Wednesday, September 18, 2024

House Reps Panel Summons AGIP Over $80m Debt To Nigerian Contractor

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The House of Representatives Committee on Public Petition has issued a summons to AGIP Oil Company, demanding their appearance on June 26 to address allegations of an unpaid debt amounting to N80 million owed to De Cooon Services Limited, a Nigerian contractor. This development stems from a serious complaint lodged by the contractor, which has now escalated to the attention of the legislative body.

Chaired by Hon. Michael Etaba of Cross River, the Committee expressed its dissatisfaction during an investigative hearing held in Abuja on Thursday. The Committee was particularly displeased with AGIP Oil Company for not only failing to settle the debt but also for their absence at the hearing. This disregard for the summons is seen as a significant affront to the Committee’s authority and the legislative process.

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The Committee voiced its concern over AGIP’s preference for foreign contractors over local ones. They emphasized that such practices could demoralize Nigerian contractors and push them out of business, thus harming the local economy in favor of foreign interests. This was underscored by Hon. Matthew Nwogu, a member of the Committee, who expressed his frustration over AGIP’s non-compliance.

“When a committee like this is mandated by the constitution to handle issues concerning the lives of Nigerians, it summons an organisation, but the refusal should call for worry,” Hon. Nwogu said. He highlighted the importance of accountability, noting that those in positions of power must respect legislative procedures. “I don’t know who is protecting who, but no one is above the law; the only people who have immunity are the governor and president,” he added.

Prof. Nelson Onubogu, the Managing Director and Chief Executive Officer of De Cooon Services Limited, addressed the lawmakers, insisting that AGIP’s absence was a deliberate act of defiance. Onubogu revealed that the conflict began over five years ago, with AGIP allegedly stifling the operations of his Nigerian company in favor of foreign interests.

“They owe my company over 80 million dollars paid by NNPCL. The NNPCL has paid the money, but it was diverted out of Nigeria. AGIP Oil Company used some cronies to take this money out of Nigeria, and they refused to pay the Nigerian company,” Onubogu stated. He further accused AGIP of underhanded tactics, such as redirecting his contracts to his former staff while they were still employed by him.

Onubogu made a fervent plea for justice, asserting that AGIP should be compelled by the NNPCL to settle the debt and reinstate the contracts initially awarded to his company. “I don’t believe in middle ground; the right thing should be done; they are owing me, and they should pay my money and restore all my contracts as awarded to me. There are rules and regulations for terminating and awarding contracts,” he said.

He also expressed willingness for a peaceful resolution, provided AGIP complies with the directives, but he firmly stated that he would not relinquish his claim to the owed money, insisting on the necessity of justice.

Earlier, the Committee had summoned AGIP’s top management in response to the petition from De Cooon Services Limited. The summons, issued on June 10, 2024, and signed by the Committee chairman, required the parties to present their briefs on June 20, 2024, with a soft copy and ten hard copies of their documents.

The summons letter explicitly mentioned: “Whereas the above named petition is now pending before this Committee and the particulars aforesaid are hereby attached. And whereas the petition has been assigned to be heard by the Committee for determination, YOU ARE HEREBY required to note Section 88 and 89(C) of the constitution of the Federal Republic of Nigeria (as amended) and appear in person before this Committee on Thursday, 20th June, 2024 at 2.00 Pm or so soon thereafter as the Committee shall direct.”

Specific individuals named to respond included the NAOC Managing Director, Division Manager (Strategic Procurement), Engr. Dan Jumbo, four senior managers, and two retired staff members: Ronni’s Eronini and John Mpi, among others. The letter also warned that failure to attend could result in the matter being decided in their absence, highlighting the seriousness of the situation.

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