According to an order by President Goodluck
Jonathan, the Nigerian National Petroleum Corporation (NNPC) has made
public the full report on the investigation of the missing $20bn oil
money.
The president said that his government has nothing to hide on the matter. Jonathan also rejected accusations credited to the All Progressives Congress (APC) that his officials were engaged in last-minute looting. He reacted to the case via a statement by Reuben Abati, the special adviser on media and publicity.
The investigation titled “Auditor General for the Federation Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC” had three main aims:
– analysis of remittance shortfalls from the NNPC into the Federation Accounts;
– analysis of submissions made by the key stakeholders in relation to these alleged shortfalls;
– producing an independent forensic report detailing the findings.
Pricewaterhouse Coopers Limited (PwC), which had prepared the report, noted that the authors provide no opinion, attestation or other form of assurance with respect to their work or the information upon which their work was based.
The office of the auditor general for the federation (AuGF) engaged PwC to investigate any and all crude oil revenues generated by the NNPC that were withheld or unremitted to the federation Accounts between January 1, 2012, and July 31, 2013.
The report follows the timeline of events beginning with a letter in September 2013 by the then governor of the Central Bank of Nigeria, Sanusi Lamido, to the president of the Federal Republic of Nigeria, Goodluck Jonathan, stating that from January 2012 to July 2013, the NNPC had lifted$65bn worth of crude on behalf of the FGN but remitted only$15.2bn in to the Federation Accounts with$49.8bn as outstanding to the FGN.
As a result of the investigation, the experts revealed many serious violations.
Naij.com experts pointed out on the follwing four irregularities:
1. Total gross revenues generated from FGN crude oil liftings was $69.34bn and NOT $67 billion, as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
2. Total cash remitted into the Federation accounts in relation to crude oil liftings was $50.81 billion and NOT $47billion, as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
3. NNPC has provided information on the difference leading to a potential excess remittance of $0.74 billion (without considering expected remittances from NPDC). Other indirect costs of $2.81billion, which were not part of the submission to the Senate Committee hearing, have been defrayed to arrive at this position.
4. The resulting potential excess remittance indicates that the Corporation operates an unsustainable model. Forty six percent (46%) of proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies. The Corporation is unable to sustain monthly remittances to the Federation Account Allocation Committee (FAAC), and also meet its operational costs entirely from the proceeds of domestic crude oil revenues, and have had to incur third party liabilities to bridge the funding gap.
Scroll down for full document.
Furthermore, the review period recorded international crude oil prices averaging $122.5 per barrel (Average Platts prices for 2012). As at the time of concluding this report, international crude oil prices average about$46.07 per barrel, which is about 62% reduction when compared to the crude oil prices for the review period. If the NNPC overhead costs and subsidies are maintained (assuming crude oil production volumes are maintained), the corporation may have to exhaust all the proceeds of domestic crude oil sales, and may still require third-party liabilities to meet costs of operations and subsidies, and may not be able to make any remittances to the FAAC.
The experts therefore recommend that the NNPC model of operation must be urgently reviewed and restructured, as the current model which has been in operation since the creation of the Corporation, can not be sustained.
The report reflects the fact that $3.38 billion was spent on DPK subsidy for the review period. It also confirmed using third-party vessel tracking platforms that all vessels carrying NNPC cargoes arrived in Nigeria within the periods disclosed by the PPPRA.
It is important to note that although PwC has reviewed documents submitted by the key stakeholders involved, analysts stated that work was conducted independently, and findings are based on the review of documentation, analytical reviews of data, and interviews conducted.
first source:www.naij.com
The president said that his government has nothing to hide on the matter. Jonathan also rejected accusations credited to the All Progressives Congress (APC) that his officials were engaged in last-minute looting. He reacted to the case via a statement by Reuben Abati, the special adviser on media and publicity.
The investigation titled “Auditor General for the Federation Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC” had three main aims:
– analysis of remittance shortfalls from the NNPC into the Federation Accounts;
– analysis of submissions made by the key stakeholders in relation to these alleged shortfalls;
– producing an independent forensic report detailing the findings.
Pricewaterhouse Coopers Limited (PwC), which had prepared the report, noted that the authors provide no opinion, attestation or other form of assurance with respect to their work or the information upon which their work was based.
The office of the auditor general for the federation (AuGF) engaged PwC to investigate any and all crude oil revenues generated by the NNPC that were withheld or unremitted to the federation Accounts between January 1, 2012, and July 31, 2013.
The report follows the timeline of events beginning with a letter in September 2013 by the then governor of the Central Bank of Nigeria, Sanusi Lamido, to the president of the Federal Republic of Nigeria, Goodluck Jonathan, stating that from January 2012 to July 2013, the NNPC had lifted$65bn worth of crude on behalf of the FGN but remitted only$15.2bn in to the Federation Accounts with$49.8bn as outstanding to the FGN.
As a result of the investigation, the experts revealed many serious violations.
Naij.com experts pointed out on the follwing four irregularities:
1. Total gross revenues generated from FGN crude oil liftings was $69.34bn and NOT $67 billion, as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
2. Total cash remitted into the Federation accounts in relation to crude oil liftings was $50.81 billion and NOT $47billion, as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
3. NNPC has provided information on the difference leading to a potential excess remittance of $0.74 billion (without considering expected remittances from NPDC). Other indirect costs of $2.81billion, which were not part of the submission to the Senate Committee hearing, have been defrayed to arrive at this position.
4. The resulting potential excess remittance indicates that the Corporation operates an unsustainable model. Forty six percent (46%) of proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies. The Corporation is unable to sustain monthly remittances to the Federation Account Allocation Committee (FAAC), and also meet its operational costs entirely from the proceeds of domestic crude oil revenues, and have had to incur third party liabilities to bridge the funding gap.
Scroll down for full document.
Furthermore, the review period recorded international crude oil prices averaging $122.5 per barrel (Average Platts prices for 2012). As at the time of concluding this report, international crude oil prices average about$46.07 per barrel, which is about 62% reduction when compared to the crude oil prices for the review period. If the NNPC overhead costs and subsidies are maintained (assuming crude oil production volumes are maintained), the corporation may have to exhaust all the proceeds of domestic crude oil sales, and may still require third-party liabilities to meet costs of operations and subsidies, and may not be able to make any remittances to the FAAC.
The experts therefore recommend that the NNPC model of operation must be urgently reviewed and restructured, as the current model which has been in operation since the creation of the Corporation, can not be sustained.
The report reflects the fact that $3.38 billion was spent on DPK subsidy for the review period. It also confirmed using third-party vessel tracking platforms that all vessels carrying NNPC cargoes arrived in Nigeria within the periods disclosed by the PPPRA.
It is important to note that although PwC has reviewed documents submitted by the key stakeholders involved, analysts stated that work was conducted independently, and findings are based on the review of documentation, analytical reviews of data, and interviews conducted.
first source:www.naij.com
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