Sen Melaye mocks Buhari govt over NNPC’s withheld $5.6bn

Senator Dino Melate (APC, Kogi State) has derided the present administration for allowing corruption thrive in the NNPC in spite of its stance against graft.

‎The Senate, on Tuesday, came down hard on the leadership of the Nigerian National Petroleum Corporation (NNPC) and its subsidiary company, Nigerian Petroleum Development Company (NPDC), over claims that they refused to remit over $5 billion to the Federation Account.

Accusing NPDC, the Senate said since 2013 to date, NPDC has continued to lift crude oil from divested oil wells OML 61, 62 and 63 worth over $3.487 billion without remittance of any nature to the Federation Account.

Senator Melaye, who brought the issue to the floor of the Senate, described the non-remittance as unlawful, willful misappropriation and criminal withholding of public revenue by NNPC and NPDC.

He said the two agencies of government have been carrying out crude oil lifting under questionable circumstances.

He said NPDC has been lifting from divested oil wells OML 65, 111 and 119 to the tune of $1.847 billion out of which it paid $100 million only.

Mocking the anti-corruption stance of the current administration over its failure to check the excesses of the two agencies, Melaye said: “While this practice may have started before the present administration, it has continued under the watch of the new Administration without abating. So much so that in this year alone between January August, a total of $344.442 million worth of oil has been lifted by NPDC without remittance to the Federation Account and also not paying royalties and other taxes on these lifting.

“The continuing practice of withholding part of domestic crude oil sales proceeds by NNPC for use in pipeline repairs and product losses. Despite the much trumpeted anti-corruption stance of the current administration that this level of corruption could still be nestled and tucked in by highly placed individuals is derisive of the entire anti-corruption fight.”

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He said the amount so far withheld illegally can build about 11 world-class teaching hospitals fully equipped to cutting edge machinery of about 200 beds in Nigeria, as well as 6 health care centres in each of the 774 local government areas of the country and add on the national power grid 4,000 megawatts of electricity.

He said if the amount had been remitted into the Federation Account, it would have had immediate and significant impact on the economy by bringing down the cost of the naira and boosting the Federal Reserves appreciably.

The Kogi State Senator said the current 8th Senate is determined to expose corruption in government irrespective of how highly placed the individuals involved are, and will ensure that all observed leakages and loopholes in the system will be exposed.

The Upper Legislative Chamber has therefore mandated its Committees of Petroleum Upstream and Finance to investigate the level of corruption in the corporation, with a view to recovering every fund due to the Federation Account.

It has also mandated the NNPC and NPDC to immediately remit monies obtained on behalf of the Federal Government to the Federation Account upon lifting and the Group Managing Director to ensure compliance to this directive with immediate effect.

It directed NNPC to as a matter of urgency, forward to the National Assembly its yearly estimate for repairs and pipeline operations and maintenance for appropriation.
By Ehisuan Odia…

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