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KPMG Report That FG And NNPC Hid From Nigerians by Jay5000(m): 2:13am On Jan 12, 2012 |
Source: http://africanspotlight.com/2012/01/the-damning-kpmg-report-fg-nnpc-do-not-want-nigerians-to-see-premium-times/ Download Report in pdf: http://africanspotlight.com/wp-content/uploads/2011/12/Consolidated-Detailed-Findings-v1.pdf The Damning KPMG Report FG, NNPC, Do Not Want Nigerians To See – Premium Times January 11, 2012 4:28 AM43 comments On Thursday December 1, the Minister of Finance, Ngozi Okonjo-Iweala, cringed when the senate joint committee investigating the management of funds set aside for petroleum subsidy handed her a seven-day ultimatum to produce a secret forensic report on the Nigerian National Petroleum Corporation in her custody. The audit (click to download): Consolidated Detailed Findings-v1, done for her ministry by renowned audit and advisory consultancy, KPMG, which exposed the massive financial malfeasance and monumental corruption in the NNPC, is one document the federal government, the petroleum ministry and the NNPC have worked hard to conceal for a little over a year now. The report, which could trigger a fierce face-off between the federal and state governments, is one of the most closely guarded secrets in Nigeria today. It contains shocking details of how the NNPC, and by implication, the federal government has been swindling the states. So when the committee requested Mrs. Okonjo-Iweala to produce it, she became a bit uneasy, knowing that doing so might embarrass the administration and sparked some troubles for the NNPC, a source close to her told the Times. Initially the minister didn’t make any commitment, but when pressed by committee members, she reluctantly acceded to the request. It is not known at press time whether she has sent the document to the committee. Contacted yesterday, her spokesperson, Paul Nwabuikwu, said he had no information on the matter. Calls to the chairman of the senate joint committee, Magnus Abe (PDP, Rivers), were unanswered. But as at noon today, long after the ultimatum given to Mrs. Okonjo-iweala expired, a source close to the committee said the minister was yet to make the report available. He said there was high-powered lobby by the NNPC not to make the document public. The damning report But the Times has scooped the report for you in case the minister fails to produce it or does so to the committee in camera. As far as the 41-page report is concerned, the NNPC is a cesspool of monumental corruption and fraud. The report detailed the corporation’s sharp business practices, violation of laid down rules and regulations, illegal deductions of funds belonging to the state, and failure to account for several billions of naira that should go to the federation account. The agency, the report says, has also severely defrauded our country in subsidy claims. Auditors found that between 2007 and 2009 alone, the NNPC over-deducted funds in subsidy claims to the tune of N28.5bn. It has not been able to account for the sum ever since. The over-deduction from its remittance to the federation account for 2010 and 2011, believed to be in several billions of naira, is not captured in the report. The Federal Government, through the Federal Ministry of Finance, hired KPMG and another Nigerian auditing firm, S.S. Afemikhe & Co., in July 2010, to look into the books of the corporation following allegations of “wrongful deductions at source by the NNPC to fund its operations” by the 36 state governors. There were also concerns at the time that “the procedures for managing and reporting the country’s crude oil and gas revenues are opaque and characterized by gaps, overlaps and inconsistencies in the role of key parties responsible for the assessment, collection and reporting on these revenue streams.” Officials of the petroleum ministry and the NNPC, a source at the finance ministry disclosed, developed cold feet after the auditors were sent in, and indeed tried hard to frustrate the representatives of the two audit firms by failing to supply evaluation criteria for commercial bids submitted in respect of petroleum products importation. Believing that would turn the auditors away, our source further explained, the corporation also failed to provide them with other relevant documents such as the criteria for allocation of products and product volumes to importers/suppliers and periodic prequalification list of approved products importers/suppliers. But in spite of the difficulty they faced, the auditors were able to determine that the NNPC had been anything but transparent in the management of our country’s oil resources. The report that emerged from the audit was just too damning that the leadership of the petroleum ministry, the NNPC and some few other elements in the Federal Government have worked hard to keep it away from the 36 state governors and federal lawmakers in particular and Nigerians in general. Stealing the states blind In what is likely to anger state governors, the audit