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NNPC Audit Report Exposes Double Subsidy Payments - Politics - Nairaland

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NNPC Audit Report Exposes Double Subsidy payments / Pwc NNPC Audit Report Exposes Double Subsidy Payments On Kerosene, Petrol / NNPC Audit Report: Apologise To Jonathan, Group Urges Sanusi, Others (2) (3) (4)

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NNPC Audit Report Exposes Double Subsidy Payments by UrennaNkoli(f): 2:48am On Apr 28, 2015
PricewaterhouseCoopers, the firm of forensic auditors hired by the Federal Government to probe the Nigerian National Petroleum Corporation, has indicted the corporation of making double subsidy claims on petrol and kerosene.

“Our examination of the PMS and DPK import verified by PPPRA revealed that some discharges were apparently verified and subsidy advised to NNPC more than once,” the report stated.
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PwC alleged “repeated subsidy” for PMS amounting to N3,709,879,190 ($23,954,796) and another “repeated subsidy” for DPK amounting to N6,169,502,266 ($39,836,652). It added that the there was another $36.05m “over-statement” in PPPRA’s PMS subsidy payment advice to the NNPC.

It also called for a review of the current NNPC Act to make it pay all revenues accruing from crude oil sales into the Federation Account.

In the final report made available by the government on Monday, the auditors said the the corporation over-claimed $980m (N19.3bn based on the interbank exchange rate of N197 to a dollar) as subsidy on Premium Motor Spirit and Dual Purpose Kerosene between January 2012 and July 2013.

The report stated that the NNPC had capitalised on lapses in the current law to spend part of the crude oil sales proceeds without limit or control.

The report stated, “We recommend that the NNPC Act be reviewed as the content contradicts the requirement for the NNPC to be run as a commercially viable entity. It appears the Act has given the corporation a blank cheque to spend money without limit or control.

“This is untenable and unsustainable, and must be addressed immediately. The corporation should be required to create value and meet its expenses entirely from the value created. Proceeds from the FGN’s crude oil sales should be remitted entirely to the Federation Account. Commissions for the corporation’s services can then be paid based on agreed terms.”

The auditors recommended that the NNPC’s model of operation must be urgently reviewed and restructured, as the current model, which had been in operation since the creation of the corporation, could not be sustained.

The report stated, “The accounting and reconciliation system for crude oil revenues used by government agencies appears to be inaccurate and weak. We noted significant discrepancies in data from different sources. The lack of independent audit and reconciliation led to over-reliance on data produced from the NNPC.

“This matter is further compounded by the lack of independence within the NNPC as the business has conflicting interests of being a stand-alone self-funding entity and also the main source of revenue to the Federation Account.”

The Auditor-General for the Federation had on February 5, 2015 released some highlights of the report in which PwC auditors recommended that the NNPC and its subsidiary, the Nigerian Petroleum Development Company, should refund to the Federation Account “a minimum of $1.48bn.”

PwC was last year hired by the Federal Government to carry out the forensic audit of the NNPC following an allegation by the former Governor of the Central Bank of Nigeria, Lamido Sanusi, that $49bn was not remitted to the Federation Account by the corporation.

“Our review of the subsidy documentation revealed that the subsidy due to the NNPC between January 2012 and July 2013 on PMS and DPK imports was $8.99bn compared to the $9.97bn stated by the reconciliation committee,” the auditors’ report stated.

According to the report, the difference was due to the exclusion of October 2011 to December 2011 subsidy claims of $1.2bn, which did not relate to the review period of January 2012 to July 2013; $0.13bn increase in PMS subsidy claimed for the 19-month period; and $0.09bn increase in kerosene subsidy claimed for the period.

The report also revealed N5.6bn ($36.05m) over-statement in the PPPRA’s PMS subsidy payment advice to the NNPC.

“Our review of the subsidy payment advice sent by the PPPRA to the NNPC for discharges between January 2012 and July 2013 revealed that the PPPRA applied the pre-2012 ex-depot price (N49.51) on some discharges in 2012 instead of the approved ex-depot price of N81.51. A total of 174,449,778 litres of PMS was affected in these PPPRA computations,” the report stated.

The auditors said an estimated $205m kerosene subsidy was over-charged by the NNPC, adding, “Our review of a sample of the copies of the pro forma invoices issued to the other marketers of DPK across different geopolitical zones of Nigeria revealed that the other marketers bought DPK from the NNPC/PPMC prior to arrival at the NNPC depot in Nigeria at N40.90.

“The marketers are thereafter required to incur the lightering expenses, NPA charges, jetty throughput charge and storage charges before bringing the product into Nigeria. Subsidy is calculated as the landing cost minus ex-depot price.”

