In response to recent allegations, Barr. Dan Abia Jnr, a representative of the Esit-Eket Local Government Area on the NNPC/MPN JV EMOIMEE Host Community Development Trust Fund (HCDT), has vehemently denied claims of mismanagement of the Trust’s funds. Abia labeled the accusations as unfounded, politically motivated, and aimed at tarnishing the reputations of those involved.
Speaking from his residence in Eket on Wednesday, Abia stressed that the strict structure of the Petroleum Industry Act (PIA) makes it virtually impossible to engage in any form of embezzlement or mismanagement of the Host Community Trust Fund. He explained that the PIA’s design includes multiple layers of oversight and control, ensuring transparency and accountability.
“The PIA is a specialized and novel framework,” Abia states. “Every day we are learning, and because we don’t want to make mistakes, we proceed with caution. The checks and balances within the PIA make it nearly impossible for any form of fraud to occur.”
Abia further elaborated on the structure of the Trust Fund, which serves seven oil-producing local government areas in Akwa Ibom State—Eket, Mbo, Oron, Ikot Abasi, Mkpat Enin, and Esit Eket. He noted that the Fund operates under the strict guidelines of the PIA, with responsibilities clearly divided among the Board of Trustees, the Management Committee, and the Advisory Committee. Additionally, the Nigerian Upstream Petroleum Regulation Commission acts as a regulator, overseeing the Settlor (Mobil) and the Trust’s activities.
Abia addressed the specific allegations surrounding the purchase of mini-buses and tricycles as palliatives, which critics have claimed were mere scraps intended to siphon money from the Fund. He clarified that the procurement process was conducted transparently, with prices determined by a procurement team and the lowest bidders winning the contracts. Each mini-bus was acquired at N3.9 million, and the process was uniform across all local government areas.
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“The prices were not set by me or any individual; they were determined by the procurement team,” Abia emphasized. “These allegations are politically motivated, coming from individuals who have yet to benefit from the Fund’s initiatives.”
Since its inauguration in August 2024, the Esit Eket Trust Fund has successfully completed two major projects: awarding scholarships to students and procuring 95 mini-buses and 95 motorcycles for communities in Esit Eket. Abia reiterated that all projects undertaken by the Trust are in line with the community development plan, as mandated by the PIA.
Abia concluded by reaffirming the integrity of the Host Community Trust Fund and dismissing the allegations as baseless attempts to discredit the positive work being done for the oil-producing communities in Akwa Ibom State.
