-known tax haven. A Transparency International report on Delaware shell companies describes the location as “a place where extreme corporate secrecy enables corrupt people, shady companies, drug traffickers, embezzlers and fraudsters to cover their tracks when shifting dirty money from one place to another. It’s a haven for transnational crime.”
However, Nigerian NewsDirect gathered that some of these questions above were some of the crucial questions which Mr. Paul Arinze, a Nigerian corporate executive, put to the test through a suit against the US giant ExxonMobil Corporation,and its subsidiary, before Hon Justice O.A. Obaseki-Osaghae of the National Industrial Court of Nigeria, siting in Lagos.
Her Lordship recently issued a landmark ruling against ExxonMobil’s defense in the suit, where it sought not to be joined in the suit with its subsidiary Mobil Producing Nigeria Unlimited as co-defendant. By that ruling handed down on Tuesday September 29, ExxonMobil suffered a major setback against its historical claim that, as a global corporation headquartered in the US, it cannot be sued in Nigeria, a ruling of significant impact on the conduct of multinationals operating in Nigeria and other developing countries in Africa.
In a bid to establish an alibi ExxonMobil’s defense listed chains of offshore shell companies in far-flung places, and claimed that it had no business “whatsoever” in Nigeria, which then raises the question of who exactly Nigeria has entrusted with the operation of its critical oil assets? How should NNPC react to the revelation that the entity they’re bed with is a disjoined tail of a serpentine labyrinth, a contraption so hard to pin down, one they cannot sue?
Efforts to get reaction of ExxonMobil Nigeria proved abortive. In response to enquiry by Nigerian NewsDirect,Manager External Relations MPN Mr Ogr Udeaga thanked our correspondent for reaching out to MPN.
He added, “As a matter of practice, we do not comment on legal matters.”
…As LASG calls for calm, promises swift response
…Trash in floodwater: Lagos Govt identifies, takes action against culprits
…‘Area Boys’ arrested for extorting ‘N100’ pedestrians at make-shift Bridge
By Sodiq Adelakun
Torrential rainfall in Lagos on Wednesday has left a trail of devastation, with flooded streets, restricted movements, and crippled economic activities.
Residents, workers, and commuters in the state lamented the difficulties caused by the flood, which has wreaked havoc on the city’s infrastructure and daily life.
The flood has not only disrupted transportation and business operations but also raised concerns about the state’s preparedness to mitigate the effects of heavy rainfall.
Amid the relentless rainfall and ensuing floods, residents and workers have voiced their frustration over restricted mobility and increased transport costs.
The flooded roads are nearly impassable causing gridlock and discomfort for commuters.
Many Lagosians heading out for daily activities on Wednesday morning registered their lamentations on social media while advising others to stay at home.
It was gathered circulating on social media and verified that places like Iyana-Oworo, Oshodi, Lekki, Ikeja, Egbeda, and Gbagada were flooded on Wednesday morning.
Meanwhile, Ayodele Olatunbosu, a civil servant, expressed his frustration to NewsDirect, saying, “This rain is frustrating, I’m late for work and stuck on the road.
“The government needs to act now. It’s unacceptable that we’re stuck in this situation every year, and nothing seems to be done about it.”
Also, Alimi Akeem, a trader, lamented the spoilage of his goods, saying, “My goods are spoiling because I can’t reach the market. This flood is disastrous, The government should have fixed the drainage system long ago. It’s not like this is a new problem, but they keep neglecting it.”
Abolade Rasheed, a teacher, stated that the flooding has affected his productivity, saying, “The rain is affecting our productivity. We can’t get to school. The government needs urgent action. How can we expect our students to learn when we can’t even get to school?”
The flooding caused gridlock and disruption in transportation, businesses, and daily activities, with many calling on the government to address the issue of flooding in the state.
Meanwhile, the Lagos State Government has promised to address the issue by constructing larger drainage channels and improving the state’s drainage system. However, residents and workers are urging the government to take immediate action to alleviate the suffering caused by the flooding.
