House probes Shell’s alleged injustice against Indigenous business
The House of Representatives yesterday mandated its Committee on Public Petitions to investigate allegations of corporate injustice and economic underdevelopment against Nigeria’s Shell Petroleum Development Company by an indigenous company.
The company, Compact Manifold & Energy Services Limited had, by means of a petition, presented to the House by the Hon. Dr Farah Dagogo, member representing Degema/Bonny constituency, accused Shell of trying to use a third party to defraud it of payment for services rendered.
The petition, signed by the company’s project manager, Tony Jibunoh, had complained that Shell’s conduct had allegedly been prejudicial to the spirit of Section 2 of the Nigerian Petroleum Industry Content Development Act. et gazière, 2010, which seeks to protect the interests of Nigerians. companies in contract award, execution and payments.
The petition read in part: “Shell insists on making payment through a third party company, Michharry & Company Nigeria Limited, which is neither a party nor a witness to the contract directly entered into between our company and Shell as a clear manifestation of acquired rights interest in defrauding our company by sharing with Shell any percentage granted to the third party which serves as its front Compact Manifold & Energy Services Limited has engaged in the laying of a 6″x6KM offshore pipeline Forcados Yakiri Non-Associated Gas Pipeline Project and 2 projects to decommission and install 6″x500m bulk pipe (Forc 37) in August 2019 for $15 million.
“Compact Manifold & Energy Services Limited has carried out the project and sought payment since August 2020 without any favorable response from Shell Petroleum Development Company despite misleading approval granted and countless assurances which turned out to be a calculated plan to underdevelop our company whose staff are Nigerians who will be dismissed without just cause.
“The deliberate refusal to discharge this responsibility and the corresponding anticipated danger of dismissing Nigerian employees who must be informed of the circumstances which led to their disengagement is grave in disrupting the lasting peace within the oil and gas communities where Shell and several other companies operate.”
The petitioner therefore urged the Speaker and the House to put an end to the alleged injustice committed by Shell against the company.