Corruption War: NNPC Under Fire Over N4.07tn Expenditure

 

Corporation Says Fuds Were Spent On Securing Oil Pipelines And Repairs, Maintenance And Petroleum Subsidy

 

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, came under fire last Tuesday during an interface with Senate Committee on Public Accounts when the senate was told that the corporation spent N4.07 trillion on securing oil pipelines and repairs, maintenance and petroleum subsidy.

This followed a query issued by the committee to Kyari to give a detailed report of expenditures between 2015 and 2016.

Curious to know more, the committee members were left bewildered when the management of NNPC further disclosed that the federal government was still indebted to it to the tune of N239 billion.

Chief finance officer of the NNPC, Umar Ajiya, made the disclosure on Tuesday when he appeared before the committee on Public Accounts and the office of the Auditor General of the Federation.

Mr. Umar who was earlier asked by the auditor general to account for domestic lifting of crude oil to Warri and Kaduna refineries and also explain why over N4 trillion was not remitted to the federation account, said the refineries had not produced in the last two years.

“What happened in the past is that NNPC, based on appropriation, and also appropriation for pipelines and security costs and maintenance, had been deducting these sums before remitting balances to the federation account. It became a turbulent issue to the extent the governors also got involved and they commissioned a forensic audit by the PPMC.

“The forensic audit has been done, the auditor general has a copy of the audit. At the end of the day that audit established that NNPC was owing about N797bn but on the other hand, the federation is also owing the NNPC, the net effect is that the NNPC is being owed N239bn, so there is nothing like N4 trillion withheld by NNPC,” Umar said.

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