Residents and workers are calling on the government to act swiftly to address the issue and prevent further damage to properties and disruption of economic activities.
The current flooding has also led to a surge in transport fares, compounding the hardships faced by residents and workers.
Oluwaseun Olatunbosun shared, “Fares from my house to Ikeja rose from N1,000 to N1,400 due to the rain. It’s unbearable!”
Favour Blessing added, “Sometimes I miss work because I can’t afford the higher fares during rainy periods. It’s concerning given the economic situation.”
While urging patience, the Lagos State Government assured residents that floodwaters would subside soon.
Nevertheless, there’s a growing chorus demanding tangible actions rather than assurances from the government.
Shola Ayodele emphasised, “We need action, not just promises. The government must resolve this issue once and for all!”
As residents brace for further challenges posed by the ongoing rains, the call for effective flood management measures remains urgent in Lagos.
The Lagos State Government has also called for calm over the flash flood caused by the torrential rainfall experienced throughout the state.
The Commissioner for the Environment and Water Resources, Mr. Tokunbo Wahab, made the plea in a statement on Wednesday in Lagos.
“Lagos has experienced about nine hours of non-stop rainfall since the early hours of Wednesday. This is coupled with the heavy rainfall which the state has been experiencing daily since the previous week, resulting in the rise in level of the Lagos lagoon,” Wahab said.
He assured residents that the flash floods, which inundated areas such as Iyana-Oworo linking the Third Mainland and several other areas, would recede once the rains abate and the level of the lagoon reduces.
“We have deployed officials of the Emergency Flood Abatement Gang to major black spots, including Iyana-Oworo, which has been cleared of all blockages,” Wahab said.
He urged all those in low-lying areas to relocate to higher grounds to safeguard lives and properties.
“We urge residents to desist from wading through floods with their vehicles, as it takes only a feet of flowing water with high tide to sweep away a vehicle, irrespective of the number of occupants,” he warned.
Wahab also urged all residents to avail themselves of daily weather reports as issued by the State Ministry of the Environment and Water Resources, as it serves as a guide to daily itinerary.
“Lagos is a coastal city with almost one-third of its landmass under water, as such necessitating a genuine reason for every resident to be more responsive to the state of the environment,” he noted.
The government, on its part, has embarked upon a year-long maintenance and cleaning of all its secondary and primary collectors to be able to contain runoffs that may come from heavy rainfalls.
“We are committed to ensuring the safety of lives and properties, and we will do everything possible to mitigate the effects of the flood,” Wahab assured.
He also revealed the Lagos State Government has identified and taken action against two residents caught disposing of trash in floodwater in the Ijesha community, Itire-Ikate Local Council Development Area.
A photo shared on social media showed a man and woman rolling a trash drum in the flooded water on their street.
The resident who shared the photo, Adetutuadeoye3, alleged that the accused threw their waste into the floodwater. “These people just poured out their waste in the flood water. This is no 2 Akewukewe Street beside Ikate Local Government in Ijesha Surulere,” she wrote.
Wahab responded, “Thank you for bringing it to our attention. @muyiwag @lawma_gov, please take note.” The commissioner confirmed that the building had been identified and locked by the Environmental Health Service Department of Itire-Ikate LCDA.
This incident highlights the broader challenges facing Lagos residents, who have been struggling with flooding in various parts of the city.
Videos and pictures posted online showed the extent of the flooding, which began around 3 a.m. and left many residents stranded in their homes and streets impassable.
Recall that similar flooding incidents have occurred in Lagos in the past, causing damage to properties and disrupting economic activities.
The government has promised to address the issue by constructing larger drainage channels and improving the state’s drainage system. However, residents and workers are urging the government to take immediate action to alleviate the suffering caused by the flooding.
As Wahab noted, “Lagos is a coastal city with almost one-third of its landmass under water, as such necessitating a genuine reason for every resident to be more responsive to the state of the environment.”
