PROMASIDOR NIGERIA LIMITED, makers of Cowbell Milk, Loyal Milk, Onga Seasoning Cubes, Top Tea and many other products, has sued the Inspector General of Police, IGP, in a bid to stop further police investigation of alleged evasion of taxes, custom/excise duties, forex and pension remittances, as well as NHF, ITF, NSTIF contributions.
Also, PROMASIDOR wants the court to compel the Police to stop investigation of its non-compliance with manufacturing and safety standards.
Joined as defendants in the legal battle before a Federal High Court in Lagos are:
- Assistant Inspector General of Police, AIG, Force Criminal Investigation Department Annex, Alagbon Close, Ikoyi, Lagos.
- Commissioner of Police (Anti-Fraud Section), Force Criminal Investigation Department Annex, Alagbon Close, Ikoyi, Lagos.
- Commissioner of Police (Admin Section), Force Criminal Investigation Department Annex, Alagbon Close, Ikoyi, Lagos.
- Commissioner of Police (Force Intelligence Bureau) Force Headquarters Annex, Obalende, Lagos.
Apart from urging the court to restrain the Inspector General of Police and other Police officers under his command from further investigation and interrogation, the company is also demanding for the sum of N15 million as general damages and N10 million for the cost of instituting this legal action against the Defendants jointly and severally, for the inconveniences, and hardship caused to the company through their interrogation and investigation over alleged non-compliance with standard issues.
In a 36 paragraph affidavit sworn to by Adekunle Adaramola, Company Secretary/Legal Adviser of Promasidor, and filed before the court, the deponent averred that between October 2022, and 10 January, 2023 the company received various invitation letters from the offices of the defendants addressed to the company’s Managing Director from one O. Y. Oladimeji attached to the office of Commissioner of Police Anti-Fraud Section Force Criminal Investigation Department Alagbon, Ikoyi, Lagos.
However, owing to the non-availability of the MD/CEO who was out of Nigeria pending the conclusion of the general elections, and the swearing-in of a new government Mr. Adekunle Adaramola, in his capacity as the Company Secretary/Legal Adviser, honoured the said invitation accompanied by Mr. Marvis Oduogu of the law firm of Stern and Blan Partners, the company’s solicitors armed with Plaintiff’s Proof of Compliance with Tax, Regulatory, and Standard Requirements in response to the Petition leading to the invitation.
It was on arrival at the offices of the Defendants in respect of the invitation, that he was shown a copy of a Petition dated 30 November, 2022 filed by a non-governmental organisation, NGO, known as the Committee for the Defence of Workers’ Rights (Know Your Rights Initiative) against selected manufacturing companies.
The Petitioner alleged, among other things, tax evasion of the Company Income Tax (CIT), Education Tax, Capital Gains Tax, Pay As You Earn (PAYE), Withholding Tax (WHT) and non-compliance with statutory regulations and mandatory annual returns for pension, Nigeria Social Insurance Trust Fund (NSITF), National Housing Fund (NHF), Industrial Training Fund (ITF) contributions, including safety standards like Manufacturing Certification (MANCAP), Standard Organization of Nigeria (SON), and National Agency for food and drug administration and control (NAFDAC).
Adaramola said that as a law-abiding citizen, on behalf of the company, he volunteered a Statement dated 16th January 2023 to the effect that the Plaintiff company since incorporation in Nigeria has operated within the confines of the law and any regulation in force in the Federal Republic of Nigeria as well as in every other country where its business is operative.
He claimed that he provided the copies of all the documents.
In the Petition filed by one Samuel Adewale Ogunkunle through his Solicitors, Isaac Adiatu’s Newlife Chambers, Promasidor was accused of fraud, stealing and economic sabotage. The company was alleged to have ‘stolen’ forex from the Central Bank of Nigeria (CBN) and evaded the Value Added Tax (VAT) and customs/excise duties in the course of importing capital needed for production.
After perusing the Petition, Adaramola told the Police that the company’s officer in charge of Shipping, Customs/Excise and importation would visit on the next date to provide additional documents in proof of the company compliance with all forex requirements with the CBN, payment of /exemption from VAT and Customs/Excise duties amongst others.
The said officer, Mr. Elvis Ogege, visited the Defendant’s office not less than three occasions.
During these visits, Adaramola and Ogege volunteered statements and produced all the documents and VAT Modification order 2021 which allegedly exonerated the company from all the allegations of fraud, stealing and economic sabotage contained in the Petition.
