NDDC Mismanaged N6trn, Maintains 362 Bank Accounts -Forensic Report …As Commission Abandons 13,777 Projects

The Federal Government, yesterday, said it was concerned that over 13,777 projects being handled by the Niger Delta Development Commission (NDDC) have their execution “substantially compromised”.
The report indicated that over 13,777 projects awarded by those at the helms of affairs were abandoned.
It also said that the commission has about 362 bank accounts that lack proper reconciliation.
The Attorney General of the Federation and Minister of Justice, Abubakar Malami, said this while receiving the forensic audit report of the NDDC from the Minister of Niger Delta Affairs, Godswill Akpabio, in Abuja, yesterday.
Malami said the government was concerned about what he described as the colossal loss occasioned by uncompleted and unverified development projects in the Niger Delta region, in spite of releasing about N6trillion to the commission in eight years.
According to him, the essence of the forensic audit was to ensure accountability in the use of public funds.
The minister said, “It is on record that between 2001 and 2019, the Federal Government has approved N3, 375, 735,776,794.93 as budgetary allocation and N2,420,948,894,191.00 as Income from Statutory and Non-Statutory Sources, which brings the total figure to the sum of approximately N6trillion given to the Niger Delta Development Commission.
“The Federal Government is particularly concerned with the colossal loss occasioned by uncompleted and unverified development projects in the Niger Delta region, in spite of the huge resources made available to uplift the living standard of the citizens.
“We have on record over 13,777 projects, the execution of which is substantially compromised. The Federal Government is also concerned with the multitudes of Niger Delta Development Commission’s bank accounts amounting to 362 and lack of proper reconciliation of accounts.”
Malami said it was clear that considerable resources have been channelled by the Federal Government to the development of the Niger Delta from 2001 to 2019.
He said it was, therefore, important for the Federal Government and the public to be properly informed of what has been spent and how that has been spent.
“The essence of the forensic audit is to ensure probity and accountability in the use of public funds. It is against this background that the Federal Government will without hesitation strategically implement all aspects of the audit exercise that will promote probity and greater prosperity for the Niger Delta region and Nigeria as whole,” he asserted.
Malami added that the Petroleum Industry Act recently signed into law was to “to bring about the prudence and accountability in the petroleum sector and to give a sense of participation and ownership to the Host communities.”
While submitting the Forensic Audit Report on the Niger Delta Development Commission (NDDC), the Minister of Niger Delta Affairs, Sen. Godswill Akpabio said that 13,777 projects were abandoned in the region.
“The report of the audit committee showed that there are over 13,000 abandoned projects in the Niger Delta and even before the submission of the report some contractors have returned to site on their own and completed about 77 road projects.
“Although the exercise had a chequered history, I thank Mr President and all those who supported and ensured its success”.
He stressed that the exercise was not done to witch-hunt anyone but to ensure that the huge sums of funds committed to the area yearly are justified.
He lamented that the region had remained backwards since 1958 in spite of successive governments efforts through the creation of various interventionist programmes and projects.
The Lead Forensic Auditor, Kabir Ahmed, in a brief overview of the report, said that the team recommended managerial as well as structural changes, chief of which is the downsizing of the NDDC’s board.
He said to reduce cost the team recommended that members of the team should henceforth be appointed on part time basis.
The appointment of members of the board of the NDDC had been suspended until release of the audit report.
Ahmed also disclosed that oil companies in the country are still in default of their contributions to the commission.
“We recommended that the government should withdraw the license of any oil company which defaults for a period of three years.
“Also, deduction of 15% ecological fund at source and be paid to the commission because both the federal and state governments have failed to make payments to the commission.
“The team recommended as a measure of effective revenue collections, the Federal Inland Revenue Services should collect funds on behalf of NDDC from oil companies in the country”.