Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has absolved Mobil Producing Nigeria (MPN), of any tax indebtedness to the Akwa Ibom State government, as it pays N2 billion as tax annually to the state government.
Rising from its Executive Council meeting recently, PENGASSA, MPN branch, said MPN as a corporate law abiding citizen �consistently remit taxes to states where it operates and to the Federal Government.�
PENGASSAN said the arrest warrant issued by the Akwa Ibom State Government (AKSG) on MPN and its directors was completely misleading, and aimed at tarnishing the company�s image, its cordial corporate relationship with the state government and host communities.
Afterall, �same tax consultants are providing services to other state governments. However, it is interesting that they have not referred the matter to court,� it said.
The resolution, signed by PENGASSAN Chairman, Mr. Olusola George-Olumoroti and Secretary Dr John Nwadighoha said �as workers in the upstream oil sector of Nigeria, we are bound by very high ethical standards (and) we are law abiding citizens who pay our taxes completely and promptly.
�Our company, MPN, is also a law abiding corporate citizen that consistently remits taxes to States where it operates and to the Federal Government.
PENGASSAN noted that the issue on ground was the issue of alleged discrepancies in tax remittances not even arising from MPN�s making and in the past few months, there have been discussions between the representatives of the Akwa Ibom State Government and MPN aimed at resolving the said discrepancies.
The Association however expressed surprise that the �discussion was making positive progress and nearing closure when the State Government acting on the advice of the consultants, took the matter to court and issued a warrant of arrest for some of our members and company directors�.
It further submitted that the advise of the consultants was completely misleading of the State Government and �with the ulterior motive of lining their pockets� with money.
The association said �we pay about N2billion naira taxes to the Akwa Ibom State Government annually (and) in addition, MPN as the principal source of the 13 percent derivation revenue is the live-wire of Akwa Ibom State with billion of naira accruing to the State Government monthly as derivation revenue.�
The Association which sent copies of their resolution to the Minister of Petroleum (Presidency), Akwa Ibom State Government, Group Managing Director of NNPC and few others warned against further negative actions against MPN as regards the tax matter.
Reacting to the tax issue, some prominent persons in the State have condemned such advice from the tax consultants saying �it was hasty considering the fact that both MPN and the State Government agents were discussion on the matter�.
Moreover,it added that there is no record to show any tax evasion by MPN in the past and such ill advice was enough to incite the Akwa Ibom people against MPN and its workers in the wrong direction.