The report reflected the fact that $3.38bn was spent on kerosene subsidy for the review period.

The report also noted an unsubstantiated $305.8m under the cost allocated to pipeline maintenance and management cost.

It stated that the sum remained unsubstantiated due to lack of or insufficient supporting documents and duplication of entries.

http://www.punchng.com/news/nnpc-audit-report-exposes-double-subsidy-payments/

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Re: NNPC Audit Report Exposes Double Subsidy Payments by faray: 3:06am On Apr 28, 2015
God bless Nigeria

5 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by Sirniyeh(m): 3:15am On Apr 28, 2015
We hope for the best during Buhari's administration. We all knew this before arrival, but it is time for cleansing

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Re: NNPC Audit Report Exposes Double Subsidy Payments by UrennaNkoli(f): 3:27am On Apr 28, 2015
Sirniyeh:
We hope for the best during Buhari's administration. We all knew this before arrival, but it is time for cleansing

He told them first before the elections that previous crimes prior to his inevitable victory were forgiven. They were all happy and rejoicing. #NowThatBabaHasTakenAuTurn, they must dance to the music.
At least if you won lay your bed arrange room for house, you go first sweep floor commot the dirt throw them for dust bin. Our economy is the bed, Nigeria is the house, APC is whats sweeping it, PDP and GEJ the dirt while the prison is the dust bin

79 Likes 10 Shares

Re: NNPC Audit Report Exposes Double Subsidy Payments by jascon1(m): 3:49am On Apr 28, 2015
GEJ the masses, the class to which u were born are suffering. During your tenure, the masses quietly n hopelessly believed you were the changed their ancestors dreamed. Millions thronged to seal Ur victory in 2011 becos they believed u were one of them.

GEJ u allowed the younger ones to continue going to school without shoes, knowing fully well how it hurts.

You promised us if u cud make it, we also can but, u rather chose to cut our legs instead of providing us with shoes.

The only thing I expected from u was constant electricity of which u promised with Ur very own mouth. You failed!

At this point an accomplice is as guilty as the perpetrator. You allowed these evil men thrive under Ur very nose, knowing from experience the ones who will suffer.

I respect you, but as it is going I'm in for a shocker...

151 Likes 11 Shares

Re: NNPC Audit Report Exposes Double Subsidy Payments by chadnezzar0worl(m): 4:57am On Apr 28, 2015
As usual! Jonathans government characterised by massive fraud!

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Re: NNPC Audit Report Exposes Double Subsidy Payments by temitemi1(m): 5:07am On Apr 28, 2015
Baba let d probe begin... We need actions n nt all these noise. I hope baba also look into these pple's case“. Obasanjo, atiku,tinubu, bukola saraki, in short all the so call progressives grin grin grin. GEJ my HERO! FAYOSE my ROLE MODEL!!

10 Likes 2 Shares

Re: NNPC Audit Report Exposes Double Subsidy Payments by politricks: 5:25am On Apr 28, 2015
Later some myopic people will call GEJ a hero (like the dolt above me).

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Re: NNPC Audit Report Exposes Double Subsidy Payments by UrennaNkoli(f): 5:28am On Apr 28, 2015
temitemi1:
Baba let d probe begins... We need actions n nt all these noise. I hope baba also look into these pple's case“. Obasanjo, atiku,tinubu, bukola saraki, in short all the so call progressives grin grin grin. GEJ my HERO! FAYOSE my ROLE MODEL!!

This spam bot is back again.

56 Likes 2 Shares

Re: NNPC Audit Report Exposes Double Subsidy Payments by ki02020(m): 5:28am On Apr 28, 2015
Am sure Otedola and co benefited from that

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Re: NNPC Audit Report Exposes Double Subsidy Payments by omenka(m): 5:29am On Apr 28, 2015
temitemi1:
Baba let d probe begins... We need actions n nt all these noise. I hope baba also look into these pple's case“. Obasanjo, atiku,tinubu, bukola saraki, in short all the so call progressives grin grin grin. GEJ my HERO! FAYOSE my ROLE MODEL!!
Now, anyone with some little wisdom would understand why you preferred being very miserly with words, giving the same repetitive lines on every single thread. You didn't wanna talk too much and expose yourself for who you are, a half baked illiterate. Just look at the structure of what you wrote up there. You must have very poor diction.

I suggest you retreat back into you "Hero and Role Model" cocoon. It serves you better.



@ Topic: We are still just scratching the surface of this stuff yet the stench oozing out of it could knock the lights out an elephant a mile away!!

