The Senate Committee on Public Account on Wednesday uncovered how Nigerian National Petroleum Corporation (NNPC) allegedly paid N443 billion without appropriation from the National budget.
Consequently, the committee summoned the NNPC Group Managing Director, Mele Kyari, to appear before it to defend the decision.
It also summoned the Central Bank of Nigeria Governor, Godwin Emefiele, to come and explain the circumstances surrounding a missing $9.5 million interest from Investment Petroleum Profit Tax (PPT), Royalty and Foreign Excess Crude.
The Chairman of the Senate, Senator Mathew Urhoghide (PDP – Edo South) during a sitting of the committee on Wednesday in Abuja quizzed the Accountant General of the Federation, Ahmed Idris, over the development.
The discrepancies were discovered in the report of the Auditor General of Federation, 2016 report submitted to the Committee.
The query read, “During the examination of subsidy records provided by FAAC, it was observed that total subsidy paid during the year 2016 was N443,940,559,974.80.
“Oil Marketers- Arrears for 2014 Paid in 2015 -Payments during The Year 2016 without Interest 403,321,449,046.76 Interest & Forex Differential 40,619,110,928.04 totalling N443,940,559,974.80 subsidy deducted at Source By NNPC .
“This reflects continuing weaknesses in the budgeting process adopted by the Federal Government.” The AGF told the Committee that the NNPC would be in a better position to explain the extra-budgetary spending by the NNPC.
On the disappeared $9.5 million interest from PPT, royalty and foreign excess crude, the 2016 Auditor General Report accused the CBN of failure to present documents supporting the investment for verification.
The Senate observed that there was no letter supporting the investment of the fund and that the actual amount invested were not made known.
The query read, “During the examination of transfers to Forefinger Excess PPT/ Royalty and Foreign Excess Crude Accounts it was observed that during the year 2016, amount totalling $6 million and $3.5 million were credited to the Foreign PPT/ Royalty and Foreign Excess Crude Account as interest on Funds investments.
“The authority for placing the funds which yielded the above interests totaling $9.5 in deposit account, the principal sums deposited, the tenor and rate of interest were no made available for audit verification.“
This observation had also been a subject of my reprts since 2017 without any positive response from Central Bank of Nigeria.
“Records made available for audit further revealed that the balance in the foreign PPT/Royalty and Foreign Excess Crude accounts as of December 28, 2016 were USD0.00 and USD, 251,826 respectively.
“This suggest the foreign PPT/Royalty was depleted before the year end
“The Accountant General has been requested to provide the authority for the funds invested, tenor of the investment, rate unrest payable, certficate for the funds invested and forward same for audit verification.”
The AGF was unable to present any document on the issue raised by the committee. He further told the lawmakers that his office had sent a letter to the CBN for clarification on the issues raised.
