Twenty-two withdrawals totalling 3.12 billion dollars were made from the Nigerian Liquefied Natural Gas (NLNG) dividends account domiciled in the Central Bank of Nigeria (CBN) in the last three years.

This is according to documents submitted to the Senate Committee on Gas Resources by the CBN in Abuja on Thursday.Chairman of the committee, Bassey Akpan, read out the figures when officials of the CBN and the Nigerian National Petroleum Corporation, NNPC, appeared before the committee.

NAN reports that the committee was looking into the 1.05 billion dollars that the NNPC admitted withdrawing from the NLNG dividend account to “augment under-recoveries” in the importation of petrol.

NLNG is a gas firm jointly owned by the Federal Government and three multinational oil companies namely Shell, Total and Eni.

The NNPC, which represents the government in the gas company, holds 49 per cent of the shares.Shell owns 25.6 per cent, Total 15 per cent and Eni 10.4 per cent.


The lawmakers are angry that the NNPC acted beyond its powers by unilaterally drawing from the NLNG dividends, without recourse to the National Assembly or other tiers of government.

According to them, dividends from the NLNG are supposed to be paid into the Consolidated Revenue Fund of the Federation, to be shared among the federal, state and local governments.

But the Group Managing Director of the NNPC, Maikanti Baru, told the senators recently that the corporation acted in line with its establishment act.

According to Mr Baru, Section 7 (4)(b) of NNPC Act empowers the corporation to fund its operations from revenues generated by it.

He said the action was necessitated by the need to sustain the supply of petrol across the country, following the withdrawal of independent oil marketers from importation after the stoppage of fuel subsidy in 2016.


At Thursday’s hearing, Mr Akpan directed the NNPC, represented by its Chief Financial Officer, Isiaka Abdulrazak, to furnish the committee with all the originating mandates for the 22 withdrawals.

The senator gave the directive after Mr Abdulrazak said upon enquiry from the lawmakers, that the NNPC was the operator of the account.

However, a new twist was added to the matter when Akpan asked the CBN’s acting director of Banking Services, Christopher Olomukoro, whether authorisation for withdrawal from the account came from any other entity or government official other than the NNPC.

Mr Olumokoro answered in the affirmative, saying the CBN “also accepts withdrawal mandates from the Minister of Finance.So, who runs the account? Is it a joint account between the NNPC and the Federal Ministry of Finance?” Mr Akpan asked.

The CBN director answered: “No, but the issue here is that the Honourable Minister of Finance also has the power to submit mandates in respect of that account.”

At this point, Akpan said that out of the 22 withdrawals, the CBN submitted mandates for only seven, which he said came from the NNPC.He wondered why the mandates from the Minister of Finance were not included.

This elicited reactions from members of the committee, who requested for all the 22 withdrawal mandates in custody of the CBN from both the minister and NNPC.

They also directed the NNPC to provide the originating mandates and letters of approvals for its withdrawals from the account.
The committee gave the agencies till Nov. 30 to provide the documents and adjourned sitting till December 4.

seunmsg:
Racoon or whatever you call yourself, you can open a new thread with your post instead of trying to derail this one.

The purpose of this thread is to support NNPC's call for full disclosure if how NLNG dividends have been expended till date. With that, Nigerians can then decide on the administration that managed the dividends better instead of trying to play politics with the issue.

The lawmakers are angry that the NNPC acted beyond its powers by unilaterally drawing from the NLNG dividends, without recourse to the National Assembly or other tiers of government.

According to them, dividends from the NLNG are supposed to be paid into the Consolidated Revenue Fund of the Federation, to be shared among the federal, state and local governments.

seunmsg:
Racoon or whatever you call yourself, you can open a new thread with your post instead of trying to derail this one. The purpose of this thread is to support NNPC's call for full disclosure if how NLNG dividends have been expended till date. With that, Nigerians can then decide on the administration that managed the dividends better instead of
trying to play politics with the issue.

buhariguy:
This one will affect thief atiku.

bitcoin215:
Maybe atiku was right when he said he will sell it

buhariguy:
This one will affect thief atiku.

seunmsg:
Racoon or whatever you call yourself, you can open a new thread with your post instead of trying to derail this one. The purpose of this thread is to support NNPC's call for full disclosure if how NLNG dividends have been expended till date. With that, Nigerians can then decide on the administration that managed the dividends better instead of trying to play politics with the issue.

Racoon:
[s][/s]


And the one there is also talking about what? Instead of you to call for the prosecution for the president, Mikanti Baru(GMD NNPC) who have been supervising the putrifying corruption in the NNPC including pouching of the NLNG dividends, you're prevaricating by calling for a full exposure of a so call for a "full disclosure" that even if the government does nothing meaningful will become of it.

Guess you're not comfortable that the sleazy corruption of the APC regime being exposed for what It'? .Abeg swerve man.

seunmsg:
Racoon or whatever you call yourself, you can open a new thread with your post instead of trying to derail this one. The purpose of this thread is to support NNPC's call for full disclosure if how NLNG dividends have been expended till date. With that, Nigerians can then decide on the administration that managed the dividends better instead of trying to play politics with the issue.

bitcoin215:
Maybe atiku was right when he said he will sell it

oludashmi:
Kaduna state governor, Mallam Nasir El-Rufai, who is also one of the four governors appointed by the National Economic Council to scrutinise the accounts of the Nigerian National Petroleum Corporation and the Excess Crude Account managed by the administration of Goodluck Jonathan, said It is either Nigerians kill NNPC or NNPC will kill Nigeria.

