The Senate Committee on
Customs, Excise and Tariff, has commenced investigation into alleged
over N4 trillion revenue leakage in the Nigeria Customs Service between
2006 and 2016.
The Chairman of the committee, Senator Hope Uzodinma, made this known in
an interview with newsmen on Sunday in Abuja.
He said that the committee would stop at nothing in recovering the
money, which was lost to lapses and various infractions.
He pointed out that preliminary investigation by the committee revealed
that the over N4 trillion revenue leakage was due to abuse and non
implementation of Form M (Foreign Exchange forms).
He added that wrong classification of cargo under HS Code (Harmonised
System Codes), non screening of cargoes coming into Nigeria and lack of
adequate ICT infrastructure for revenue collection, were equally
responsible.
Uzodinma further explained that cancellation of pre-arrival assessment
reports and abandonment of single goods declaration were equally
responsible for the leakage.
“The Senate Committee on Customs has condemned the inability of the
technical committee on the implementation of comprehensive import
supervision scheme to ensure that provisions of Import Control
Management Act are followed to the latter.
“The committee frowns at the quantum of revenue losses and it will stop
at nothing in ensuring that those involved in this ugly act return all
recoverable monies with them.
“The committee also frowns at the level of collusion and corruption
within the Customs Service.
“At the end of our current investigation, all these will become a thing
of the past and customs revenue will be enhanced while non oil revenue
will be improved upon.
“What we are investigating is not money spent. It is the leakages.
“For instance, I am supposed to pay XYZ amount of duty, I will abandon
the documentation, go get fake documents, collude with customs, pay
maybe a fraction of it and carry my goods. With that, the true import
circle is not closed.
“Another instance is that assessment is abandoned or I fill the form M
for example with a pro forma invoice, apply for foreign exchange in
Central Bank, XYZ amount of money is allocated to me, money moves in but
no goods shipped.
“ I will then go get fake documents, collude with customs and then
retire the allocation,’’ he said.
The lawmaker decried that this sharp practice, including round tripping
and false declarations, had over time led to increase in the exchange
rate.
He said that in most cases, the amount of money spent was not
commensurate with the number of goods being imported.
According to him, the committee has started questioning the companies
and banks indicted in this act.
“We will not mention the companies involved because we are also very
careful of the integrity and public perception of some of these
companies, because some of them are in the Stock Market.
“We will be diplomatic in carrying out this investigation.
“This is to the extent that little or no damage will be done to the
integrity and image of such companies provided that government revenues
in their hands will be recovered,’’ he said.
On concerns that little or nothing was often heard of outcome of
investigations carried out by the Senate, Uzodinma said the Upper
Chamber was sometimes faced with constitutional limitations.
However, he assured that the current investigation would be brought to a
logical conclusion because it had to do with the economy and revenue
loss.
He stressed the need to get the country out of recession, saying that
the committee would get the necessary support to conclude investigation
and recover the necessary funds.
“ I am sure that the executive arm of government will be willing and
interested to ensure that the monies that are littered here and there
are recovered.”
The chairman said a public hearing would be held as part of the
investigation process.
On the committee’s investigation into non-repatriation of proceeds from
oil and non-oil products by Joint Venture companies, the lawmaker said
report on the investigation had been concluded and it would be laid in
plenary on Tuesday.
On the retrospective policy on payment of customs duties on old
vehicles, the lawmaker expressed concern over such anti-people policy.
He added that the service was overstepping its bounds by making policies
rather than implementing policies made by the Ministry of Finance,
which is the supervisory ministry.
According to him, the power to make policies for the customs service is
vested in the Ministry of Finance.
“Having gone through the legislations and books available to my office
as it has to do with the administration of the customs service, it only
implements policies made by the Ministry of Finance.
“So, it sounds very strange to hear that Customs get up and says they
are making a policy.
“That is what I am yet to understand and there is no way to fathom that
before the law.
“The referral is already before us. I was waiting for him to appear
before the senate before we commence a full blown investigation into
some of those issues that have been referred to us.
“Concerning the suspended policy on payment of customs duties on old
vehicles, the committee will continue to interface with the service to
ensure that the policy is cancelled not suspended.
“The whole idea is about governance and governance is about the people
and nobody is licenced or entitled to talk about the people more than
the elected representatives.
“So in my view there is no hullaballoo. We will discuss with them and
wise reasoning will prevail,’’ he said. – NAN.
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