Category: South East

I had the privilege to stumble on a report titled: “Pandora Papers: Inside Peter Obi’s secret businesses — and how he broke the law”. It was published by a media outlet on the 4th day of October, 2021. Most Nigerian and indeed my humble self, had perceived Peter Obi to be an epitome of transparency, good governance, patriotism and economic astuteness. This perception heightened my curiosity to read through the article in order to discover the hidden secrets which the article had to bear against the former two term Governor of Anambra State and the Vice-Presidential candidate of the People’s Democratic Party in the 2019 national election. Having read through the article, my lawyerly self-queried whether Peter Obi actually violated the law as alleged in the article. This prompted my decision to dispassionately test the allegations against Peter Obi against the provisions of the law.

The allegations in the article basically bother on allegations of tax evasion and non-declaration of certain jointly owned assets by Peter Obi. It was argued that Peter Obi committed the offence of tax evasion by establishing a company outside the shores of Nigeria in “havens where little or no taxes are paid”. It was further argued that Peter Obi committed a crime by non-declaration of some of his jointly owned assets outside the shores of Nigeria and failure to resign from the board of directors of those companies 14 months after assuming the office of the Governor in Anambra state. These allegations shall be addressed seriatim.

It must be stated there is a world of difference between allegation, facts and evidence. Allegation are mere claims and assertion of a person’s wrong doing that are not yet proven. Facts are events that are confirmed or verifiable. While evidence are concrete facts used to support an assertion or a claim. At the moment, the claims of the writer against Peter Obi are still within the realm of mere allegations. However, this article will proceed with the assumption without necessarily conceding that writer’s claims against Peter Obi are factual, as the said Peter Obi still enjoys the presumption of innocence in his favour as protected by the Constitution of the Federal Republic of Nigeria. This presumption stands unshaken until otherwise proven.

A cursory look at the writer’s article would reveal that the author seems to have confused tax avoidance for tax evasion. It is appreciated that both terms may easily be mistaken one for another or erroneously used interchangeably except for persons who are well informed about tax laws. In simply terms, tax evasion is an offence, whereas tax avoidance is not an offence. At this point, it must be stated that on the authority of Section 36 (12) of the Nigerian Constitution, a person shall not be held liable for an offence except such offence is expressly defined by a written law and a sentence specifically prescribed thereto. The case of George v. FRN (2015) All FWLR (Pt. 718) 879 is apt in this regard.

In Nigeria, tax evasion used in two sense. First, as a specific offence. Second, as generic expression for acts of tax non-compliance or violation of tax laws. Section 26 Value Added Tax Act 1993 and Section 164 Custom and Excise Management Act 1959 are the two known tax law provisions that specifically provide for the offence of tax offence. Every other tax offence, including, omitting or understating income in order to make incorrect return; failure to keep the required records; refusal or neglect to pay tax; dishonest declaration of income, earnings or assets; fraudulent tax returns, etc. are loosely referred to as tax offences. However, the definition of the “tax evasion” in the two aforementioned tax law provisions has nothing to do with a business man deciding which part of the country to invest his legitimately earned money. It would be preposterous and despotic for any government to even prevent any entity from making such business decision, when the same government do solicit for foreigners to invest in the Nigerian economy. Why should a Nigerian be penalised for deciding to invest his resources in other countries irrespective of the prevailing tax rate in that country? Indeed, the question to ask is: is there any Nigerian law that prohibits and penalises a Nigeria from investing in any jurisdiction outside Nigeria? the writer did not mention any. My guess is, he could not find any.

