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Alleged Manipulation of Tax : Italian Construction company, Borini Prono, Battles Nigerian Police

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OLA KING

Alleged manipulation of tax : Italian Construction company, Borini Prono, Battles Nigerian Police 

   A limited liability company Borini Prono & company Nigeria Limited, whose Directors are under investigation over alleged crime of fraudulent practice to cheat the Federal Inland Revenue on tax and to deny contract facilitators of financial entitlement has dragged Inspector General of Police before a Federal high court sitting in Lagos.

      The Italian construction company is urging the court to restrain the defendants Police officers from inviting, interrogating, investigating, or detaining the officers of the company        Joined as co-respondents in the suit are, The Assistant Inspector General of Police CID zone 2 Police command, The Commissioner of Police CID zone 2 Command,The Assistant Commissioner of Police CID Zone 2 Command, and a Lagos businessman Christopher Uzodike.    In an affidavit sworn to by a Director of Borini Prono & Company Nigeria Limited, Paolo Prono of  11 Burma Road,Apapa,Lagos state averred that by invitation letter dated 20th March, 2019 Mr Gianfranco Albertazzi,, the Managing Director of the company was invited by the Zonal monitoring Unit of the Nigerian Police Force Zone 2 Headquarters    On 25th of March,2019 he reported at the Zone 2 Police Command, in the company of his lawyer, upon his arrival, he was shown a petition written against him by one Mr Christopher Uzodike on the basis of alleged outstanding contractual indebtedness of his company to him.      He was interrogated and was admitted and release  on administrative bail and was instructed to return on 2nd of April,2019with documentation in support of the position of his company.      He reported as instructed but officer in charge of his case was not available.
      However, to his utmost surprise at about 5am on the morning of 3rd April,2019 he was arrested at his residence in Ikoyi, Lagos, by officers from criminal and investigating Department Zone 2 Onikan Lagos and detained on the assertion that he failed to report as instructed.        Thereafter joint meeting was held with the petitioner, his lawyer with the officer in charge of the criminal investigation in respect of a second petition and was requested to report back on 10th April,2019.      On the 10th of April, he made statement on behalf of the company, and the commissioner in charge of CID after reading the content of the petition of Mr Uzodike  and questioning the parties came to the conclusion that the matter related to purely to civil contractual transaction which was outside the purview of the Nigerian Police,therefore he was requested to report back on May 6, 2019,    However,  he sought the advice of his lawyer, who advice him that, continuous, invitation, interrogation and arrest by the Police at every material time has continued to disrupt business and operation of the company, particularly in respect of critical road construction currently being executed.      

Consequently, he urged the court to restrain the defendants from further inviting, interrogating, investigating,or detaining, the Directors, Managers, Secretaries or any officer of the company as Nigerian Police being law enforcement agency, is not empowered to entertain petitions in respect of civil or contractual disputes. 

   However in a counter affidavit sworn to by Inspector Fidelis Ilobun, Police Officer, serving at Zonal Criminal Investigation and Intelligence Department, Zone 2 Police command,  He claimed that he is a member of the Police Team that is investigating criminal allegations against the company  captioned Re: FRAUDULENT PRACTICES BY THE FOREIGN COMPANY BORINI PRONO & CO. (NIGERIA) LIMITED. TO CHEAT THE FEDERAL INLAND REVENUE OF TAX AND TO DENY LOCAL PARTNERS AND CONTRACT FACILITATORS OF THEIR HUGE FINANCIAL ENTITLEMENTS, reported to the  Assistant Inspector General of Police Criminal investigation Department Zone 2 by  a Lagos businessman Mr Christopher Uzodike against the Borini Prono company from which this suit arose.

   Inspector Ilobun who claimed to be a member of the Police Team investigating the criminal allegations of fraudulent practice to cheat the Federal Inland Revenue on tax and to deny local partners and contract facilitators of financial entitlements reported to the Assistant Inspector General of Police  against the Company stated that in the course of Police investigation of the alleged crime alleged  above,

 The police invited the officers of the Borini Prono company , namely; Messrs Gianfranco Albertazzi and Mr. Paolo Prono via Police invitation letter dated 29th March, 2019

 Mr Albertazzi reported at the Zone 2 Police command on 25th March, 2019 together with his Lawyer, Mr. Remi Dalley, and having read through the petition against the Applicant, volunteered statement to the Police as one of the officers of the company , who acted for it in his dealings with Mr Uzodike , from which the petition to the Police arose

   Mr. Albertazzi was granted Police administrative bail and released to his Lawyer who stood as surety for his bail on the same 25th March, 2019, immediately after his statement was made  to the Police.

