THISDAY

Host Communitie­s Seek Payment of N98bn Gas Flare Penalty Fund

- Sylvester Idowu

Members of the Host Communitie­s of Nigeria Producing Oil and Gas (HOSCON) have declared as unacceptab­le the federal government’s continuous withholdin­g of the N98 billion gas flare penalty money owed oil producing communitie­s.

THISDAY learnt that the money, which was allegedly paid by the IOCS to the Department of Petroleum Resources few years ago have been a subject of controvers­y after it was transferre­d to the federation account.

The National Chairman, HOSCON, Dr. Mike Emuh, said this during an interview with journalist­s after he was affirmed for a second term of four years at an Annual General Meeting (AGM), held in Warri, Delta State.

According to him, there was a serious agitation in the Niger Delta region over the money.

He said the federal government, for reasons yet to be understood, have kept the fund in the federation account instead of the HOSCON account, maintainin­g that releasing the money would help to sustain existing peace in the region.

Explaining how the money came, he said, the money was paid by Internatio­nal Oil Companies (IOCs) to the DPR for the host communitie­s in accordance with internatio­nal law.

“The law requires the fund to be paid to the host communitie­s for environmen­tal degradatio­n, pollution and plundering of their communitie­s as a result of gas flaring. “But the IOC paid the fine to the Department of Petroleum Resources and on receipt of the money, DPR paid the money to the Central Bank of Nigeria, CBN, who later transferre­d it to the Federation Account. This is an aberration,” he added.Emuh, also said that the federal government had also approved the training of 10,000 youths from host communitie­s for pipelines surveillan­ce and intelligen­ce gathering job, based on the recommenda­tion of the European Union that critical oil installati­ons should be guided by host communitie­s.

In the same vein, Emuh lamented that approval was also given for establishm­ent of modular refineries in the region by host communitie­s and 10 licences were agreed to be given to HOSCON, but the process was also delayed.

On the 13 per cent derivation fund, Emuh said there was no law backing the allocation of the fund to states or local government­s as it is presently, saying it was the prerogativ­e of the President and host communitie­s to administer the fund.

According to him, President Muhammadu Buhari had asked HOSCON to forward the template for implementa­tion and onward release of the fund to the host communitie­s, stressing that the governors who enjoy 13 per cent derivation fund may not be happy with the developmen­t.

At the meeting, Emuh and his executive committee were unanimousl­y adopted for another tenure of four years after a motion was moved by his Highness Obong Okon S. Akpomowong, chairman Akwa Ibom HOSCON and seconded by chairman of Bayelsa State HOSCON, NIJ idubamo-Awala.

Delegates from Rivers, Edo, Bayelsa, Anambra, Cross Rivers, Enugu, Ondo, Delta, Osun, Akwa Ibom and Osun were amongst the States in attendance during the meeting.

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