NNPC probe to open fresh can of worms

The plot no doubt is getting thicker and thicker as the federal government initiates moves to probe the financial records of the Nigerian National Petroleum Corporation in the last few years, especially under the former minister of Petroleum Resources, Mrs. Diezani Alison-Madueke.

Of course, the probe of the state oil corporation by the current administration may not be a big deal given the fact that it has been looking into certain activities of its predecessor, but one thing is for sure though, the probe of the behemoth is bound to open a Pandora’s box of sorts.

Shape of things to come

The Chairman of the Economic and Financial Crimes Commission (EFCC) Ibrahim Magu has left no one in doubt that the anticorruption agency is ready to probe the many allegations of sleaze linked to the oil corporation.

Ripples was reliably informed that the agency has since begun discreet investigations into the activities of the corporation.

The agency opted for a discreet investigation in order to spring surprises on those being investigated. This may have informed yesterday’s surprise arrest of Diezani’s husband, retired Rear Admiral Alison Madueke, on allegations of money laundering to the tune of about $600, 000.

Although the agency’s boss was noncommittal when some reporters broached the subject about a fortnight ago, Ripples’ findings revealed that some of the former chief executives have been invited by the anti-graft agency.

Their invitations became inevitable considering the alleged loss of government revenues under their stewardship. Specifically, the EFCC, it was gathered is beginning the probe of the organisation from 2009 to 2015.

The group managing directors during the period were Dr. Mohammed Barkindo (2009-2010); Alhaji Shehu Ladan (April – May 2010); Mr. Austen Oniwon (2010-2012); Andrew Yakubu (2012-2014) and Mr. Joseph Dawha (August 2014 –2015).

An indication of the suspected underhand dealing that took place at the corporation within these periods was revealed two days ago when Oniwon, told the House of Representatives Ad Hoc Committee on Crude Oil Swap that the former minister unilaterally gave approval for lifting of $24bn worth of crude oil from the country without formal contracts.

An informed source within the EFCC confirmed to Ripples that the agency raided the residence of a former head of one of the NNPC subsidiaries following a tip off from the Department of State Security.

It was also gathered that the Presidency ordered the raid as part of efforts to recover funds believed to have been diverted.

“It was the DSS that got the intelligence report that some amount of money was being kept in the residence of a former head of an NNPC subsidiary,” the source said.

It was further gathered that several top executives of the NNPC, who served under the previous administration, had been penciled down for probe.

An indication of the suspected underhand dealing that took place at the corporation within these periods was revealed two days ago when Oniwon, told the House of Representatives Ad Hoc Committee on Crude Oil Swap that the former minister unilaterally gave approval for lifting of $24bn worth of crude oil from the country without formal contracts.

Attempts by Ripples to get the Head of Media and Publicity of the EFCC, Mr. Wilson Uwujaren to confirm the developments were futile as at the time of filing in this report.

Ripples however gathered that the agency opted for a discreet investigation in order to spring surprises on those being investigated. This may have informed yesterday’s surprise arrest of Diezani’s husband, retired Rear Admiral Alison Madueke, on allegations of money laundering to the tune of about $600, 000.

It will be recalled that the EFCC and the DSS had last year begun investigations into how the Federal Government was allegedly short-changed by the NNPC in swapping crude for refined products.

The Federal Government was said to be losing money through opaque contracts in which crude oil worth billions of dollars was given to traders in exchange for refined imports.

How NEITI belled the cat

The Nigerian Extractive Industries Transparency Initiative was reported to have said there was a revenue loss of at least $600m due to a discrepancy between the value of the crude and the products delivered. The figure was taken from its 2009-2011 and 2012 audits of the oil and gas industry.

Ribadu’s panel report to the rescue

There are indications that the Federal Government may make use of some aspects of the report of Nuhu Ribadu-led Petroleum Revenue Special Task Force set up in 2012 by the former President Goodluck Jonathan administration, by setting up a committee to take a look at the report.

Read also: Diezani’s husband, Alison Madueke, quizzed for laundering $600,000

A source in the presidency said the present administration would not adopt the whole report, but only use the useful aspects of the report.

It was further gathered that several top executives of the NNPC, who served under the previous administration, had been penciled down for probe.

“Although the administration that set up the task force was not serious with its report, the present government will look at it. I must add that many more evils have occurred since the task force submitted its report in November 2012,” he said.

NNPC’s many sins

The committee, which submitted its report on November, 2012, had detailed how the Nigerian government and the NNPC treated huge oil revenues accruing to the federation as a reserve of money that could be used for illicit purposes devoid of accountability.

According to the report, the NNPC spent funds on extra-budgetary purposes such as the acquisition of a N2.23bn chopper for the President and sponsorship of the World Cup.

The committee had also discovered that in a brazen misuse of public funds, the NNPC gave out N700.5m in loan to Sao Tome & Principe based on instruction from the Presidency.

The NNPC was reported to have underwritten a N521m expenses incurred by the Federal Ministry of Petroleum Resources and spent N250m on court cases involving the ministry.

Is the NNPC guilty as charged?

Even as the investigations into the activities of the NNPC commences, it does appear that the former top guns of the oil corporation may have their days in court if the submission of the Acting Chairman of the Fiscal Responsibility Commission (FRC) Victor Muruako is anything to go by.

The FRC chair has accused the corporation of violating the provisions of the FRC Act of 2007, as provided in sections 21, 22 and 23.

The committee, which submitted its report on November, 2012, had detailed how the Nigerian government and the NNPC treated huge oil revenues accruing to the federation as a reserve of money that could be used for illicit purposes devoid of accountability.

Muruako made this revelation during a stakeholders meeting between the management of FRC and NNPC in Abuja recently.

According to him, “we have made strenuous efforts to get the organisation to explain some of the violations of the Act. We have approached the organisation several times to submit its annual audited financial statement, approved budgets, estimate of revenue and expenditure, and statement of projected operating surplus in accordance with sections 21 to 23 of the FRC Act, but it has failed to respond to even correspondences.”

The document, Muruako said, “was sent in 2010 but we wrote back to inform them that it wasn’t in compliance. All efforts to ensure compliance through letters and calls proved abortive.”

Surprisingly, “NNPC in 2015, and I think it must be because of the new administration, for the first time since over six years responded to the request for the submission of document but the documents submitted were grossly inadequate and falls short of the compliance of the provisions of the FRC Act,” he said.

The probe of the past administration by the President Buhari-government may appear good as it gets as Nigerians wait with bathed breadth to see what may become of NNPC after the probe of its finances, and hw the corporation was being run.

 

RipplesNigeria …without borders, without fears

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now