Dinapoli To Chevron: Resolve Amazon Lawsuit

FOR RELEASE:
Immediately
May 25, 2011



DiNAPOLI TO CHEVRON: RESOLVE AMAZON LAWSUIT
Standoff on Poor Ecological Record Bad for Business



New York State Comptroller Thomas P. DiNapoli and a coalition of investors today released a letter to oil giant Chevron urging the company to settle its 20-year legal battle with indigenous populations in the Amazon rainforest. The long-running court case alleges that Texaco, which merged with Chevron 10 years ago, destroyed huge tracts of the rainforest by dumping billions of gallons of oil waste products over several decades. Citing the “grave reputational damage” Chevron has suffered due to the lawsuit, DiNapoli and other investors called on the company to promptly negotiate a reasonable settlement to prevent further shareholder damage.

“It’s time for Chevron to face reality,” said DiNapoli, trustee of the $140.6 billion New York State Common Retirement Fund (Fund), which owns 7.5 million Chevron shares worth an estimated $780 million. “The effects of this horrific, uncontrolled pollution of the Amazon rainforest are still being felt today. Investors don’t derive any benefit from this never-ending courtroom drama.

“The entire case is looming like a hammer over shareholders’ heads. Chevron should start fresh with a new approach that embraces environmental responsibility and risk management as part of its corporate culture. More legal proceedings will only delay the inevitable.”

For nearly 25 years, beginning in 1964, Texaco and its joint venture partner Petroecuador dumped nearly 16 billion gallons of oil waste products into the Amazon rainforest. The two companies also spilled nearly 17 million gallons of oil from their trans-Ecuadorian pipeline operation between 1971 and 1991 —50 percent more oil than was spilled by the Exxon Valdez crash.

In a letter sent in November 2008, DiNapoli called on Chevron’s board of directors to come to an equitable settlement in order to avoid substantial penalties in an Ecuadorian court. Chevron refused to negotiate, and in February, 2011 the Ecuadorian Provincial Court awarded plaintiffs nearly $18 billion in compensatory and punitive damages. The Ecuadorian court judgment is the second-largest of its kind, topped only by BP’s $20 billion fund established to settle claims stemming from the 2010 Gulf of Mexico oil spill. DiNapoli is co-lead plaintiff in an ongoing class action lawsuit filed against BP last year.

In an effort to improve Chevron’s environmental policies, DiNapoli has co-sponsored a proposal calling for the appointment an independent board director with a high level of environmental expertise. Shareholders are expected to vote on the resolution at Chevron’s annual meeting today (May 25).

Follow us on Twitter: @NYSComptroller


CONTACT: Olayinka Fadahunsi, OFadahunsi@osc.state.ny.us
(212) 681-4840

Chevron fights justice in Ecuador on two fronts, but needs to win everywhere

~ By Marco Simon, Legal Director, Earth Rights International

Since February, Chevron has been facing what is probably the largest environmental judgment in history-- an $8 billion award from an Ecuadorian court for contaminating the Ecuadorian Amazon. (That judgment is now available in English, below, courtesy of Chevron.) They've gone on the offensive against this judgment on two fronts. But they need to win not just these cases, but every other one that the plaintiffs might file.

The plaintiffs' strategy has become known through the release of the so-called "Invictus" memo. That memo, drafted by law firm Patton Boggs for the Ecuadorian plaintiffs, outlines a global enforcement strategy. The Ecuadorians can go after Chevron in the US, but they can also try to enforce the judgment in Argentina, Brazil, Venezuela, and dozens of other countries where Chevron operates or has assets. Not surprisingly, Chevron is working hard to prevent that.

Chevron's first assault on the Ecuadorian case was an international arbitration against Ecuador, filed in September 2009. (Although such arbitrations are typically secret, Chevron posted its complaint to its website.) Under the guise of international investment law, Chevron wants to have the Ecuadorian government interfere in its own court system, to tell the courts that Chevron's not responsible for the pollution in the Amazon.

I think Chevron's case in the arbitration is thin. Working with the International Institute for Sustainable Development and the Ecuadorian indigenous rights group Fundacion Pachamama, ERI filed an amicus brief with the arbitration tribunal last fall, arguing that the tribunal shouldn't even hear the case. We learned last week that the arbitration tribunal rejected our brief, unfortunately--but it still hasn't decided whether it will hear Chevron's case.

(The amicus process in arbitrations is far from transparent. Both Chevron and Ecuador apparently made several submissions to the arbtirators concerning whether our brief should be accepted, but we were not able to see or respond to any of them. Chevron even claimed that ERI has "a longstanding record of asserting baseless claims against Chevron." Note to Chevron: just because you keep getting accused of environmental and human rights abuses does not mean the charges are baseless.)

