Business

British American Tobacco Conducted Potentially Illegal Activities

British American Tobacco conducted potentially illegal activities to undermine health policy, sabotage competitors in Africa – report

Two new analyses of whistleblower documents and court records by the Tobacco Control Research Group at the University of Bath and published by STOP, a global tobacco industry watchdog, suggests that British American Tobacco Plc allegedly used payments to dozens of individuals and potentially unlawful surveillance to tighten its already crushing market grip on Africa.

The reports – one on the company’s activities in several East and Central African countries, another on its aggressive tactics in South Africa – reveal that BAT appeared to be operating “as if it were above the law according to the report on South Africa to sell cigarettes to African’s products known to cause tobacco related illness death and economic harm across the region.

Evidence appears to connect BAT to hand-delivered cash, cars, per diems and campaign donations to dozens of politicians, civil servants, journalists as well as people working at competitor companies. The payments may have helped secure influence on health policies in key African countries. Documents also provide evidence that suggests, in South Africa, BAT hired private contractors, under the pretense of anti-smuggling efforts, to carry out military-style surveillance and operations to disrupt its competitors.

Commenting on the reports’ findings, Akinbode Oluwafemi, Chairman of the African Tobacco Control Alliance said, “BAT’s behavior is a reminder of the tobacco industry’s deep colonialist roots, showing contempt for African laws, business and trade and the health and well-being of Africans. Then and now, the tobacco industry seeks to exploit Africans for its own profit with no consideration for the harm it causes.”

“Our analysis shows that BAT’s potentially corrupt practices in Africa were not just the work of a few bad apples,” said Andrew Rowell, Senior Researcher Tobacco Control Research Group at the University of Bath, a partner in STOP The geographic spread of the activity, the infrastructure used and the number of senior staff involved suggest that BAT ’s payments were routine, with the evidence trail frequently leading back to BAT’s London headquarters This is not the kind of company any government should leave unregulated or fail to investigate“

“Buying Influence and Advantage in Africa: An Analysis of British American Tobacco’s Questionable Payments” is based on leaked documents including internal emails and invoices and court affidavits from two former employees turned whistleblowers. It details BAT’s activities between 2008 and 2013 across 10 Central and East African countries.

The study’s “British American Tobacco in South Africa “Any Means Necessary” is based on leaked company documents, whistleblower testimony and court documents from litigation in South Africa.

Buying Influence and Advantage in Africa: Evidence from 10 Countries

In January 2021 the U.K. The Serious Fraud Office (SFO) concluded its five-year investigation into alleged bribery by the company and its employees, citing that there was not enough evidence to support prosecution as defined under the U.K. Code for Crown Prosecutors, while further stating that: “The SFO will continue to offer assistance to the ongoing investigations of other law enforcement partners.”

Analysis of whistleblower documents connected to BAT’s work in East and Central Africa revealed evidence of questionable payments made in Burundi, Comoros, the Democratic Republic of Congo, Kenya, Malawi, Rwanda, Sudan, Tanzania, Uganda, and Zambia. Researchers identified 236 payments made between 2008 and 2013 totaling US $601,502 that were allegedly used to try to influence policy and sabotage competitors.

Researchers categorized payments into two categories: those “raising questions under the United Kingdom Bribery Act (UKBA), and another less serious but still suspicious group of payments “warranting further investigation under the UKBA.” The payments included:

· More than $28,500 to sources within the Kenya Revenue Authority and more than $38,500 to a former Justice Minister allegedly in exchange for intelligence and for assistance with BAT’s efforts to prevent SICPA from winning the tender over Codentify.

· $20,000 to the chair of a Ugandan parliamentary committee to allegedly “amend” a report related to an investigation into Continental Tobacco Uganda.

· An offer of $110,000 to an executive of Leaf Tobacco and Commodities Ltd. of Uganda allegedly in exchange for evidence of potentially illegal activities by the company. A document detailing the proposal appears to include an offer to arrange an immunity from prosecution agreement

· Roughly $56,000 to a private contractor allegedly to covertly establish a trade union and orchestrate labor unrest at a competitor, Mastermind Tobacco Kenya. The effort was dubbed Operation Snake.”

