AGF, CBN gov, others risk arrest for shunning Reps invitation

 

.As panel begins probe of tax incentives.

 

Jonas Ezieke, Abuja

 

The House of Representatives ad hoc committee investigating non-remittance to the National Housing Fund and utilisation of funds from 2011 to date on Thursday warned that the chief executive officers who failed to honour its invitation risk being subpoenaed.

 

The committee consequently gave the defaulting banks Thursday next week to appear with all the required information.

 

It also insisted that the Accountant-General of the Federation, Dr. Oluwatoyin Madein, and the acting governor of Central Bank of Nigeria, Folashidun Shonubi, must next Thursday appear in person before the panel.

 

Chairman of the ad hoc committee, Musa Bagos, who disclosed this at the Thursday’s sitting of the committee frowned upon the attitude of CEOs who would always give excuses to have travelled out of the country whenever they were invited to appear before the parliament.

 

Bagos noted that much as the committee would want to give fair hearing to every stakeholder, it will not hesitate to invoke the provisions of the law against anyone that attempts to undermine its authority or sabotage the investigation.

 

He said, “We will not tolerate a situation whereby CEOs shy away from coming up to give evidence. Each time all the CEOs claim they have travelled abroad.

 

“We insist on having the Accountant General of the Federation and the acting governor of the CBN appear before this committee unfailingly next Thursday at 11am. We are not going to entertain their representatives.”

 

 

The committee equally rejected taking any evidence from the director of IPPIS, Mr. Emma Deko, who represented the AGF insisting that she must appear in person.

 

Bagos said, “Today, we invited all the banks but only UBA, Zenith, Heritage and Sterling Bank. We’ll not take it lightly with the absentee banks any longer. They must appear next Thursday”

 

At the Thursday’s sitting, only representatives of the CBN, FMBN, UBA, Sterling Bank, Heritage Bank and Zenith Bank were present.

 

Although, the committee accepted the presentation from UBA, which was presented by Mr. Eke Ogba, regional head; that of Heritage Bank, presented by regional head, Abuja, Mr. Oniko Daniel; and that of Zenith Bank presented by DGM Carl Akwarandu, they were asked to further submit details of their investments in the NHF when their CEOs appear on Thursday.

 

Also present were representatives of the gateway payment: Remita, e-Tranzact and NIP. However, they were asked to go and come with their CEOs on Thursday.

.as Panel begins probe of Tax Incentives.

 

The House of Representatives has inaugurated its ad-hoc committee charged with the responsibility of investigating allegations of abuse of tax incentives, tax breaks, and tax waivers by public institutions and companies benefiting from tax incentives in Nigeria, on Thursday in Abuja.

 

 

Declaring the work of the Committee open, Speaker Tajudeen Abbas noted that tax incentives are essential tools used by governments to stimulate economic growth, attract investments, and stimulate job creation. However, Dr. Abbas noted that such incentives have over the years been abused by companies benefiting from the gesture of government thus necessitating the investigation.

 

The Speaker therefore called on the committee to thoroughly investigate the allegations and make appropriate recommendations.

 

 

“In carrying out this investigation, the Committee is required to thoroughly investigate these allegations and provide recommendations for necessary sanctions and reforms. Endeavor to find out whether the beneficiaries of these tax incentives have lived up to the conditions attached to them and if they have fulfilled their obligations to the Nigerian people as required”.

 

“Your mandate will be to examine the extent of the alleged abuse by public institutions and organisations, review relevant legislation, policies, and regulations governing these incentives to identify any loopholes or weaknesses that may have contributed to the alleged abuse. You should summon witnesses, request documents, and conduct hearings as necessary”.

 

The Speaker further said the purpose of the investigation is to end all forms of economic sabotage and ensure transparency, accountability, and fairness in the country’s tax system.

 

“I therefore call on all relevant stakeholders, including government agencies, public institutions, and companies benefitting from tax incentives, to cooperate fully with the committee’s investigation for the House to have a full understanding of the tax system with a view of taking appropriate legislative actions”.

 

The Speaker reiterated the confidence of the House on the Chairman of the Ad-hoc Committee Rt. Hon Makki Abubakar Yalleman and his members to conduct a thorough investigation within the allotted time frame.

 

 

On his part the chairman of the ad-hoc panel Hon Makki Abubakar Yelleman, noted that the probe is not a witch-hunting exercise but an effort to correct abuses in the management of tax incentives.

 

 

He noted that as the country experiences dwindling oil revenues there is a need to ensure proper administration of tax breaks.

 

 

“While tax incentives are granted to encourage businesses to stand well and be strong enough to contribute to the economy, it’s abuse creates distortions in fiscal and monetary policy management”.

 

“As Nigeria experiences dwindling oil revenue and public debt approaches prohibitive levels amidst allegations of abuse of tax incentives, there is the need to know the scope of tax incentives and the possible existence of abuses to enable proper administration of the tax breaks, waivers and incentives”. The committee chairman said.