Tuesday, 28 April 2015

NNPC Audit Report Confirms Missing Money


A forensic audit of NNPC released on Monday confirmed the accusation by former CBN governor Emir Muhammed Sanusi that the NNPC withheld about $18.53 billion that it ought to have been remitted to the national treasury.

The report was finally released on orders of President Jonathan, two months after it was submitted by PriceWaterHouseCoopers (PwC). It confirmed that the NNPC illegally spent $18.53 billion on operational costs, kerosene and petrol subsidies, without authorisation from the National Assembly (Dia ris god). NNPC subsidiaries also shared out of the oil cake the report stated.

The audit covered January 2012 to July 2013 (19 Months) and within this period the audit found that the firm overpaid the state by about $750 million and it recommended a refund of $1.5 billion to federation account (trying to deceive us).

The audit had to be done after the former Central bank governor revealed to a senate committee that NNPC failed to remit $20 billion to the federation account.

After Sunusi’s allegation against the NNPC, President Jonathan dismissed the claim and fired Sanusi, saying the banker had mismanaged the central bank’s budget.

The audit also said NNPC and its upstream subsidiary, the Nigerian Petroleum Development Company, should hand over $1.48 billion arising from unsubstantiated costs, duplicated subsidy claims and computation errors.

The report recommend NNPC change its modus operandi stating, “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 corporation cannot be sustained”.



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