established that the corporation was in the habit of arbitrarily estimating subsidy claims and then over-deducting funds from proceeds of domestic crude sales. “For example,” the report said, N25bn was deducted as subsidy estimate for September 2009 from domestic crude sales proceeds while PPPRA approved a subsidy of N23.8bn. N35bn was also deducted as subsidy estimate fro November 2009 but PPPRA approved of N21.3bn.” The auditors’ analysis indicates “over-deduction for these two months amounted to N14.9bn. However, only N4.2.bn was swept into the Federation Account by the NNPC as adjustment for subsidy claimable in the two months.” That is beside the N11.8bn subsidy claim the NNPC claimed it paid for imported products that didn’t reach consumers. State governors have always complained that the NNPC was shortchanging them through illegal deductions from revenues payable to the federation account. Fraudulent underhand tactics Over-deduction is however not the only way the corporation is defrauding the federal and state governments. According to laid down regulations, the NNPC is invoiced in dollars for domestic crude allocations but is expected to remit the equivalent naira value to the Federation Account. But auditors found to their chagrin that in doing that, the corporation used exchange rates far lower than those published by the Central Bank of Nigeria. Using this “fraudulent underhand tactics”, the NNPC succeeded in cheating the three levels of government of a whooping N85.2bn in three years – N25.7bn in 2007, N33.8bn in 2008 and N26.7bn in 2009. When the auditors requested explanations for these exchange rate disparities, the NNPC claimed it obtained the exchange rates it used from the CBN via telephone. The report also severely indicted the NNPC over the shoddy and non-transparent manner it renews crude sale contracts every year. The auditors noted that “evaluation criteria for renewal of contracts are not clearly stated in the contract document”, and that the selection exercises were based on individual discretion and wrong assumptions and criteria.” The NNPC claims that renewal of contract was based on performance of off-takers (buyers). But the auditors observed that the basis and process for determining performance were not clearly defined. The auditors wondered why in 2007 and 2008, some companies not on the approved list of buyers for that year were allocated crude, a practice the examiners believe had led to crude being sold to non-credible buyers, even with relevant guarantees and safeguards not implemented. Specifically the auditors queried the allocation of crude to Ovlas Trading (2, 852,316 barrels in 2007 and 906, 269 barrels in 2008) Petrojam (2,818,914 in 2007), Oil Fields (950,166 barrels in 2007) and Zenon (906,000 barrels in 2008) even when they were not on the list of authorized buyers for that year. Contracts for the importation of products, the auditors wrote, were also routinely awarded without regard for approved guidelines and procedures. “We observed that contracts for the importation of petroleum products were awarded to companies and suppliers not listed in the approved prequalification list used for the fourth quarter 2008 importation,” the report noted. The auditors specifically queried the award of contracts in that manner to Astana Oil Corporation Limited, Natural Energy and Oando, when they were not prequalified for patronage that year. Among other forms of misdemeanour, ranging from poor accounting to shoddy record keeping, the auditors also indicted the corporation for leaving its own storage facilities, unused, and then proceeding to incur additional cost from leasing of third party storage facilities. The auditors reported that DPK tanks (with storage capacity of 18,000 cubic metres) at the PPMC depots within the Mosimi Area had not been used for three years even though there were in good condition. Yet the corporation, the examiners added, had been leasing storage facilities from third parties. The spokesperson of the NNPC, Levi Ajuonuma, declined to comment on the report, saying he had nothing to say until the government releases it officially. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Jay5000(m): 2:17am On Jan 12, 2012 |
Only in Nigeria!! |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Beaf: 2:21am On Jan 12, 2012 |
This is exactly why GEJ is deregulating. NNPC is going to be scrapped after PHCN. Corruption and disfunction of this magnitude are some of the things Nigerians should be protesting about. They shouldn't be protesting about the medicine. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by aljharem(m): 2:24am On Jan 12, 2012 |