El-Rufai made this statement at Sir Kashim Ibrahim Government House, Kaduna, yesterday. Governors of Akwa-Ibom, Edo and Gombe states were members of the team appointed by NEC.

He said, “NNPC has become a monster that is too powerful. I will continue to fight NNPC till it dies for Nigeria to survive. It is either Nigerians kill NNPC or NNPC will kill Nigeria.

“Since, I called for the death of NNPC, the corporation has sponsored articles attacking me, but I am telling them my skin is thicker than an elephant.”

Source: http://www.nigerianheadlines.com/kaduna-gov-its-either-nigerians-kill-nnpc-or-nnpc-kill-nigeria-el-rufai/

richidinho:
lol..i thought they claimed tto have brought change

seunmsg:
Racoon or whatever you call yourself, you can open a new thread with your post instead of trying to derail this one. The purpose of this thread is to support NNPC's call for full disclosure if how NLNG dividends have been expended till date. With that, Nigerians can then decide on the administration that managed the dividends better instead of trying to play politics with the issue.

Lomprico2:


Has he ruled this country before?

iammo:
Let their books be audited, NLNG was a secret cash house for corruption for PDP since inception. People mostly focus on the barrels of crude oil we sell, and ignore the cubic volume of gas we sell. If APC government wants to offer full disclosure since 1999, then its a very good one. Dunderheads with penchant support for corruption would try hard to want us not to support this, since PDP couldn't audit it all this while, they would blame and frustrate the once that want to audit it. We remembered how the PDP controlled senate did absolutely nothing when sanusi raised an alarm that money wasn't remitted to the tune of $20bn under PDP federal government.

Realdeals:
Here Are Some Highlights of PWC Audit Report of NNPC Accounts. The report is about 200 page, President Jonathan ordered the release of the audit report yesterday. CLICK HERE TO DOWNLOAD FULL REPORT


Highlights

“The procedures we performed did not constitute an examination or a review in accordance with generally accepted auditing standards or attestation standards. Accordingly, we provide no opinion, attestation or other form of assurance with respect to our work or the information upon which our work was based” — PWC


Nigerian Petroleum Development Company (NPDC) and CBN refused to open their financial statement to PWC. How can these two major parties refuse to cooperate with the auditor.

“We requested for meetings and information from the Central Bank of Nigeria (“CBN”) but were not granted access to nor given the requested information by the CBN” page 196 — PWC
“We requested for meetings and information from the Nigeria Petroleum Development Company (“NPDC”) but were not granted access to nor given the requested information by the NPDC” page 196 — PWC



“We did not have access to NPDC’s full accounts and records and we have not ascertained the amount of costs and expenses which should be applied to the US$5.11billion Crude Oil revenue (net of royalties and PPT paid) per the NPDC submission to the Senate Committee which should be considered as dividend payment by NPDC to NNPC for ultimate remittance to the Federation Account.” — PWC



We did not obtain any information directly from NPDC, but in accordance with NPDC former Managing Director’s (Mr Briggs Victor) submission to the Senate Committee hearing on the subject matter, for the period, NPDC generated $5.11billion (net of royalties and petroleum profits tax paid).

We have relied on the Legal Opinion provided to the Senate Committee by the Attorney General (AG) on the subject of the transfers of various NNPC (55%) portion of Oil leases (OMLs) involved in the Shell (SPDC) Divestments which impact crude oil flows in the period. The AG’s opinion indicated that these transfers were within the authority of the Minister to make. Thus, these assets were validly transferred to NPDC. The same AG’s Legal Opinion also indicated that NPDC was to make payments for Net Revenue (dividend) to NNPC, which should ultimately be remitted to the Federation Account. A sale will mean the following should be due to be remitted to the Federation accounts

Petroleum Profit Taxes (PPT)
Royalties
Signature bonus payment
Dividend from profit for the period (according to dividend declared in line with NPDC’s dividend policy)
We have not obtained any information that suggests that NPDC has been assessed for PPT and Royalty for the review period. However, as disclosed by the former MD of NPDC at the senate hearing, NPDC had done a self assessment of PPT and Royalty and had unpaid self assessed PPT and Royalty to the tune of $0.47 billion related to the review period. — PWC


In certain instances where we were not provided with information or access to key stakeholders (Section 6.3.2 ) we leveraged on external and available sources of information to reach our conclusions. These external and available sources of information are clearly highlighted in the relevant sections of this report.

Any information and/or documentation which may come to our attention subsequent to the date of this report may alter our findings. — PWC


No supporting documents were provided for the $0.25billion claimed as NPA Charges. Page 105 — PWC


Environmental Remediation
The following claims, totalling $10,257,161.07 could not be substantiated due to insufficient documents:
1.N442,975,320 ($2,846,296.53) payment in February 2012
2. N1,146,831,287.12 ($7,410,864.54) payment to settle PPMC’s outstanding third party liability in May 2013 Page 94 — PWC



A total of $59,324,737.01 ($59.3) Million on Charter Hire Services could not be substantiated due to lack of supporting document. — PWC



MT Tuma and MT Olobiri
Out of the $17,767,683.54 claimed as payments for manning and management fee of MT Tuma and MT Olobiri, the sum of $6,658,588.74 could not be substantiated due to lack of supporting documents. — PWC


http://www.newsheadlines.com.ng/latest-news/2015/04/28/highlights-of-pwc-audit-report-of-nnpc-accounts/