$1.45b
compensation: Shell denies plan to sue Senate
By
Charles Okonji,
Senior
Correspondent, Lagos
Shell
Petroleum Development Company of Nigeria Limited (SPDC) has denied any plan
to institute a legal action against the Senate over the apex legislative
house�s recent resolution that the company should pay $1.5 billion compensation
to the Ijaw of Bayelsa State for alleged environmental degradation.
The Corporate
External Relations Manager of the company, Mr. Don Boham, who reacted to
recent reports in some media (not Daily Independent ), said the
company�s position was that due process was not followed and that the alleged
order for SPDC to pay $1.5 billion compensation had no legal basis because
such disputes could only be decided by a court of law.
Boham said: �The
story alleged that SPDC may take the National Assembly to court if the Senate
forced it to pay $1.5 billion compensation to Ijaw communities for alleged
environmental degradation. We wish to state for the record that the
allegation is both misleading and false.�
He maintained
that SPDC had been a responsible corporate citizen, stressing that the
company had, over the years, sought to carry out its operations in Nigeria in
a responsible manner in compliance with the regulations issued by the
Department of Petroleum Resources (DPR) and other regulatory agencies and in
accordance with the best international standard available.
However, the
Environmental Rights Action (ERA) has decried SPDC�s stance on the directive,
stating that the company was liable to gross environmental and social abuses
committed since 1956 when the company began operation in the area.
ERA, in a
statement issued on Tuesday, described SPDC�s position that the directive
from the Senate did not follow due process and was illegal, as yet another
proof of the disrespect, which the oil corporation holds Nigeria�s
institutions of democracy, governance and the people.
ERA Executive
Director, Mr. Nnimmo Bassey, said: �This stance of Shell is not surprising.
They never accept liability until they are truly boxed into a corner. As long
as there is room for argument, they will kick, scream and resist any form of
settlement.�
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