₦29.6bn HYPREP Expenditure Questioned as Findings Revealed Denied Records, Unverified Payments

Secrets Reporters

The Ogoni cleanup was conceived as Nigeria’s response to decades of oil pollution that damaged farmlands, affected fisheries and communities across Ogoniland. However, a Federal Government financial examination of the Hydrocarbon Pollution Remediation Project (HYPREP) for the 2023 financial year identified issues involving ₦29,649,073,997.41 in project expenditure.

The largest amount identified in the report was ₦27,585,439,410.13 under a finding titled, “Denial of Access to Project Documents and Records.” According to the report, HYPREP did not provide access to documents and records relating to the project cluster valued at over ₦27.5 billion. Section 85(2) of the 1999 Constitution provides that the Auditor-General for the Federation, or any person authorised on his behalf, “shall have access to all the books, records, returns and other documents relating to” the accounts being examined.

Moreso, the report identified ₦1,560,490,997.28 in unverified compensation payments. According to the findings, the money was paid to claimants without confirmation that the underlying compensation claims were genuine or properly assessed. Paragraph 415 of the Financial Regulations 2009 requires public officers controlling expenditure to exercise due economy and states that money must not be spent merely because it has been voted.

Similarly, the report identified ₦229,111,590 paid as compensation to a company which records showed was not engaged for the purpose for which the compensation was paid. The amount comprised ₦48,346,270 relating to the WIYAAKARA transmission station and ₦180,765,320 relating to the BODO transmission station. The report linked the payments to requirements governing the management and expenditure of public funds, while the Corrupt Practices and Other Related Offences Act 2000 contains provisions governing the handling of public funds and false statements or returns relating to money or property entrusted to public officers.

Additionally, ₦260 million was reportedly paid for a training programme for which the findings showed no evidence of execution. The Corrupt Practices and Other Related Offences Act 2000 contains provisions dealing with the management of public funds, including circumstances involving false statements or returns concerning money or property entrusted to public officers.

Furthermore, the report identified ₦14,032,000 in cash advances that were not retired. The Financial Regulations 2009 contain provisions governing the issuance, utilisation and retirement of advances by public officers and require officers receiving public funds to account for their expenditure in accordance with prescribed financial procedures.

Altogether, the findings identified ₦29,649,073,997.41 comprising ₦27,585,439,410.13 connected to project documents and records that were not provided; ₦1,560,490,997.28 in unverified compensation payments; ₦229,111,590 paid as compensation to a company records showed was not engaged for the stated purpose; ₦260 million paid for a training programme without evidence of execution; and ₦14,032,000 in unretired cash advances.

Meanwhile, Professor Nenibarini Zabbey served as HYPREP Project Coordinator throughout the period covered by the 2023 financial examination and remains in the position. During his tenure, HYPREP has publicly reported activities relating to mangrove restoration, hospital construction and remediation of polluted sites.

HYPREP also operates under a Governing Council chaired by the Minister of Environment, Balarabe Abbas Lawal. The council forms part of the governance structure overseeing the implementation of the Hydrocarbon Pollution Remediation Project.

The Ogoni remediation programme followed the 2011 United Nations Environment Programme assessment of environmental contamination in Ogoniland. The assessment recommended extensive environmental remediation following decades of oil pollution in the area.

Section 85(2) of the 1999 Constitution provides the Auditor-General with access to books, records, returns and other documents relating to public accounts under examination. According to the report, the documents relating to the ₦27,585,439,410.13 project cluster were not provided for examination.

Similarly, Paragraph 415 of the Financial Regulations 2009 requires officers controlling expenditure to exercise due economy in public spending and provides that money should not be spent merely because it has been voted. The provision applies to the management and authorisation of expenditure from public funds.

Additionally, the Corrupt Practices and Other Related Offences Act 2000 contains provisions governing conduct involving public funds. Section 16 addresses circumstances in which an officer charged with the receipt, custody, use or management of public revenue or property knowingly furnishes a false statement or return concerning money or property entrusted to the officer.