Illegal deductions: FIRS to refund $2m, others to General Electric

The Federal Government has urged General Electric to refund two
million dollars excess withholding tax (WHT) deducted from Arco
Petrochemicals Engineering Company Limited, through its business
dealings with General Electric (GE) International Operations
Nigeria.

This was part of outcome of the negotiations between FIRS
officials, General Electric, ARCO and the Trade Union Services
Department of the Federal Ministry of Labour and Employment in
Abuja on Tuesday.

The News Agency of Nigeria (NAN) recalls that GE, a
multinational company operating in Nigeria, had engaged Arco, an
indigenous Nigerian oil servicing company, for the supply of local
personnel.

But Arco in one of its letters dated June 5, 2018, claimed that
GE deducted 10 per cent as withholding tax for the contract between
2006 and 2015, against the five per cent stipulated by Nigerian
law.

The company said the applicable tax rate should be five per cent
in line with the FIRS Circular No. 2006/02, dated February
2006.

Following the controversial tax remittance disputes between
General Electric (GE) and Arco Group Plc, 60 per cent of the
worker’s entitlement have not been paid since 2009.

An official of the Ministry of Labour and Employment, who
pleaded anonymity said, although the Federal Government was not a
debt collector, it intervened because ARCO accepted responsibility
that they have financial obligation to settle people’s salaries and
Union dues.

“The ministry is not a debt collection agency, it came into the
matter because ARCO accepted its financial obligation for the
settlement of salaries and union dues, the company said the only
way it could complete the payment is if GE made a refund to it.

“We gave them three weeks to begin process of refund for those
monies that they have an understanding that they were actually
over-payment to FIRS. If there is no contention on that, within one
week, GE should initiate the process of refund.

“FIRS said they have to go through some processes before they
can get cash back to pay. For those that there are contentions, let
them try to get their books together and reach an agreement within
two weeks.

“The unions involved said they have the list of what is due to
their members that has not been paid by ARCO. We expect that those
reconciliations will be completed and payment will be made.”

Mr Amadike Ikechukwu, Branch Chairman, ARCO Petroleum and
Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said
ARCO paid field workers 100 per cent of their entitlement but paid
only 40 per cent to other categories of staff when their
employments were terminated.

He said ARCO claimed that it could not complete the payment
because the American company, General Electric, deducted 10 per
cent withholding tax from workers earnings and paid the sum, which
runs into millions of dollars, to FIRS.

“As union leaders, we agree with the commitment made by FIRS and
GE. We are optimistic that the remaining 60 per cent will be paid
to the workers,” he said. (NAN)

EU-British Council Launches €18.5m ACT Programme in
Nigeria

To ensure an accountable and democratic government, the European
Union (EU) British Council has stressed the need to invest in, and
engage with Civil Society Organisations (CSO’s), saying their
contributions to sustainable development in any country cannot be
over emphasised.

To this end, the Council on Tuesday, launched the €18.5 million
funded Agents for Citizen-driven Transformation (ACT) programme in
Abuja, a programme to be implemented in the North East, North West,
South East, South West and North-Central following increasing rate
of conflicts.

While describing the essence of the project, the EU Ambassador
to Nigeria and ECOWAS Ketil Karisen, said that the programme aims
at supporting and strengthening institutional mechanisms,
structures, and processes in Nigeria.

According to him, “there was the need to improve the internal,
external and pragmamatic competence of CSO’s, networks and
coalitions in the country.”

“ACT will seek to facilitate improved CSO regulatory frameworks
through the provision of support that promotes self-regulatory
mechanisms amongs CSO’s while exploring ways to support the
evolution of a functional and effective national regulatory
framework that will be acceptable to all stakeholders,” he
said.

Karisen added that, “the programme’s aim is to strengthen donor
coordination on CSO engagement in Nigeria with a view to ensuring
that there are strategic linkages and opportunities for knowledge
sharing amongst key donors and international development partners
supporting CSO strenghning in Nigeria.”

However, the Director, International Cooperation at the Ministry
of Finance, Budget and National Planning Mrs. Elizabeth Egharevba,
assured of government’s support to the strengthening of CSO’s, and
successful implementation of ACT in Nigeria.

Meanwhile, the Sub-Saharan Africa Portfolio Lead and Programme
Director for ACT Bob Arnot, said that the programme seeks to also
address and support gender related issues.

Arnot informed that, ” the ACT is funded by the European Union
(EU) under 11th European development fund EDF and implemented by
the British council.”

He further disclosed that, ” a total of £13.5m which is
equivalent to an estimate of six billion eighty-nine million
eighty-seven thousand nine hundred twenty-five was given by the EU
towards the support of the project and assures of a successful
implementation.

By PRNigeria^[1]