UK group, others fail security clearance for Nigeria VAT project

Technology Times has learnt that The Risk Management Group of UK and four other companies have been refused security clearance to manage an automated Value Added Tax (VAT) collection project for Nigerian telecoms industry. The affected companies that were being considered to manage a major automated VAT collection programme for telcos in Nigeria were refused security clearance over alleged involvement in procurement breaches, corruption and money laundering activities. The Federal Inland Revenue Service (FIRS), which is extending implementation of its automated Value Added Tax (VAT) and Withholding Tax deductions at source underway in the hospitality industry to the telecoms industry, had requested security clearance for companies being considered for the project from the Office of The National Security Adviser (ONSA). FIRS requested security vetting of the consultants and their foreign and technical partners engaged by the national tax agency to provide VAT Automation and Revenue Assurance solutions and services for the project to generate revenue from telcos, under which the service provider is expected to generate 1% of collected tax revenue. The security report was to further allege that Active Solutions Integrated Synergy Limited and its technical partner, Active Intelligence Limited and Strataflex Limited along with its technical partner, the Risk Management Group UK "are involved in procurement breaches as well as corruption and money laundering cases." [caption id="attachment_58127" align="aligncenter" width="2766"] Babatunde Fowler , Chairman of Federal Inland Revenue Service (FIRS), which is extending implementation of its automated Value Added Tax (VAT) and Withholding Tax deductions at source underway in the Nigerian hospitality industry to the telecoms industry.[/caption] The foray into the telecoms industry is part of the phased implementation of the Integrated Tax Administration System (ITAS), a programme underway by FIRS to ensure increase tax revenue collection for government across sectors of the Nigerian economy. 3R Company Limited and technical partner Teramatrix Technologies PVT Limited; African Advantage Telecom Limited; Active Solutions Integrated Synergy Limited and its technical partner, Active Intelligence Limited and Strataflex Limited and its technical partner, the Risk Management Group UK, are the companies probed during the background checks. The security vetting of the Nigerian and foreign companies for the VAT project became necessary because they will be granted access to restricted information after completion of a thorough background check by Nigerian security agencies. Technology Times learnt that investigations by security agencies revealed that one of the affected companies, African Advantage Telecom Limited, was considered unsuitable for the VAT project over alleged inconsistency in the details of the company in the countries it operates. On the other hand, the security report was to further allege that Active Solutions Integrated Synergy Limited and its technical partner, Active Intelligence Limited and Strataflex Limited along with its technical partner, the Risk Management Group UK "are involved in procurement breaches as well as corruption and money laundering cases." Meanwhile, the background checks did not reveal any adverse security report on 3R Company Limited and technical partner Teramatrix Technologies PVT Limited, Technology Times was told by an authoritative source. While details of the level of alleged involvement of the affected companies refused security clearance for the telecoms VAT automation project are still sketchy, it is understood that the FIRS will refresh bids for the project later this year, following the security clearance setbacks. FIRS hopes to further shore up revenue by extending VAT automation to the telecoms industry, which will see the nation's tax agency tap into a vibrant market that accounts for 142,320,120 active phone connections by November 2017. The Nigerian telecoms industry also contributed 9.5% to GDP by Q2 2017, according to the Nigerian Communications Commission (NCC), the telecoms industry regulator.

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