Chevron's second attack is in its lawsuit against the Ecuadorian plaintiffs and their lawyers in New York. So far they've had some success--federal district court judge Lewis Kaplan has issued a preliminary injunction prohibiting the Ecuadorians and their lawyers from taking steps to enforce the Ecuadorian judgment. But that success may not last.

As a preliminary injunction, Judge Kaplan's order is subject to immediate appeal to the Second Circuit Court of Appeals, and the plaintiffs' lawyers have already filed their notice of appeal. At this stage of the case, Chevron is entitled to some presumptions in its favor, so even if they ultimately have no grounds to attack the Ecuadorian judgment, it is possible that a preliminary injunction will stand. But Chevron's entire case is premised on the notion that Judge Kaplan has jurisdiction over the Ecuadorian plaintiffs and other members of the plaintiffs' class action. That is a highly questionable position, and one that will receive considerable scrutiny from the Second Circuit. Even if Judge Kaplan can prevent the American lawyers from proceeding to enforce the judgment, if he doesn't have jurisdiction over the Ecuadorians, he cannot prevent them from going to other countries to seek enforcement (as outlined in the "Invictus" memo).

The Second Circuit may also be concerned with the propriety of interfering with foreign countries' judicial processes. I'm not aware of any case where a court has ever even tried to restrain foreign plaintiffs from enforcing a foreign judgment in foreign jurisdictions. Chevron has every opportunity to challenge the judgment in the Ecuadorian courts; Chevron chose to litigate in Ecuador over the plaintiffs' objection, and the Second Circuit may well hold them to that choice. In fact, in a recent decision in a related case, the Second Circuit said that Chevron was bound by its original promise "to satisfy any judgments in Plaintiffs' favor, reserving its right to contest their validity only in the limited circumstances permitted by New York's Recognition of Foreign Country Money Judgments Act.

Chevron argued, and Judge Kaplan accepted, that the judgment is unenforceable under that law for two reasons: because Ecuador does not provide due process, and because the judgment was obtained by fraud. But Chevron's own predecessor, Texaco, argued that the case should be sent to Ecuadorian courts in the first place, even though the plaintiffs then objected that those courts did not provide due process; Chevron may not be able to complain about that now. And what Chevron calls "fraud" was fully aired in the Ecuadorian court--all of the supposedly fraudulent evidence that Chevron is now presenting to Judge Kaplan was also presented in Ecuador, so Chevron can't really say that the plaintiffs defrauded the court.

Ultimately, even if Chevron wins the enforcement battle in the US, that doesn't end the matter, because the plaintiffs will go to other countries to enforce the judgment. The plaintiffs only need to win once or a few times, while Chevron needs to win everywhere. Even Chevron wins twenty cases, just one loss could cost the company hundreds of millions or billions of dollars.

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The Zacks Analyst Blog Highlights: Chevron, ExxonMobil, Royal Dutch Shell, ConocoPhillips and BP

2 May 2011 14:30 Africa/Lagos


The Zacks Analyst Blog Highlights: Chevron, ExxonMobil, Royal Dutch Shell, ConocoPhillips and BP

PR Newswire

CHICAGO, May 2, 2011

CHICAGO, May 2, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Chevron Corp. (NYSE: CVX), ExxonMobil Corp. (NYSE: XOM), Royal Dutch Shell plc (NYSE: RDS.A), ConocoPhillips (NYSE: COP) and BP plc (NYSE: BP).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday's Analyst Blog:

Chevron Profits Soar Past Estimates

U.S.energy giant Chevron Corp. (NYSE: CVX) reported a jump in its first-quarter 2011 profits, benefiting from higher oil prices and stronger refining margins.

Earnings per share (excluding adjustments for foreign-currency effects) came in at $3.17, above the Zacks Consensus Estimate of $2.99 and the year-ago adjusted profit of $2.37.

Following ExxonMobil Corp. (NYSE: XOM) and Royal Dutch Shell plc (NYSE: RDS.A), Chevron stepped up as the third member of 'Big Oil' to post solid results. The other two constituents of the exclusive group – ConocoPhillips (NYSE: COP) and BP plc NYSE: (BP) – have reported disappointing quarterly profits.

Quarterly revenue rose 25.2% year-over-year (from $48,179.0 million to $60,341.0 million) and was 10.9% above our projection.

Segmental Performance

Upstream: Chevron's total production of crude oil and natural gas decreased marginally (by 0.8%) from the year-earlier level to 2,760 thousand oil-equivalent barrels per day (MBOE/d), as volume gains in Brazil, Nigeria, Thailand and Canada were more than offset by normal field declines, the effect of higher prices on cost-recovery volumes and other contractual provisions, as well as downtime associated with weather and maintenance issues.

U.S. output dipped 5.5% year-over-year though Chevron's international operations (accounting for 75% of the total) experienced a modest 0.8% rise in volumes. Gains on the overseas production front were supported by higher realized liquids prices, resulting in a 26.5% year-over-year rise in upstream earnings to $5,977.0 million.

