Reps to investigate IOCs for flagrant disobedience to NDDC Act

By Christiana Ekpa

The House of Representatives in Wednesday resolved to investigate the alleged flagrant disobedience of certain provisions of the Act establishing the Niger Delta Development Commission (NDDC), by some International Oil Companies (IOCs).

The House resolution followed a motion moved on Wednesday by Hon. Donald Kimikanboh Ojogo on the need to compel the International Oil Companies Operating in the Niger Delta Region to Comply with the Niger Delta Development Commission (NDDC) Act, 2000.

The lawmaker recalled that the establishment of the Niger Delta Development Commission (NDDC) Act, 2000 was in response to heightened agitations and violent yearnings for special intervention in the following oil-producing States: Abia, Akwa-Ibom, Anambra Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers as enshrined in Section 2 (1) of the Act.

According to him, section 14 (1) of the NDDC Act state, “The Commission shall establish and maintain a fund from which shall defrayed expenditures incurred by the Commission. (2) There shall be paid and credited to the fund established under subsection (1) of this section: (a) from the Federal Government, the equivalent of 15 percent of the total monthly statutory allocations due to member States of the Commission from the Federation Account; this being the contribution of the Federal Government to the Commission-(b)3 percent of the total annual budget of any oil producing company operating, onshore and offshore, in the Niger-Delta Area;

including gas processing companies; (c)50 percent of monies due to member States of the Commission from the Ecological Fund, (d) such monies as may from time to time, be granted or lent to or deposited with the Commission by the Federal or a State Government, any other body or institution whether local or foreign”.

He said while the Federal Government has adhered to Section 14 (1) (a), the International Oil Companies (IOCs) have continually subjected Section 14(1)(b) to total neglect and distasteful disrespect, thereby putting the NDDC in a state of fiscal incapacity, culminating in serious indebtedness to contractors; more so, that, the NDDC is being owed $4 billion by the IOCs.

“The indebtedness of the IOCs to the NDDC had culminated in the drive by the Economic and Financial Crimes Commission (EFCC) to commence the debt recovery process”.

He said the Economic and Financial Crimes Commission in its recovery process, has continually held on to all such recovered monies without remitting same to the NDDC for the Commission to meet its obligations;