NIGERIA Employers Consultative Association, NECA, has explained reasons why it has dragged the House of Representatives to Federal High Court, Abuja, seeking an injunction restraining the Attorney General of the Federation, The Speaker, House of Representatives, Clerk, National Assembly, Chairman, House Committee on Finance and Olusola Adekanola & Co from proceeding with the audit and inspection of the books of companies in the private sector as planned.

Olusola Adekanola & Co is a consultant appointed by the House Committee on Finance to investigate Corporate Tax Returns private sector companies between 2006 and 2011.

The umbrella body for employers in the country, has already directed member companies not to open their doors to the consultants, arguing that the House has no power under the law to undertake such investigation.

In an originating summons filed in the Federal High Court on Friday, 20th April, 2012, NECA asked the court for interpretation of Sections 88 and 89 of the Federal Constitution under which the House committee claims it drives its powers to carry out the action.

NECA in the suit through the Chambers of Tunji Abayomi & Co, is seeking among others, “A declaratory judgement that the investigatory powers of the House of Representatives granted by Section 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 as amended and exercisable through the House Committee on Finance does not extend to the Plaintiff (NECA) member Companies for the stated purpose to wit ‘to ensure that all revenues accruing to the Federation are remitted fully and appropriately.”

“A declaratory judgement that the stated purpose of the investigation of the House Committee on Finance ‘to ensure that all revenue accruing to the Federation are remitted fully and appropriately’ is inconsistent with the powers of the House of Representatives having regard to Section 5 of the Constitution of Nigeria 1999 as amended, Section 3 (1) of the companies income Tax Act Cap 21 Laws of Federation (2004), Section 2 (1) of Taxes and Levies (Approved List for Collection) Act, Cap 72 Laws of the Federation (2004) and all other relevant laws.