Oil & Energy
A-G Queries DPR Over $759m Withdrawal From Signature Bonus Account
The Office of the Auditor-General of the Federation (OAuGF) has queried the Department of Petroleum Resources (DPR) over the withdrawal of $759.39 million from the Signature Bonus Account.
The OAuGF, in its audit report on the Accounts of the Federation of Nigeria for 2018, presented to the National Assembly, October 2020, and released few days ago, stated that the DPR withdrew the money from its Signature Bonus Account domiciled with JP Morgan Chase Bank between July 7, 2014 and May 8, 2015.
This OAuGF disclosed that the infraction was due to the failure of the Director of the DPR to strictly comply with the provisions of extant laws and regulations and not circumvent laid down procedures guiding the sweeping of revenues generated by ministries, departments and agencies of government (MDA) to the Consolidated Revenue Fund (CRF).
The OAuGF said, “We observed during our audit that the sum of US$469,387, 755.10 was withdrawn from the Signature Bonus Account of the Department domiciled with JP Morgan Chase Bank between April 10th and April 30th 2015 and paid to an account called, ‘CBN Autonomous FEM Account Garki Abuja Nigeria’, rather than being swept to the Federation account in line with the provision of the law.
“Similarly, US$290,000, 000.00 was withdrawn from the Signature Bonus Account domiciled with JP Morgan Chase Bank in three tranches: July 7th, 2014 – $100,000,000.00; February 19th 2015 – $40,000,000.00; and May 8th 2015 – $150,000,000.00, via Standard Chartered Bank to First Bank Nigeria, in favour of Petroleum Technology Development Fund (PTDF) with the description, ‘Being funds released to PTDF for Execution of Critical Project’ rather than being swept to Federation Account.
“These withdrawals from the Signature Bonus account are recognized in the books of the Department. No explanation was provided on these withdrawals as the Department claimed that it has no control over withdrawal from the Signature Bonus Account, though it accounts for such withdrawals in its cash book.”
The risk associated with such activity, according to the OAuGF, was that the DPR may engage in unauthorized movement of funds from its revenues and government revenues may not be properly accounted for.
The OAuGF disclosed that the management of the DPR was yet to provide any response over the infractions as at the time the 2018 audit report was been presented to the National Assembly.
However, the OAuGF recommended that the Director of the DPR should be compelled to produce the source of authority to the Public Accounts Committee of the National Assembly, authorizing the transfer of funds from the Signature Bonus Account to any other account other than to the Federation Account.
“Furthermore, the Accountant-General of the Federation and the Honourable Minister of Finance should forward to the Public Accounts Committee of the National Assembly, the details of the utilisation of the US$759,387,755.10 withdrawn from the Signature Bonus Account,” it added.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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