UPDATE: BREAKING: N49.8B: Senate Report Clears NNPC, Deziani, Says No Funds Missing

… Recommends Quick Passage Of PIB

SAN FRANCISCO, May 28, (THEWILL) – The Senate Committee on Finance which investigated the NNPC over allegations of fraud leveled against it by the suspended Governor of the Central Bank, Mallam Lamido Sanusi, Wednesday submitted its report to the Senate saying no funds were missing.

Sanusi had spuriously claimed in a leaked letter to President Goodluck Jonathan that $49.8 billion in crude oil revenue was missing.

The detailed report according to sources at the Senate also cleared the NNPC and the Ministry of Petroleum of any wrong doing.

The report however directed the NNPC and the Ministry of Finance as well as other relevant agencies to reconcile a sum believed to be around $300 million dollars.

THEWILL can also report that the Senate said the suspended Governor of the Central Bank was hasty and got his figures wrong.

The report further recommended the immediate passage of the Petroleum Industry Bill (PIB) as the Minister of Petroleum, Mrs. Deziani Allison-Madueke continues to sanitise the industry.

The Senate Committee on Finance is under the chairmanship of Senator Ahmed Mohammed Makarfi (Kaduna PDP).  The committee took about 5 months to complete its assignment.

Part of the report later seen by THEWILL said,

“That the CBN Governor at the first hearing had out forwarded the future of $12 billion as monies to be reconciled and changed his position to $20 billion at subsequent hearing. At the conclusion of his written submission he posited it could be $20B, $12B, $19.8B or anything in between.

“That the CBN Governor orally or in writing never out rightly submitted that monies were missing but that monies were not remitted to Federation Account by the NNPC.

“That there was poor record keeping and non-challenging work attitude by the NNPC by both rendering returns on subsidy claims on monthly basis from January 2012 to date which contributed largely to creation of the problem in hand.”

In its findings, the committee stated that all parties i.e. CBN, NNPC, Ministry of Finance and Ministry of Petroleum Resources had resolved through reconciliation undertaken by them that $47billion had been received into the Federation Account out of the total oil lifting value at $67b between January 2012 and July 2013.

That on the remaining $20b to be reconciled the committee finding are as follows:

“The amount deducted/withheld/ expended by NNPC on fuel subsidy between January 2012 to July 2013 was $5.254 billion (N814.892 billion). This was certified by PPRA. And the National Assembly has appropriated funds in 2012 and 2013 for fuel subsidy in the sums of N888.101billion and N971.138 billion respectively.”

In its recommendation to the Senate to accept the subsidy deducted by NNPC from January 2012 to July 2013 of $5.254 billion since it was certified by PPPRA and appropriated by National Assembly, it said it is without prejudice to the outcome of the forensic audit conducted by office of the Auditor General of the Federation and PWC.

The report further said: “President Jonathan should prepare and present to the National Assembly a supplementary budget to cover the over expenditure in the sum of N90.693 billion for PMS subsidy 2012 and the sum of N685.910 billion for Kerosene (DPK) subsidy expended without appropriation by the National Assembly in 2012 and 2013.

“That the Senate does accept the subsidy deducted by NNPC in the sum of $1.2 billion for fourth quarter 2011 since it was certified by PPPRA and appropriated by the National Assembly.”

The Senate Committee also moved for the scrapping of the Subsidy regime but advised that all stakeholders be consulted before stopping it.