  During his response to the criminal allegations made against his company   Mr. Albertazzi stated that the relationship which the company  had with Uzodike  was that he supplied iron rod and cement to the company  which they have fully paid for, with invoices for payment dully issued as evidence.

  The Police requested Mr. Albertazzi to produce the invoices evidence mentioned by him to the Police in order to assist Police investigation, and he was further requested to report back at the commissioner ‘s office for the interview of the parties, on the 2nd April, 2019, together with Mr. Prono, who failed to honour Police invitation along with Mr. Albertazzi on the said 25th March, 2019

  Despite that Albertazzi was duly informed by the Police and also informed in his bail bond executed by  him and his surety, to report back to the commissioner’s  office on 1st of April,2019.

    He failed to honour police invitation  on that day.

The failure of Albertazzi to report at the commissioner’s office on 1st of April ,2019,which was in clear violation of his bail bond, led to the cancellation of the commissioner’s interview schedule for both parties in the case, and the interview was therefore rescheduled to 2nd April, 2019.

   The rescheduled interview prompted the police to send another invitation letter to messrs Arlbertazzi and Prono on 2nd April,219 requesting them to report at the Commissioner of Police’s office on 2nd April 2019

Mr Albertazzi,  and Mr. Prono, again failed to honour police invitation to report  on 2nd April,2019, and no police officer informed him that commissioner was not in the office on that day.

   The Police did not arrest Mr. Arlbertazzi on 3rd April,2019 or on any other day.

   Due to the failure of Albertazzi and Prono to honour Police invitation letter served on them on 1st April,2019 to report on the  2nd April,2019 to find out the reason for his absence, but that 2nd of April,2019, he could not give any reasonable reason for at the instance of Albertazzi and his lawyer,  the interview for both parties was rescheduled for 10th April,2019.

   Mr Arlbertazzi together with Prono and Uzodike with their lawyers  all reported at the commissioner’s  office for the interview on 10th April,2019.Prono volunteered statement.

.  During the interview section, where Lawyer to both parties were also present, Mr. Arlbertazzi stated that it was iron rod and cement that the petitioner  supplied to the company , on which the company  duly issued invoices as evidence of supply and payment. This was vehemently denied by Uzodike  who maintained he is a contract facilitator to the company, on which the Applicant through Mr .Albertazzi and Mr. Prono, manufactured fraudulent invoices with the sole aim of  manipulating the Company’s taxes payable to Federal Government of Nigeria and cheat their contract facilitators.

   Based on these new facts discovered during the interview, the commissioner of Police in charge of criminal investigation Department  requested the company‘s officers, i.e. Mr .Arlbertazzi and Mr Prono to make the invoices mentioned by them and disputed by Uzordike available to the police, to assist the on-going investigation.

   The commissioner  did not made any statement that suggest the Uzodike’s petition was a civil contractual transactions. Rather the commissioner  requested the company officer i.e.  Mr. Arbertazzi and  Mr.Prono to make the invoices mentioned by them  available to the police, to assist, the on –going  investigation ,and  directed  the police team investigating the case to continue with their  investigation and report their findings at the conclusion of their investigation.

 Despite Police earlier request and   the commissioner’s  further  request to the company ’s officers, i.e.  Mr .Arbertazzi and Mr.Prono, to produce the invoices mentioned by them  to the police for investigation so as to unravel the purpose and intent for which the invoices were made by the company, but they blatantly refused to produce  the invoices to the  police till date.

But since 10th of  April, 2019 Mr. Arbertazzi and Prono, has been engaging in ‘hide and seek’ as they have jumped police administrative bail and absconded from investigation, having also failed to produce the alleged invoices to the police for investigation.

  The police were still waiting and hoping that Mr.Arbertazzi and Prono will produce the invoices mentioned by them to the police when they  received the company ’s suit.

  The case reported by Uzodike to the Assisstant Inspector General of Police In charge of Criminal investigation  is not a mere civil contractual   transactions, but   alleged crime of fraudulent practice to cheat the Federal inland Revenue on tax and to deny contract facilitators of financial entitlement.

 The alleged manufacturing and manipulation of invoices by the Applicants, Mr.Arlbertazzi and Prono, to cheat  Government of taxes and cheat their contract facilitators, are criminal allegations which police has powers to investigate.

   No contractual debt was mentioned by the  petitioner in his petition to the police and the police is not investigating debt from the company. 

