Home Economy Senate Audit Report indicts NNPC, 36 other agencies of Financial infractions

Senate Audit Report indicts NNPC, 36 other agencies of Financial infractions

by Business News Report

Senate has adopted the report of its Public Accounts Committee on the 2016 Auditor-General Report, indicting 37 agencies of government over various financial infractions. The Senate has indicted the then Nigerian National Petroleum Corporation (NNPC)  over poor record keeping for uplifting of crude Oil to Warri Refinery and Petrochemical company (WRPC) as well as the  Kaduna refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies worth $376, 655,589 (N102.6 billion). The Public Accounts  report which also indicted many other agencies of government, demanded the refund of a whooping N5 trillion to Government’s treasury. The indictment was sequel to the consideration and adoption of the annual report of the Auditor- General for the Federation on the Accounts of the Federation for the year ended 31st December, 2016 presented by the  Chairman, Senate Committee on Public Accounts, Senator  Matthew Urhoghide, PDP, Edo South.

The Senate also resolved to come up with a bill that will enforce the implementation of the outcome of the Auditor General report submitted to the National Assembly for consideration. In the report, queries raised against 37 Ministries, Departments and Agencies ( MDAs) by the office of Auditor – General of the federation, were sustained while those against 43 others, were vacated. Among the indicted MDAs, is the  Nigerian National Petroleum Company Limited ( NNPCL), over alleged failure to provide details of crude Oil delivered to Warri, Kaduna Refineries worth about  $376, 655,589 (N102.6 billion) in the audited year .

According to Urhoghide, the Senate panel report was the outcome of one and a half years of rigorous scrutiny of queries contained in the audited report of the Auditor-General, just as 800 meetings were held by members of the Committee. This is  the second time the 9th Senate would adopt the report of its Public Accounts Committee with the first being the 2015 report submitted last year. Having a cursory look at the audited report of the Auditor-General for 2016, the Senate Panel extended invitation to 92 MDAs to come forward and defend their queries. Eighty agencies responded with written responses and appeared before the Committee to defend their queries while four failed to either appear or submit written response to the committee despite several reminders. Out of the 80 agencies that appeared before the committee, 43 had their queries vacated while the queries of 37 MDAs were sustained and recommendations accordingly presented to the Senate.

Some of the  35 other indicted agencies are ÷ office of Accountant General of the Federation , National Population Commission, National Agency for the Control of Aids ( NACA), FCT Area Council Service Commission, Ministry of Defence , Ministry of Justice , National Drug Law Enforcement Agency ( NDLEA) etc . Those that failed to submit written submission before the Panel are Federal Ministry of Health, Medical and Dental Council of Nigeria,  National Orthopedic Hospital , Kano , Nigeria National Merit Award, Abuja. Government agencies that submitted report but failed to appear are Federal Ministry of Works , Power and Housing (Works Sector), Federal Ministry of Women Affairs and Social Development, Defence Industries  Corporation of Nigeria (DICON),  Nigeria Police Force , Nigerian Press Council , National Primary Healthcare Development Agency, Federal Dental Clinic, Broad Street, Lagos , National Health Insurance Scheme (NHIS), Federal University of Technology, Minna.

The query read ” from the review and examination of domestic Crude Oil Lifting sales profile presented for audit verification, it was noted that several deliveries were stated to be jointly lifted by or delivered to Warri Refinery  and Petrochemical company (WRPC) and Kaduna refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies. From the examination carried out a total oil lifting of 8,399,017; bbls with a total sales values of  $376, 655,589 (N102.6 billion) was stated to have been lifted jointly by these two companies. The failure to properly separate these deliveries and charge directly to each company makes it difficult to reconcile and account for each lifting.”

The Senate therefore upheld the recommendation of its Committee asking the Group Managing Director of  NNPC, Mele  Kyari to ensure specific details of crude delivered to the two refineries for audit. Also among the indicted government agencies, is the Ministry of Information and Culture over three unrecovered vehicles, just as the  query as adopted by the Senate read: ” Audit Investigation revealed that Toyota Land Cruiser and two Toyota Hilux pick up Vans , observed to be missing , were in the custody of former Minister of the Ministry and a female staff in Sure-P office. In his response to the query , the Permanent Secretary explained that the Toyota Land Cruiser was an official vehicle of the Minister , High Chief Edem Duke and he took it away when he was leaving the office. 

The Ministry, the Permanent Secretary added , has written series of letters to the former Minister to return the vehicles but to no avail”

The Senate’s approval however came amidst clamour from lawmakers starting with senator Ayo Akinyelure for a draft legislation that will force the hands of the executive arm of government to act on the report of its Public Accounts Committee. In his remarks, the President of the Senate, Senator  Ahmad Lawan agreed there should be timeline for the executive to implement the report, pointing out that it is the only way the legislative report will be taken more seriously. Urhoghide disclosed that that  Public Accounts Committee  has finalized work on the Auditor-General Report for both 2017 and 2018 but the Senate refused to act on the report.

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