Despite the slight dip in Chevron's quarterly volumes, we believe its production outlook remains one of the most robust in its peer group, with a number of major deepwater projects scheduled to come online during the next few years. Major start-ups during the last few months include the Tahiti and Perdido in the Gulf of Mexico, Frade offshore Brazil and Tombua-Landana in Angola.

Chevron continues to progress its major capital projects that include deepwater developments in the Gulf of Mexico (GoM) and multiple liquefied natural gas (LNG) mega-projects in Angola and Australia. Importantly, during the quarter, Chevron got the green light for conducting the first 'completely new exploration' in the GoM. (i.e. tapping a reservoir from which oil or gas has never been produced) since BP's oil rig disaster in April last year.

Downstream: Chevron's downstream segment's earnings soared to $622 million during the quarter, as against just $196 million in the previous-year period. The improvement can be attributed to improved refined products margins and higher earnings from chemical operations (primarily from the 50%-owned Chevron Phillips Chemical Company LLC), partially negated by lower refined product sales.

Capital Expenditure, Balance Sheet & Share Repurchases

The second-largest U.S. oil company by market value after ExxonMobil spent $5,046.0 million in capital expenditures during the quarter. Approximately 92% of the total outlays pertained to upstream projects. As of March 31, 2011, the company had $13,149.0 million in cash and total debt of $11,575 million, with a debt-to-total capitalization ratio of about 9.5%. As part of the stock repurchase program announced in 2010, Chevron repurchased $750 million worth of shares in the March quarter.

Dividend Hiked

Recently, the San Ramon, California-based company announced an 8.3% increase in its quarterly dividend to 78 cents per share, or $3.12 per share annualized. The dividend is payable on June 10 to shareholders of record on May 19, 2011.

Our Recommendation

Chevron is one of the largest integrated energy companies in the world and has an impressive business model. Its current oil and gas development project pipeline is among the best in the industry, boasting large, multiyear projects. Additionally, Chevron possesses one of the healthiest balance sheets among peers, which helps it to capitalize on investment opportunities with the option to make strategic acquisitions.

However, due to its integrated nature, Chevron is particularly susceptible to the downside risk from continued weakness in the global economy. We are also concerned by the company's high level of capital spending, which may result in reduced returns going forward. As such, we see the stock performing in line with the broader market and maintain our long-term Neutral recommendation, supported by a Zacks #3 Rank (short-term Hold rating).

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Chevron Scrubs Lawsuit to Block Ecuador Award

Chevron Scrubs Lawsuit to Block Ecuador Award

~ By Adam Klasfeld

MANHATTAN (CN) April 22 - With little fanfare, Chevron dropped a charge from their racketeering lawsuit against an attorney who helped engineer an environmental case that resulted in an $18 billion judgment against the company in Ecuador.

As the parties are gearing up for a November trial in Manhattan to block the award, Chevron filed a proposed amended complaint on Thursday that removes attorney Steven Donziger as a party to one of the counts.

Donziger, however, is not too happy about the change, as it could prevent him from participating in a trial to determine whether the judgment he secured is enforceable.

Chevron spokesman Kent Robertson told Courthouse News that it made the change because Donziger does not "have a dog in that fight." He added that the Ecuadoreans can seek any lawyer they want to defend the judgment.

After Chevron filed the amended complaint, a spokeswoman for Donziger's Ecuadorean clients said that Chevron was engaging in an "un-American" bid to interfere with the attorney's due-process rights. Spokeswoman Karen Hinton added in an interview that Chevron's explanation was "complete nonsense."

Not only does Donziger have a dog in the fight, he is the central figure of Chevron's basis for attacking the judgment, Hinton said.

Well before the Lago Agrio, Ecuador, court entered its Feb. 14 verdict against Chevron, the oil giant condemned the proceedings there as fraudulent, and it accused of Donziger of acting like an organized crime leader in how he handled the case on behalf of Ecuadorean natives.

On Feb. 1, Chevron filed a federal lawsuit against Donziger and several other defendants in Manhattan, accusing them of violating anti-racketeering law, a statute originally conceived to deter mob bosses and gangsters. The lawsuit named dozens of other defendants from the Ecuadorean trial for counts fraud, conspiracy, tortious interference and related counts.

By March, Chevron had asked U.S. District Judge Lewis Kaplan to grant an early trial on Count 9 of the lawsuit, seeking a judgment declaring the $18 billion award unenforceable.

San Francisco-based attorney John Keker, who represents Donziger, said that Chevron was trying to interfere with his client's constitutional rights to fair trial.

Chevron has received the lion's share of rulings in Judge Kaplan's court, and this maneuver proved no different. In granting the request for a separate trial on Count 9, Kaplan said it was the key claim of Chevron's complaint.

"The core of this case is the issue of the enforceability of the Judgment outside of Ecuador," Kaplan wrote on April 15. "Once that issue is decided, one way or the other, it is likely that the rest of the case will vanish or at least pale in significance."