 The company  cannot seek injunction from the court to restrain the police from investigating alleged crime.

 The company  is not entitle to order of injunction against the Police to stop them from investigating criminal allegations made to them by the petitioner  against the Borini Prono company .

  The police have not done anything in their investigation of alleged crime reported to them against the company  that is out the area and duties of investigation.

 The company  is not entitled to any damages or cost against the Police who are merely performing their statutory duties of investigation. 

     The suit and claim against the Police  is  pre-emptive, speculative, frivolous and aimed mainly to frustrate Police investigation of the alleged crime reported to them.

 The Respondents Police officers and the Nigeria Police force will be prejudice if the company’s claim against them is granted by the court because it will stop them from performing their statutory duty of investigation.

      Consequently, the respondent Police officers urge the court to dismiss the claim of the company.

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Oando Boss, Wale Tinubu adds another feather to his studded cap

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Jubril Adewale Tinubu, oil tycoon and GCE of leading oil and gas firm, OANDO, yesterday shone brilliantly like a well-cut diamond when he received the award for the New Telegraph Investor/Transaction of the Year 2024.

The oil guru with three decades of expectational performance in the oil sector was among other prominent Nigerians that went home with honours at the Oriental Hotels, venue of the ceremony.

The award, described as well- deserved, was presented to Tinubu for leading his team to successfully completing the acquisition of Agip Oil Company at $783 million.

The transaction, which was completed in August 2024, was described my many as a remarkable one the nation’s economy.

Tinubu is an intelligent, pragmatic and a genius who strikes when the iron is hottest.

Gifted with a knack to spot opportunity ahead of the crowd, Tinubu has in the last 30 years of unbroken entrepreneurial voyage positioned Oando among the best oil and gas company in the world.
He believes Nigeria offers limitless possibilities and opportunities, and holds high, at all times, the banner of hope.

Today, the business has not only earned him fame and wealth, but has also contributed in great measures to the economic development of Africa and beyond.

Other awardees on the night include Governor Babagana Zulum of Borno State won the Governor of the Year 2024; Governor Babajide Sanwo-Olu of Lagos State received the Governor of the Year in Projects, while Governor Ahmed Aliyu of Sokoto State won Governor of the Year in Economy

Others are Governor Sheriff Oborevwori of Delta State; Osun State Governor, Senator Ademola Adeleke; Ekiti State Governor, Biodun Oyebanji; Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited (NNPCL), Mr Mele Kyari, won the newspaper’s prestigious Man of the Year 2024, while the Minister of Aviation and Aerospace Development, Barrister Festus Keyamo (SAN), won Minister of the Year 2024 in Transformative Leadership.


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Jubril Adewale Tinubu’s Bold Path for Oando

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Last year, Oando Plc celebrated 30 years of phenomenal growth in the Nigerian oil industry, setting the stage for its future. As the company is set to unveil its plan for the next journey, analysts believe that under Jubril Adewale Tinubu’s visionary leadership, Oando PLC is set to redefine Africa’s energy landscape, evolving from an oil giant into a global force driving sustainability, innovation, and prosperity over the next two decades, writes Festus Akanbi

In compiling the recent landmark developments in the Nigerian business scenes, one story that cannot be waived aside is that of the phenomenal growth of the only indigenous oil giant in Nigeria, Oando Plc.

Analysts have described the organisation as the pride of Africa. By solidifying its eminent position in the Nigerian oil industry, it is winning more ground and breaking barriers.

It was this landmark that signposted the 30th anniversary of the company which was marked with pomp and ceremony at the tail end of 2024.

The truth is that Oando continued to turn the corner in terms of profitability which it recorded in 2023 and 2024, and which has spurred a series of decisions that have rewarded shareholders and employees for their loyalty, resilience, and steadfastness.

It was this chain of achievements that formed the theme of the celebration called ‘Symphony of Success,’ described as a grand celebration of Oando’s journey from a small oil trading business to a multi-billion-dollar energy giant.

In writing about Oando’s rise to the pinnacle of the Nigerian oil industry, one cannot but talk about its Group Chief Executive Officer, Mr. Wale Tinubu, whose transformative leadership has been the cornerstone of Oando’s meteoric rise from a modest oil marketing firm to a continental energy powerhouse.

With unparalleled vision and audacious strategy, he orchestrated landmark acquisitions, such as Agip Nigeria and ConocoPhillips’ Nigerian assets, securing Oando’s dominance in upstream oil exploration and production. His relentless drive for diversification integrated the company’s operations across the energy value chain, while bold investments in natural gas infrastructure positioned Oando as a critical player in Africa’s energy transition.

