Barely a day after the House of Representatives ad hoc committee commenced investigation of the report of the Swiss-based Non-Governmental Organisation (NGO), Berne Declaration, involving the Nigerian National Petroleum Corporation (NNPC) and Swiss-based companies, another weighty revelation by the Nigerian Extractive Industries Transparency Initiative (NEITI), has revealed that the sum of $22.8 billion was not disclosed by the NNPC in NEITI's audited financial statement on the corporation through alternative funding arrangement with its joint venture partners.
The Executive Secretary of NEITI, Mrs. Zainab Shamsuna Ahmed, disclosed this to the committee yesterday, explaining that the amount not captured in the report was, according to NEITI audit report of 2009 to 2011, supposed to be part of the corporation's financial statements through alternative funding arrangement with its joint venture partners.
She debunked NNPC's denial that it did not connive with some Swiss oil dealers to deprive the federal government of oil revenue of $6.8 billion that should have accrued to it as a result of the crude oil lifting contract the corporation granted the companies.
Ahmed further revealed that from 2009 to 2011, the country lost N98.3 billion to NNPC in exchange rates compared to Central Bank of Nigeria (CBN) official exchange rate in the year under review.
She corroborated the subsisting allegation by the Bernes declaration report, which was the precursor of the ongoing investigation, saying: "There is similarity in NEITI audit report and the Bernes Declaration report. The report (Bernes Declaration report) has a lot of substance in it.
"If it is taken for what it is, then what we need to do is bring greater transparency and better disclosures. Then it will be a useful process."
She even offered that her organisation "go back and link the Bernes declaration report with NEITI audit report.
She even offered that her organisation "go back and link the Bernes declaration report with NEITI audit report.
"Non-cash call items totalling $1.73 billion were financed from the CBN/NNPC/JP Morgan Chase Cash Call Dollar Account. This reduced the amount available for funding JV operations with the attendant implications of NNPC seeking alternative funding arrangements to fund cash call shortfalls."
She, equally basing her submission on NEITI audit report of 2009-2011, picked holes in NNPC's allocation of 445, 000 barrels per day to local refineries.
"The 445,000 barrels per day allocation should be reviewed to the actual refining capacity of the refineries," she suggested.
"The 445,000 barrels per day allocation should be reviewed to the actual refining capacity of the refineries," she suggested.
Ahmed, who also alleged that $1.73 meant for Joint Venture cash calls have been diverted by NNPC, urged the federal government to consider the privatisation of refineries and ensure that pipeline security is enhanced.
In his submission, the Managing Director of the Pipelines and Product Marketing Company (PPMC), Mr. Haruna Momoh, debunked the claim that the nation is losing $8 billion annually through swap arrangement, saying the deal was in the best interest of the country.
He insisted that the deal was transparent and temporary.
“It will soon be phased out once the refineries are operating in full capacity and when new refineries come on board," he noted.
“It will soon be phased out once the refineries are operating in full capacity and when new refineries come on board," he noted.
The Deputy Governor, Operations of the CBN, Kingsley Moghalu, told the committee that the bank would check it books to see if it can find any transaction relating to the $6.8 billion allegation.
He said: "We take note of the Berne Declaration; we will look at our records and see if there's anything relating to it and get back to the committee.”
In his submission to the committee, the Managing Director of the PPMC Momoh, rejected media reports that the nation was losing $8 billion annually through swap arrangement of crude oil between NNPC and some foreign oil companies.
The hearing has been adjourned till March 25.
The hearing has been adjourned till March 25.
Hon. Muraina Ajibola, who announced the adjournment, also ruled that the Minister of Petroleum Resources; Director, Department of Petroleum Resources (DPR), Chairman of Economic and Financial Crimes Commission (EFCC), acting Governor of CBN, Executive Secretary of Petroleum Products Pricing Regulatory Agency (PPPRA) among others, should appear before the panel on the adjourned date.
The Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday said it had not approved any increase in the pump price for petrol, warning that it would not hesitate to shut down any filling station found hoarding products or selling above the official price.
It assured Nigerians that the official pump price for the product is still N97 per litre.
In statement signed by the Executive Secretary of the agency, Mr. Farouk Ahmed, the PPPRA said the clarification became necessary because of the reports by some petroleum marketers are hoarding the fuel in anticipation of fuel price increase.
In statement signed by the Executive Secretary of the agency, Mr. Farouk Ahmed, the PPPRA said the clarification became necessary because of the reports by some petroleum marketers are hoarding the fuel in anticipation of fuel price increase.
The agency directed petroleum marketers to release for sale products in their tanks and depots at the officially approved pump price.
It warned that to ensure compliance, the PPPRA and the Department of Petroleum Resources (DPR), would work closely to monitor the situation at all retail outlets in the country.
The statement read: “ PPPRA wishes to further assure the Nigerian public that there are sufficient PMS in the country to guarantee uninterrupted fuel supply and motorists are therefore advised to shun panic-buying, as loading of the products has been uninterrupted in all NNPC deports across the country.
It warned that to ensure compliance, the PPPRA and the Department of Petroleum Resources (DPR), would work closely to monitor the situation at all retail outlets in the country.
The statement read: “ PPPRA wishes to further assure the Nigerian public that there are sufficient PMS in the country to guarantee uninterrupted fuel supply and motorists are therefore advised to shun panic-buying, as loading of the products has been uninterrupted in all NNPC deports across the country.
“PPPRA hereby directs all petroleum marketers to release for sale products in their tanks and deports and at the officially approved pump price. To ensure compliance, the PPPRA and the Department of Petroleum Resources (DPR), shall be working closely to monitor the situation at all retail outlets and shall not hesitate to shut down any filling station found hoarding products or selling above the official price.”
Source: Thisday
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