Oil swap deals: Reps to take action against Diezani, Momoh

The House of Representatives has reinstated its
readiness to take “appropriate action” against
the immediate past Minister of Petroleum
Resources, Diezani Alison Maduekwe and a
former Managing Director (MD) of the Pipelines
and Products Marketing Company (PPMC)
Haruna Momoh.
The appropriate action was not however stated
by the Zakari Mohammed-led ad hoc
Committee investigating crude oil for refined
products exchange arrangement (oil swap)
between 2010 and 2014.
The decision of the Committee followed the
failure of the two former public officers to
appear before it Wednesday despite official
notice to that effect.
Alison Maduekwe neither sent a representative
nor a written submission explaining her reasons
for her absence at the hearing.
Momoh, on the other hand sent his younger
brother, Suleman Momoh, who said his brother
was indisposed.
“I’m here to represent my brother; he could not
be here because he is indisposed. He sent me to
submit his presentation and supporting
documents to the Committee,” he said.
Zakari, at the on-going investigation yesterday
regretted that the two turned down the
invitation of the Committee.
“It is unfortunate that they turned down our
invitation. Anyone who knows them should tell
them they are daring the parliament.
“We have taken note and we are going to take
appropriate action,” he said.
The younger Momoh was asked to inform the
former MD that he must appear before the
Committee to state his case personally.
The Committee has however condemned the
failure of the Nigerian Customs Service (NCS) to
carry out its statutory responsibility of
inspecting all cargoes coming into the country.
The Committee said the development could be
manipulated by unscrupulous elements to
import destructive materials and equipment
into the country at a time he country is facing
security challenges.
Anthony Ayalogu, NCS’s Assistant Comptroller
(Trade and Tariff) said Customs officers can only
ascertain the presence of oil vessels at the ports
but cannot vouch for the content of the vessel
as a result of the 2008 directives.
He said until otherwise reversed, the NCS
cannot inspect in-coming oil vessels.
The Committee therefore summoned the
Permanent Secretary, Ministry of Finance that
issued the 2008 memoranda baring the
Nigerian Customs Service (NCS) from inspecting
incoming oil cargoes.
It was also disclosed that a non-resident trading
company Trafigura, involved the oil swap
arrangement is owing the Federal government
$642,536,470 in tax.
Olayemi Ajayi, Director, Federal Inland Revenue
Service (FIRS) during his presentation also said
Duke Oil, owned by the Nigerian National
Petroleum Corporation (NNPC) owed $4.7m as
tax on imported petroleum products under the
crude oil swap for products between 2010 and
2014.
The two were involved in oil swap arrangement
totaling $24b between the period under review.
Though absent at the hearing Wednesday,
Trafigura has always maintained that being a
non-resident company, it is not liable to pay tax
to Nigerian government.
It was this position that informed the
Committee’s decision requesting FIRS’s
clarification on Trafigura’s status.