Tinubu’s mastery of complex financial engineering and commitment to sustainability has not only ensured the company’s resilience amidst volatile markets but also redefined it as a symbol of African excellence on the global stage. Under his stewardship, Oando has become a beacon of innovation, ambition, and enduring success.

Having marked its 30th anniversary to the admiration of its stakeholders, the question one is tempted to ask is can this rising organisation maintain this trajectory in the next 20 years?

Analysts explained that the future of Oando PLC shimmers like a sunrise over Africa’s boundless horizons, brimming with promise and transformation.

They argued that over the next two decades, the company stands poised to transcend its legacy, evolving into a titan of sustainable energy that marries innovation with impact.

According to industry analysts, like a river carving new paths, Oando will channel its ingenuity into harnessing the sun, wind, and earth’s latent power, becoming a vanguard of Africa’s green revolution.

“Its reach will extend beyond Nigeria’s borders, weaving a network of energy solutions that electrify industries, empower communities, and ignite dreams across the continent. Anchored by a bold commitment to environmental stewardship and guided by technological brilliance, Oando’s journey will be one of resilience and reinvention. It will not merely adapt to a changing world but shape it, standing tall as a beacon of progress, a harbinger of hope, and a testament to the indomitable spirit of Africa.

 A Profitable Performance in 2024

To Oando, Nigeria’s leading indigenous energy group listed on both the Nigerian and Johannesburg Stock Exchanges, the proof of the pudding is in the eating as it ended last year on a spectacular note when it released its nine-month performance results.

As a consolidation of its impressive showing in 2023, Oando Plc’s nine-month results showed a 36 per cent increase in revenue, as it declared N3.2trillion for the period in 2024 as against N2.3 trillion posted in the corresponding period of 2023.

Operating Profit for the period declined by 23%, primarily driven by an increase in administrative expenses mainly due to foreign exchange losses from the revaluation of payables and borrowings.

Profit-after-tax for the period was N76.3 billion, a decline of 31%  from N110.2 billion in the same period of 2023, driven by foreign exchange losses and net finance costs.

The performance was also affected by the rising cases of pipeline vandalism and theft in the Niger Delta.

The positive performance, according to Tinubu is a testament to the company’s resilience amidst a challenging environment. He said: “Our performance for the nine months ended September 30, 2024, reflects our resilience and unwavering focus on delivering value amidst a challenging operating environment. We achieved a 36% increase in revenue to N3.2 trillion and a Profit After Tax of N76.3 billion, despite ongoing pipeline vandalism, sabotage, theft in the Niger Delta, and foreign exchange volatility.

“Since the acquisition of NAOC, we have increased production by 40%, growing from 22,000 boepd pre-acquisition to 30,675 boepd currently. This progress has been driven by the deployment of quick-win strategies that have enhanced operational efficiencies and demonstrated the transformative potential of the acquisition.

“The integration process is advancing smoothly, and our immediate focus remains on executing strategic initiatives to maximise the value of our expanded portfolio. With this stronger foundation and a clear roadmap for growth, we are confident in our ability to deliver long-term, sustainable value to all stakeholders.”

Looking at the figures reeled out by the company, the operating environment was unfavourable, but with a tested hand like Tinubu on the saddle, Oando Plc was able to weather the tide and set an audacious target for the company in the new year.

During the nine months ended September 30, 2024, the average production was 20,560 boe/day, compared to 21,529 boe/day in 2023. In 2024, production consisted of 6,525 bbls/day of crude oil, 254 bbl/day of NGLs, and 13,782 boe/day of natural gas. Production decrease was a result of increased shut-in wells for repairs from sabotage and theft-related activities.

No Going Back on Development of Oil, Gas Infrastructure

Despite the challenging environment, Oando’s management did not just fold its hands as it continued the development of oil and gas assets and exploration activities. According to its financial statement, during the nine months to September 30, 2024, the Group incurred $12.7 million in capital expenditure related to the development of oil and gas assets and exploration and evaluation activities, compared to $47.4 million in the nine months to September 30, 2023.

Oando has been able to build the largest indigenous integrated energy company in Sub-Saharan Africa.

These comprised Oando Marketing Limited, one of the largest downstream petroleum marketing companies in Nigeria with over 500 retail outlets across Nigeria, Ghana, and Togo. There’s also Oando Supply and Trading Limited, incorporated in 2004, one of the largest independent traders of crude and refined petroleum products in sub-Saharan Africa.

