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HomeLatest News1% local content fund: EFCC to go after defaulting companies — Sen....

1% local content fund: EFCC to go after defaulting companies — Sen. Adeola

The committee Chairman, Sen. Solomon Adeola, gave the warning in Rivers while briefing newsmen at the end of the two-day oversight visit to oil and gas companies in Rivers and Bayelsa states. The Senate Committee on Local Content has warned that the Economic and Financial Crimes Commission (EFCC) will prosecute companies that failed to remit the one per cent Nigerian Content Development Fund (NCDF).The committee Chairman, Sen. Solomon Adeola, gave the warning in Rivers while briefing newsmen at the end of the two-day oversight visit to oil and gas companies in Rivers and Bayelsa states.The News Agency of Nigeria (NAN) reports that the NCDF was established by Section 104 of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act of 2010.It provides that one per cent of every contract in the upstream sector of the Nigerian oil and gas industry shall be deducted at source and paid into the fund.The fund, managed by the Nigeria Content Development and Monitoring Board (NCDMB), is meant for projects, programmes and activities directed at increasing Nigerian content in the oil gas industry.Adeola (APC-Lagos) said besides the EFCC, the Attorney-General of the Federation had been briefed and was being carried along on moves to prosecute defaulting companies.He said that any company found culpable would be charged for defrauding the Federal Government.“The Economic and Financial Crimes Commission in being carried along and anybody found wanting, will be dealt with.“The team of auditors have commenced work and in a couple of weeks, reports will start coming in to know the companies that have complied or defaulted.“The legislature is aware that there are issues on the remittances to the fund and we will follow through to ensure compliance.“The NCDMB has set up a team of auditors who are already going round the length and breath of this country to audit oil and gas companies.“This is to ensure that any company that is found wanting or that has defrauded the government in this regard will be dealt with,” he said.The lawmaker said that the fund was meant to bridge the gap between indigenous and foreign companies.He added that indigenous companies, particularly in the oil and gas industry, were grappling to meet up with demands in the industry and needed to be assisted.

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