Business owners and entities ordinarily direct their business undertakings in such a way as to avoid financial liabilities including payment of tax. This is what is also known as tax planning. To quote Lord Clyde in the case of Ayrshire Pullman Motor Services and D. M. Ritchin v. Commissioner of Inland Revenue, (1920) 14 Tax Cas 754, 763–764: “No man in this country is under the smallest obligation moral or otherwise so to arrange his legal relations to his business or to his property as to enable the Inland Revenue to put the largest possible shovel into his stores. The Inland Revenue is not slow and quite rightly to take every advantage, which is open to it under the taxing statutes for the purpose of depleting the taxpayer’s pocket. And the taxpayer is in like manner entitled to be astute to prevent so far as he honestly can the depletion of his means by the Revenue. Every company has the option of carrying out tax planning in order to minimize tax liability within the law of the territory in which it operates”.

There are tax avoidance schemes that is even recognized by tax laws. Individuals or companies may avoid payment of tax by simply increasing its capital expenditure in order to reduce its taxable profit. In this instance, the company would be said to be taken advantage of section 24 of the Company Income Tax Act (CITA) which includes certain capital expenditures as allowable deductions. This would be regarded as measures taken to reduce its tax liability. Provided such act is not prohibited by law, the company cannot be said to have committed any tax offence.

Provided that a particular scheme to avoid or reduce tax liabilities are not prohibited by law, they are still within the realm of tax avoidance and no criminal liability can accrue thereto. The best the government can do to address the incidence of tax evasion is to identify tax avoidance schemes and then get the legislature to criminalise it. Then again, the legislative enactment criminalising such act has effectively moved from tax avoidance into the realm of tax evasion. Until there is a law prohibiting a Nigerian from investing outside the shores of Nigeria, Peter Obi cannot be said to have committed the offence of tax evasion or any other tax offence(s), however so called.

On the issue of non-declaration of jointly or partly owned foreign asset: the law which addresses this subject is majorly the constitution and the Code of Conduct Bureau and Tribunal Act. Section 11 (1) (b) Part I Fifth Schedule to the Constitution the writer referred to requires a public officer to declare his properties, assets, and liabilities. The said provision did not specifically require the declaration of jointly or partly owned assets. It is appreciated that a public officer is required to declare his assets in view of the public trust reposed in the office they occupy. It would be irrational to expose assets that are partly owned by other individuals, when they are not the ones occupying the public office in question. Some business investors actually prefer to invest quietly, hence, a declaration of their jointly owned assets breach that business trust which they expect from their business partners. The otherwise could amount to a breach of the right to privacy and quiet enjoyment of the property of these individuals.

It is to be noted that Section 6 (b) of the Code of Conduct Bureau and Tribunal Act did not prohibit a public officer from holding an interest in a company. It only prevents the said public officer not to personally “engage or participate in the management or running of any private business, profession or trade”. To my mind this does not preclude a public officer to shut down his hitherto existing business or profession simply upon his assumption of public office. It would be unreasonable for the law to expect that of such public officer. Provided the public officer is not personally involved in administering the business while in office, he is in the right side of the law. The appointment of nominee directors by companies are legitimate and well known corporate law practice recognised by the Companies and Allied Matters Act. More so, Nigerian law recognises that companies have distinct personalities different from its shareholders and directors. As such, it is legally incorrect to say that a person owns a company. The writer failed to tie down Peter Obi’s personal involvement in the administration of the companies while occupying the office of the governor of Anambra State.

• Eti Best Herbert is a legal practitioner and legal research consultant. He is the Head of Practice of Olive Branch Attorneys. He may be reach via: etiherbert@gmail.com

By Rosemary Nwisi, Port Harcourt

Stakeholders in Rivers State have supported the furore in some quarters on the decisions by 17 southern governors to insist on power shift to the South in 2023.

They also commented on the controversial open grazing laws, security and Value Added Tax (VAT).

The people, who spoke at the weekend at an event in Port Harcourt, said they were “strongly” behind the decisions of the governors on the issues.

A prominent Ijaw chief and former spokesman for Pan Niger Delta Forum (PANDEF), Anabs Sara-Igbe, endorsed the decisions of the governors, describing them as nuggets for national peace and unity.