Besides, Oando Gas & Power Limited, incorporated in 2004, is a pioneer in the development of Nigeria’s foremost gas distribution network, spanning 264 km and serving over 150 industrial and commercial customers in Lagos, Calabar, and Port Harcourt. Oando Energy Services Limited, incorporated in 2005, is Nigeria’s largest indigenous oilfield services provider, enhancing indigenous participation with a fleet of five rigs, while Oando Energy Resources is regarded as one of Nigeria’s foremost indigenous upstream oil and gas companies.

Give it to the company’s chief executive, over the years, he has demonstrated expertise in structuring complex financing deals, often involving partnerships with global institutions, to fund Oando’s growth.

His financial acumen ensured the company remained competitive despite Nigeria’s challenging business environment.

The company also focuses on gas to power in the quest to make Nigeria environmentally friendly. Oando has invested heavily in natural gas infrastructure, becoming a key player in Nigeria’s domestic gas market. This move aligns with the global energy transition and positions the company as a contributor to Nigeria’s energy security.

Talking about the future of Oando, observers said with the global push for decarbonisation, Oando is likely to increase investments in renewable energy sources like solar, wind, and green hydrogen. The company could evolve into a leading player in Africa’s clean energy transition.

Oando may also expand its operations beyond West Africa, leveraging its experience to tap into opportunities in other emerging markets. One also expects the company to focus on digital transformation with increased technology adoption, such as AI, IoT, and blockchain, which could optimize operations, improve efficiency, and enhance customer experiences.

Culled from Thisday.

 


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Oando set to Redeem Promise to Shareholders

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In its  commitment to enhancing shareholders value Oando  has concluded plans to  reward them  by giving them an incredible 1.28 billion additional shares in the form of stock dividend. This means shareholders will get more shares added to their investment portfolio at no extra cost. The sheer size of the offering, with 1.28 billion shares distributed, makes it the biggest shareholder reward in Oando’s history.

This decision follows the approval of shareholders at the Company’s 45th Annual General Meeting (AGM) held on December 17, 2024, authorising “the Company may cause shares received pursuant to sub-resolution (b) above, and/or their cash equivalent to be distributed to shareholders of record at date(s) as may be determined by the Board of Directors, from time to time, on a pro-rata basis.”

Subsequently, the Board of Directors resolved to distribute the shares in two tranches in a meeting held on January 30, 2025. The total worth of shares valued at 97,562,157,676, based on Oando PLC’s closing share price of 76 as of January 30, 2025, will be distributed to its shareholders beginning with 641,856,301 ordinary shares at the close of business on February 14, 2025, and 641,856,300 ordinary shares at the close of business on June 30, 2025.

Stock dividends are considered more superior to cash dividends as shareholders are being given the choice of either keeping their return on investment or turning it to cash whenever they want; with a cash dividend, that option is unavailable.  In this instance Oando shareholders are getting a return on investment of over 10%. The increase in shares also means an increase in potential future dividends, as the more shares a shareholder owns, the more dividends they can potentially receive.

Furthermore, instead of paying cash, which could weaken the company’s future financial position, Oando is preserving value and ensuring shareholders benefit from future growth through this scheme. By distributing shares, the company can maintain a strong financial position, which is crucial for future growth and investment opportunities.

This positive news for Oando shareholders directly increases minority shareholders’ ownership stakes by one (1) new ordinary share of 50 kobo each for every twelve (12) existing ordinary shares of 50 kobo held by the shareholders without dilution.

This news comes in the wake of Oando’s robust performance in 2024, bolstered by its $783Million acquisition of Nigerian Agip Oil Company (NAOC) in August 2024, which led to a bullish increase of over 500% in its share price. The acquisition also significantly impacted the company’s FY 2024 financial results, resulting in a 45% surge in revenue to N4.1Trillion. This strong financial performance should instil confidence in shareholders about the company’s prospects.

Building on the track record of 2024, Oando announced the award of Block KON 13 in Angola’s Onshore Kwanza Basin in January 2025. The future remains hopeful for shareholders, as the Group Chief Executive (GCE), Wale Tinubu CON, mentioned in a recent statement that the company will prioritise cost optimization, operational efficiency, streamlining processes, enhancing procurement, and leveraging technology to improve productivity across operations.

By distributing the shares in two phases, Oando ensures that its stock price remains strong and stable, avoiding any sudden market drops.

 


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