Auditor-General queries N2.3tr Excess Crude Account deductions

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The 2012 Auditor-General of the Federation (AGF) report has questioned the deduction of N2,308,749,174,308.54 Excess Crude Oil/PPT/Royalty from oil and gas revenue before the balance was paid into the Federation Account.

The query came on the heels of the inability of the Auditor General to obtain a legal authority for the creation of the Excess Crude Oil/PPT/ Royalty Account.

Of the total deductions, N477,448, 498,6 19.22 was drawn in favour of the Nigerian National Petroleum Corporation (NNPC) and N377,264, 685, 789.54 in favour of Department of Petroleum Resources (DPR). The Federal Inland Revenue Service (FIRS) got N1, 454,035, 989,899.78.

House of Representatives Committee on Public Account (PAC), acting on the report on the account of the Federation of Nigeria for the year ended 31st December 2012, said the deductions were in contravention of section 162(1) of the 1999 constitution.

It says: “The Federation shall maintain a special account to be called ‘The Federation Account’ into which shall be paid all revenues collected by the government of the federation, except the proceeds from the personal income tax of the personnel of the Armed Forces of the federation, the Nigeria Police Force, the Ministry or Department of government charged with responsibility for Foreign Affairs and the residents of the FCT”.

The report also discovered payment of various sums of interests to the Federal government’s Excess Proceeds of PPT/Royalty Account accruing from fixed term deposits that could not be established.

It was also reported that $219,247,398 .77 was credited to the FGN Excess Proceeds Crude oil sales account while and $443,844,581.47 was credited to PPT/Royalty Account as interest on fixed term deposits.

In addition, $221,219.79 was credited to the FGN Excess Proceeds of crude oil sales account while $453,803.13 was credited to PPT/Royalty Account as interest on ordinary deposits.

However it was noted in the report that “The authority for placing the funds which yielded the above interests in deposit account was not made available as requested.

“The banks where the deposits were made, principal sums deposited, tenor and rate were also not made available for audit verification as requested.

“During the examination of the statements of the Bank for International Settlement Account of FGN Excess Proceeds of PPT/Royalty Account, the AGF also observed that “an amount of $500m was debited into the account on the 29th August 2012 and described as interest on fixed term deposit.

“The nature/type of transactions that resulted to the debit interest of the above amount was not known.”

Also in the report, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC was queried by the Accountant General of the Federation to provide explanation for the flagrant attitude of withholding domestic crude sale revenue.

The NNPC was indicted in the report for failing to remit revenue from domestic crude oil sales totaling N936,027,634,479.81 as well as $998,881.77 interest earned on the Joint Venture Cash Calls in 2012.

It was also queried for failing to reconcile all arrears of JVCs since inception to the tune of $1,664,986.15 and N171,303,701 being arrears for year 2012.

Furthermore, queries were also issued on the $75.055,277.32 outstanding crude oil trade debtors; unauthorised movement of $50m from NNPC joint venture cash call account with JP Morgan Chase to another foreign bank account on February 28th, 2011 without any mandate or authority for the movement, as well as accrued interest of $1,249,999.99.

N30,259,561,402.73 was also a subject of query for NNPC over deduction of subsidy as well as N260b deducted at source by NNPC for petroleum subsidy fund (subsidy).

The oil corporation was also queried over N229,740,438,597.27 subsidy as reflected in the account of Petroleum Products Pricing Regulatory Agency (PPPRA) approved for NNPC without budgetary provision for the corporation in the Appropriation Act, resulting into extra-budgetary spending on subsidy by NNPC during the year.

The Department of Petroleum Resources (DPR) was also queried in the report over $706,880,265.22 unpaid by 21 oil companies as royalties on oil.

The Accountant General of the Federation has been informed to recover the outstanding royalties.

On its part, the Accountant General of the Federation, in the report was queried to explain the difference of N41,856,530,921.54 as well as pay back total sum of N1,901,213,713,587.07 into the Federation Account, out of which N1,132,619,890,792.96 is for joint venture cash calls (JVCs); N260b is for petroleum subsidy; N477,448,498,619.22 is for excess crude sale and N31,145,324,174.89 under remittance of revenue deducted at source by NNPC from the revenue proceeds in accordance with Section 162(1) of the 1999 Constitution.

In the report, the Accountant General of the Federation was asked to explain why the Federation Account Allocation Committee (FAAC) failed to share N385,908,800,442.40 to the three tiers of Governments out of the total net receipts of N5,682,942,672,167.61 after deducting cost of collection for the year 2012.

It was also observed that Federal Government share of N146,635,051,546.35 was paid directly to a separate SURE-P CBN Account in violation of the Constitution that provides that Federal Government’s share from the Federation Account should be paid directly to Consolidated Revenue Fund.

This was followed by a query on the transfer of the sum of N319,943,121,222.87 to SURE-P from the Federation Account, out of the total sum of N426,590,828,291.16 approved for the programme.

http://thenationonlineng.net/new/auditor-general-queries-n2-3tr-excess-crude-account-deductions/

Video or I don't believe!

Who cares, GEJ all the way....

By the 1st of June 2015 when sanity return to Nigeria, the revelation that will be exhumed about the massive corruption and clear cut stealing perpetuated by JonaTAN and his gang of thieves will make mobutu sese seko and Abacha shout praise the Lord in Hell.

