As promised yesterday by President Goodluck Jonathan, the
audit report of NNPC oil money has been released. However, the report released
by PricewaterHouse Coopers PWC on the financial management of NNPC shows that
there were many cases of duplicated subsidy payment by NNPC to many oil marketers
in 2012 and 2013.
According to the report, payment of subsidies for petrol
(PMS) and kerosene (DPK) between January 2012 and July 2013 when investigated
had a difference of $980 million (about N195 billion) due to duplicated
payments.
"Our review of the subsidy documentation revealed that the
subsidy due to NNPC between January 2012 and July 2013 on PMS and DPK import
was $8.99billion compared to the $9.97 billion stated by the Reconciliation
Committee.
The difference was due to the following: Exclusion of
October 2011-December 2011 subsidy claims of $1.2billion. This does not relate
to the review period of January 2012 to July 2013; $0.13billion increase in PMS
subsidy claimed for the 19 months period, $0.09billion increase in DPK subsidy
claimed for the 19 months period; duplicated discharges noted in subsidy
computations Our examination of the PMS and DPK import verified by PPPRA
revealed that some discharges were apparently verified and subsidy advised to
NNPC more than once," the report stated.
According to Leadership, the report showed NNPC spent
$18.53billion (or N3.65 trillion) as operational costs without a duly approved
budgetary allocation. The report also indicated that the total gross revenues
generated from the federal government crude oil lifting between January 1, 2012
and July 31, 2013 was $69.34 billion and not $67 billion as earlier stated by
the federal government’s Reconciliation Committee.
The report also stated it was unable to verify the exact
unremitted revenues accruing to the Federation Accounts as it did not have
access to NPDC’s full account. The Nigerian Petroleum Development Company is a
subsidiary of the NNPC. “We did not have access to NPDC’s full accounts and
records and we have not ascertained the amount of costs and expenses which
should be applied to the US$5.11billion Crude Oil revenue (net of royalties and
PPT paid) per the NPDC submission to the Senate Committee which should be
considered as dividend payment by NPDC to NNPC for ultimate remittance to the
Federation Account.
Between 12 January and 29 January 2015, NNPC provided
transaction documents representing additional costs of $2.81 billion related to
the review period, citing the NNPC Act LFN No 33 of 1977 that allows such
deductions. Clarity is required on whether such deductions should be made by
NNPC as a first-line charge before remitting the net proceeds of domestic crude
to the Federation Accounts. If these are deemed not to be valid deductions,
then the amount due from NNPC would be estimated at $2.07 billion (without
considering expected known remittances from NPDC) or $4.29 billion (if expected
known remittances from NPDC are considered).”
The forensic audit became necessary following a letter in
September 2013 by the former governor of the Central Bank of Nigeria (CBN),
Sanusi Lamido Sanusi, to President Goodluck Jonathan stating that from January
2012 to July 2013, NNPC lifted $65 billion worth of crude on behalf of the
federal government but remitted only $15.2 billion into the Federation
Accounts, with $49.8 billion as outstanding to the federal government. On
December 13, 2013, the NNPC responded that no money was missing.
A Reconciliation Committee comprising representatives of the
CBN, NNPC, Department of Petroleum Resources (DPR), Federal Inland Revenue
Service (FIRS), Office of the Accountant General (OAGF), the Budget Office of
the Federation, Federal Ministry of Finance and the Federal Ministry of
Petroleum Resources was set up On December 18, 2013, the Reconciliation
Committee, in its report, estimated the unremitted funds at $10.8 billion while
the CBN said it was $12 billion.
The CBN on February 4, 2014 informed the Senate Committee on
Finance that the NNPC needed to account for $20 billion as the CBN could only
confirm receipt of $47 billion of $67 billion revenue. On February 13, 2014,
the NNPC provided explanations of the $20 billion shortfall while the finance
minister and coordinating minister for the economy recommended an independent
forensic audit. On June 5, 2014, PwC was appointed by the office of the Auditor
General of the Federation (OAuGF) to conduct a forensic audit into the
allegations.
10 Comments
Meaning there was truly fraud in NNPC
ReplyDeleteWhy did d subsidy payment had to be duplicated to amount runing into billions
ReplyDeleteThat's the fraud
DeleteSanusi has been vindicated
ReplyDeleteNot yet!!! Till after all d investigations
DeleteYou know this amount has changed as at today, cos of exchange rate. We need our money quick quick!
ReplyDeleteLol! The whole thing is annoying when the masses are suffering like crazy!
DeleteWhat a shame
ReplyDeleteDidn't GEJ kow be4 talking about releasing this report yesterday?
ReplyDeleteA lot of things went wrong under GEJ!
Delete