T7 Crisis: Daewoo Reaffirms Commitment to Transparency, Regulatory Compliance, Says Tax Controversy Resolved

Daewoo Engineering and Construction Nigeria Limited (DECN) has reiterated its unwavering commitment to transparency, accountability, and compliance with all statutory tax regulations in Nigeria.

The company came out with this in statement on Friday, October 10, 2025 signed by its Community Affairs and Security Manager, Bernard Ewubare, just as it said the recent tax controversy on its Train 7 project has been resolved.

Simulation sessions held in conjunction with the Rivers State Internal Revenue Service (RIRS) to educate staff on tax related issues.

An abridged version of the statement tagged “Clarification and Final Resolution on Tax Matters” is reproduced below:  

“Daewoo Engineering and Construction Nigeria Limited (DECN) hereby announces that all matters concerning tax deductions at the NLNG Train 7 Project site have been fully clarified and conclusively resolved in cooperation with the Rivers State Internal Revenue Service (RIRS).

Following recent misunderstandings regarding tax deductions and clearance certificates, DECN requested the RIRS to review and verify the company’s overall tax compliance. During the official review process, the RIRS confirmed the following key points:

1. All Tax Identification Numbers (TINs) and Tax Clearance Certificates (TCCs) issued to DECN personnel are authentic, valid, and duly issued by the Rivers State Internal Revenue Service.

2. DECN’s tax deductions, remittances, and filings have been accurately and transparently executed in full compliance with Nigerian tax laws.

3. There are no outstanding tax liabilities, discrepancies, or irregularities associated with DECN.

To ensure continued transparency and prevent future misunderstandings, DECN also conducted a short simulation demonstrating how employees can independently verify their tax information through the RIRS online platform.

This practical step further reinforced confidence among workers and stakeholders regarding the company’s compliance and accountability.

DECN extends its sincere appreciation to the Rivers State Internal Revenue Service, the Bonny Local Government Council, the Welders and Fitters Association, the media, and all stakeholders for their cooperation and support throughout this process.”

The company reaffirmed that the tax matter has been completely resolved, saying this confirms “DECN’s strong commitment to transparency, due process, and sound corporate governance”.

“DECN remains dedicated to maintaining a compliant, trustworthy, and productive working environment as it continues the successful delivery of the NLNG Train 7 Project.”

The DECN section of the Train 7 project has been rocked with crisis related to tax deductions from staff remuneration but the company said it had taken deliberate and definite steps to diffuse the situation.