· Support for “Operation Deep Jungle,” allegedly to establish a permanent informant at a rival company Japan Tobacco International.

The documents suggest that BAT often routed payments through third party companies referred to as service providers.” They also show that BAT staff in London appear to have been involved in requesting and authorizing payments, processing invoices, and approving service provider contracts. Some employees seemed to know they were involved in questionable activities as they used aliases and private email accounts when communicating BAT in South Africa: Crossing the Line and Covering its Tracks

Analysis finds that to solidify BAT’s tobacco monopoly in South Africa, BAT and a private contractor may have repeatedly crossed the line of legality to undermine competitors and disrupt operations. It further alleges that:

Working with state agencies while allegedly complicit in smuggling

While BAT gained access to state agencies, ostensibly to help fight illicit trade, and issued public statements to say that it supported government efforts to eradicate the problem, BAT cigarettes produced in South Africa were allegedly being smuggled into West Africa, fueling conflict, organized crime, and political instability.

“BAT operates in more than 170 countries and the involvement of head office staff and executives in the activities highlighted in these reports raises questions about its business practices beyond Africa,” said Gan Quan, Director of Tobacco Control at The Union, a partner in STOP. “We urge anyone with information about potentially illegal activities to come forward and for regulators to take a hard look at this company and how it behaves. Governments and consumers have every reason to be suspicious.”

Business

FG Gives Approval For Marketers To Lift Fuel From Dangote Refinery

The Federal Government has given approval for marketers to begin the lifting of premium motor spirit commonly known as fuel from the Dangote Refinery without going through the Nigerian National Petroleum Company Limited (NNPCL).

According to a Friday statement by the Minister of Finance and the Coordinating Minister of the Economy, Wale Edun, the move followed a directive from the Federal Executive Council (FEC) and the implementation of the new naira-based sales mechanism.

“New Direct Purchase Model: The most significant change under the new regime is that petroleum product marketers can now purchase PMS directly from local refineries,” the minister who chairs the Implementation Committee on the Sales of Crude Oil and Refined Products in Naira said.

“This marks a departure from the previous arrangement where the Nigerian National Petroleum Corporation (NNPCL) served as the sole purchaser and distributor of PMS from the refineries.

“This direct purchasing mechanism allows marketers to negotiate commercial terms directly with the refineries, fostering a more competitive market environment and enabling a smoother supply chain for petroleum products.

“Local Production of PMS: With the commencement of local PMS production, the market is better equipped to support these direct transactions. This transition is expected to enhance efficiency in product availability and stabilize market conditions for the benefit of all Nigerians.

“The Committee recognizes that there are questions and discussions regarding this change in the market structure. We are committed to providing clarity on this development and will continue to engage with stakeholders to ensure a seamless transition process.”

Business

FIRS launches USSD code *829# for taxpayers’ satisfaction

In a bid to enhance ease of doing business, the Federal Inland Revenue Service (FIRS), on Wednesday, launched an Unstructured Supplementary Service Data (USSD) Code *829# specifically targetted at improving taxpayers’ satisfaction.

FIRS chairman, Zacch Adedeji, launched the code at the Revenue House in Abuja as part of activities making this year’s Customer Service Week which has the theme Above and Beyond.

The initiative makes Nigeria the sixth African country to deploy USSD code for simplifying tax payment processes. .

A statement by Dare Adekanmbi, Special Adviser on Media to the FIRS chairman said taxpayers on any mobile telecommunication network in the country can now get across to FIRS real-time on issues relating to retrieval of Taxpayers Identification Number (TIN), verification of Tax Clearance Certificate (TCC), information on tax types and rates, locate the nearest FIRS office, and as well as get answers to general tax-related inquiries.

Speaking at the ceremony, Adedeji said the instant messaging protocol demonstrated further commitment of the agency to simplifying tax administration and ensuring that “every taxpayer—whether in bustling cities or remote areas—can engage with FIRS seamlessly.”

He called on taxpayers to enjoy the benefits that the USSD code offers and utilise the code for all their enquiries.