Very soon, questions would be raised as to why the CBN and NPDC refused to open their books to the auditors. I'm very sure this was why they had to get Sanusi out of the way so he could be replaced by some malleable stooge.

I weep for my dear country.

93 Likes 6 Shares

Re: NNPC Audit Report Exposes Double Subsidy Payments by Alphaoscar: 5:44am On Apr 28, 2015
ghen ghen ghen! actor done die for this NNPC film ooooooo

5 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by agarawu23(m): 6:02am On Apr 28, 2015
imagine

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Re: NNPC Audit Report Exposes Double Subsidy Payments by focus7: 6:26am On Apr 28, 2015
Thank God for the new change of government, Jonathan and his men in pdp would have sold Nigeria for another four years of re-election, his government runs on high level of deceit.

32 Likes 1 Share

Re: NNPC Audit Report Exposes Double Subsidy Payments by orimsamsam(m): 6:26am On Apr 28, 2015
sound the alarm. there is a thief in the government house

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Re: NNPC Audit Report Exposes Double Subsidy Payments by phlemzy: 6:53am On Apr 28, 2015
Is PWC now making public all these because of fear that it may be sanctioned by the incoming administration? That's not good enough. If GEJ had won,so all of this will go unnoticed. We will need to evacuate the prisons by freeing petty thief's. The many high profile thieves should be the occupants. The money they looted altogether is enough to generate enough power to meet the demands of Nigeria,enough to construct good roads,standardise Nigerian universities, etc. Thank Jah we never had to go thru GEJ for another 4years. It will be more than a suicidal mission.

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Re: NNPC Audit Report Exposes Double Subsidy Payments by yousouphe(m): 6:56am On Apr 28, 2015
shocked shocked this is becoming interesting

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Re: NNPC Audit Report Exposes Double Subsidy Payments by yousouphe(m): 7:02am On Apr 28, 2015
Temitemi1 & mogidi come and see what ur onechance Hero and role model have done ooo

28 Likes 1 Share

Re: NNPC Audit Report Exposes Double Subsidy Payments by theV0ice: 7:03am On Apr 28, 2015
phlemzy:
Is PWC now making public all these because of fear that it may be sanctioned by the incoming administration? That's not good enough. If GEJ had won,so all of this will go unnoticed. We will need to evacuate the prisons by freeing petty thief's. The many high profile thieves should be the occupants. The money they looted altogether is enough to generate enough power to meet the demands of Nigeria,enough to construct good roads,standardise Nigerian universities, etc. Thank Jah we never had to go thru GEJ for another 4years. It will be more than a suicidal mission.

PWC already made these observations since they concluded the report.

Its the fg that kept it hidden till now.

43 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by vanilson(m): 7:17am On Apr 28, 2015
No hiding place for Diezani,emefule,Jonathan e.t.c

22 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by toluxa1(m): 8:44am On Apr 28, 2015

3 Likes 1 Share

Re: NNPC Audit Report Exposes Double Subsidy Payments by ozo13(m): 8:44am On Apr 28, 2015
Not longer a news presido and his team ran a shaddy economy for almost 6yrs

8 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by Nobody: 8:44am On Apr 28, 2015
.
Re: NNPC Audit Report Exposes Double Subsidy Payments by dasensible1(m): 8:44am On Apr 28, 2015
Where are the tanoids when you need them? I noticed they've been missing in action since the release of this PWC report.

Cc: Barcanista, Dearpreye, ozoigbondu, temitemi, severusnape, pls come out and call the others your oga need your support now more than ever. embarassed

14 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by olapluto(m): 8:45am On Apr 28, 2015
9 Billion dollars. Oya make una divide that by 150 million Nigerians. 1 million naira per month per Nigerian.
1 million Naira a month of the young unemployed man walking down the street
1 million naira a month off the poor woman selling groundnut on the street
1 million naira a month off the poor youths who have to hawk to pay WAEC fees.
1 million naira off the youth forced to sell her body for 1,000 naira a night.
That is how much this means to each Nigerian.

32 Likes 4 Shares

Re: NNPC Audit Report Exposes Double Subsidy Payments by Nobody: 8:46am On Apr 28, 2015
Tell me something!
Re: NNPC Audit Report Exposes Double Subsidy Payments by CLASSMAN: 8:46am On Apr 28, 2015
Okonjo is a scam, prior to the elections she said no money was missing that in fact money is supposed to be remited to nnpc

8 Likes

Re: NNPC Audit Report Exposes Double Subsidy Payments by tucky200(m): 8:46am On Apr 28, 2015
Buhari has got a lot of work to do

5 Likes 1 Share

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