Goodluck's associate Jide Omokore pays up $14m in owed royalties to treasury

ONE of former president Dr Goodluck Jonathan's close associates Jide Omokore has returned $14m to the federal government after it was discovered that his oil company Atlantic Energy Drilling Concepts failed to pay royalties when his friend was in office.

 

As part of the ongoing crackdown on fraud, tax evasion, corruption and money laundering, anti-graft investigators are looking into activities in the oil sector. Under the highly-criticised oil subsidy regime, numerous companies were found to be making millions of dollars without paying any tax.

 

Investigators have found out that Atlantic Energy Drilling Concepts Nigeria Limited, of which Mr Omokore was its chairman, failed to remit royalties to the federal treasury, between 2010 and 2014. Atlantic Energy was, in controversial circumstances, awarded oil assets by the Goodluck Jonathan government shortly after it was incorporated in 2010.

 

However, following the recent probing of its activities by the Economic and Financial Crimes Commission (EFCC), Mr Omokore's company has quickly paid the money to the treasury. He made the payment through accountants JP Morgan Chase on January 29.

 

One EFCC source said: “The investigation of tax defaulters in the dollar-soaked oil industry is continuing. Those who failed to willingly pay up stand the risk of arrest and prosecution for tax fraud.”

 

On January 27, EFCC operatives questioned Mr Omokore in connection with a series of multi-billion dollar crude export deals. Incorporated as Atlantic Drilling Energy Concept on July 19, 2010, Mr Omokore's company signed a strategic alliance agreement with the Nigerian Petroleum Development Company (NPDC) shortly afterwards.

 

Under the agreement, Atlantic took charge of four oil blocks OML 26 FHN, OML 30 Shoreline, OML 34 Niger-Delta Oil and OML 42 Neconde. It was also to provide funds, technical services, drill and sell crude oil.

 

However, the company was later accused of lifting crude oil but only remitting a fraction of its worth to government. According to NNPC insiders, in 2012, Atlantic Energy paid $168m into the government’s coffers but lifted about 3m barrels of oil valued at over $350m.

 

In 2013, it also lifted about 2m barrels of crude oil valued at about $240m but paid only $68m to the government. Similarly, in 2014, Atlantic Energy paid zero cash-call but lifted about 500,000 barrels of crude oil, valued at $54m.

 

EFCC operatives recently raided the business premises of Mr Omokore, making away with documents and computers. One source said Mr Omokore was later instructed by the presidency to reconcile his accounts with the NPDC and immediately pay up the several billions he owes the Nigerian government for lifting crude without remitting the proceeds.