SENATE DIRECTS CONTENT BOARD TO STOP BUSINESS WITH GLOBESTAR OVER BREACHES
The Senate Committee on Local Content had directed the Nigerian Content Monitoring and Development Board, NCMDB, to stop any dealing with Globestar Nigeria Limited, an engineering procurement company operating in the oil and gas sector over possible breaches in the Nigeria Oil and Gas Industry Content Development (NOGID) Act 2010.
Senator Solomon Adeola (APC, Lagos West) the chairman of the committee gave the directives during the appearance of the Managing Director of Globestar Mr. Yuan Cottart before the committee with a claim that he is the sole staff of the company engaged in multi-million dollar business in the oil sector while a supposedly Nigerian owned company Niger Star 7 supplies workers for Globestar to bid for contracts that should ordinarily go to Nigerian companies.
The French managing director has stated that Globestar is 98% French company with only 2% Nigerian interest while another joint venture company Niger Star 7 with a 51% Nigeria equity and 49% French interest is used to fulfill requirements to bids for contracts under NOGID, Act 2010.
Senator Adeola who faulted the appearance of two staff of Niger Star 7 as staff of Globestar said but for the need to be thorough he would have accused the two staff of impersonation as they had no Identity Cards or any other document to link them to Globestar.
“As it is the managing director has stated that he is the only staff of Globestar while a linkage has been established to show that Niger Star 7 may have been only incorporated to enable a foreign, Globestar to do business in Nigeria in contravention of the laws of the land” Senator Adeola stated.
He therefore directs NCMDB to suspend all dealings including expatriate quota approval with Globestar and Niger Star 7 pending the submission of relevant documents including staff strength, ownership structure, and expatriate quota approvals among others adding that the company is to return with all the documents in one week.
“From all indications Globestar is a foreign company just like Niger Star 7 and another company Subseas 7 and they may have been operating in collusion contrary to the NOGID Act 2010” Adeola stated.