The Senate Committee on Public Accounts has slammed the Nigerian National Petroleum Company Limited, NNPCL for failing to attend the hearing to explain discrepancies in its financial statements for the period 2017–2023.
The Committee Chairman Aliyu Wadada, while speaking on Tuesday described the NNPCL action as unwarranted because they were aware of the scheduled probe.
The government -controlled oil company only responded to the 19 queries raised by the Committee, which the upper chamber said is not enough, saying NNPCL Group Managing Director, GMD Bayo Ojulari and his management should have been present considering the seriousness of the probe.
Wadada, who spoke on the panel’s findings, said the responses were not only unsatisfactory, but were also contradictory.
He said: “NNPC claimed N103 trillion as accrued expenses and N107 trillion as receivables, amounting to N210 trillion. On question eight, NNPC’s explanation on the N107 trillion receivables -equivalent to about $117 billion -contradicts available facts and evidence provided by NNPC itself. The committee is duty-bound to reject this.
“Cash Call arrangements were abolished in 2016 under the late President Muhammadu Buhari administration. How can NNPC claim to have paid N103 trillion in one year, when it only generated N24 trillion in revenue over five years? Where did NNPC get that money?
“As far as this committee is concerned, that figure is unjustifiable and unacceptable. The N103 trillion must be returned to the treasury. This will be concluded when the NNPCL appears before us.”
On the N107 trillion, the assets of the firm captured as “receivables,” the committee again rejected the explanations given by the firm.
“NNPC claimed N107 trillion as receivables, part of which they said was held in defunct banks. However, no bank or amount was named. This lack of transparency is unacceptable. By the time you combine both figures -N103 trillion and N107 trillion, NNPC must account for N210 trillion.”
The committee also flagged “illegal subsidies,” it said the firm charged on crude oil and refined petroleum products during the period under review in violation of existing laws.
“Between 2017 and 2021, NAPIMS (National Petroleum Investment Management Services) charged subsidies on crude oil, which is illegal. There is nowhere in our laws where subsidy is allowed on crude. At the same time, NNPCL charged subsidies on refined petroleum products such as kerosene, diesel and fuel.
“These charges appear on specific pages of their audited financial statements: pages 41.8, 38.9, and 39.9 for NAPIMS; and note 8.1 on pages 56 to 59 for NNPCL. This practice is both illegal and unacceptable,” Wadada told the session.
The committee said it would have been better for the current management of NNPCL to admit that it encountered challenges in explaining what happened to the funds than giving contradictory answers to the questions.
Wadada noted: “If the present management of NNPCL is finding it difficult to provide acceptable answers, it is better they say so. The committee will not hesitate to subpoena former officials of NNPCL and NAPIMS.
“NAPIMS, by law, is a department under NNPCL and cannot maintain an independent account. Yet, NAPIMS has been operating as if it were a separate entity.
“At any point, this committee invites NNPCL, the Chief Executive must appear in person. Being out of the country will no longer be accepted as an excuse. The next invitation will require the GCEO’s physical presence.”
The probe started in July this year.
Discover more from The Source
Subscribe to get the latest posts sent to your email.
