The Rivers State Board of Internal Revenue (RSBIR), has initiated contempt proceedings against the Niger Delta Development Commission (NDDC) Managing Director and three other officials before the Rivers State High Court for allegedly unsealing the commission’s premises without a court order.
NDDC, Acting Managing Director Prof Nelson Brambaita, Acting Executive Director Finance and Administration Chris Amadi, Acting Executive Director Project Adjogbe Samuel and Director of Legal Services Kaltungo Moljengo are the alleged contemnors.
The court granted RSBIR’s prayer to serve Form 49 (order of committal) on the officials by substituted service over alleged disobedience of the court’s order.
RSBIR earlier served Form 48 (notice of consequence of disobedience of an order of the court) on the respondents.
The court had on April 17 held that NDDC is indebted to RSBIS to the tune of N50billion, being outstanding tax liability owed the River State Government with respect to Pay As You Earn (PAYE), Withholding Tax (WHT) and other unpaid taxes from 2012 to 2017.
The court ordered the issuance of a warrant authorising RSBIR to seal any land or property belonging to NDDC in order to recover the tax debt.
The court further ordered NDDC to pay N20million as cost incidental to the recovery of the amount owed.
On April 23, RSBIR executed the order and sealed three properties belonging to NDDC in Port Harcourt.
The following day, NDDC officials met with RSBIR, after which the commission wrote to request that their properties be unsealed.
It was agreed that NDDC would first make some payment. Rather than make the payment, NDDC filed a Notice of Appeal at the Court of Appeal on April 26 to challenge the verdict on the tax indebtedness.
On April 30, NDDC also filed a motion for stay of execution of the order at the Court of Appeal and sought to restrain RSBIR from attempting to seal or sealing the commission’s premises pending the determination of the appeal.
RSBIR alleged that on May 6, NDDC unsealed the three premises, repossessed them and placed armed mobile policemen in them without a court order.
The plaintiff consequently served Form 48 on the Acting NDDC MD and the others for allegedly violating the order to seal the properties, which it executed on April 23.
Three motions filed by the NDDC that are pending at the Court of Appeal, while one is pending at the High Court with respect to the contempt proceeding, which NDDC is challenging.