… query over endless reconciliation of over $1bn imports
The eighth session of the House of Representatives has unveiled fresh plans to initiate fresh investigation into the petroleum subsidy regime in the downstream oil industry between 2012 and May 2016.
The move, according to Nnanna Igbokwe, chairman, House Committee on review of petroleum pump price, was necessitated by conflicting documents submitted by various oil marketers involved in the importation of premium motor spirit (PMS) and Direct Purchase Direct Sale (DSDP) arrangements with Nigerian National Petroleum Corporation (NNPC).
According to some of the oil marketers, Federal Government owes N300 billion being payment of subsidy to bridge the differential in the cost of importation and pump price.
Recall that similar investigative hearing initiated by the seventh Assembly was stalled by $500,000 bribery allegations levelled against chairman of the Ad hoc Committee, Farouk Lawan, who is presently standing trial before a FCT High Court.
Igbokwe, who decried the level of impunity in the oil industry, specifically queried NNPC over allegations bothering on endless reconciliation of petroleum products imports worth over $1 billion spanning beyond three years.
To this end, the Ad-hoc Committee resolved that the activities surrounding forex allocation and Petroleum Equalization Fund (PEF) should be put on hold for further enquiry.
Igbokwe also vowed that the Ad-hoc Committee will not hesitate to recommend appropriate sanctions against those found culpable in the diversion of special intervention of forex exchange released for importation of petroleum products.
He further alleged that the oil marketers’ claims made to the Central Bank of Nigeria (CBN) for forex were bogus and incongruent with existing records by the Department of Petroleum Resources (DPR).
According to the lawmaker, the oil marketing companies will have to appear on Friday, 7th April 2017 to explain whether they accessed the allocation of $867 million by the CBN for purchase of premium motor spirit.
The Committee also queried the documents presented by the following companies: Brittania-U Nigeria Limited, Bovas and Company Limited and Buvas Energy Limited saying that they need more clarifications on certain transactions.
“Some subsidy claims do not pass the integrity test, and we are querying all these claims,” Igbokwe noted, stressing that after the investigation the subsidy claims, “we will recommend that the legitimate ones be paid and those that have been paid wrongly we will receive and recommend for refund.”
Likewise, the Committee summoned Managing Director of Ramaniyah Oil Company over withholding of 6.741 million litres of PMS since January 2013 as well as the lifting of 10,963.913MT of crude lifted in April 2016; 9,065.630MT lifted in May 2016 and 7,851.054MT lifted in March 2016 but cannot be traced by the Ad-hoc Committee.
The lawmakers also directed “Managing Director of Lubcon Nigeria Limited to appear in person to explain what $2,337,500 collected through Ecobank under special intervention fund was used for. We also have you having received another $1 million through your Zenith Bank account.
“Also in December 2016, you collected another $1 million through Zenith Bank from the Federal Government for the importation of petrol,” Igbokwe alleged.
The Adhoc Committee is also expected to conduct forensic audit of all the documents submitted by some of the oil marketers with view to authenticate the genuity and source of the documents submitted.
Meanwhile, the Adhoc Committee mandated the Inspector General of Police and Comptroller General of Immigration to collaborate with Interpol to determine the whereabouts of Managing Director of HAR who was presently based in India.
Briefing at the end of the public hearing, Igbokwe said: “the huge claims are made on subsidy. Now some of the marketers sold the product beyond its approved official price even with a margin greater than the subsidy margin. The implication of this is that they have already recouped from the people the subsidy element, which they are on the other hand going to claim from the government
“Now you’ve taken from the people and you’re also going to deprive funds that ordinarily should be used to provide services. The whole exercise needs to be reviewed, we expect that the Executive will act on this and blacklist such offenders.”
He also assured Nigerians that the Ad-hoc committee will unearth companies that have committed foreign exchange frauds.
“Those who collected foreign exchange for the social intervention of government for petrol importation and used it for other purchases will be recommended for sanctions by the committee to the relevant security and anti-graft agencies.
“In every of our sessions, the Department of Petroleum Resources DPR, Nigerian Ports Authority NPA, Ministry of Petroleum Resources, NIMASA and the Central Bank of Nigeria are always present. Apart from that, such actions amount to economic sabotage. Because you under false pretense assessed foreign exchange, which ought to be, used for importing petroleum products, and you now divert it for other use. There should have both administrative and criminal indictment and punishment for that,” Igbokwe said.
To this end, Igbokwe summoned Chief of Naval Staff, CBN Governor, Minister of Petroleum Resources, NNPC Group Managing Director and Managing Director of NNPC Retail to appear before the Adhoc Committee on April 7, 2017.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