He also said the Lagos State Government has taken swift action against miscreants who were extorting pedestrians at a make-shift crossover bridge in the Trade Fair area of the state.
The miscreants, popularly known as “area boys,” were arrested by the Lagos State Environmental Sanitation Corps (LAGESC) after a citizen reported the extortion on Wednesday.
According to him, the arrests were made possible thanks to a complaint filed by a concerned citizen, #ARISE0214, on (link unavailable) Wahab confirmed the arrests on his X (formerly Twitter) account, stating that the miscreants would be prosecuted according to the law.
The extortion incident occurred following heavy rainfall in the area, which led to the creation of a makeshift crossover bridge. The area boys had taken advantage of the situation to charge pedestrians N100 to use the bridge.
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Ban on importation best way to prevent dumping of substandard petroleum products — Senate Committee
…Begins probe, sets up 15-member investigative committee
The Senate Committee investigating the importation of hazardous petroleum products and dumping of substandard diesel into Nigeria has stated that a ban on importation is the best way to prevent dumping of substandard petroleum products.
Senator Asuquo Ekpeyong, APC, Cross River South a member of the committee made this known at the plenary.
Asuquo sponsored the resolution titled “Urgent Need to investigate the continued importation of Hazardous Petroleum Products and dumping of substandard Diesel into Nigeria.”
Senator Asuquo Ekpenyong noted that on 16th June, 2024, 12 diesel cargoes, conveying a total of 660kt of diesel, were exported by refineries to offshore Lome, Togo for further distribution to West African markets, mainly Nigeria. He lamented that the quality of the said diesel is below the Nigerian standard in terms of flash and Sulphur levels.
Ekpenyong said, “However, in spite of the substandard nature of the diesel, it still finds its way into the Nigerian markets, as & track on Mt ‘Kallos’ which arrived Lome on the 16th of June, which immediately did ship-to-ship (STS) transfer to DV MT (Matric Triumph and then proceeded to discharge into Matric jetty in Warri on 21st June, 2024. Thereafter, another STS was made to DV MT ‘Matric Pride,’ which then proceeded to discharge into Obat Oil terminal on 22nd June, 2024.
“The diesel is priced below fair market value, which constitutes dumping on the World Trade Organisation (WTO) rules, which stipulates that countries are permitted to take measures to protect their local industries in the event of dumping. The WTO also recognises the impact of dumping on domestic industries, and therefore stipulates tariff regimes such as anti-dumping duties and import rection measures to ensure that domestic producers are not unfairly disadvantaged.”
The Senator emphasised that, despite the fact that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) recently revised the importation standards for diesel into Nigeria in accordance with the Petroleum Industry Act, 2021, it is evident that they lack the authority to enforce adherence to the regulations.
He claims that in spite of enough local production capacity, NMDPRA has persisted in granting import licences for diesel and jet.
According to him, to the extent that our local refineries are able to meet Nigerian demand, a complete prohibition on the importation of diesel is the best way to safeguard Nigerians and the refineries from dumping.
Ekpenyong further said that “The said ban on importation of diesel will be beneficial to the Nigerian petroleum Industry and indeed the entire nation, and as such, the NMDPRA should cease to import licences in order to address all concerns.
“However, if the situation is allowed to continue, local production will have no option than to stop the commissioning of gasoline units and shutdown refineries until the regulatory environment improves.”
Speaking on the health effects, he emphasised that importing substandard diesel has an impact on both people and machinery because the toxic emissions cause respiratory ailments and other health problems in addition to shortening engine life, which forces drivers to deal with more frequent car and generator breakdowns and associated higher maintenance costs.
He also raised concerns about the lack of proper protection and regulation against dumping, or exporting goods below fair market value, which would hinder the expansion and sustainability of domestic refineries and result in job losses and a downturn in the economy.
Commenting on the issue, the President of the Senate, Senator Godswill Akpabio said that in order to ensure transparency, the issues raised within the PIA should be reviewed.
