Manufacturers, industrialists and financial experts have raised the alarm over an alleged plan by the Federal Government to engage the services of a Swiss-based security ink manufacturing company (name withheld) for the purpose of collecting taxes through a process called “track-and-trace” on manufacturing and consumer goods.

They equally warned against a reported “no objection” certification granted to the alleged preferred company by the Infrastructure Concession Regulatory Commission (ICRC), as the sole company to deploy the technology.

The notorious Swiss company that provides security printing, security inks for currencies and sensitive documents, including identity documents, passports, transport and lottery tickets, is said to have been selected by the Federal Government to carry out the project without passing through competitive bidding processes as stipulated by Nigerian laws.

It was further gathered that the company is being sponsored by some Federal Government officials in collaboration with the Federal Ministries of Finance, Trade and Investment as well as the Federal Inland Revenue Service.

It was gathered that the Federal Government, in order to shore up national revenue and reduce external borrowings, plans to introduce value-based track-and-trace stamping of consumer and industrial products manufactured in Nigeria.

The process, a very important revenue generation process, is however already embroiled in controversy due to the manner it was being handled.

Sources faulted the Federal Government for selecting a company with a dented reputation overseas for the job. Available documents indicate that the “preferred company” was in 2023 found guilty of “organisational deficiencies” and bribery by a Swiss court and fined.

Stakeholders are consequently raising the red flags over the procedure allegedly being adopted by both the Federal Government and ICRC for the selection of the company for the implementation.

Specifically, the disagreement revolves around picking the company without any competitive bidding.

Those against the process are relying on a statement from the Federal Prosecutor’s Office, Switzerland, dated 27th April, 2023, which fined the suspected company $90.6 million, “due to organisational deficiencies,” and bribery of foreign nationals where they executed contracts.

Sources told New National Star at the weekend in Abuja, that for some months now, representatives of the Swiss company have been in Nigeria, “fraternising with top bureaucratic and political leaders, on their expertise and experiences,” but failed to disclose that their company has severe image and reputation issues back home.

Further investigations show that the company was indicted in similar activities (stamp duty contracts) in its home country, Switzerland, of fraudulently bribing government agents in countries where it carried out business and was subsequently fined.

Findings from the Communications Service at the Office of the Attorney-General of Switzerland (OAG) show that the company was slammed “with a penalty order issued in accordance with Art. 102 para. 2 SCC in conjunction with Art. 322septies SCC”.

“The OAG has accordingly ordered the company to pay a fine of CHF 1 million and imposed an equivalent claim for compensation amounting to CHF 80 million under Art. 71 para. 1 SCC,” it stated.

The said manager of the company was sentenced to a conditional prison term of 170 days.

“The order states that he paid bribes to high-ranking officials in the Colombian and Venezuelan markets between 2009 and 2011,” the sources added.

It was reported that the Federal Prosecutor in Switzerland had initiated criminal proceedings against SICPA, which specialises in security inks for currencies and documents, in 2015 following a request for legal assistance.

Investigations revealed that the company offered bribes in Brazil, Venezuela and Colombia and is currently undergoing probes in Egypt, the Philippines, India, Kazakhstan, Pakistan, Senegal, Vietnam, Ukraine, Zambia and Malawi.

It was also gathered that the Kenyan Parliament had summoned the Kenya Revenue Authority (KRA) over a tender for the supply of excise stamps following reports that the same company had been slammed with a Sh2.5 billion fine for bribing foreign public officials in the conduct of business.

Despite all these, the company had allegedly been awarded a track-and-trace contract by the Federal Government of Nigeria amidst the firm’s reputation, which is tainted by allegations of systemic illegal practices and investigations in several countries.

Questions also center on how the company allegedly obtained a “No Objection” certification from the ICRC.

Efforts to get officials of the ICRC to confirm or deny the report proved abortive as at press time.