Reps Grill NNPC Over N3.878trn Crude Sales Under Remittance, ‘Morrow

The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mr. Mele Kyari, is expected to appear before the House of Representatives, tomorrow, over audit query issued by the Office of the Auditor General of the Federation (oAuGF) bothering on N3.878trillion under remittance revenue from domestic crude oil sales.
Other audit queries on the non-collection of gas receipts for some months in the 2015 financial year, to be answered by the NNPC boss, include: refund of N450billion by NNPC to Federation Account; refund of N1.8trillion; unpaid gas revenue without details worth $198,919,212.27 (N37,189,084,819.19).
Kyari is also expected to respond to the audit query on “payment through Nigeria Gas Limited Funding Account $30,963,894.01 (N16,099,887,119.77) as well as “Misapplication of Joint Venture Cash Calls for other purpose $292,094,405.82 and N2,474,295,000”.
To this end, the committee requested for “full brief on the account and utilization of fund with retirement details’ cash books, mandates with bank statement, and payment vouchers for operation on the NGL funding account.”
Also expected to appear with the NNPC GMD are beneficiaries from the Nigeria Gas Limited Funding Account, namely: Century Energy Service Ltd; United Refining Rachmann; Union Petroleum Service; Ocean Bed Trading Ltd; Ice Energy & Petroleum; Mangrove Pet. Supplies & Logistic and Unicorp Trading Ltd.
On the audit query issued on the Joint Venture Operations irregular movement of funds from JVCC JP Morgan Chase Account to Bank of International Settlement (BIS), the NNPC GMD was asked to “provide the approval memo authorizing movement and payment of the fund to Bank of International Settlement.”
In response to the audit query on the ‘Misapplication of Joint Venture Cash Calls for other purpose $292,094,405.82 and N2,474,295,000,’ the GMD was asked to “provide the presidential approval memo, authorizing NNPC to disburse these funds for other purposes with all relevant documents.”
The Chairman, House Committee on Public Accounts, Rep. Oluwole Oke, in a two-page invitation letter with Reference No: HR/PAC/SCO5/9NASS/FA/2015/1 dated February 1, 2021, urged the NNPC GMD to cause appearance before the committee alongside management of NAPIMS at the hearing.
Other issues being investigated include: non-availability of Joint Venture Bank Statement and Reconciliation Statement as well as the Bank Statement of the Joint Venture Account.
Others are, non-declaration of projects from NNPC Joint Ventures; audited account for 2014 and 2015 financial years; full breakdown of production figures by the Joint Ventures (PSC, SC, etc, for proper reconciliation), comprehensive records of transactions relating to the unpaid gas revenue worth $198,919,212.27 (N39,189,084,819.19).
According to the committee, no fewer than 26 companies/entities are to who benefitted from the fund are to appear alongside the NNPC GMD.
“Pursuant to the committee’s constitutional mandate over matters relating to public finance management, audit and expenditure as provided in sections 80, 85, 88 and 89 of the 1999 Constitution (as amended) and Order XVIII – Rule 6 of the House of Representatives Standing Orders, the Public Accounts Committee has commenced investigative hearing on the Auditor-General’s reports on the Federation Accounts for 2015.
“During a hearing session with the Accountant General Office on Friday, January 29, 2021, the committee resolved that you cause appearance to respond to the issues,” the 2-page invitation letter read in part.
In the same vein, the committee via a letter with Reference No: HR/PAC/SCO5/9NASS/FS/2016 dated January 2, 2021, addressed to the NNPC GMD, expressed grave concern over the “poor disclosure of receipts from the Nigerian National Petroleum Corporation,” of the financial statements for the 2016 fiscal year.
The committee requested for records of issues raised in the Auditor General’s 2014 report on the Federation Accounts pertaining to the agency.