Auditor-General queries NNPC GMD over failure to remit N663.89 billion to Federation Account

THE Group Managing Director (GMD) of the Nigeria National Petroleum Corporation (NNPC) Limited Mele Kyari has been asked to explain the company’s failure to remit N663.89 billion into the federation account.

The query issued to the NNPC GMD was part of the recommendations made by the Accountant-General of the Federation (AuGF) in the 2019 audit report, which was submitted to the National Assembly.

The query followed the discovery of discrepancies between the amount reported by the NNPC as transfer to the Federation Account and what was reported by the AuGF.

The report, signed by the AuGF Adolphus Aghughu, said the NNPC’s upstream arm National Petroleum Investment Management Services (NAPIMS), claimed it transferred the sum of N1.27 trillion to the Federation Account.

But the audit revealed that the NNPC only remitted N608.71 billion in the 2019 financial year.

The NNPC is to explain the difference of N663.89 billion.

The report noted that the schedule of transfers to the Federation Account by the corporation was not provided for scrutiny.

– . –

The NNPC management failed to respond when queried about the huge discrepancy, according to the report.

The AuGF recommended that the NNPC should remit the difference to the Federation Account and forward evidence to the public accounts committees of the National Assembly.

“Otherwise, apply sanctions relating to failure to collect and account for government revenue in paragraph 3112(ii) of the Financial Regulations,” the report said.

The report also revealed that the NNPC lifted 107 million barrels of crude oil, but refused to provide information on the sale of un-utilised crude oil by refineries.

The audit report further observed the NNPC did not provide information on crude oil allocations from 30th May to December 31, 2019 for scrutiny.

According to the report, the development could lead to possible diversion of domestic crude, diversion and sale of un-utilised crude and loss of Federation Account revenue.

Noting that the NNPC management failed to respond to audit query, the report added, “The Group Managing Director of NNPC is requested to peovide the complete schedule of allocation of Crude Oil to Refineries from 1st January to 31st December, 2019. Furnish details of sale of un-utilised crude oil and reconcile it with total domestic crude oil of 107,239,436.00 bbls lifted in 2019 and remit amount realised from sale of un-utilized crude oil to the Federation Account.”

– . –

The report further disclosed that the NNPC spent US$6.410 million, (N1.955 trillion at N305/US$1) to fund Joint Venture Cash Calls (JVCC) and other federally funded upstream projects such as Gas Infrastructure Development, Brass LNG, Crude Oil PreExport Inspection Agency Expenses, Frontier Exploration Services, EGTL Operating Expenses and NESS Fee and another N55.157 billion on Pipeline Security and Maintenance without first paying the money into to the Federation Account, as required by law.

Leave a Reply

Your email address will not be published.

Back to top button