Tope Fasua wrote: MISSING $20B: IN THE INTEREST OF FAIRNESS I just had a long discussion with an NNPC insider, who called me to clarify some of the issues and opinions expressed on this page with regard to the missing $20billion issue. Well, a lot of what he said are technical in nature, and i asked him to send a mail to me listing all the issues in a way that the ordinary person can understand. Still, i will reproduce below some of what we discussed (the much i can remember). Note that this person works directly in the places where these crude oil transactions, swaps, etc takes place. He let me know that most staff of NNPC do not know how these things operate, except they are in the direct departments. Here we go: 1. That there is no $20billion missing. 2. That subsidies need to be deducted upfront by NNPC otherwise the system in place for importation of refined product will break down. 3. That NPDC - the oil producing arm of NNPC based in Benin - is a subsidiary set up by NNPC and which remits (should remit) profits to its shareholders at the end of each year/accounting period. The proceeds of crude oil sold by them cannot be remitted directly to CBN the way Sanusi wanted. They trade for the year, incur expenses and declare profits. 4. That there is a funding arrangement in place at NPDC, whereby NPDC approaches parties who can fund their exploration/operation. Though some insiders believe that NNPC can raise this money itself. 5. That some of the monies requested from NNPC by federal government e.g. to fund world cup etc as per Ribadu report, may have come from their normal operations, and not crude oil proceeds, which is fairly tied up. 6. That the kerosene subsidy works with a swap arrangement, whereby the NNPC gives $100 worth of crude (the going market prices only), and expects to get in return $100 worth of products. (I am still getting my head around that though, because $100 worth of crude could produce a lot more than $100 worth of products, but there has to be something in it for the businesses in this swap arrangement. and perhaps the best NNPC can do is to charge out the crude oil at ongoing market prices). 7. That they are aware that they should begin to advice government to gradually increase the price of kerosene, because the business of importing a product at N150 per litre and selling at N50 per litre, is unsustainable. (I took him to task on the revelation by the MD of PPMC that kerosene is being used to fuel planes and asked him why we should also subsidize planes given that air flights in nigeria is perhaps the highest in the world.) 8. That it is not NNPCs duty to ensure that the products are sold at the subsidized price. DPR and enforcement agents should take care of that. MY GENERAL COMMENTS. I am glad that people read this page and make some sense out of it. i would be want to be known as a bridge builder and conciliator, not someone permanently biased on one side. It gets discouraging sometimes, given the views our people express. I was almost deactivating my FB account - I still may very soon. Two. It is impossible for one organization to comment competently on another, given the fact that organizations are vast in their operations which have evolved over time. CBN may find it impossible to comment therefore on NNPC, without making mistakes, just as FRC will make loads of errors in trying to comment on CBNs operations. By and large, my sentiments are still with Sanusi on the current imbroglio, because as the 1980 Apple advert said Often, the world is changed only by those who are crazy enough to think they can change it. Let those who are discerning take note, that Nigeria is changing, and we could look back someday and say some crazy man passed through the CBN and things never remained the same again. Overall, Nigeria is being bitten by the transparency bug especially in this age of social media. Three. There is a need to get rid of what is called silo-mentailty, whereby each public organisation remains an island to itself and refuses to share information. A lot of problems and arguments in the public space is as a result of this. Information when shared, benefits all concerned. Many of our organizations are still being run by people who believe in secrecy. But secrecy can only hold down a country. There is a reason why we keep running around on the same spot and spending so much money and time doing the same thing. e.g.. Biometrics. Done by INEC, Immigration, NIMC, Banks, FRSC, VIO, Marriage Registry, even your local church individually and separately. Why cant they share? More/better information dissemination will do us a world of good. Fourthly, I urge we be careful about the way we deliberately throw up figures, using it to confuse the common man and increase the anger in the land. My first boss in banking, a civil war veteran, told me a long time ago, while we were busy bellyaching for revolution in the June 12 days. my friend, to the gateman there, you, yes you, are the problem with Nigeria. If the revolution starts and the MD escapes in his 505, it is you they will catch and use that your long tie to strangle you. Since that day around 1994, Ive been sober. I am saying with all this $20billion missing, $47bilion, policemen ate cows of N1.25billion, CBN big men share $38billion, we had better be sure, because on judgment day, we dont know who will be lucky to escape. Fifty and lastly. The reason why i may yet close or at least temporarily deactivate this account is not just because it can be time-consuming arguing with people back and forth, but because it seems a majority of Nigerians are not, and will never, be ready for change. I have read analysis and comments, which come solely from the perspective of temporary advantage. Someone removes my brother from office, so he must be bad no matter what. The longterm view is not one of our strong points here, and gradually, bad people, bad voices, are driving out good ones. I am less concerned by threats and veiled threats. In the end, life gets us all. What matters is what we do with our time before it gets us. I would want to be known, as that guy who gave things a good shot, and strove, even if naively, for the betterment of his people. and humanity in general. Yes, Im one of those crazy enough to think they can change the world. who knows? maybe one tiny jot. I hope to still get specific details from my NNPC insider, which would shed more light on the issues above. I will share them. I am glad that we are all concerned. Even the guys in NNPC. And elsewhere.
Posted on: Mon, 24 Feb 2014 11:42:59 +0000
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