Some details of the rot in the oil industry were laid bare April 18 2012– courtesy of the House of Representatives Ad Hoc Committee on Fuel Subsidy Management. The committee on that day directed the Nigerian National Petroleum Corporation (NNPC) the Petroleum Products Price Regulatory Agency, oil marketers and others to refund over N1.070trillion.
The Farouk-Lawan panel also recommended the immediate unbundling of the NNPC and prosecution of top officials of the Petroleum Products Pricing and
Regulatory Agency (PPPRA).
Besides, calling for investigation of 72 oil companies and recovery of N230, 184,605,691.00, It referred 15 oil marketers to the EFCC and ICPC for collecting $402.2.610b as FOREX in 2010 and last year without but did not import petroleum products.
The panel said another set of 18 oil companies who benefited from the Fuel Subsidy Scheme but refused to appear before it will refund N41.936billion. These highpoints formed the major thrust of the recommendations in the Ad Hoc Committee’s Report.
In the Executive Summary of the report, which was released to the media, the panel established that the NNPC and the PPPRA are riddled with corruption, including gross abuse of the Petroleum Subsidy Fund (PSF).
Apart from overhauling the two agencies, the panel recommended immediate prosecution of some of their top officers, including some of those in the management and board of the NNPC. The committee cited how N999m was paid to unnamed entities 128 times to the tune of N127.872billion. In the report are graphic details of the mismanagement of fuel subsidy and a recommendation that N1.070trillion be refunded.
- The NNPC is to refund kerosene subsidy of N310.4 billion and N285.09 billion for funds paid above PPPRA recommendation. It should also pay N108.6 billion, which it gave itself as self discount.
- Marketers are to repay N8.6 billion for “total violation” of the PSF.
- Companies invited to the probe, but which failed to show up are to pay N41.9 billion.
- The PPPRA is to refund N312.2 billion for “excess payment to self”.
Other transactions anti-graft agencies should investigate, “payment of N999 million to unnamed entities 128 times to the tune of N127.872 billion. Companies
who collected FOREX to the tune of $402.610b whose utilization is questionable to the committee. The report said: “The 72 companies listed under the financial forensics are hereby recommended for further investigation by relevant anticorruption agencies, with a view to establishing their culpability and recovering the sums indicated against their names totaling N230,184,605,691.00.”
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