The Senate on Tuesday gave a damning verdict on the management of certain operations of the downstream oil sector by subsidiaries of the Nigerian Petroleum Company Limited (NNPCL).
The Red Chamber accused the oil giant of lack of transparency in crude oil lifted from its Escravos terminal to Warri Refinery and Petrochemical Company (WRPC) and the Kaduna Refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies.
The Senate indictment was sequel to the 2016 Auditor General report submitted and presented by Chairman of the Senate Committee on Public Accounts,
Senator Matthew Uhroghide which was upheld by the Senate Chamber at Wednesday’s plenary session.
A copy of the Auditor General’s report sighted by Nigerian Tribune revealed that the volume of crude oil lifted by the two refineries totalled 8,399,017 with estimated value of $376, 655,589 (N102.6 billion).
The Auditor’s General report reads in part: “From the review and examination of domestic Crude Oil Lifting sales profile presented for audit verification, it was noted that several deliveries were stated to be jointly lifted by or delivered to Warri Refinery and Petrochemical Company (WRPC) and Kaduna Refinery and Petrochemical Company without necessary details or breakdown of what was delivered to respective companies.
“From the examination carried out a total oil lifting of 8,399,017 bbls with a total sales value of $376, 655,589 (N102.6 billion) was stated to have been lifted jointly by these two companies.
“The failure to properly separate these deliveries and charge directly to each company makes it difficult to reconcile and account for each lifting.”
The Senate which subsequently upheld the recommendation of its Committee mandated the Group Managing Director of NNPCL, Mele Kyari, to ensure specific details of crude delivered to the two refineries for audit.
The Senate also affirmed the indictment of 37 Ministries, Department and Agencies, (MDAs) for observing the breach financial procedure in the country.
Findings revealed that in the Auditor’s General report, 92 MDAs were issued queries, 80 submitted written responses and appeared before the committee to defend queries but did not appear before the committee while four failed to either appear or submit written responses to the committee despite several reminders.
Out of the 80 MDAs that appeared before the committee, 43 had their queries vacated while the queries of 37 MDAs were sustained and recommendations accordingly presented to the Senate.
The Red Chamber also resolved to submit the report of the indictment to the Office of Secretary to the Government of Federation for further action.
Going forward, the Senate said it was considering a bill that will enforce the implementation of the outcome of the Auditor General report submitted to both chambers of Parliament for consideration.
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