Stakeholders Raise Alarm over Irregularities in HCDT Implementation in Akwa Ibom
… Highlight how HCDT Benefits can be unlocked
By Ekemini Simon
Stakeholders from the oil and gas communities in Akwa Ibom State, relevant government agencies and Civil Society Organisations have brought to the fore irregularities observed in the implementation of Host Communities Development Trust (HCDT) in Akwa Ibom State.
In a Communique issued at the end of a 2-Day Stakeholder Dialogue on Host Community Beneficiation Provisions in the PIA and its Implementation – A Pathway to Sustainable Development and Unlocking HCDT Benefits in the PIA, held in Uyo by Civil Society Legislative Advocacy Centre (CISLAC) with support from OXfam Nigeria, the stakeholders noted that HCDTs in Akwa Ibom State have been saturated with corruption and opacity in its operation and management of the Funds.
The stakeholders observed that the corruption and opacity in fund management has resulted in denial of communities the needed critical social goods and services, such as health, education, public security, agricultural inputs among others which was the aim for the provisions of HCDT in the Petroleum Industry Act.
The stakeholders noted that the benefits that should stem from HCDT to the oil and gas communities have been hijacked by the elites and leaders of each Trust and this includes political leaders, former employees of the oil companies, traditional leaders among other benefit captors to the extent that the communities are denied the benefits of the oil revenue and compensations for bearing the brunt of oil exploration.
To address the corruption challenge, the stakeholders agreed that each HCDT should make public the tender and bid in the procurement process of their projects and programmes.
They called on the media, CSOs and community members to track HCDT projects thus exposing corruption and forestall reoccurrence adding that EFCC and ICPC can be petitioned when there are perceived issues of corruption.
The stakeholders called on Oxfam and partners to fund a “Training-Of-Trainers” step-down for all community stakeholders and asked the state ministry of Environment/ Petroleum Resources to set up oversight monitoring mechanisms to monitor the activities of the HCDTs, settlors and the regulators.
The stakeholders who noted poor feedback systems and mechanisms between the HCDTs and the community members adding that HCDT Board and Committees do not make proactive disclosure of information of their activities to the public recommended that the BOT and management committees of HCDTs should practice proactive disclosure of their data, especially on funds received, projects and programs implemented, beneficiaries, cost, contractors, among others. They called on all HCDTs to set up a digital platform like a website to host all their data online to ease access and promote transparency.
The Stakeholders had noted that most of the Host Community Development Plans are not participatory and inclusive, and do not capture the true needs of the people. They pointed out that some oil companies have bluntly refused to set up their HCDT and the regulator Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has failed to enforce the appropriate sanctions as outlined in the law.
To address that, the stakeholders called on Ministry of Environment and Petroleum Resources to assist oil communities who are host to Total Energies in Akwa Ibom State to address the issue of failure of TotalEnergies to set up HCDT in Akwa Ibom State adding that NUPRC should step in to address the issue in line with the PIA.
Highlighting gross delay in the releases of funds by settlors to HCDTs for the implementation of approved community development plans, the stakeholders called on NUPRC to furnish HCDTs and the public with data on the 3 percent Operating Expenditure revenue paid by settlors and how this is calculated transparently.
They also asked community stakeholders not to hesitate to seek redress in court when they feel shortchanged by their HCDTs, as CAMA 2020 provides for the board and its members to be sued.
The stakeholders pointed out that host communities are still suffering from the effects of the gas flare, and nothing seemed to be done about it. They stated that the settlors have failed to submit the gas flare elimination plan and the NUPRC have failed to sanction erring settlors.
To address the concerns, the stakeholders called on NUPRC to give disclosure on how the Gas Flare penalty of all settlors are being utilized to address ecological footprint in the host communities.
Part of the communique read “The state government should engage the FGN on utilization of the Gas flare penalty for the relief and remediation of host communities.
“Communities and NUPRC should demand Gas Flare Elimination Plan from the companies and the redesign of their system to eliminate gas flare.
NUPRC, CSOs and other critical stakeholders should increase media sensitization on the HCDT and their operations to assist with amplification.
“The media should be supported to engage in investigative reporting and tracking of HCDT projects across host communities. Enhanced collaboration among NUPRC, civil society organizations, HCDT and community members to address emerging issues.
” CSOs to provide technical support for host communities to draw international attention to their challenges especially around Gas flaring. Host Communities should conduct an inclusive town hall meeting to engage the community and create awareness of the HCDT and its activities regularly.
“Simplify the PIA narratives especially regarding HCDT to the level of understanding of the community members and translate it to the dialect of the locals. Collective citizens actions in the recruitment of the Trust members, generation of the Community Development Plan and allocation of contracts.”