AND AGAIN THE MALLAM LIES ABOUT MISSING MONEY, DISGRACED BY HOUSE COMMITTEE MADE UP OF BOTH APC, PDP etc. SHAME SANUSI, SHAME. Mallam Sanusi Shamed Again By House Committee On His False Allegation of Missing $20Billon In NNPC. **there was nothing new in all Sanusis allegation from the reconciliation we heard early. **we are surprised that Sanusi had failed to understand some engineering issues. - Mr Yakubu, NNPC GMD. **We are concerned by the dynamics of the moving numbers as the central bank’s figures keep changing. **Sanusis claim that kerosene subsidy, we appropriates subsidy for the product every year, So NNPC was right. - Sen Ahmed Maikarfi. The Senate Committee on Finance at the National Assembly, those present left the venue confused after CBN Governor Mallam Sanusi Lamido said the unremitted amount by NNPC now stood at $20 billion. The audience looked confused as Sanusi reeled out the new figure, more so after he had submitted to the committee late last year that of the $49.8 billion said to have been unremitted to the Federation Account by NNPC was cleared to $10.8b. The $10.8b has been tracked to used by NNPC for Kerosene Subsidies since 2009, Cost of operations for the Corporation and their subsidiaries. In his response, the committee chairman, Ahmed Maikarfi, dismissed Sanusi’s submission, saying there was nothing new in all he said. He also remarked that despite his claim that kerosene subsidy had stopped since 2009, the National Assembly appropriates subsidy for the product every year. He also asked Sanusi to wait for the ongoing reconciliation to be concluded before going any further, stating, “The bottom line is that the federation should not lose a cent, so the reconciliation must be concluded this week.” Earlier, the Director General of Budget Office, Bright Okogu, and Peter Schlak, who represented the Petroleum Products Pricing and Regulatory Agency (PPPRA), requested one extra week from the committee to enable them conclude the reconciliation process. The committee acceded to the request for additional one week. Maikarfi warned them that the process must not exceed the extra week granted them and asked all the agencies to return for the hearing next Wednesday to present the output of the reconciliation process. But the Group Managing Director (GDM) of NNPC, Mr. Andrew Yakubu, while answering questions from reporters on the fresh allegation of $20 billion, which remains unremitted, said he was surprised that CBN had failed to understand some “engineering issues”. Mr Yakubu also accused the confused CBN governor of taking upon himself the job of an auditor when in the real sense, he is a banker. “Gentlemen, you heard the chairman very well. The issues that were raised are not new at all. You see, we came out with details because we don’t have anything to hide and we gave a detailed breakdown of the so-called $49.8 billion and we came out clearly to state the various streams that are associated with what he was talking about. “Now, we also made it clear that NPDC, if we had anything to hide, we would not have made it clear that NPDC was part of the stream because NPDC which is NNPC’s upstream operation, is a limited liability company registered by the Companies and Allied Matters Act (CAMA) to do upstream business just like any other independent company. “Now, if you are in your business, will you take your gross revenue and pass it on? What we simply said was to account for the streams that the CBN governor erroneously captured. “Let me make this point clear, CBN is a banking outfit, not a petroleum outfit. It is therefore understandable why they keep making unsubstantiated claims, which a little understanding of the technicalities of the oil industry would have saved them from making. “CBN is not an auditing outfit. But what it is doing is now auditing. We have no problem with auditing, but let the professionals, the certified bodies and agencies that are charged with this responsibility of auditing, to do their work,” he said. The GMD explained that the issues raised by Sanusi were not fresh at all and would be eventually reconciled by the Inter-agency Committee established to settle the $49.8 billion saga. “Our position remains the same and we remain open to all stakeholders. These are issues that are currently before the reconciliation committee and before now it has been a subject of monthly verification before FAAC and other stakeholders,” he said. The GMD reiterated what Okogu had said at the hearing that a lot of progress had been made in the reconciliation of the $10.8 billion and expressed hope that by the time the committee meets next week, the final report would be ready, and NNPC would be vindicated. Also in a statement issued by the corporation last night, NNPC said Sanusi’s latest allegation was a clear indication of his inconsistency, thereby presenting conflicting figures to the generality of Nigerians. “We are concerned by the dynamics of the moving numbers as the central bank’s figures keep changing. This is a worrying trend coming from an agency of government charged with managing the financial affairs of Nigeria. “While NNPC and other relevant government agencies are in the process of reconciling the $10.8 billion as accepted by all parties, we are surprised by the new $20 billion figure introduced by the CBN. “According to CBN the $20 billion is made up of $12 billion subsidy claim, $6 billion NPDC gross revenue and $2 billion third party revenue. “It is worthy to note that the CBN accepted NNPC’s submission with respect to $16 billion royalty and PPT (Petroleum Profit Tax) payments into the Federation Account through the FIRS. This indicates that the CBN cherry picks the figures. “For example, in taking the entire $6 billion gross revenue accruable to NPDC and allocating same to the Federation Account, CBN simply multiplied the gross production by the crude oil price, thereby failing to account for the operating costs (opex) and amortised capital expenditure that underpin the production. “In other words, the CBN failed to take into account the cost of production. We reiterate that NPDC has been remitting the royalty and petroleum profit tax to the Federation Account. “NPDC as a subsidiary of NNPC operates a business model similar to other international companies in Nigeria and abroad and will continue to be governed by these global best practices in the execution of these assets. “Regarding the subsidy claim on kerosene, it is important to note that NNPC as the supplier of last resort is the only company supplying this product in Nigeria for the benefit of the citizenry. “If kerosene has been deregulated why are the independent marketers not supplying this product in line with what is applicable to diesel (AGO). “NNPC owes a duty to Nigerians to ensure that there are adequate products in the country. This mandate has without question been accomplished in the past four years. NNPC deserves to be commended rather than battered, for ensuring adequate supply of kerosene at regulated price of N50. “NNPC cannot be held responsible for any differential pricing from non-NNPC retailers. This is the basis for NNPC’s claim on kerosene subsidy,” the corporation said. Also, in its reaction, Atlantic Energy, said the CBN governor was again mistaken in his testimony on the transaction between NPDC and Atlantic. According to an official of the company, “We have had cause in recent times to explain the true position of things and this information has been in the public domain for some time now. Suffice it to say that nothing in the transaction between NPDC and Atlantic Energy involved the transfer by the NNPC or the NPDC or the Ministry of Petroleum of any portion whatsoever of NPDC’s 55 per cent participatory interest in the OMLs to Atlantic Energy. “The operatorship of the OMLs as well as the 55 per cent participatory interest therein, remains legally and beneficially vested in the NPDC, and shall remain so throughout the duration of the Strategic Alliance Agreements with NPDC.” He further stated, that “in return for the enormous obligations assumed by Atlantic Energy under the SAA, the agreement explicitly confers on Atlantic Energy the entitlement to receive remuneration-in-kind from the NPDC in the form of allocation of a portion of NPDC’s share of profit oil from the relevant OML areas, and also independently lift, dispose of and retain proceeds of crude oil it receives from the NPDC as remuneration-in-kind.” - Hope For Nigeria.
Posted on: Thu, 06 Feb 2014 17:32:49 +0000
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