The Senate therefore set up a 15- Member Ad- hoc Committee to carry out a holistic investigation into the pre-shipment and pre-discharge standard test parameters, adopted by the Nigerian Midstream and Downstream Regulatory Authority, with a view to uncovering loopholes, if any, exploited to get toxic cargoes into the country.
The Senate President charged the committee with the responsibility of determining the level of compliance of the Nigerian National Petroleum Company Limited, NNPCL’s Direct Sale and Direct Purchase (DSDP) arrangements in line with the provisions of the Petroleum Industry Act, including the extent of transparency and accountability in the scheme.
According to the Senate, the Ad-hoc Committee will beam legislative searchlight on the activities of the Petroleum Equalisation Fund, including payments made to transporters in the last 10 years, just as it will enquire from the NNPCL the state/status of the 22 Depots built by the NNPC to eliminate road distribution of petroleum products.
The Committee in carrying out its functions, would engage with stakeholders within the oil and gas industry with a view to identifying possible gaps in regulating and strengthening the surveillance and monitoring structures in place to enable Nigeria detect violations of best practice standards in the importation of products before they enter into domestic supply chains.
The Committee will also engage with the NNPCL with a view to understanding the extent of its determination and timelines for the start-up of Government funded oil refineries as well as investigate how institutions across the importation and distribution chain failed to conduct quality sampling, shipped in products without auditing, port validations by the Nigerian Customs Service; Department of Petroleum Resources (DPR); National Maritime Authority (NMA); and Standard Organisation of Nigeria (SON).
The Committee which has the Senate leader, Senator Opeyemi Bamidele, APC, Ekiti Central as Chairman, has Senators Asuquo Ekpenyong, APC, Cross River South; Abdullahi Yahaya, PDP, Kebbi North; Mohammed Tahir Monguno, APC, Borno North; Ipanibo Banigo, PDP, Rivers West; Khabeeb Mustapha, APC, Jigawa South West; Olamilekan Adeola, APC, Ogun West; and Diket Plang, APC, Plateau Central as members.
Others are Senators Adams Oshiomhole, APC, Edo North; Osita Izunaso, APC, Imo West; Tokunbo Abiru, APC, Lagos East; Sahabi Ya’u, PDP, Zamfara North; Abdul Ningi, PDP, Bauchi Central; Ipinsagba Emmanuel, APC, Ondo North and Ekong Williams, APC, Cross River Central as members.
The committee is expected to report back within 3 weeks.
The Economic and Financial Crimes Commission (EFCC) has alleged efforts by corrupt elements to recruit students to take up arms in a planned protest against the Commission.
Head, Media & Publicity, EFCC, Dele Oyewale, made this known in a statement on Wednesday.
According to the Commission, in the last couple of days, the group has been actively campaigning in the social media, recruiting impressionable young Nigerians, including students to take up “arms” against the EFCC.
“This insidious campaign is being promoted as resistance to the operational activities of the Commission especially in respect of the enforcement of the laws dealing with cybercrimes.
“The Commission, while not averse to protests by citizens, is alarmed by emerging evidence that suggest a grand design by corrupt elements under investigation or prosecution by the Commission to exploit the so-called protest to orchestrate a national uprising that may threaten the peace and security of our dear nation,” It stated.
The Commission further noted that it will not tolerate any breakdown of law and order anywhere in the country especially around its office locations across Nigeria.
“EFCC, working in concert with sister security agencies, is therefore taking necessary measures to deal with possible threats to the peace and security of Nigeria.
“The Commission, however, appeals to parents, guardians and heads of tertiary institutions to take responsibility in ensuring that their wards are not recruited to be used as cannon fodder in a proxy war against the Commission by vested corrupt interests.
“The war being waged by the Commission against corruption and cybercrime is to protect the future of the youth of this country. That future is imperilled if Nigeria degenerates further in global reckoning as a den of fraudsters,” the EFCC noted.
Nigeria’s economy can experience turnaround in few months — Dangote
$500m lost to internet fraud in 2022 – EFCC chairman
