According to the demand of President Goodluck
Jonathan, the Nigerian National Petroleum Corporation (NNPC) has made
the full report on missing $20bn oil money investigation public.
The president said that his government has nothing to cover on the matter.
Jonathan also rejected accusations credited to the All Progressives
Congress (APC) that his officials were boarding on last-minute looting. He reacted to the case via the statement by Reuben Abati, the special adviser on media and publicity.
The investigation titled “Auditor
General for the Federation Investigative Forensic Audit into the
Allegations of Unremitted Funds into the Federation Accounts by the
NNPC” had three main aims:
– analysis of remittance shortfalls from the NNPC into the Federation Accounts;
– analysis of submissions made by the key stakeholders in relation to these alleged shortfalls;
– producing an independent forensic report detailing the findings.
The
Pricewaterhouse Coopers Limited (PwC), which has prepared the report,
notes that authors provide no opinion, attestation or other form of
assurance with respect to work or the information upon which their work
was based.
The
Office of the Auditor-General for the Federation (AuGF) engaged PwC to
investigate any and all crude oil revenues generated by the NNPC that
was withheld or unremitted to the Federation Accounts between January 1,
2012, and July 31, 2013.
The report follows the timeline of
events beginning with a letter in September 2013 by the then Governor of
the Central Bank of Nigeria Sanusi Lamido to the President of the
Federal Republic of Nigeria Goodluck Jonathan statin that from January
2012 to July 2013, NNPC had lifted$65bn worth of crude on behalf of the
FGN but remitted only$15.2bn in to the Federation Accounts with$49.8bn
as outstanding to the FGN.
In the result of investigation, the experts revealed a lot of serious violations.
Naij.com experts pointed out on the follwing four irregularities:
1. Total gross revenues generated from FGN crude oil liftings was $69.34bn and NOT $67 billion, as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
2. Total cash remitted into the Federation accounts in relation to crude oil liftings was $50.81 billion and NOT $47billion, as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.
3.
NNPC has provided information on the difference leading to a potential
excess remittance of $0.74 billion (without considering expected
remittances from NPDC). Other indirect costs of $2.81billion, which were not part of the submission to the Senate Committee hearing, have been defrayed to arrive at this position.
4. The resulting potential excess remittance indicates that the Corporation operates an unsustainable model. Forty six percent (46%)
of proceeds of domestic crude oil revenues for the review period was
spent on operations and subsidies. The Corporation is unable to sustain
monthly remittances to the Federation Account Allocation Committee
(FAAC), and also meet its operational costs entirely from the proceeds
of domestic crude oil revenues, and have had to incur third party
liabilities to bridge the funding gap.
Scroll down for full document.
Furthermore,
the review period recorded international crude oil prices averaging
$122.5 per barrel (Average Platts prices for 2012). As at the time of
concluding this report, international crude oil prices average
about$46.07 per barrel, which is about 62% reduction when compared to
the crude oil prices for the review period. If the NNPC overhead costs
and subsidies are maintained (assuming crude oil production volumes are
maintained), the corporation may have to exhaust all the proceeds of
domestic crude oil sales, and may still require third-party liabilities
to meet costs of operations and subsidies, and may not be able to make
any remittances to the FAAC.
The experts therefore recommend that
the NNPC model of operation must be urgently reviewed and restructured,
as the current model which has been in operation since the creation of
the Corporation, can not be sustained.
The report reflects the
fact that $3.38 billion was spent on DPK subsidy for the review period.
It also confirmed using third-party vessel tracking platforms that all
vessels carrying NNPC cargoes arrived in Nigeria within the periods
disclosed by the PPPRA.
It is important to note that although PwC
has reviewed documents submitted by the key stakeholders involved.
Analysts stated that work was conducted independently, and findings are
based on the review of documentation, analytical reviews of data, and
interviews conducted.
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