Tax evasion: AGF alleged that N2.6trn capital allowances documents forged ― Reps

The House of Representatives, on Tuesday, vowed not to rest on its oars in the bid to ensure accountability on the N2.6 trillion capital allowances granted to MTN by the Federal Ministry of Trade and Industry.

Speaking at the resumed investigative hearing into the audit queries on tax evasion issued by the office of the Auditor General of the Federation (AGF), the Chairman, House committee on public accounts, Hon Oluwole Oke disclosed that the AGF report indicated that the documents relating to the N2.6 trillion capital allowances were allegedly forged.

While stressing that the committee invited MTN over tax evasion, Hon Oke explained that the AGF in its report observed that Federal Inland Revenue Service (FIRS) accorded value to the telecoms company while in some cases without certificates and evidence of capital allowance issued by the Federal Ministry of Trade and Industry.

He said: “We have issues in this country where funds are not adequate for government to carry out policies and programmes which is why we had to borrow even though there is a massive revenue leakage.

Hon Oke maintained that Nigerians have the right to know the implications of MTN taking a certificate of N2.6 trillion to FIRS for tax waivers as well as the economy.

According to him, “the Parliament simply wants to know whether it should sustain the query raised by the Auditor General or absolve the company of the allegations of tax evasion, as it would be wrong to accuse it of such if these records tally with the company’s submission.

“The issue says that we should speak to facts and law. You’re here when we asked the industry ministry and they said the local and foreign contents were the certificates they issued to you.

“However, the Auditor General says such issuance appears to have been falsified which was the basis of its query to you,” he observed.

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While responding, MTN’s General Manager, Mrs Yemisi Adebayo explained that the company has submitted all relevant documents issued by the Federal Ministry of Trade and Industry reflecting the value of N2.6 trillion given to MTN.

While responding to a question on the 2016 inspection relating to the capital allowances granted to the company, Mrs Adebayo observed that the company made claims to the Federal Ministry of Trade and Industry at the end of the year prompting them to choose a location and inspect as it was physically impossible for them to inspect thousands of assets.

When asked how many people were on the team with Mr Ike who had the access card and inspected assets from the 29th of March to the 4th of April, she said she couldn’t remember the identities of the Ministry officials as the team members were not captured individually in the record.

According to her, a total sum of N148 billion capital allowance was granted to the company, while N210 billion was approved in 2018 after the visit to Ojota Switch as well as N190,629,586,000 in 2019 for the Port Harcourt switch.

When asked if all the assets procured by the company in 2019 were all located at the Port Harcourt switch, she responded in the negative.

She added that in 2020, the Ministry officials visited Abuja Switch, another team visited Ojota switch, and another visited Port Harcourt and granted a capital allowance worth N219,540,623,545.

When asked if she would agree to give out a value of N219 billion based on one inspection that visited just three locations out of over a thousand locations, she said the company only filed what was approved by the inspection team with the FIRS for consideration.

However, Hon. Oke reiterated the committee’s resolve to ascertain the patriotic and professional involvement of the ministry officials, saying that the parliament cannot fold its arms and watch when people whose salaries and allowances were appropriated to do a job failed to carry out their duties under the law.

To this end, the committee resolved that all the officials involved in the inspection from the Federal Ministry of Trade and Industry should appear before it.

The committee also requested for the tax records covering the periods under review from both MTN and FIRS for further legislative scrutiny.

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Tax evasion: AGF alleged that N2.6trn capital allowances documents forged ― Reps

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Tax evasion: AGF alleged that N2.6trn capital allowances documents forged ― Reps