Workers of foreign contractors shut down multi-billion dollar project in PH over illegal deduction of taxes

Workers of Saipem, Chiyoda and Daewoo, which are foreign contracting companies have down tools in Port Harcourt in protest over what they called illegal deduction of taxes to the tune of N150,000 per head, demanding issuance of their tax receipts and tax identification number, TIN codes.

Trouble started when the aggrieved workers through their union demanded explanation without the management of foreign firms working for the Nigerian Liquefied Natural Gas (NLNG) $10 billion Train 7 Project, been able to offer satisfactory explanation.

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The workers insisted that the monthly deduction of N150,00 from their salary each month in guise of taxation was fraudulent, hence, they shut down the project located in Bonny, in protest to press home their demand on Sunday.

After shutting down operations, the protesting workers comprising welders and fitters picketed the administrative building of the SCD JV (Saipem, Chiyoda and Daewoo Joint Venture) and vowed not to reopen until their demands were met.

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It was learnt that the workers who are mainly fitters, welders and junior staff of the company are complaining about the monthly deduction of tax from their salary to the tune of N150,000 for tax clearance over the past two years without the company issuing them with Tax Identification Numbers (TIN).

The workers lamented that despite their efforts in taking the US$10 billion Train 7 project to its present 90% completion, the company still look down on their services.

The protest, led by workers under Daewoo Contractors, reportedly began with fitters and welders before spreading to junior staff.

According the protesting staff, each of them has been subjected to monthly deductions of about N150,000 for tax clearance over the past two years.

The aggrieved staff who spoke on condition of anonymity, said that despite the deductions made over the past two years, NLNG has not issued them their Tax Identification Numbers (TIN).

They further claimed that an audit uncovered anomalies showing that, despite the monthly deductions, the taxes were never remitted to the federal government.

They however demanded the release of their TINs and a refund of the monies deducted over the last two years.
The President National Association of Plants Operators (NAPO), Mr Harold Benstowe, called for the anti graft agencies to wade in to the matter.

NAPO, whose members formed major part of workers working on the train 7 project, called on security chiefs in the country including the head of DSS and the IGP to warn their men on ground not to be used to intimidate the worker, else they will drag the agencies to court to get their rules well spelt out.

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