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Missing $20 Billion: NNPC Rejects Indictment


Despite the recommendation by PriceWaterHouseCoopers, that the Nigerian National Petroleum Corporation (NNPC) should refund $1.48 billion (about N248.6 billion Naira) to the federation account, the company has insisted on Wednesday February 11, that it was not indicted by the investigations carried out by the  audit firm.

According to Premium Times, Joseph Dawha, the Group Managing Director (GMD) of NNPC, said the investigations carried out by PricewaterhouseCoopers over the alleged missing $20 billion oil money, did not indict the corporation in anyway.
Dawha said the report “has clearly vindicated our long held position that the alleged unremitted crude oil revenue was a farce from day one”.
READ ALSO: Auditor-General appears at House of Reps before NNPC audit.
He said the $1.48billion the corporation was directed to refund was actually the balance of the book value of the divested assets transferred to NNPC upstream subsidiary, the NPDC, excluding taxes and royalties.
“This does not constitute indictment; rather this value is still being reconciled with the Department of Petroleum Resources (DPR). It is pertinent to note that the $1.48bn was not part of the alleged unremitted revenues from crude oil sales,” Dawha insisted.
According to the GMD, what the DPR sent to NNPC as the estimated value of the assets was $1.847billion, out of which over $300 million was paid as a token to indicate its commitment to acquiring the assets pending resolution and reconciliation by the two institutions.
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On remittances of proceeds from crude oil sales into the Federation Account for the period January 1, 2012 to 31 July, 2013, the GMD said that the PwC Forensic Audit report was clear that NNPC remitted $50.81billion out of a total of $69.34billion.
The report acknowledges that the balance was spent on petrol and kerosene subsidy as well as the Corporation’s operation costs.
He pointed out that both the Senate Finance Committee probe report and the PwC forensic audit report confirmed its position that subsidy on kerosene was still in force as the Presidential directive of October 19, 2009, was not gazetted in line with the provisions of Section 6, Subsection 1 of the Petroleum Act of 1969.
READ ALSO: Jonathan Receives NNPC Audit Report On Missing Money
Though the audit report had recommended a review of the laws to stop NNPC from deducting its costs and expenses from crude oil sales proceeds, Dawha acknowledged that they were not illegal.
Solomon Adeola, the Chairman of the Public Accounts Committee of the House of Representatives, said as far as the House was concerned the report raised more questions than answers to the missing Nigerian money.
It would be recalled that the audit firm PriceWaterHouseCoopers after investigation of the financial proceedings within the Nigerian National Petroleum Corporation (NNPC) accused the company for various questionable transactions.



NAIJ.COM

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