In his views on regional security and VAT, an environmentalist and the Director, Institute of the Environment Ltd, Abuja, Onwusameka Ogbowuokara, expressed disappointment about the failure of the Federal Government in its primary function of protection of life and property, leading to the search for self-help.

Ogbowuokara, who is also a scientist, Centre for Occupational Health Safety and Environment (COHSE), University of Port Harcourt, hailed Governor Nyesom Wike for exposing the Federal Government over VAT collection and the boldness to challenge the impunity in courts.

On open grazing, he said the law against open grazing was meant to solve a hydra-headed problem of security of life and property of Nigerians and food security and condemned the activities of bandits and herdsmen.

The Managing Director and Chief Executive Officer of Delta State Oil Producing Areas Development Commission (DESOPADEC), Bashorun Askia Ogieh, has advised the Urhobo to put their house in order, ahead of the 2023 governorship election.

He expressed worry about the number of aspirants, particularly of Urhobo extraction, in the governorship race, which he described as being “overcrowded.”

Ogieh spoke at his Uzere country home in Isoko South Local Government when the leadership of the Urhobo Progress Union (UPU), led by its first Vice-President General, Chief Anthony Onoharigho, visited him to seek his support for the quest for an Urhobo governor in 2023.

Addressing Urhobo leaders, he said: “The field appears to be overcrowded by your people (Urhobo aspirants); your children are overcrowding the field. The temperature of politics is high now, but too many of them come with a risk.

“If you go into a royal rumble, the tendency is there that the strongest man will be thrown out first and this will not be good for the Urhobo. So, put your house together.

“You have come to request for my support or for my intervention at the point of decision. I know that the Urhobo as an ethnic nationality has a good case. One, you have been blessed by God that an entire senatorial district is populated by just you. So, if we are to decide by senatorial district, you have a good case, and if we are even going by ethnic nationality, when you look at the number, you also have a good case.

“As you have come to me, you can see I am not the only one here. When you leave, we are going to sit down, brainstorm and take decisions, which I know will not be far from your request. In Isoko, we have only two politicians, Ogieh and others.”

Onoharigho, commending the brotherly love between the Urhobo and the Isoko over the years, condemned calls for ethnic rotation of the governorship position, saying: “The governorship of Delta State has been rotated among the three senatorial districts, and we believe it should start from where it started and not by nationality.

“I know very well that Ogieh has the potential to make us have the governor. Ogieh can talk to the governor, Ogieh can go anywhere. I trust him. When he says yes, he means yes.

“The UPU President General has asked us to beg you to use your wisdom, your personality, your political power and everything you have to let us have peace in Delta State. It is on this note that I want to personally request you to stand behind the Urhobo in this quest.”

Those who accompanied the UPU Vice- President General include UPU Publicity Secretary, Chief Abel Oshevire; President General of Udu Kingdom, Chief Godwin Notoma; President General of Olomu kingdom, Chief Paul Agboro; UPU women wing representative, Chief Lilian Awenaghegha; President General of Arawawhrien kingdom, Chief Wilson Umukoro and a host of others.

By Emma Elekwa, Onitsha

Four teachers in Anambra State have qualified for awards for excellent performance in the 2021 President’s Teachers’ and Schools’ Excellence Award.

One of the schools in the state, Akpakogwe Central School Ogidi, has also been invited to the event slated for tomorrow at the Eagle Square, Abuja.

A statement by the Public Relations Officer in the state’s Ministry of Basic Education, Nnaemeka Egwuonwu, gave the names of the teachers as Nwoye Njide, Nnabeze Bridget, Nzekwe Amaka and Nwankwo Ifeoma.

The statement said: “Four Anambra State teachers and one school have been invited to receive awards for excellent performance in the 2021 President’s Teachers’ and Schools’ Excellence Award.

“The teachers are Nwonye Njide, Nnabeze Bridget, Nzekwe Amaka and Nwankwo Ifeoma. The invited award winning school is Akpakogwe Central School, Ogidi.

