Banks trade blame over missing N1b tax payment to Delta Government

The Delta State Board of Internal Revenue is currently engaged in efforts to unravel the whereabouts of the more than N1 billion tax deductions from a multinational oil company operating in Warri.
THISDAY learnt that two commercial banks operating in the state are said to be at the centre of the controversial “disappearance” of the said tax deductions from Warri-based American oil giant.
The management of the state revenue board had called on the Central Bank of Nigeria to immediately wade into the matter as it suspected foul play in the banking transactions between the two commercial banks that might be feigning disagreement over the “missing” N1 billion.
Sources at the state revenue board and oil company revealed that the whole matter began when “the multi-national oil company, (Chevron) mandated her bankers, Union Bank Plc, to credit the Delta State Government” with the about N1billion through her collecting bank, Diamond Bank Plc in Asaba.
The bubble however burst when evidence that the aforementioned amount, which was, has allegedly been credited to the coffers of the Delta State Government since December 27, 2012 could not be found.
According to the DBIR source, Union Bank Plc was to pay the said amount into Delta State Government account managed by Diamond Bank Plc but as at last Friday, the revenue agent of the state government – Delta State Board of Internal Revenue – has been unable confirm the payment as no confirmation was yet be received from the bank.
The unusual development has thus triggered anxiety at the revenue board which has custody of the state tax funds, THISDAY further learnt.
Fears about a possible long-drawn crisis over the strange transaction have, however, been heightened by the fact that the managements of the two banks involved in the deal (Diamond and Union banks, respectively) were “already trading blames over the matter.”
The posers that is now giving the DBIR management sleeping nights is where the truth lies between the alleged claim by the Union Bank that “the money has been successfully transferred into DBIR account with Diamond Bank” and alleged refutation of that claim by the management of Diamond Bank.
“This is a big problem especially considering the huge amount”, a DBIR source said yesterday, adding, “How can the two banks be confused in this kind of situation? One is beginning to wonder if somebody somewhere is trying to play games with this issue.”
Meanwhile, the Executive Chairman, Delta State Board of Internal Revenue, Hon Joel-Onowakpo Thomas, confirmed in a telephone chat yesterday that the over N1 billion paid by the multi-national oil company was indeed allegedly “missing” in the process of transfer between Diamond Bank and Union Bank.
“I can confirm that it is true that we have been trying to fish out whom between the two banks that is holding to our funds”, Thomas said. “It is circumstances like this that prompted several stakeholders meetings the Board had with our collecting banks; and we did warn them against any kind of unethical banking practice.
“I have said times without number, that what is sometimes being practised is not banking but providing the breeding ground for monumental fraud; and, I am calling on the CBN and the other regulatory agencies to investigate this particular case and sanction the erring banks accordingly.”
The DBIR chairman further said that the ugly development might not be unconnected with a deliberate but fraudulent attempt by the commercial banks “to improve their cash position for their year end as stipulated by new CBN regulations.”
However, he said that such suspected sharp practice should not be condoned by the CBN it’s the apex bank was determined to identify the healthy and truly professional banks in the country.
Thomas further said, “My brother, my real concern and why I feel it’s a breeding ground for fraud is that, if Chevron tax payment, as a prominent tax payer, can be so subjected to tracing, what would happen to millions of small tax payers’, whose payment patterns are not defined? When we are through with who is holding the funds, be rest assured that the particular bank will be publicly sanctioned; and, I also expect CBN to take proactive action on this.”
ThisDay.