Days after Kaplan issued the order, Chevron amended its original complaint, adding new evidence and quietly dropping Donziger from Count 9.

In an ironic twist, Donziger, who has spent months blasting the "false and malicious" allegations against him, apparently want this charge to stand, for now.

Hinton, the Ecuadoreans' spokeswoman, says that Chevron is "petrified" to face off against Donziger's lawyer, Keker, who recently won a sex-discrimination jury trial against Chevron in California.

A footnote of Kaplan's April 15 order suggests Chevron has been planning to eliminate Donziger from the count, and that Kaplan may support the motion.

"Attorney Donziger, for example, is named as a defendant on Count 9," the order states. "Nevertheless, Chevron already has asserted that only the LAPs [Lago Agrio plaintiffs] and the Amazon Defense Front are entitled to contest the declaratory judgment claim because only they are judgment creditors. ... They have indicated also that either the Court or Chevron could drop him as a defendant on that count. ... While the Court does not now express a view on these matters, it is appropriate to recognize that changes in the parties may be in the offing and that those changes, should they occur, could further reduce or eliminate any overlap of proof."

Robertson, the Chevron spokesman, said Chevron dropped the charge based on "some observations that Judge Kaplan made in prior orders."

"The people who own the judgment are the named plaintiffs," Robertson said. "The [Ecuadorean] plaintiffs, or the Frente, could use any attorney on the planet, but Donziger doesn't have a dog in that fight. ... Donziger and his chosen counsel will have every opportunity to explain his misconduct."

Hinton was incredulous about Chevron's explanation in a phone interview.

"Chevron is accusing Steven Donzinger of orchestrating the fraud that would lead to the judgment not being enforceable," Hinton said, adding, "He doesn't have a dog in that fight?"

"To prevent Donziger from defending himself, Chevron is engaging in un-American behavior to deny due process to a litigant just like the company has tried to deny due process to thousands of its victims in Ecuador," Hinton said in a statement.

A trial date has been set for Nov. 14.

Miami Herald Catches Chevron In Lie About Ecuador Well Site

Miami Herald Catches Chevron In Lie About Ecuador Well Site
Reporter Finds Oil Sludge In “Remediated” Pit

Washington, DC – The Miami Herald has caught Chevron in a lie about its so-called “remediation” in Ecuador that the oil giant uses as its primary defense against an $18 billion judgment in a massive oil-contamination case brought by indigenous groups.

In a story published in today's newspaper, journalist Jim Wyss said he witnessed “thick oil slicks” only a few feet into the ground of a dirt-covered storage pit Chevron told him the day before had been remediated of all oil.


After watching a man dig into the ground at the Sacha 53 well site, Wyss wrote, “Within a few inches the dirt gives off the pungent odor of petroleum. Within a few feet the dirt glistens with oil residue. When a few handfuls of the soil are dropped into a bucket of water, a thick oil-slick coats the surface.”

Chevron has continually claimed to courts and the press that it conducted a remediation of the site.

This report is significant because Chevron has testified in front of U.S. Judge Lewis Kaplan of the Southern District Court of New York that it cleaned the site, along with many others. In fact, evidence has shown that Chevron simply covered the pits with dirt and never removed the toxins. Chevron has claimed to Kaplan that it is the victim of a racketeering scheme cooked up by the plaintiffs -- 30,000 rainforest residents – and their American and Ecuadorian lawyers.

The plaintiffs argue Chevron’s charges are only last-minute, desperate attempts to cover up its unlawful racketeering scheme in Ecuador, which led to the deliberate discharge of billions of gallons of toxic waste into the Amazon, killing off indigenous groups and causing an epidemic of cancer.

On a series of rulings over the last several months, Kaplan has cited the remediation agreement between Chevron and the Ecuadorian government as evidence that Chevron is not responsible for the contamination.

“This American journalist’s eyewitness account, along with massive evidence in the trial, puts the lie to Chevron’s claims to the U.S. court,” said Karen Hinton, spokesperson for the Ecuadorians.

In 2002, Chevron had the case – originally filed in the same New York federal court -- moved to Ecuador after submitting 14 separate affidavits claiming the court system was fair and transparent.

After the trial in Ecuador began in 2003, testing at the unlined oil pits left by the company in the jungle began to show illegal levels of life-threatening toxins. By 2007, when overwhelming evidence began to pour onto the court docket, Chevron was taking out advertising in the Ecuadorian newspapers accusing judges, the government and the plaintiffs of conspiring against the company.

In 2009, an Ecuadorian prosecutor indicated two Chevron lawyers and a dozen former Ecuadorian government officials for falsifying the remediation at Sacha-53 and other sites.

Judge Kaplan has, by and large, adopted Chevron’s view on the remediation agreement, writing in one opinion, “the release by Ecuador seems to have been intended to put an end to any claims or litigation concerning Texaco’s alleged pollution.”

