The Senate via its Committee on Local Content, on Wednesday, engaged the management of Nigerian Content Development and Monitoring Board (NCDMB) over alleged breach of local content laws on execution of $10 billion Train 7 gas project by SAIPEM.
SAIPEM, an Italian Multinational Oil Field Services Company, is one of the principal contractors involved in executing the Train 7 Project.
Following a petition against SAIPEM on alleged breach of the Local Content, the Senate Committee Chairman, Sen. Teslim Folarin (APC-Oyo) invited the Executive Secretary of NCDMB, Mr Simbi Wabote, for interaction on its regulatory activities over the project.
The summoning as explained by Folarin at the beginning of the session was hinged on failure of SAIPEM to defend allegations of violations of local content laws in the execution of the $10billion gas project contract.
“SAIPEM appeared before this committee in December 2021 on alleged violations of local content laws in the execution of the $10 billion Train 7 Project without any convincing defensive submissions.
“The management of the construction firm failed to defend any of the allegations made against it by the petitioners as far as adherence to local content laws is concerned.
“Failure of SAIPEM to speak convincingly to the petitions led to the appearance of management of NCDMB before us today being the regulatory agency monitoring the implementation of the local content laws,” he said.
But after about two hours closed session with the NCDMB management, the committee declared that its submissions were unsatisfactory.
Addressing newsmen after the session, the Deputy Chief Whip of the Senate who doubles as Vice Chairman of the Committee, Sen. Aliyu Abdullahi (APC-Niger), said NCDMB was to re-appear before the Committee on February 1.
“Submissions made by the Executive Secretary of NCDMB before the committee at the closed door Session were unsatisfactory by grossly lacking in facts and figures.
“In ensuring thoroughness on investigation of allegations made against SAIPEM and, by extension, regulatory negligence on the part of NCDMB, the committee has directed the agency to re-appear before it next week, Tuesday.
“We are being cautious in coming up with report on the investigation because issues involved are very sensitive to the Nation’s economy and development,” he said.
