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Senate Uncovers N447bn Scam In Import Duty Waivers - Politics - Nairaland

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Senate Uncovers N447bn Scam In Import Duty Waivers by dre11(m): 1:33pm On May 25, 2016
Waivers: Senate uncovers N447bn fraud

…House probes tax scam, loss of $2.9bn

From Fred Itua and Kemi Yesufu, Abuja

The Senate said it has uncovered a N447.42 billion fraud allegedly perpetrated in the administration of import duty waivers, concessions and grants by Ministries, Departments and Agencies (MDAs) of the Federal Government.

Presenting a report during yesterday’s plenary, chairman of the Senate Adhoc Committee on Import Duty Waivers, Concessions and Grants, Senator Adamu Aliero bemoaned what he described as large-scale revenue leakages that robbed government of huge sums of money that would have been used for provision of infrastructural development and social services.

The report is a follow up to a motion moved on the floor Senate in January 2016.
According to the breakdown, the Federal Government lost
N78, 489,941,114.74 in 2011,
N128, 538,453,758.99 in 2012,
N46, 056,265,355.78 in 2013 and
N87, 654,744,360.22 in 2014 through waivers, concessions and grants to different private companies who were engaged in importing goods to the country.

The report also said former president Goodluck Jonathan-led Federal Government approved N106, 711,892,098.14 as waivers, concessions and grants to private companies in 2015 alone.

He blamed the flagrant abuse of the process on lack of synergy among MDAs charged with the responsibilities of administering import duty waivers, concessions and grants.

He specifically named Federal Ministry of Finance, Nigeria Customs Service, Federal Ministry of Industries, Trade and Investment, Nigeria Export Promotion Council, Federal Ministry of Agriculture and Rural Development and Federal Inland Revenue Service (FIRS), as agencies responsible for the loopholes.

“Customs duty waivers and concessions have been used by the Budget Office of the Federation to entrench a very destructive patronage system to our economy, whereby very few operators in the economy were singled out for favours resulting to unfair competition in the system,” Aliero noted.

Speaking specifically on waivers granted to importers of rice, Aliero said 27 companies benefited from the import quota with a total allocation of 1,434,658 metric tonnes.
He said four companies were yet to remit N23.603 billion to the Federal Government.

In the sugar sector, an estimate of N17.41 billion was lost between 2011-2012.
In the automobile sector, the committee report claimed that the then Minister of Industries, Trade and Investment, Olusegun Aganga granted waivers to two Lagos-based firms in 2015 to import 897 and 714 vehicles respectively.

The committee charged the Federal Government to restructure and streamline the functions and responsibilities of the Budget Office of the Federation in such a way that will prevent it from further abuses and excesses in the import duty waivers, concessions and grants process.
It also urged the Federal Government to ensure that in future, government contractors do not enjoy duty waiver benefits.

“The Federal Government should impose severe sanctions against companies found to have benefited from import duty waivers, concessions and grants, but at the same time engaged in acts of economic sabotage by diverting some vessels to neighbouring countries of Benin and Niger republics for the commodities to be smuggled into Nigeria through land borders,” the report recommended.

Accordingly, the Senate mandated relevant agencies of government to recover N10.3 billion from six companies that benefited from rice importation quota in 2014.
The six companies did not meet the criteria for granting the waivers, the senate noted.

In a related development, the House of Representatives yesterday mandated its Committees on Finance and Public Accounts to investigate alleged abuse of tax waivers granted to companies by the Federal Government.

The House made the call against the backdrop of an estimated annual loss totalling $2.9 billion.

Leading a debate on his motion entitled: “Urgent need to investigate tax incentives/waivers granted to multi-national corporations”, Kehinde Odeneye (APC, Ogun) expressed worry that Nigeria is foregoing about $2.9 billion yearly in form of tax incentives which are being used as a substitute for policies that could genuinely attract more and better investments, such as ensuring good quality infrastructure, reducing the administrative costs of setting up and running businesses and promoting predictable micro-economic policies.

In his contribution, Herman Hember (APC, Benue) wondered why oil companies were granted waivers by the Ministry of Finance, when government policy was targeted at companies introducing new services or products.

House Majority Leader, Femi Gbajabiamila, who agreed that many companies have found means of exploiting the tax waiver urged that investigation be extended to indigenous firms.

The investigative committees were given four weeks to carry out their investigations and report back to the House.

Meanwhile, Leader of the Senate, Ali Ndume, denied claims that the probe is targeted at Jonathan. He said lawmakers were after what was done wrong during the period under review and not the occupant of the office of the president.

Ndume also charged President Muhammadu Buhari to intensify efforts and recover the huge sum lost to abuse of waivers, concessions and grants. He said if the money was recovered, it would help the government in meeting some financial needs.