The Miami Herald’s Wyss has a different account. He begins his story this way:

“Donald Moncayo (a plaintiffs’ representative) walks to the edge of a flat grassy field that once held two large pits that brimmed with a stew of water and crude from an oil-drilling operation. He lifts a heavy auger above his head and prepares to plunge it into the ground. “They (Chevron) always show you the shirt the coat and the tie,” he said of the area, called Sacha 53, which is now pastureland and spindly trees. “They never show you the tumor underneath the shirt.”

After describing the oil he saw and smelled only a few feet into the soil, he quotes Moncayo again:

“This is their remediation effort,” Moncayo says. “They’re no better than animals.’’

Chevron’s PR representative in Ecuador, James Craig, attempted to explain the oil away by asserting it may have “occurred naturally” or the Ecuadorians may have “spiked” the ground with oil. He even claimed that if Chevron didn’t completely clean the pit, the oil wouldn’t hurt anyone anyway.

“Knowing James Craig, he probably said all of this with a straight face,” said Hinton. “Chevron’s PR people make a lot of money to not only spin the facts, but to lie about them.”
#


Karen Hinton
Hinton Communications
1215 19th Street, NW
Washington, DC 20036
Karen@hintoncommunications.com
703-798-3109, cellular
480-275-3554, fax by email

U.S. Judge's Decision favours Chevron against Ecuadorians

U.S. Judge's Decision A 'Slap in the Face' to Ecuadorians Fighting to Hold Chevron Accountable For Eco-Disaster in Amazon Rainforest

PR Newswire


WASHINGTON, March 7, 2011 /PRNewswire-USNewswire/ -- Below is a statement by Karen Hinton, spokesperson for the Ecuadorians who recently won a $9.5 billion judgment against Chevron for oil contamination, about today's Southern District Court of New York decision on the preliminary injunction.

"This decision is a slap in the face to the democratic nation of Ecuador and the thousands of Ecuadorian citizens who have courageously fought for 18 years to hold Chevron accountable for committing the world's worst environmental disaster. The trampling of due process in the court's refusal to consider key evidence or hold a hearing to determine the facts is an inappropriate exercise of judicial power that will harm the United States' relationship with Latin America and other parts of the world. It disregards the scholarly and comprehensive 188-page opinion of Ecuadorian Judge Nicolas Zambrano, a well-respected member of Ecuador's judiciary. It also ignores key evidence that Chevron has committed a series of frauds in Ecuador to cover up its unlawful misconduct.

"We want to emphasize that after appeals in Ecuador the Ecuadorian plaintiffs retain their full right to lawfully enforce the judgment of their own country's courts in any of the dozens of nations around the world where Chevron has assets. In the meantime, we will appeal the decision on multiple grounds."
Contact: Karen Hinton at 703-798-3109 or Karen@hintoncommunications.com

SOURCE Amazon Defense Coalition

CONTACT: Karen Hinton, +1-703-798-3109, Karen@hintoncommunications.com

The Untold Story of the $10.8 Billion Tax Evasion and Fraud By Chevron Nigeria Limited and Its Associated Companies 7.

The Untold Story of the $10.8 Billion Tax Evasion and Fraud By Chevron Nigeria Limited and Its Associated Companies 7.

The following are 10 more documents on the case.
























Related Reports:

How Multinational Corporations Dodge Taxes


U.S. Foreign Corrupt Practices Act

Update on the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies 5

More documents of proof on The Untold Story of the $10.8 Billion Tax Evasion and Fraud By Chevron Nigeria Limited and Its Associated Companies

Update on the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies. 3

The following are more exhibits from the over 80 documents ABZ Integrated Limited has approved for publication on the Untold Story of the Update on the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies. As stated earlier, the remaining documents will be published on this case until justice is done.


Daimler AG and Three Subsidiaries recently resolved to pay $93.6 million in criminal penalties after their indictment in the Foreign Corrupt Practices Act Investigation, and we expect the same resolution on this case against Chevron and its associated companies in Nigeria.

The Untold Story of the $10.8 Billion Tax Evasion and Fraud By Chevron Nigeria Limited and Its Associated Companies

Update on the Allegation of $10.8 Billion Tax Evasion Fraud against Chevron and its Associated Companies 1





On 1st July, 2005, ABZ Integrated Limited, a Nigerian company based in Abuja broke the news of the $10.8 billion tax evasion and fraud by the Nigerian branch of the Chevron Corporation (NYSE: CVX Euronext: CHTEX), an American multinational energy corporation headquartered in San Ramon, California, (see annexure 1b).

