Not satisfied with how much they have pillaged the nation, some influential individuals and corporate organisations in the country, have vowed to stop the Federal Government from publicising or implementing the report of the forensic audit on the Nigerian National Petroleum Corporation (NNPC), so as to shield their wrong-doings.

The Federal Government had in 2010, at the peak of claims that the NNPC was in poor financial condition, appointed KPMG and SS Afemike & Co, to carry out forensic audits of the corporation, to ascertain the true state of its finances. The firms were also mandated to audit the over N1.5 trillion which government was spending on fuel subsidies annually.

However, nine months after the presentation of the report to the former minister of finance, Olusegun Aganga, (in January 2011), a senior Presidency source, told BusinessDay, that a cabal in the petroleum sector, has frustrated the implementation of the report.

The source said: “It is very sad that very influential individuals and corporate bodies benefiting from the subsidies bazaar, have arm- twisted the Federal Government from making public the report, as well as from implementing the findings of the audit report.

“They are too powerful and they can get to wherever they want and whoever they want to. They have a hold on the government and ministers. So, it is going to be extremely difficult for the government to expose them, because they are the primary beneficiaries of this largese coming from the bloated subsidies. That report has died a natural death,” the source lamented.

The source, who spoke to BusinessDay on the condition of anonymity said: “It will even be more difficult now, because some of those involved in the subsidy cartel, are close to the corridors of power and now that they are having serious financial crisis, they consider it would be better they died, than allow the government to ridicule them. It is very, very sad for Nigeria “.

Eddy Wikina , a former NNPC external affairs manager , share the sentiments of other sources, adding that Nigerians should not expect that the government will release the report or implement as there are so many powerful interest working against it.

Similarly, Babajide Soyode, a retiree of the corporation said unless there is deregulation of the downstream sector no meaningful report could come from the audit. “ How do you explain the situation where you sell crude oil and you use the proceed to buy refined products almost immediately”, he asked, adding “there cannot be transparency in this type of situation”.

Worried by the rot in the NNPC and its subsidiaries, President Goodluck Jonathan had in May 2010, ordered the probe of the over N1.15 trillion outstanding claims on fuel subsidy, and other related expenditures presented to the government by the NNPC.

“The president has also directed a comprehensive audit of NNPC accounts. The finance minister is to engage the services of a world-class auditing firm to carry out the audit,” the Presidency said in a statement issued in May 2010.
The N1.5 trillion, covered payment for movement and supply of petroleum products across the country, between 2005 and 2010.

Consequently, Aganga, the immediate past minister of finance, in August of 2010, appointed KPMG and SS Afemike & Co, to carry out forensic audit of the NNPC accounts, with a pledge to Nigerians, to make the report public in January 2011 but unfortunately, nine months after the submission of the report, it is yet to be made public.

http://www.businessdayonline.com/NG/index.php/news/76-hot-topic/27936-cartel-frustrates-nnpc-audit-release