$20bn: No Money Is Missing — Senate Committee

The Senate Committee on Finance has, in its probe report submitted yesterday, declared that no money is missing as alleged by the suspended governor of the Central Bank of Nigeria (CBN), Malam Sanusi Lamido Sanusi. It also cleared the Nigerian National Petroleum Corporation (NNPC) of the allegation. The committee was mandated by the Senate to investigate the NNPC over allegations of fraud levelled against it by Sanusi. Though the report was merely laid on the Senate table, it was learnt that the Senate committee also recommended a total discontinuation of the subsidy regime. Former CBN governor Sanusi had, in a letter to President Goodluck Jonathan, alleged that $49.8 billion in crude oil revenue was missing. In recommending the need for the subsidy regime to be totally discontinued, the committee however, advised that all stakeholders should be consulted and carried along as much as possible before the subsidy is abolished. It added that the National Assembly should expeditiously pass the Petroleum Industry Bill. Nonetheless, the Senate panel ordered the NNPC to refund and remit to the Federation Account the sum of $262 million being expenses it could not satisfactorily defend in respect of holding strategic stock reserve, pipeline maintenance and management cost and capital expenditure . In the report obtained by LEADERSHIP, the Senate said the suspended governor of the Central Bank was hasty and got his figures wrong. The report declared that the committee could not see how the figure of $49.8bn was arrived at by the CBN governor in the first instance. It added: “That the CBN governor at the first hearing had put forward the future of $12 billion as monies to be reconciled and changed his position to $20bn at subsequent hearing. At the conclusion of his written submission, he posited it could be $20, $12, $19.8bn or anything in between. “That the CBN governor orally or in writing never outrightly submitted that monies were missing but that monies were not remitted to the Federation Account by the NNPC. “That there was poor record-keeping and non-challenging work attitude by the NNPC by not rendering returns on subsidy claims on a monthly basis from January 2012 to date, which contributed largely to creation of the problem in hand. In its findings, the committee stated that all parties, i.e., CBN, NNPC, Ministry of Finance and Ministry of Petroleum Resources had resolved through reconciliation undertaken by them that $47billion had been received into the Federation Account out of the total oil lifting value at $67bn between January 2012 and July 2013. Some of the senate committee finding include; “That on the remaining $20bn to be reconciled, the committee findings are as follows: “The amount deducted /withheld /expended by NNPC on fuel subsidy between January 2012 and July 2013 was $5.254 billion (N 814.892 billion).This was certified by PPPRA. And the National Assembly has appropriated funds in 2012 and 2013 for fuel subsidy in the sums of N888.101 billion andN971.138bn respectively.” In its recommendation, it asked the Senate to accept that the subsidy deducted by NNPC from January 2012 to July 2013 was $5.254 billion since it was certified by the PPPRA and appropriated by the National Assembly. This is without prejudice to the outcome of the forensic audit conducted by the Office of the Auditor-General for the Federation and PWC. “President Jonathan should prepare and present to the National Assembly supplementary budget to cover the over-expenditure in the sum of N 90.693 billion for PMS subsidy 2012 and the sum of N685.910 billion for kerosene (DPK) subsidy expended without appropriation by the National Assembly in 2012 and 2013.