A man who once had no shoes but have now decided to " RETRIEVE THE SHOES OF EVERY NIGERIAN" is a shame unto himself and the God he profess he served.

He got 95.5 hectares of land for himself amd his mother, the minister who is not foolish allocated 4000plots to himself too since the president has taken his own share.

Every minister in his cabinet sees him as a conduit pipe to fulfil their own greed all they need do is package his own share or give mama peace the JonaTAN share.

I remembered vividly after the death of Abacha, Michael Ani the then minister of finance returning over $30 million dollars that he took from the CBN treasury saying Abacha gave him as a Birthday Gift.

JonaTAN will go down as the most corrupt amd most heartless president that ever ruled Nigeria. Abacha aside the strike force didn't go this far .

Fellow Nigerians the choice is right there before you, THE AUDITOR GENERAL is a Federal Government employee not an APC or opposition party leader and these are his audit queries for just 2years of jonaTAN being in office, imagine if there was an audit query for 2012-2015.


SECURE YOUR FUTURE, IF NOT FOR YOU BUT THINK ABOUT YOUR CHILDREN AND YOUR GRANDCHILDREN AND THE KIND OF COUNTRY YOU WISH THEM TO LIVE

#ihavedecided to vote a MAN WHO DESPITE BEING A GOC FOR 5YEARS, A PETROLEUM MINISTER AND NNPC CHAIRMAN FOR 3YEARS, A HEAD OF STATE FOR 20MONTHS AND HEADED PTF A MULTIBILLION DOLLARS AGENCY FOR 4YEARS yet still live a modest and pious life that even political opposition and other generals of his clime vouch and speak of his modesty and simple way of life.

Sir Richard Grozney former British Ambassador to Nigeria said about BUHARI " if there is anything that endeared you to me, it was the modesty of your house in Kaduna when I visited, I have visited other leaders and former leaders but yours was a marvel to me because I could not believe a former head of state lived in the kind of house you live"

VOTE CHANGE, VOTE BUHARI/OSINBAJO. we can't continue subsidizing the stealing of our commonwealth by the crooks in government.

Diehard edit your title properly there is an error in it.

This is why the ECA failed, federal government literally stealing from the whole country in an unconstitutional manner. No wonder there are unexplained billions flying around into the pockets of political prostitutes and spiritual charlatans. March 28th is the beginning of the end of their reign.

#change
#GMB
#APC

During the 8yr regime of OBJ,EFCC was atleast active.The impugnity wasnt this atrocious.

This adminstration just over 4yr is already making OBJ's 8yr look like a child's play.

Our collective destinies lies in our hand,not in any supreme being.

Lalasticlala seun obinoscopy maclatunji this information and exposee in this thread is deserving of FrontPage.

The Auditor general is an internal auditor of government income and expenditures

SeverusSnape:
Who cares, GEJ all the way....

can you listen to yourself?

wonder what this people thinks at night. I swear by God we will all surely die. what are you going to tell him.

pendy79:
Lalasticlala seun obinoscopy maclatunji this information and exposee in this thread is deserving of FrontPage.

The Auditor general is an internal auditor of government income and expenditures

This thread is deserving of front page. The people need to be informed.

Jona stealing public funds since time immemorial

[b]You blame the state governors— who, according to you, have taken the Federal Government to the Supreme Court—not that a Supreme Court judgment forced your hands. For your information, the governors have never agreed to savings and always threatened court action even under Obasanjo. Why did we save under Obasanjo but not under Jonathan? Two keywords explain it: leadership and integrity. Governor Amaechi said the governors insisted on sharing the funds because they found out that you were illegally fiddling with the savings. So, as Nigerians still wonder, if billions of dollars are now ‘missing’ under your nose, why should governors trust you to keep their money? Do the states that have taken the federal government to the Supreme Court and refused to save also include the PDP governors—who are in the majority? If so, then it is fatal: even governors of your own party, PDP, do not trust you to keep their money! Furthermore, did the governors also stop the Federal Government from saving part of its share? - SOLUDO[/b]

.mr I go blow where are u?

Thunder fire any body that comes here again to shout GEJ Till whenever again. I now see the reason this clueless government will come and tell us stealing is not corruption. Imagine all this stealing or corruption happening under the watch of madam Ngozi the world bank and IMF mole. However, the only constant thing in life is change and no fire or SHIPOPOTEMUS can stone us or stop us from voting our mind (Change) come ran and sunshine in March 2015. FG has been stealing from us through his Scam SURE P programm since 1700 BC.

God bless the National Assmbly for exposing this scam, God bless Nigeria, God bless Change movement, God bless the peoples general GMB/PYO.!!!

GEJ government & misappropriation of funds can't be separated, time to kick him out of Aso rock.

NNPC under oga madam is business as usual- "stealing is not corruption"

God, please deliver this country from evil power of corruption.

good... at least sensible Nigerians can see how this administration is looting and milking us dry...
all these exorbitant figures that I've never even seen in mathematics or calculators... chai, gej is a real badoo ... he Needs ri be kicked out and not voted out

yg

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Ok this government seff

Ok

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The auditor general na APC guy.

This country will run down with Johnny Bravo in charge

those people use to take my place in d front page I rebuke u in jesus name.. se unah no dey get job

GEJ till nigerians and PEJ get wise and start asking their conductor for their change...

*yawns*

those people who use to take my place in d front page I rebuke u in jesus name.. se unah no dey get job