Hence, both institutions are to return a minimum of $1.48 billion to the federation account.
Addressing journalists on the highlights of the audit report as requested by President Goodluck Jonathan, the Auditor-General of the Federation, Mr Ukura Samuel, said that the PwC report centered on the NNPC costs, ownership of the NPDC revenues and Dual Purpose Kerosene (DPK) subsidy.
The auditor-general, before presenting the PwC audit highlights, categorically stated that the president “cannot direct” him to release the highlights or complete details of any report but can “request” for the release of the highlights. His office, he said, is mandated by law to submit its report to the National Assembly and not to the Presidency. With regards to the NNPC cost from where the $20 billion was alleged to have gone missing, the PwC report berated the NNPC’s operations which it described as “an unsustainable model.”
The report noted that 46 per cent of the proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies while the corporation was unable to monthly sustain remittances to the Federation Account Allocation Committee (FAAC) and meet its operational costs entirely from the proceeds of domestic crude oil revenues and have had to incur third party liabilities to bridge the funding gap.
It further stated that the NNPC provided transaction documents representing an additional cost of $2.81 billion related to the review period, citing the NNPC Act, LFN No 33 of 1977, that allows for such deductions. Based on this, the PwC recommended that “the NNPC model of operation must be urgently reviewed and restructured as the current model which has been in operation since the creation of the NNPC cannot be sustained.”
However, the NNPC has refuted this report. A statement signed by its spokesman, Ohi Alegbe, read in part, “It was not true that the NNPC was indicted in the forensic audit report as being speculated in some quarters as the $1.48 billion that the audit firm recommended the corporation to remit to the Federation Account was not part of the alleged unremitted revenues from crude lifting.”
Addressing journalists on the highlights of the audit report as requested by President Goodluck Jonathan, the Auditor-General of the Federation, Mr Ukura Samuel, said that the PwC report centered on the NNPC costs, ownership of the NPDC revenues and Dual Purpose Kerosene (DPK) subsidy.
Samuel stated that “based on the information available to the PwC, and from analysis, the firm submitted that the NNPC and NPDC should refund to the Federation Accounts a minimum of $1.48 billion.”
The auditor-general, before presenting the PwC audit highlights, categorically stated that the president “cannot direct” him to release the highlights or complete details of any report but can “request” for the release of the highlights. His office, he said, is mandated by law to submit its report to the National Assembly and not to the Presidency. With regards to the NNPC cost from where the $20 billion was alleged to have gone missing, the PwC report berated the NNPC’s operations which it described as “an unsustainable model.”
The report noted that 46 per cent of the proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies while the corporation was unable to monthly sustain remittances to the Federation Account Allocation Committee (FAAC) and meet its operational costs entirely from the proceeds of domestic crude oil revenues and have had to incur third party liabilities to bridge the funding gap.
It further stated that the NNPC provided transaction documents representing an additional cost of $2.81 billion related to the review period, citing the NNPC Act, LFN No 33 of 1977, that allows for such deductions. Based on this, the PwC recommended that “the NNPC model of operation must be urgently reviewed and restructured as the current model which has been in operation since the creation of the NNPC cannot be sustained.”
However, the NNPC has refuted this report. A statement signed by its spokesman, Ohi Alegbe, read in part, “It was not true that the NNPC was indicted in the forensic audit report as being speculated in some quarters as the $1.48 billion that the audit firm recommended the corporation to remit to the Federation Account was not part of the alleged unremitted revenues from crude lifting.”
From $20bn to $12bn and now to $1.48bn. Will NNPC ever return any money? I dey laff o!
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