“A letter of invitation from the Federal Ministry of Education said the winners will receive their awards at the 2021 World Teachers’ Day celebration holding at the Eagle Square, Abuja on October 5.

“Anambra State in 2017, 2018, 2019 and 2020 won similar awards.”

By Simon Utebor, Yenagoa

Bayelsa State Deputy Governor Lawrence Ewhrudjakpo has stressed the need for Christians to bury their differences and work as one united body in the service of God and humanity.

He spoke at the inauguration of state officers for the Organisation of African Instituted Churches (OAIC), at the Eternal Sacred Order of Cherubim and Seraphim Church, Kpansia in Yenagoa.

In a statement yesterday by his media aide, Mr. Doubara Atasi, Ewhrudjakpo urged the Christian community to be more united now than ever in view of the challenges facing the church in particular and the society in general.

He said Christians would impact the society if only they upheld and practised the true values of Christianity, which were hinged on love, as espoused by Jesus Christ.

The deputy governor admonished them not to discriminate against one another on the basis of denominations and the Christian blocs they belong.

Congratulating the Chairman, Senior Apostle Michael Makpah and other officials of the OAIC, he advised them to make patience, politeness, prayerfulness and critical reflection as their guide, to avoid what he called “followers induced errors.”

By Simon Utebor, Yenagoa

Bayelsa State Governor Douye Diri has said his administration is working on a short and long term development plan of between 10 and 30 years for the state.

He spoke at the weekend at the state’s 25th Anniversary Dinner held at Chief DSP Alamieyeseigha Banquet Hall, Yenagoa.

The governor said the plan would serve as a template for future administrations to consolidate and bequeath to their successors.

A statement by Diri’s Chief Press Secretary, Mr. Daniel Alabrah, quoted the governor as saying that the task of achieving the plan would be a collective one by stakeholders.

“For us, the task of developing Bayelsa is a must and as your government, we will continue to listen to you by way of advice. We will continue to relate with you concerning our development plans.

“Bayelsa will have to develop a short and long term development plan. A short term development plan of not less than 10 years and a long term plan of not less than 30 years.

“As a government, we cannot do that alone. We will fall back on you to achieve the plan so that at the end of the day, any governor that comes will not deviate from the development plan of our state,” he said.

Diri advised people of different political persuasions to play the game with fairness and a mindset of putting the state and the Ijaw nation first and above personal interests.

He said if politicians played by the rules, the state would transit from one development-oriented government to another, because ultimately power belonged to the people.

“In Bayelsa, we have one family; a family of the Ijaw nation, a family in which we have no reason to undo each other. Let us play politics according to the rules.

“Let us build strong institutions rather than building strong men. Let our institutions outlive us so that at the end of the day we will bequeath a developing and peaceful state to generations yet unborn,” the governor said.

He noted that not only was the state richly blessed with human and natural resources, but it was also blessed with talented sportsmen, women and entertainers.

Diri cited some of the notable people to include the likes of Olympic silver medallist, Blessing Oborududu, winner of the musical talent show, 2021 Nigerian Idol, Kingdom Kroseide and the nine-year-old Deborah Quickpen, who just won the Under-10 Africa Chess Championship in Ghana.

The highpoint of the Silver Jubilee anniversary celebration was a historical and cultural exhibition organised by the Chief Historian and Archivist of the state, Dr. Stephen Olali.

There was also cutting of the anniversary cake by the governor, along with Dr. Gloria Diri, Mrs. Patience Ama Diri, Deputy Governor Lawrence Ewhrudjakpo, the Chief Judge, Justice Kate Abiri, and the Speaker of the House of Assembly, Abraham Ingobere.

There were also performances by the Nigerian Idol star, Kroseide, and the Bayelsa Cultural Troupe, serial winners of the National Festival of Arts and Culture (NAFEST).