Following the disclosures, ABZ was duly engaged by the Economic and Financial Crimes Commission (EFCC) of Nigeria under the Executive Chairmanship of Mallam Nuhu Ribadu (see annexure 1a) as a consultant for the recovery of the unpaid taxes from Chevron Nigeria Limited. The Nigeria Extractive Industries Transparency Initiative (NEITI) under Dr. (Mrs.) Obiageli Ezekwesili acknowledged the engagement and financial entitlement of ABZ Integrated Limited (see annexure 5b).


In the last quarter of 2005, the House Committee on Petroleum Resources (Upstream), under the chairmanship of Dr. Cairo Ojougboh, had a public hearing on the allegation of $10.8 billion tax evasion and fraud against Chevron Nigeria Limited. And in September 2006, the Chairman vindicated ABZ and confirmed that Chevron evaded tax as alleged and was ordered to refund the sum of $492 million. NEITI’s auditors also validated the claims of ABZ. But Chevron has only refunded a fraction of the total Petroleum Profit Tax (PPT) evaded, without paying the penalties required by PPT Act. And ABZ has not been paid its entitlements since Chevron has refunded the sum of $866 million of the Petroleum Profit Tax (PPT) evaded so far.

This is the untold story of the whole financial scandal as reported by Fidelis Uzonwanne, the Managing Consultant of ABZ Integrated Limited.

~ Nigerians Report



UPDATE ON THE ALLEGATION OF $10.8 BILLION TAX EVASION AND FRAUD AGAINST CHEVRON AND ITS ASSOCIATED COMPANIES BY ABZ INTEGRATED LTD

THE UNTOLD STORY

In July 2005, when ThisDay Newspaper published ABZ Integrated Ltd’s open letter to the President of the Federal Republic of Nigeria, on the allegation of $10.8 Billion tax evasion and fraud against Chevron Nigeria Ltd, some Nigerians believed it. Some took it with a pinch of salt. While some dismissed it with utmost disbelief.





Before ABZ took that bold step, an in-dept investigation of the activities of Chevron had been painstakingly undertaken. This culminated in a 106 –page report being forwarded to EFCC on the 12th of May 2005, with over 400 page annexures (Annexure 4).



The way and manner the relevant government agencies in Nigeria reacted to the issue was very shocking and unbelievable. Organizations such as the Federal Inland Revenue Service (FIRS), Department of Petroleum Resources (DPR), Nigeria National Petroleum Corporation (NNPC) and its subsidiary NAPIMS, Central Bank of Nigeria (CBN) etc, stood in stout defense of Chevron’s position and treated ABZ with disdain and scorn. We were undaunted because we were very sure of what we stated and were prepared to defend it till the last day.





Following our publication, the Nigeria Extractive Industries Transparency Initiative (NEITI), under the chairmanship of Dr. (Mrs.) Obiageli Ezekwesili, held a meeting of stakeholders in Nicon Hotel on the 9th of August 2005. NEITI issued a press release (Annexure 5a) on the outcome of the meeting confirming inter alia:
(i) That ABZ was duly engaged as consultants by EFCC and that ABZ’s effort led to the recovery of $6.5 million

(ii) That the information provided by ABZ (i.e. the report) has been referred to the Hart Group to verify the claims made therein.

Other confirmations of ABZ’s efforts and entitlements are enclosed herewith as (Annexures 5b, c, d & e).





Recall that field work on the ABZ’s investigation of Chevron under EFCC Committee on Government Revenue Fraud was done between December 2003 and January 2005. FIRS and other Government agencies were answering questions on their respective roles relating to Chevron’s operations and their culpability thereon (Annexures 6a, 6b, 6c & 7a, 7b).

Between September and November 2005, the House Committee on Petroleum Resources (Upstream), under the chairmanship of Dr. Cairo Ojougboh, carried out a public hearing on the allegation of $10.8 billion tax evasion and fraud against Chevron. About September 2006, the report of the Committee’s investigation was laid before the plenary. The chairman in a press conference confirmed to the whole world that indeed Chevron evaded tax as alleged and was ordered to refund the sum of $492 million (Annexure 8).

On November 9, 2006, Segun Adeniyi, a former Editor of ThisDay Newspaper, Spokesperson to President Umaru Musa Yar’Adua, and then a member of the National Stakeholders Working Group (NSWG) of NEITI, confirmed to the whole world that ABZ had been vindicated because NEITI’s auditors had confirmed to them the veracity of ABZ’s claims (Annexure 9a). Please find enclosed an except from Hart Group report dated 14th August, 2006 for more details (Annexure 9b).

We want to confirm to you that the harassment Ribadu’s EFCC was giving to ABZ in 2005 was merely a decoy to shield the main issues from people’s prying eyes. This dummy sold by Ribadu’s EFCC enabled the trio of FIRS, Chevron and EFCC to conceal the recoveries being realized from Chevron through ABZ’s effort. Recent events have confirmed that the maneuvers were intended to enable them dip their fingers into the official tills. Their campaign then was that ABZ was making false claims, that Chevron never evaded tax and no money was refunded. Unknown to so many people was the fact that as at that time (July 2005), Chevron had refunded over $130 million and part of it diverted.




