Senate on Tuesday began an investigation into alleged non-remittance of a total sum of $5.6 billion by the Nigerian National Petroleum Corporation (NNPC) and one of its subsidiary companies, Nigerian Petroleum Development Company (NPDC).
Adopting a motion sponsored by Dino Melaye, the Senate alleged that since 2013 to date, the NPDC has continued to lift crude oil from divested oil wells OML 61, 62 and 63 worth over $3.487 billion without remitting same to the Federation Account.
The upper legislative chamber therefore mandated its Committees on Petroleum Upstream and Finance to investigate the allegation with a view to recovering every fund due to the Federation Account.
It also mandated the NNPC and NPDC to immediately remit monies obtained on behalf of the Federal Government to the Federation Account upon lifting.
Also, Yakubu Dogara, speaker, House of Representatives, on Tuesday inaugurated an ad-hoc committee to investigate huge debts of over N500 billion and alleged criminal acts of sabotage by oil companies.
Some of the companies invited to appear before the ad-hoc committee are: Oando, Forte Oil, Total Oil, Conoil, Mobil Oil, Masters Energy Oil and Gas Limited.
Others include: MRS Oil and Gas, Heyden Petroleum, Rahamaniyya Petroleum, Amicable Petroleum, Aiteo Petroleum, Honeywell Oil, Capital Oil, Felande Petroleum, Sharon Oil and Zamson Petroleum.
The inauguration was sequel to the motion on the urgent need to investigate the huge debts owed to the Petroleum Products Marketing Company (PPMC) by some major and independent oil marketers.
Jarigbe had alleged that, “there is a connivance and compromised by functionaries of PPMC to leave government funds in the hands of these marketers, thereby putting the country in dire financial straits.”
In his remarks, Abdullahi Gaya, chairman of the ad-hoc committee, urged Nigerian leaders to double efforts toward resuscitating the economy.
“The Nigeria economy in the present time calls for our concerted efforts to move it forward in the right direction. In numerous ways, members of the present National Assembly have carefully thought out solutions to this challenge and have risen to the occasion,” he said.
However, the Senate directed NNPC to as a matter of urgency, forward to the National Assembly its yearly estimate for repairs and pipeline operations and maintenance for appropriation.
In a remark shortly after the motion was passed, the Senate President, Abubakar Bukola Saraki said: “We must put an end to this type of level of misappropriation and recklessness. This must stop. I believe that this committee has a duty to ensure that they work very hard to get to the bottom of this. The frightening part about it is not just OML 61,62, and 63. OML 65, 111, 119 too are still there. Lastly and secondly even more worrisome is the fact that they did it in the last administration and now they are carrying out the same practice again. We must put an end to this and we cannot continue this issue where some people are sabotaging the efforts to fight corruption.”
“The question to ask ourselves is where is the minister of petroleum, the GMD, the auditor general, the minister of finance, governor of central bank, all the anti-corruption agencies to allow this kind of thing to continue? So those of you who are members of this committee, this is a call to duty; the reputation of this Senate is before you, you must make sacrifice over this holiday and by the time we resume on the 9th of January, 2017”.
Melaye, while making the revelations, described non-remittance unlawful, wilful misappropriation and criminal withholding of public revenue by NNPC and NPDC.
He said the two agencies of government have been carrying out crude oil lifting under questionable circumstances.
He alleged that NPDC has been lifting from divested oil wells OML 65, 111 and 119 to the tune of $1.847 billion out of which it paid $100 million only.
He expressed shock that the practice had continued under the watch of the new Administration without abating.
According to him, the alleged corruption had increased to such an extent that “in this year alone between January August, a total of $344.442 million worth of oil has been lifted by NPDC without remittance to the Federation Account in addition to not paying royalties and other taxes on these liftings”.
“The continuing practice of withholding part of domestic crude oil sales proceeds by NNPC for use in pipeline repairs and product losses. Despite the much trumpeted anti-corruption stance of the current administration that this level of corruption could still be nestled and tucked in by highly placed individuals is derisive of the entire anti-corruption fight”.
He said the amount so far withheld illegally can build about 11 world-class teaching hospitals fully equipped to cutting edge machinery of about 200 beds in Nigeria, as well as six health care centres in each of the 774 local government areas of the country and add on the national power grid 4,000 megawatts of electricity.
The law maker said if the said amount had been remitted into the Federation Account, it would have had immediate and significant impact on the economy by bringing down the cost of the naira and boosting the Federal Reserves appreciably.
The senator said the current Senate is determined to expose corruption in government irrespective of how highly placed the individuals involved are and will ensure that all observed leakages and loopholes in the system will be exposed.
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