Reps to probe N25bn payment for kerosene supply

House of Representatives on Tuesday unveiled plans to probe Pipelines and Products Marketing Company (PPMC) over alleged subversion of due process in the supply of Dual Purpose Kerosene (DPK).

The probe is aimed at unravelling the delay in the supply of kerosene for which over 90 companies paid N25 billion to PPMC.

To this end, the House mandated the committee on petroleum resources (Downstream) to investigate the subversion of due process and corruption by the management of PPMC.

The resolution was passed after the adoption of the motion of under matters of urgent public importance sponsored by Ndukwe Nkole.

Nkole, who called for the intervention of the House, alleged that “funds from oil products, which is the main source of the country’s revenue, is being diverted by the management of the PPMC through illegal transactions.

“Some known oil companies have been programmed to lift DPK without making payments for the products and without even having bulk purchase agreements with PPMC.

“While there is a backlog of companies with paid off invoices which have not been programmed to lift products. Only recently, 20 companies were programmed to lift DPK, out of a backlog of about a 100 companies.”

He further stated that eight of the companies had not made payments for the products before they were programmed to lift DPK and that they had since lifted the products.

“Over 90 companies have made payments of about N25 billion, but have not been given DPK for the past six months,” he said.

The lawmaker expressed concern that some companies had been upgraded to the status of “Major Marketers” by the management of PPMC without the approval of the group managing director of NNPC.

“This is intended to subvert due process and divert revenue from our natural resources, because the companies are now entitled to lift product with N500 million on credit line,” he said.

However, Leo Ogor, minority leader, said the investigation should be extended to the sales of petrol above approved pump price.

Ogor, who decried the inefficiency of the regulatory agency, also urged the Federal Government to investigate and ascertain the real beneficiaries of the subsidy regime.