Penultimate week, the Senate ‘cleared’ the NNPC of any missing fund. In this report, ABDULRAHMAN A. ABDULRAUF looks at the reaction from within the Senate and asks whether the yet-to-be turned in forensic report will change anything
Bukola Saraki is a politician who rarely speaks on the floor of the Senate where he has the mandate to represent his people in Kwara Central Senatorial District. He seldom speaks not for want of what to say, but possibly for some strategic reasons and once he does, he stirs the hornet’s nest.
No matter what anybody feels about this chubby politician, one thing that stands him out is his penchant for getting things done the excellent way. Without any iota of doubt, Saraki is very fastidious and gives attention to details in any given assignment. Though a trained medical doctor, his banking background has tremendously assisted him in this regard.
His fuel subsidy bombshell in 2012 caused some stir in the oil sector which till date still ranges on. The dust generated by this ‘fuel fraud’ revelation is yet to settle as it keeps reverberating in different forms. The latest in the series of these revelations came via the missing $49.8billion oil fund alleged to be missing by the erstwhile governor of Central Bank of Nigeria(CBN), Sanusi Lamido Sanusi recently named the Emir of Kano. The allegation, among others, led to Sanusi’s controversial suspension.
Saraki’s knowledge of the goings on within the financial industry is believed to have earned him the membership of the all important Senate Committee on Finance which investigated Sanusi’s allegations against the Nigeria National Petroleum Corporation(NNPC). Like he had issues with the subsidy, the lawmaker also disagreed with the committee’s report as submitted by the committee chairman, Mohammed Ahmed Maikarfi.
Faulting the report, the former governor of Kwara state claimed the committee did not complete its work before turning in its report. Specifically, he said the forensic analysis report was yet to be forwarded, stressing that the report could therefore not have been valid.
Submitting the report, Maikarfi declared that there was no money missing but asked the corporation to refund $262 million to the Federation Account. It similarly directed the NNPC to to remit to the Federation Account $447.817,884, being balance of royalty and Petroleum Profit tax (PPT). The committee also noted that the sum of $218.069 million remains unremitted, being Federation Account share from the Third Party Financing arrangement.
The committee urged the Federal Government to remove fuel subsidy. It stated that the Central Bank of Nigeria, NNPC, Ministries of Finance and Petroleum agreed that the NNPC should account for $20billion. These assertions were contained in the report of the committee, which was laid before the Senate yesterday.
The committee in its findings, also submitted that ; “the sum of $3,512billion DPK subsidy certified by PPPRA for the period January 2012 – July 2013, being part of the $20billion to be accounted for, was not appropriated for by the National Assembly. The total sum certified by PPPRA for Kerosene DPK) subsidy not appropriated for by the National Assembly was N353.370billion ($2.148billion) for 2013 respectively, making total for the two years N685.91billion ($4.430billion).”
While saying the report only covers accounting for $67billion crude oil revenue between January 2012- July 2013, the committee said: “The Committee together with Appropriations Committee will continue its investigation on causes of shortfall in revenues, which covers issues such as SWAP, Strategic Alliance etc, as relates to the petroleum industry as par Senate Resolution S/RES/007/03/13.”
In its recommendations, the committee asked among others that the Senate should accept the subsidy deducted by NNPC from January 2012 – July 2013 of $5.254billion (N823,803billion) since it was certified by PPPRA and appropriated by National Assembly.
“This is without prejudice to the outcome of the Forensic Audit conducted by the Office of the Auditor-General for the Federation and Pricewaterkhouse Coopers Limited (PWC),” the report added.
“Whereas it may be good policy to encourage indigenous players by giving them greater participation, however continuing transfer of Federation OMLs to NPDC who in turn transfers same to Third Parties with lots of tax and other revenue concessions will deprive the federation of vital income.
“Therefore, all such transactions should be conducted in a transparent and competitive manner and devoid of revenue concessions. NNPC to refund and remit to the Federation Account the sum of $262million being expenses it could not satisfactorily defend in respect of Holding Strategic Stock Reserve; Pipeline Maintenance and Management Cost; and Capital Expenditure.
“There is the need for the subsidy regime to be totally discontinued with. All stakeholders should be consulted and carried along as much as possible before abolishing the subsidy,” added the former Kaduna state governor.
Notwithstanding the indictment of the NNPC in the handling of its finances, Saraki faulted the report on the ground that it’s inconclusive. Countering the report, the former Kwara governor of Kwara state said, “the recent media reports claiming that the Senate Committee on Finance has cleared NNPC of any unaccounted revenue fund is not true.
“Though I could not attend the last meeting of the committee, I have been very active in the investigation. Nothing significant has changed to suggest clearing anybody. I can say on behalf of the committee that these media reports bear no correlation to the content of the Senate Committee report and I would urge the public to disregard it in its entirety.”
“The Committee is yet to receive the report on the forensic audit and independent analysis on the subject clearly indicates we have a lot of grounds to cover in order to determine the level of culpability or otherwise of agency on the alleged non-committal, so to suggest any clearance for anybody at this stage is out of the question.
“I will further advise that the media should wait for the senate to release the details of the Committee report to the public before they jump into spurious conclusion,” Saraki stated
Maikarfi himself pointed out this when he said: “Further legislative action by the Senate should be taken after receipt of the forensic check/audit currently being undertaken at NNPC by the Auditor-General of the Federation and PWC.”
With this position, it does appear the committee is yet to conclude its work, thereby prompting the question of what the forensic report seeks to change when eventually tuned in.
Well, Saraki has taken on another front and the pertinent question is: can he win this again? The question will be answered in the days ahead when the forensic report is expected to be turned in.
