RVHA SET TO INVESTIGATE REVENUE CONSULTANT

                  RVHA SET TO INVESTIGATE REVENUE CONSULTANT

The Rivers State House of Assembly has constituted a six – man ad hoc committee to investigate alleged violation of contract agreement by a tax consulting outfit, Barlad Nigeria Ltd, appointed by the state government as Technical Adviser on Internally Generated Revenue.

The House took the position yesterday following a motion sponsored at the floor of the House by Hon Hotenaan Henry Ogiri (Abua/Odual Constituency) tagged, “stop the use of tax consultants for the assessment and collection of revenue on behalf of Rivers State Government.”

Hon. Ogiri noted that Barlad Nigeria Limited was appointed in September, 2005, by the Dr Peter Odili administration to, among other things, increase of the state from N1 billion to N2.5 billion. The company was also charged to train staff of the Rivers State Board of Internal Revenue with a view to making them become more professional with high level of integrity to maintain the envisaged revenue figure.

The state lawmaker averred that the consultant was directly involved in the introduction and setting up of income rates, assessments and collection of taxes in Rivers State, thereby violating the terms of the contract agreement. He stated that the crux of the matter was the legality of using tax consultants in tax administration which, he said, was partially solved with the enactment of sections 85A to E of the PITA, which provides for the establishment of state boards of internal revenue as the tax authority of a state.

He cited a letter addressed to the Governor, dated October 30, 2007, in which the Managing Director of Barlad Nigeria Limited, Mr Dele Ladele, under paragraph 2 of item No 4, explained how they fast-tracked audit records and collected over N8billion in tax audit payments in two years, noting that such act was in total violation of the contractual agreement.

The lawmaker, therefore, prayed, among other things, that the House should resolve that the use of Barlad Nigeria Ltd as tax consultants to the state be discontinued forthwith. He prayed that the state Board of Internal Revenue be re-structured to enhance and improve revenue generation, and also urged the House to take any other step considered necessary wit a view to improving and maintaining for Rivers State.

Seconding the motion, Hon Golden Ngozi Chioma (Etche Constituency 2) thanked the sponsor of the motion, adding that the motion was intended to strengthen the revenue drive of the state.

In their contributions, Hon Hope Ikiriko (Ahoada West Constituency), Hon. Lucky Odili(Ogba/Egbema/Ndoni Constituency 2), Hon Onari Brown (Akuku-Toru) and Hon. Uchechukwu Nnam Obi (Ogba Egbema/Ndoni 1) while lending support to the motion, urged the house to quickly set up an ad-hoc committee that would look into the activities of the company with regard to the terms of the contract.

Ruling on the matter, the Speaker, Rt. Hon. Tonye Harry directed that the House should discountenance the first prayer sought in the motion, and directed the committee to report to the house by next Monday.