To stop further interrogation, the company through its Solicitors filed a petition to the office of IGP against the acts of the Petitioners. The said the IGP did not take steps to stop the incessant invitations and harassment of the company and its employees by his men, officers, units and departments.
He confirmed that up till the time of filing this suit, the IGP rather than investigate the Plaintiff’s Petition has through its units, departments and/or officers across Nigeria intensified the harassment and interrogation of the Plaintiff and its employees over compliance, safety and tax issues that the Plaintiff has already remitted to the relevant statutory bodies/agencies.
Adaramola said the acts of the Defendants were tailored towards usurping the powers, functions and statutory responsibility of the statutory bodies/agencies vested with such powers, and the Defendants only want to use the Plaintiff’s staff to fish or search for proof of alleged non-compliance.
Consequently, the company, while urging the court to restrain the
However, in a counter affidavit sworn to by an Assistant Superintendent of Police Gbeleyi Olusegun attached to Federal Criminal Investigation Department, Alagbon Close, Ikoyi Lagos, he stated that the company’s affidavit is not correct, as they contained half-truth and misrepresentation of what happened and the position of law on this issue.
He stated that what actually happened was that on 03/11/33, a petition bothering on Financial Crime, Fraud, Stealing and Economic Sabotage was received by the office of Deputy Inspector General of Police, Force Criminal Investigation Department, Garki Abuja, from the law firm of Isaac Adiatu’s Newlife Chambers, on behalf of one Mr. Samuel Adewale Ogunkule, which was endorsed to the office of the Assistant Inspector General of Police, Force CID Annex, Alagbon close, Ikoyi-Lagos and his team was detailed to investigation same.
In accordance with Police’s statutory duties of investigation of crime and prevention of same, officers conducted preliminary investigation into the petition by inviting the petitioner to come and throw more light on the petition. He came and made statement and submitted some documents in support of the allegations as contained in his petition and his statement.
In his statement, the petitioner alleged that the Applicant who are producers of Cowbell milk powder, a finished product that ordinarily attracts 5% Duty, 5% Levy and 7.5% VAT has been defrauding the Federal Government of Nigeria by fraudulently claiming that their products are unfinished product and have been paying only 5% duty on their product, while diverting the monetary value of the 5% Levy and 7.5% VAT running into millions of naira to themselves, with active connivance of Customs Officers.
ASP Olusegun said that preliminary investigation on the above allegations suggested that for the plaintiff to successfully escape paying the required levies and duties, the Company might have made false information to the Customs on the description of the goods they are bringing into the country and might have submitted forged documents for assessment.
Since the allegations of the petitioner included Customs Officers, the Police investigators decided to hear from the company first before contacting the Nigerian Customs Service, NCS, which led to the letters to the staffs of the Company as exhibited in their Affidavit which they honoured and no one was arrested or detained as alleged.
Olusegun averred further that contrary to some paragraphs of the company’s affidavit which are not correct, the plaintiff’s officers were only invited in respect of the ongoing investigation of the petition submitted by the petitioner. On arrival of Promasidor’s staffs, they were shown the petition written against their company and they responded to it and also submitted documents in their defence.
For investigation on the defence made by the officers of the company and the documents they submitted, they were further invited for clarifications on the discovery the investigators made in the course of preliminary investigation which they honoured and responded to inquiries without being arrested, humiliated or detained.
According to the Police, the investigators were simply carrying out their statutory duties of investigation of crimes in accordance with Section 4 of the Police Act, 2020 which empowers Police to investigate and enforce all Laws and Regulations in Nigeria.
ASP Gbeleyi contented that as a Police Officer and with what Onyeka Ekweozor Esq, Counsel handling this suit informed him, he knows as a fact that Policemen have the statutory powers to investigate and enforce all Laws and Regulations in Nigeria with or without collaboration of any other Agency in Nigeria.
Consequently, he said that the present investigation does not amount to usurpation of powers of any Agency in Nigeria, as the Police have the statutory duties to investigate any offence in Nigeria irrespective of where the offence is committed.
“We did not harass nor intimidate the officers of the company in the cause of ongoing investigation, as alleged by the company. The fact that the plaintiff allegedly denied the offence in the petition cannot operate as a stay to investigation,” he said.
And he added: The application of Promasidor is not only frivolous, but lacks merit and should be dismissed with substantial cost against the company.”