Beaf: beaffff u don start again. is NNPC deregulated as well ? if yes then you can you kindly tell me what the FG has provided for Nigeria this year I would be glad. People need to understand why the Senate, and the House of Reps do not support Jonathan. The main premise upon which GEJ's arguement for need to remove subsidy is based is that the nation spent 1.34 trillion on subsidy, which is too much. The Senate committee presently investigating the subsidy regime and the House of reps have told him that figur is fraudulent, that the subsidy in the last sevearl years has never exeeded 300 billion, it illogical and impossible for it to suddenly ballon like five times to almost 1.4 trillion. Neither Jonathan nor any goverment official has been able to offer the senate committe or House of Reps any satisfactory explanation. Are they supposed to blindly follow Jonathan and just take his word for it. Pat utomi said it during Jonthan's campeingn that the guy was spending like 100 million naira a day. The issue is this, the real subsidy figur is lower than 300 billion and easliy affordable to the nation's purse. I would be waiting. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by aljharem(m): 2:26am On Jan 12, 2012 |
New ID, another agent. LOL The money the fg is spending on "internet relation" could be spent better by explaining to Nigerians those figures on channels or any other reliable channel/website and not NTA |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Jay5000(m): 2:53am On Jan 12, 2012 |
Beaf: No Economic policy, no matter how good it looks on paper, will work in a nation where individuals can pocket billions and get away with it. The only thing the deregulation is going to achieve is double digit inflation (effectively devaluing the currency and making the nation poorer) and more looting. As for the sale of PHCN, and all the others BPE sold in OBJ's regime, these guys build up these corporations with your money, sabotage these corporations continually, and then turn around and tell you that the only way it can work is if it is privatized. At the end of the day, the same cabal purchases them for peanuts with your stolen billions and yet Nigerians celebrate because of the years of engineered frustration PHCN and the likes have subjected Nigerians to. It's pure and simple propaganda; a classical case of problem-reaction solution. Try googling the phrase "Hegelian Dialectic". It'll better explain how the global elite use these left-right, Christian-Muslim, regional and ethnic divisions to manipulate humanity into helping them achieve predetermined ends. It didn't start today, and unless we educate ourselves and break out of that dialectic, we will forever be slaves to the ruling elite. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by OAM4J: 3:03am On Jan 12, 2012 |
Some people are wicked and deserve to be shot or at bet made to rot in jail |
Re: KPMG Report That FG And NNPC Hid From Nigerians by koruji(m): 3:08am On Jan 12, 2012 |
That is what they don't understand. There are no shortcuts to development. In particular, you cannot transfer water from one barrel to the other and expect it to double in size - in reality you would end up with less than a barrel. Let's even say that Nigerians accepted the increase without any argument, what then? With the level of corruption in the system and the already widespread stealing of crude the incentive to steal and refine crude on the domestic market just doubled. Stealing subsidies on imports will get replaced by stealing crude refining it illegally or legally, and selling it for a handsome profit. The oil thieves are busy at work as we speak, while GEJ's goons murder Nigerians. The saddest part of it is that our is history is full of government attempts to force water up mount everest like this - it doesn't work. Jay5000: |
Re: KPMG Report That FG And NNPC Hid From Nigerians by skullbaba: 10:23am On Jan 12, 2012 |
dont they know about the fact. dont they collect thir shares |
Re: KPMG Report That FG And NNPC Hid From Nigerians by tigerleggs(m): 10:25am On Jan 12, 2012 |
I dey laugh una |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Abbott(m): 10:28am On Jan 12, 2012 |
Why do i have the feeling that somehow, this report has been toned down, the figures are outrageous but they have toned down the figures….all the same, they should face the music but i dont have trust in that document at all. It is full of FAKE and FALSIFIED figures. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by begwong: 10:32am On Jan 12, 2012 |
Nigerians are only asking GEJ to expose&deal with these faceless cabals first before talking about dereg.Qtn.1 to GEJ: How did the subsidy amount shot frm 300billion to 1.4trillion? |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Abbott(m): 10:35am On Jan 12, 2012 |
That document is not the real deal, it is a mild and diluted copy of the real thing. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by omo9ja1(m): 10:43am On Jan 12, 2012 |
I think GEJ is inexperience to handle hold the bull by the horn, under him there have been more looting than ever before, I bet GEJ is not clean too |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Nobody: 10:44am On Jan 12, 2012 |
Beaf: You no get sense Is it by force you must post? There is this amount of corruption and there is still on-going investigation and you open your stupid mouth to talk rubish eeediot |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Jay5000(m): 10:47am On Jan 12, 2012 |
