$5bn tax evasion: Senate opposes withdrawal of petition against Chevron

Th e Senate, has rejected a plea to withdraw a petition against Chevron Nigeria Limited, which raised an allegation of $5 billion against the company. Chairman, Senate Committee on Ethics, Privileges and Public Petition, Senator Samuel Anyanwu, had informed the Senate that the petitioner, Dr George Uboh of Panic Alert Security System (PASS) had written his committee to seek a withdrawal of the petition. Senators who spoke on the report, on Tuesday, however, rejected the petitioner’s bid after the Senate had commenced investigations.

Uboh had petitioned the Senate through Senator Obinna Ogba (Ebonyi Central) on December 15, 2015, alleging that Chevron between 2001 and 2002, evaded tax to the tune of $343 million through overbloating of its operational costs under Petroleum Profi t Tax, while also evading tax amounting to $343 million through another infraction. He alleged that the infractions totalled about $5 billion. While presenting the report of his committee, Anyanwu stated that Uboh and the Executive Director of Finance for Chevron, Mr J.U. Uwakwe had already appeared before the committee.

He said that Uboh had alleged that between 2001 and 2002, Chevron evaded tax to the tune of over $343 million through overbloating of its operational costs under Petroleum Profi t Tax, using Carry Agreement with NNPC as a cover when such agreement never existed with the company. Th e report also stated “that Chevron Nigeria Limited recouped spurious loan of $235 million from the Nigeria Federation between 2002 and 2005 for overdue cash calls that Chevron conspired with some oil-producing companies, NNPC auditors and defrauded the federation of Nigeria by over $3.6 billion by merely manipulating accounts and records which were also done under the umbrella of Carry Agreements.

“Th at Chevron Nigeria Limited received notice of assessment for Education Tax, Education Tax Gas and Gas Income Tax and later made payment of $38,259,021 via Citibank on August 28, 2006 for the three assessments.” Th e report indicated that a representative of Chevron, Uwakwe had, however, denied that the oil company recouped spurious loans from the NNPC or from any other entity. Anyanwu submitted: “Consequently, the committee could not continue with the case, since the petitioner has given up on the matter. Based on the petitioner’s decision to withdraw the case, the committee recommends that the case be stepped down.”

Leave a Reply