Transparency And Accountability Lacking In Esit Eket HCDT Operations
~By Unwana Assam
Thu.31 Oct.
The Petroleum Industry Act (PIA) was signed into law on 16th August 2021 with the intent to reform Nigeria’s oil and gas sector, fostering transparency, accountability, and sustainable development in host communities. One key provision within the PIA is the establishment of Host Communities Development Trusts (HCDTs), which are designed to address the socioeconomic and environmental challenges faced by oil-producing communities.
The Esit Eket HCDT was established with the noble intention of uplifting the community. However, its performance has been marked by a blatant disregard for transparency and accountability, casting doubt on its ability to fulfill its mandate.
One of the most pressing issues is the Trust’s failure to provide clear and timely financial reports and that of its activities. This writer is aware that the Settlor (ExxonMobil) has since paid into the Trust’s account the money for the year 2021/2022, and it has since been expended.
Scholarships are said to have been paid to students, and Minibusses, motorcycles, and Keke Trucks were purchased and distributed. Consultants have been paid. Projects to be executed are said to have been signed and awarded to contractors. Yet, the community remains in the dark about the allocation and utilization of funds as well as the awarding of contracts, thereby fueling suspicions of mismanagement and corruption. The HCDT’s blatant refusal to disclose the amount paid by ExxonMobil for specific years further exacerbates this lack of transparency.
Moreover, the HCDT has failed to engage meaningfully with the community. Community members feel excluded from decision-making processes, leading to frustration and a sense of disenfranchisement. The delayed execution of crucial development projects has compounded the challenges faced by the community, hindering its progress and exacerbating existing socioeconomic issues.
The Trust under EMOIMEE was expected to be a beacon of progress for the local communities that have long endured the negative effects of oil exploration. However, several complaints and refusal to adhere to the PIA provisions suggest that the Trust has deliberately deviated significantly from its obligations as outlined in the PIA, raising serious concerns among community members and civil society organizations.