Abbott: You may be right because these figures don't do justice to the monumental scam going on in that industry. It at least gives us an idea of what is going on and who the members of the elusive "cabal" really are. It's unfortunate that this disgusting scum GEJ and his ilk have not realized that all hell is about to break loose. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by natddon(m): 10:53am On Jan 12, 2012 |
Those figures numerically. They are actually dollar figures n nt naira values |
Re: KPMG Report That FG And NNPC Hid From Nigerians by ifeci: 10:55am On Jan 12, 2012 |
New ID, another agent. LOL The money the fg is spending on "internet relation" could be spent better by explaining to Nigerians those figures on channels or any other reliable channel/website and not NTA My full support on the highlighted! They are using that Station to deceive Nigerians |
Re: KPMG Report That FG And NNPC Hid From Nigerians by natddon(m): 10:55am On Jan 12, 2012 |
Sori,I meant naira values less one decimal place |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Demdem(m): 10:57am On Jan 12, 2012 |
maryjames9: Abegii, free him. he is like that by default. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by jascon1(m): 11:09am On Jan 12, 2012 |
who exposed this report? and who has been shielding it? |
Re: KPMG Report That FG And NNPC Hid From Nigerians by CuteTj(m): 11:09am On Jan 12, 2012 |
This is damning revelation! The House of Representatives should take this up. Government in its effort to cover up corruption has resulted to spin efforts spear headed by them on the inconsistencies by public officials and the distorting of facts to deceive and confuse Nigerians on the issue at stake. The Government should be brought to its knees on the account of this. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by liteleto: 11:21am On Jan 12, 2012 |
Where is d EFCC in all of this? |
Re: KPMG Report That FG And NNPC Hid From Nigerians by beafroast: 11:21am On Jan 12, 2012 |
Posted by: Demdem> Abegii, free him. he is like that by default.< I laff in chicken language, chi, chi, chi, chi, cken, |
Re: KPMG Report That FG And NNPC Hid From Nigerians by Abbott(m): 11:25am On Jan 12, 2012 |
Quote from jay5000 Quote from: Abbott on Today at 10:35:12 AM That document is not the real deal, it is a mild and diluted copy of the real thing. You may be right because these figures don't do justice to the monumental scam going on in that industry. It at least gives us an idea of what is going on and who the members of the elusive "cabal" really are. It's unfortunate that this disgusting scum GEJ and his ilk have not realized that all hell is about to break loose. Quote from natddon Those figures numerically. They are actually dollar figures n nt naira values That is more like it, not those watered down figures. However, i hope they do the proper thing and not sweep it under the carpet. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by pato405(m): 11:30am On Jan 12, 2012 |
hahahahhahahahhahhaaa N-I-G-E-R-I-A wonderland!!!! we have had corrupt government in the past but I must say, this is the MOST CORRUPT EVER!!! |
Re: KPMG Report That FG And NNPC Hid From Nigerians by kolalere2002: 11:43am On Jan 12, 2012 |
These are the issues we expect the president and his co-ordinator of the economy to address. We expect high level of transparency from Ngozi Iweala, hence she should facilitate the release of the original report as demanded by the House/Senate committee. If she finds the report embarrassing and indicting and she love Nigeria as she claims, she should expose the thieves and help solve the problem of corruption. After all she did resign her appointment under Obasanjo when she felt gagged. Our Leaders are leaving the substance and chasing shadows. God help Nigeria |
Re: KPMG Report That FG And NNPC Hid From Nigerians by akinmax: 11:56am On Jan 12, 2012 |
Some people are suppose to be working hard in PRISON or been stoned / mob to death but the are walking freely in the street, Olympic medal thieves.Ha!, this country! . corruption, corruption, !!! corruption, !!!!!!.. |
Re: KPMG Report That FG And NNPC Hid From Nigerians by ninekfive: 12:07pm On Jan 12, 2012 |
Omo Men!!!! |
Re: KPMG Report That FG And NNPC Hid From Nigerians by silibaba: 12:12pm On Jan 12, 2012 |
i think BEAF is right. is high time NNPC gets scrapped. 2007 PRESIDENTIAL POLL: YAR'ADUA BOUGHT JUDGEMENT FOR $57M - WIKILEAK (READ DAILY SUN FRIDAY SEPTEMBER 09, 2011) just collecting money from NNPC to execute is winning. yet people call him good man. good man my foot |
Re: KPMG Report That FG And NNPC Hid From Nigerians by kingsolve(m): 12:28pm On Jan 12, 2012 |
Damn, |
Re: KPMG Report That FG And NNPC Hid From Nigerians by LEXYLOV: 12:42pm On Jan 12, 2012 |
One of the good reason this revolution must continue until all the embezzlers caught and Jail with their stolen cash and assets frozen worldwide. |
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