By a letter dated 6th October 2008, the Executive Chairman of FIRS, Mrs. Ifueko Omouigui-Okauru, in response to Nigeria’s House of Representative’s Ad-hoc Committee’s inquest, claimed that the sum of $131 million had been recovered from Chevron but that it was not from ABZ’s effort (Annexure 10). At the time of this claim (i.e. October 2008), ABZ, through its own information network was aware that Chevron had refunded $491 million (Annexure 11). ABZ, through its Solicitors, Messrs Fountain Advocates, petitioned Farida’s EFCC, alleging a diversion of $360 million. The petition was dated 17th November, 2008, with all the necessary attachments including bank statements treasury receipts, correspondences from Chevron (Annexures 12a, b, & c). Two reminders dated 12th January 2009 and 14th January 2010 have been sent to Farida’s EFCC and mum is the answer (Annexures 13 & 14).

As at December 2008, Chevron had refunded the sum of $866 million of the Petroleum Profit Tax (PPT) evaded (Annexure 15). The relevant penalties based on the provisions of PPT Act is three times the tax evaded i.e. $2.598 billion (Annexure 16). FIRS has no choice than to abide by the law. There’s no evidence that FIRS is prepared to make this demand on Chevron. Besides, ABZ is still willing and prepared to provide a report that will turn in additional recoveries of $2.0 billion from Chevron.



As at today, ABZ has not been paid its fees for this assignment. Instead, FIRS and Chevron have been busy plotting how to silence ABZ. One way they thought they could achieve this was to encourage Chevron to seek ICAN’s (The Institute of Chartered Accountants of Nigeria) support to “deal” with the Managing Consultant of ABZ. Chevron petitioned ICAN that ABZ’s report was baseless, unprofessional and that Fidelis Uzonwanne, the Managing Consultant of ABZ, should be charged with professional misconduct. The company represented to ICAN that it never refunded any tax evaded (Annexure 17a, b & c). This is contrary to its various letters evidencing refunds e.g. letters of January 24, 2005, November 29, 2005 and receipts obtained (Annexures 17d, e, f & g). True to type, ICAN set to work through malicious advertisement of the fact that Fidelis Uzonwanne was facing ICAN investigating Panel without first writing him as a member. He is currently facing trial at Disciplinary Tribunal for exposing corruption and helping his country to recover $866 million of lost revenue (Annexures 18a, b & c). That is the sorry state of the Nigerian Nation.

Over $400 million out of the $866 million recovered from Chevron through ABZ’s effort has been diverted by FIRS and their collaborators in CBN (Annexures 19 & 20). Farida’s EFCC does not appear prepared to bring the criminals to book despite all the information made available to it (Annexures 21a, b & c). See Annexure 25 for more details on diverted funds. Instead, the conspirators have vowed not to pay ABZ its dues and will prefer the option of eliminating Fidelis Uzonwanne by any means. Yes, the plot to assassinate Fidelis Uzonwanne is thickening and he is aware of it. What is his offence? He led a team that exposed tax evasion and fraud perpetrated by Chevron. The first process of his annihilation is through financial strangulation by denying his company its dues. The next in the chain is to make sure he stops practicing his profession by using forged documents, falsehood and undue influence to get ICAN do its bidding. The final is assassination.

Please ventilate this to the whole world. The Nigerian economy is seriously being threatened by the cabal in government revenue agencies, who have vowed not to allow any of their own go down no matter how corrupt. The anti-corruption crusade is at its lowest ebb. Nigeria’s economic future is getting dimmer with every passing day. The Executive Chairman of FIRS, who supervised and managed the looting of the money recovered from Chevron in a letter with reference no FIRSB/MD/001/130 of 4th February, 2009 requested CBN, its accomplice, to give her a clean “bill of health”. CBN, by its letter dated 12th February 2009, with reference no. FOD/DIR/GA/SEC/012/68, acted accordingly (Annexure 22). The duo made a fruitless attempt to conceal a diversion of $112 million. ABZ, by its letter of 2nd December, 2009, knocked the bottom off the unwholesome arrangement (Annexure 23). The same goes for the office of the Accountant-General of the Federation (OAGF) (Annexure 24). It set up a committee to investigate the allegation of fraudulent diversion of $360 million, concluded its investigation and attempted to give Ifueko a clean “bill of health” without inviting the company that made the allegation (Annexure 25). Although the OAGF confirmed a diversion of $8.6 million, those indicted are still sitting comfortably on their seats and using tax payers’ money to campaign and launder their image.



Like all other financial scandals that have rocked Nigeria, this would have fizzled out long time ago but because of the plan of the treasury looters to “kill the goose that lays the golden egg”. If the same Chevron project had been awarded to a foreign firm, the Federal Government would have easily parted with hundreds of millions of Dollars as professional fees with the perquisites attached thereto. Believe it or not, no foreign company would have been able to match ABZ’s achievements. After ABZ’s investigation of Chevron what happened next? Other oil companies are still enjoying their illicit funds.

