Says Sanusi misled the Nation
Advise President Jonathan to submit Supplementary Budget on Subsidy extras
After months of painstaking perusal of volumes of documents and presentations made before it by all relevant stakeholders, the Senate Committee on Finance which was mandated to investigate the allegation of non-remittance of $49.8 billion to the Federation Account by the Nigerian National Petroleum Corporation, NNPC, on Wednesday laid its report before the Senate at plenary .
The former Governor of the Central Bank of Nigeria, Mallam Sanusi Lamido Sanusi through a letter to the President which was leaked to the press alleged that the sum was missing from the Federation Account between January 2012 to July 2013. However the 73 page report of the Senator Markafi led Committee which was exclusively obtained by this newspaper cleared the Corporation of any missing or unremitted 49.8billion as alleged by Malla Sanusi.
On the second allegation of unremitted $20billion, the Committee in its findings opined that what is in dispute is the sum of $218, 069, 354 ( two hundred and eighteen million, sixty nine thousand and three hundred and thirty five us dollars only) being what it considers the Federation Account share of the Third Party Financing arrangement.
It also noted that another sum of US $ 447, 817, 884 being what it considers as outstanding Federation Account share from the US $ 6.815 billion liftings by NNPC on behalf of the NPDC, remains in dispute. Also in dispute is the sum of US$262 million being expenses incurred by the NNPC in respect of Holding Strategic Stock Reserve, Pipeline maintenance and Management Cost/ Capital Expenditure.
The report surmised that based on the foregoing what is left unreconciled amounts to USD 928, 187, 238 (Nine hundred and Twenty Eight million, one hundred and eighty seven thousand, two hundred and thirty eight US dollars only) and not the widely acclaimed US $20 billion USD or the bogus USD 49.8 billion by the then CBN governor.
On the expenditure incurred by the Corporation on subsidy which was not captured by the appropriation Act, the Committee advised President Goodluck Jonathan to prepare and present to the National Assembly supplementary budget to “cover the expenditure in the sum of N90.693 billion (US$585 million) for PMS subsidy 2012 and the sum of N685.910 billion (4.430 billion) for kerosene subsidy expended without appropriation by the National Assembly in 2012 and 2013’’.
The Markafi Committee however gave some hard knocks to the Ministry of Finance, CBN and the NNPC for lack of coordination in record keeping with regard to Crude oil proceeds remittances.
“Inter-agencies reconciliation meetings between sensitive economic institutions such as Ministry of Finance, Nigerian National Petroleum Corporation, Central Bank of Nigeria and the Federal Inland Revenue Services should be done on regular basis in order to avoid similar episode but most importantly ensure that all revenue are properly and legally accounted for,’’ the report stated.
The Committee noted that its finding is without prejudice to the ongoing Forensic Audit by the Office of the Auditor General of the Federation and PriceWaterHouse.
When asked to comment on the content of the Senate Committee report, Ohi Alegbe, Group General Manager, Group Public Affairs Division of the NNPC stated that it was premature for the Corporation to come up with an official position since the Senate has not communicate its findings to it.
“ Yes we know that the report was laid before the Senate at plenary today but that is as far as we know. We are waiting for formal communication on the matter.’’ Alegbe said.
When informed that the Senate the Committee reportedly cleared NNPC of missing USD $20 billion but noted the unreconciled US$ 924 million, Alegbe retorted.
“From the beginning our position has always been that no such amount was missing but if you are saying that the Senate Committee is coming up with a verdict of unreconciled US$ 900 million it means we are making progress. Remember they started with for $49.8 before it was reduced to USD 10.8 billion later adjusted to USD 12 billion and stood at US$20 billion. Now according to you, the Senate Committee is saying US$ 900 million is unreconciled. I am sure that by the time we are through with the Forensic Audit the picture would be clearer,’’ he said.
