• Wednesday, April 17, 2024
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Reps allege N14.2bn shortfall in federation account


The House of Representatives on Monday alleged a shortfall of N14.2 billion in the federation account.

The alleged shortfall, according to Solomon Adeola, chairman, House Committee on Public Accounts, was import duty collected and lodged by Customs Area Command in Port-Harcourt, Rivers State in August 2006. The money was later transferred in January 2007 into the federation account.

In view of this, the House has ordered the inspector general of police, Mohammed Abubakar, to bring the trio of the group managing director of Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu; the executive secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA), Reginald Stanley, and the director of the Department of Petroleum Resources (DPR), Osten Oluyemisiola, before its committee on public accounts today to answer questions in connection with queries raised by the Office of the Auditor General of the Federation (AGF) on the financial records of their respective agencies.

“The reason for the late transfer of the N14.2 billion should be explained. The comment of the comptroller-general of the Nigeria Customs Service (NCS) has been sought through the accountant general of the federation,” Adeola added.

Adeola had during the meeting with some revenue generating agencies to clear queries raised by the Auditor General of the Federation’s office on their financial records, said the concerned officers must appear in person latest 1.30p.m. Tuesday, March 12, 2013.

Dropping a hint on some of the allegations they have to respond to, Adeola said, “At the Office of the Accountant General of the Federation, it was observed from the component statements of 2007 that Joint Venture Cash Calls (JVCC) of the sum of N549,973 billion excess crude of the sum of N1.168 trillion and petroleum product subsidy of the sum of N236.641 billion were deducted from proceeds of crude oil sales, while the sums of N25.951 billion and N62.542 billion were excess proceeds deducted in respect of petroleum profit tax (PPT) and royalties, respectively. These deductions were made before the net revenues paid to the federation account contrary to the provisions of Section 162(1) of the 1999 constitution of the Federal Republic of Nigeria which requires all such revenues be paid directly into the federation account”