Since the exit of Dr. (Mrs.) Obiageli Ezekwesili from NEITI, the agency has since joined the band wagon of other government agencies who are more interested in budgetary allocations than performing the role for which they were established. ABZ by a letter dated 20th April, 2009, alerted the organization of several issues that it should ordinarily make effort to know (Annexure 26). The organization never even bordered to respond. The reason is very simple. The Executive Chairman of FIRS, Mrs. Ifueko Omouigui-Okauru has pocketed the organization and has ensured no further audits are carried out especially 2006 audit of the oil & gas industry in Nigeria, because of the unprecedented fraud by FIRS that year. The Nation lost over $3 billion of PPT and Royalty revenue to fraud.


By Fidelis Uzonwanne
Managing Consultant of ABZ Integrated Limited,
Abuja (FCT),
Nigeria.


EDITOR'S NOTE:
ALL THE REMAINING DOCUMENTS ON THIS CASE WILL BE PUBLISHED IN THE FOLLOWING DAYS OF THE FIRST WEEK OF APRIL.

Chevron Wins Prince Michael International Road Safety Award

6 Aug 2009 14:01 Africa/Lagos

Chevron Wins Prince Michael International Road Safety Award

Chevron Becomes First Energy Company Recognized for its Road Safety Programs

SAN RAMON, Calif., Aug. 6 /PRNewswire-FirstCall/ -- Chevron Corporation (NYSE:CVX) has been awarded the Prince Michael International Road Safety Award in recognition of its work engaging governments and nonprofits worldwide to help save lives through improved road safety in countries where the company operates.


The Prince Michael International Road Safety Award is given to companies or organizations for outstanding achievement and innovation in road safety worldwide. The award is sponsored by the U.K.-based FIA Foundation for the Automobile in Society and managed by RoadSafe, a member of the Global Transport Knowledge Partnership. The award is named after His Royal Highness (HRH) Prince Michael of Kent, Patron of the FIA Foundation's Commission for Global Road Safety.


"Chevron rates road safety highly and is an example to all in the corporate sector of the importance of sharing knowledge - a vital ingredient for building sustainable road safety programs in any country," said HRH Prince Michael of Kent.


"Every 30 seconds, a person is killed in a road crash," said RoadSafe director Adrian Walsh. "Around the world, road traffic crashes cause 1.2 million deaths and 50 million injuries per year. Of those casualties, more than half are in the 15 to 44 age group - the key wage-earning and child-raising group. The Prince Michael International Road Safety Award recognizes those companies and organizations making a difference toward alleviating this global problem. Chevron stood out to our award committee as a company committed to a holistic approach to road safety - addressing issues from multiple angles, pedestrians and drivers alike."


Among the programs honored:

-- Arrive Alive - Through this initiative, Chevron has engaged Guatemala,
Nigeria, South Africa, Uganda, and El Salvador to work collaboratively
toward road safety improvements such as the installation of rumble
strips, lane markings and signage, seat belt and pedestrian safety
campaigns, and distribution of motorcycle helmets.
-- Road Transport Safety Management Plan (Worldwide) - The comprehensive
fuel delivery plan sets a world class example for the management of
fleet operations and driver safety. A key component of the plan is the
Master Driver Program, which recognizes fuel tank drivers who have
driven 20-plus years without an incident.
-- Children's Road Safety Campaign (U.K. and Ireland) - Program features
a series of books, Web sites and videos about Hector, a child on his
way to school and all the safety related behaviors he uses along the
way.

-- "Stop for Life, Drive Your Behaviors" (Venezuela) - A public awareness
campaign aimed to educate drivers about the importance of using seat
belts as well as dangers of speeding and drunk driving.



"Safety has long been a part of our company's heritage and values," said Chuck Taylor, Chevron's vice president for health, environmental and safety. "It's an honor to be recognized for our road safety efforts."


Chevron Corporation is one of the world's leading integrated energy companies, with subsidiaries that conduct business worldwide. The company's success is driven by the ingenuity and commitment of approximately 62,000 employees who operate across the energy spectrum. Chevron explores for, produces and transports crude oil and natural gas; refines, markets and distributes transportation fuels and other energy products; manufactures and sells petrochemical products; generates power and produces geothermal energy; provides energy efficiency solutions; and develops the energy resources of the future, including biofuels and other renewables. Chevron is based in San Ramon, Calif. More information about Chevron is available at www.chevron.com.


Source: Chevron Corporation

CONTACT: Gus Santoyo, +1-925-790-6627, sgus@chevron.com; or Lori
Carlisle, +1-714-262-8578, lori@lmcgroupinc.com, both for Chevron Corporation


Web Site: http://www.chevron.com/

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