He said the various committees would monitor the progress made by the Federal Government in recovery the monies, adding that would not be business as usual.


http://sunnewsonline.com/waivers-senate-uncovers-n447bn-fraud/
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by kingphilip(m): 2:17pm On May 25, 2016
make una continue to uncover but please make sure to follow it up so as to ensure remittance.. it shouldn't just end in uncovering without any good headway


God bless Nigeria
God bless Nigerians
God bless Nairalanders
God bless those who'd like this comment

14 Likes 1 Share

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Nobody: 2:18pm On May 25, 2016
The report is a follow up to a motion moved on the floor Senate in January 2016.
According to the breakdown, the Federal Government lost
N78, 489,941,114.74 in 2011,
N128, 538,453,758.99 in 2012,
N46, 056,265,355.78 in 2013 and
N87, 654,744,360.22
in 2014 through waivers, concessions and grants to different private companies who were engaged in importing goods to the country.

See as all these figures dey turn my eye shocked

21 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by ijustdey: 2:32pm On May 25, 2016
we keep killing our industries and manufacturing coy when we grant waivers to those that import finished goods that can be produce here........
on top of that..... we now grant dubious wavier to these people to beat the price down and chase our manufacturers away......




which way Nigerians

14 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by 4nobody4every1: 4:57pm On May 25, 2016
The report also said former president Goodluck Jonathan-led Federal Government approved N106, 711,892,098.14 as waivers, concessions and grants to private companies in 2015 aloneangry angry

35 Likes 4 Shares

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by MadCow1: 4:57pm On May 25, 2016
This should be investigated seriously!!

2 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by bright007(f): 4:57pm On May 25, 2016
k
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by OLUJOSHINS(m): 4:57pm On May 25, 2016
grin

so now, the idea is to stage a drama for the masses to think the senate is not fantastically corrupt.

SMH
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Apelex(m): 4:58pm On May 25, 2016
K
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by DExplorer1: 4:58pm On May 25, 2016
The way these people pronounce billions these days, makes it sounds like it's nothing big.

The Jonathan administration made looting in billions a trend. So if you'd looted in millions, you're still a learner.

26 Likes 1 Share

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by NaijaMutant(f): 4:59pm On May 25, 2016
grin

1 Like

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by BlackPeni5: 4:59pm On May 25, 2016
Wow...corruption started in nigeria in 2011. No wonder nobody talks about what happened before that year.

8 Likes 1 Share

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by arsenal33: 4:59pm On May 25, 2016
Imagine if PDP won the elections, will all these scams be uncovered?

NO.

26 Likes 1 Share

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by SweetJoystick(m): 5:00pm On May 25, 2016
Scam, fraud, corruption everywhere angry

3 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by kunta2simple: 5:01pm On May 25, 2016
Naija which way
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Nobody: 5:01pm On May 25, 2016
v
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Nobody: 5:01pm On May 25, 2016
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Pavore9: 5:02pm On May 25, 2016
Nigeria has been richly mismanaged! angry

6 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by sammyj: 5:03pm On May 25, 2016
What a pity. The past administration just murdered our common wealth which why the next generation to come will never forgive them.
angry shocked

6 Likes 1 Share

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Gapsy101(m): 5:03pm On May 25, 2016
Huh
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by SayDeeJay: 5:03pm On May 25, 2016
PDP led government almost shutdown Nigeria.

12 Likes 2 Shares

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by hemartins(m): 5:04pm On May 25, 2016
Import duties is a sure way for a country to increase thier revenue.
With all this money gotten, hope it would be directed towards the development of the country and a better Living for the Nigerian populace.

1 Like

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by kunlej2: 5:04pm On May 25, 2016
hope Dangote Group is involved?
Also, Stallion Group?

1 Like

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by adedam007(m): 5:04pm On May 25, 2016
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by NaijaMutant(f): 5:04pm On May 25, 2016
grin grin grin grin

1 Like

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by macphilip: 5:05pm On May 25, 2016
No wonder the UK PM said we are fantastically corrupt

3 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Histrings08(m): 5:05pm On May 25, 2016
Naija!!!
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Nobody: 5:05pm On May 25, 2016
shocked shocked shocked

4 Likes 1 Share

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by foody(f): 5:05pm On May 25, 2016
It is really worth the long epistle. May God help us in Nigeria.

2 Likes

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by WildChild00(m): 5:05pm On May 25, 2016
Efcc where una dey?

1 Like

Re: Senate Uncovers N447bn Scam In Import Duty Waivers by Nobody: 5:05pm On May 25, 2016
Re: Senate Uncovers N447bn Scam In Import Duty Waivers by salabscholar01(m): 5:05pm On May 25, 2016
Nigeria is not poor. It's the currupting privileges of the rich that are depriving the poor, the right to good living. Now I know...

10 Likes

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