“With the *829# USSD code, taxpayers now have the power to: retrieve their Taxpayer Identification Number (TIN), verify their Tax Clearance Certificate (TCC), access information on tax types and rates, locate the nearest FIRS office, and get answers to general tax-related inquiries.

“Without the need for internet access, all of these services are now available with a simple mobile phone. This technological leap reflects our dedication to creating a tax system that is efficient, transparent, and responsive to the needs of taxpayers”, he said.

The agency also launched Customer Centricity Guide, a booklet containing policies, processes and procedures to ensure that FIRS keeps the taxpayers in their rightful position as ‘kings.’

“Equally important is the unveiling of the Customer Centricity Guide. This guide embodies our commitment to putting taxpayers at the centre of our service delivery.

“It outlines the principles and values that will drive our interactions with taxpayers by ensuring that every engagement is defined by respect, professionalism, and efficiency.

“The guide serves as a reminder to us all that the taxpayer is not just a client, but a valued partner in nation-building. Through the combination of the *829# USSD code and the Customer Centricity Guide, we are reinforcing a culture of service excellence and making tax compliance not just a duty but an experience that fosters trust and voluntary participation.

“As we celebrate this achievement, I encourage everyone to make full use of the *829# service and embrace the Customer Centricity Guide. Your feedback will be crucial as we continue to enhance these services and meet the evolving needs of our taxpayers,” he said.

The national coordinator of Servicom, Nnenna Akajemeli, praised the effort of the FIRS towards taxpayers’ satisfaction, noting that the efforts are evident.

“There are many things to congratulate the FIRS on. One is the launch of the USSD code *829# and the customer centricity guide. These initiatives which are simplifying tax and ensuring that citizens and taxpayers are delighted at the quality of service you render,” she said.

FIRS Director, Taxpayers’ Service Department, Loveth Onanuga noted the agency recognized that customer-centricity means more than just satisfying customers’ basic wants, but also going “above and beyond what customers anticipate and astonishing them with great service” in line with the theme of the week.

Business

NACCIMA raises concerns over hike in petrol prices

The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has expressed concern over the increase in petrol pump prices in Lagos and Abuja.

Mr Dele Oye, National President, NACCIMA, made this known in a statement on Wednesday in Lagos.

Oye said that the prices, which had reached N998 and N1,030 per litre respectively, were placing a strain on businesses and households across the country.

He spoke on the potential economic consequences of the price hike, warning that the increase could lead to higher transportation costs, exacerbate inflation and severely impact small and medium-sized businesses.

He said that the decision, influenced by several underlying factors, warranted careful examination of its potential repercussions on the economy, particularly in the realms of pricing for goods, services and transportation.

“With transportation costs directly tied to fuel prices, this increase will serve as a catalyst for higher freight charges.

“Given that fuel is a primary driver of inflation, the rise in petrol prices will exacerbate the already high inflation rate in Nigeria.

“Households will find themselves paying more not only for fuel, but also for everyday goods and services, prompting a vicious cycle of rising costs and economic hardship.

“The recent fuel price increase will have a profound impact on micro and nano businesses, many of which rely heavily on petrol generators to power their operations,” he noted.

According to him, the overall economic landscape for SMEs can shift from potential growth to survival.

He explained that this would not only impact individual enterprises, but also limit job creation and economic development in communities across Nigeria. explained.

The NACCIMA president called on the Nigerian National Petroleum Corporation Ltd. (NNPCL) to demonstrate the necessary goodwill to support Dangote refinery operations.

This, he said, would ideally stabilise local petrol prices, reduce Nigeria’s dependence on imported petrol and contribute to national self-sufficiency.

Oye also called on the Central Bank of Nigeria to be more effective in implementing monetary policies that stabilise or strengthen the Naira

He noted that as importation costs rise due to currency depreciation, domestic fuel prices would likely continue on an upward trajectory.

“It is imperative that we advocate for robust strategies that not only stabilise fuel prices but also bolster domestic production capabilities, ensuring that the Nigerian economy can navigate these turbulent times more effectively.

“As stakeholders, NACCIMA will continue to engage with government entities to encourage a more conducive climate for growth and sustainability,” he said.