The ongoing forensic audit of the Nigerian National Petroleum Corporation (NNPC) "may indict many individuals", the chairman of the Senate Committee on Finance said after presenting a 73-page report on the alleged non-remittance of oil money by the NNPC.
Minister of Finance Ngozi Okonjo-Iweala (L), Suspended governor of the CBN Sanusi Lamido Sanusi (C) and President Goodluck Jonathan (R)
The Senate committee, chaired by Senator Ahmed Makarfi, concluded in a report released on May 29 that the Federal Government and the NNPC had illegally spent about $4.5bn on kerosene subsidy from the Federation Account without appropriation.
The Committee said, however, they found no evidence that the NNPC unremitted $49.8bn and described the figure as untrue.
The committee commenced an investigation following the allegation made by the suspended governor of the Central Bank of Nigeria (CBN) Sanusi Lamido Sanusi that $49.8bn oil money was not remitted by the NNPC from January 2012 to July 2013.
Unremitted Oil Money: Government, NNPC Ilegally Spent $4.5bn On Kerosene – 
Senator Ahmed Makarfi said his committee's recommendations are subject to the ongoing forensic outcomes Credit: ahmedmakarfi.com
Sanusi made the allegation in a September 2013 letter to President Goodluck Jonathan which leaked in December. Sanusi later said the total unremitted money was $20bn. On February 20 he was suspended by Jonathan over allegations of "financial recklessness" and his passport was seized. Sanusi, whose term in the office was to expire in June this year, appealed his suspension in court.
Makarfi noted that his panel’s recommendations are subject to outcomes of the ongoing forensic audit carried out by PriceWaterhouseCoopers.
"The forensic audit may indict many individuals," he said, adding: "We were asked to find out the whereabouts of some money. For $47 billion out of the $67 billion, there was no dispute at all right from the time we started our sitting that the money was in the Federation Account. Where there was dispute was between the figure of $10.8 billion and $20 billion.
"It was not stated at that time that the money was missing, but that it was not remitted to the Federation Account. If it was not remitted to the Federation Account, it could be hanging in one account or the other."
The Senate committee said it did not indict Minister of Petroleum Resources Dezeani Allison-Madueke. Credit: Dieter Nagl/AFP
This lad the committee to investigate the whereabouts of $20bn, Makafri said. They found out that $5.5bn was appropriated by the National Assembly and spent on petrol. Another $4.5bn was spent on subsidy on kerosene, and although this money was not appropriated by the National Assembly, there was evidence and certification that the money was spent.
"Again, there is a difference between missing money and money spent without appropriation. You know what it was used for, but the fact is, was it authorised by law? It was not authorised constitutionally because all money to be spent are supposed to be appropriated by the National Assembly. That takes care of $10 billion out of the $20 billion."
"One part of the money was budgeted for and spent, while another part was not budgeted for, but spent. We also discovered that about $8 billion does not entirely belong to the Federation Account. Our job was to determine how much of that money belongs to the Federation Account."
The committee chairman said that the FG should have sent a supplementary budget to the National Assembly for approval after the money was spent, but that this was not done. Makarfi stressed, however, that the fact that money was spent on subsidy without appropriation did not mean that the money was missing.
The report made several other findings indicting the NNPC, including overspending on budgeted funds, overstating staff salaries, and an increase in pipeline surveillance cost without corresponding decrease in crude oil theft.
NNPC said earlier that part of the money it was accused of not remitting was spent on protecting the oil pipelines.
"Pipeline surveillance cost increased from $2.23 in 2012 to $11.15 million 2013 without corresponding decrease in pipeline oil losses," the committee's report pointed out. "Actual PPMC's staff salaries and upfront benefit claimed in NNPC submission were overstated by $7.58 million and $29.35 million for the year 2012 and 2013 respectively," the report added.
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Sources: Naij.com news, The Nation, allafrica.com, Daily Trust
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