…Decries N5bn spent for changing NNPC to NNPCL
Senate through its Committee on Public Accounts, has summoned the immediate past Group Chief Executive Officer, GCEO of the Nigerian National Petroleum Company Limited, NNPCL, Mele Kyari; the Chief Financial Officer, CFO, Umar Ajia Isa and the Group General Manager, GGM, National Petroleum Investment Management Services, NAPIMS, Dr. Bala Wunti over unaccounted N210trillion spent all by the company between 2017 and 2023.
The committee wondered why a whopping N5billion could be spent by the national oil company on change of name from NNPC to NNPCK, threatening to issue warrant of arrest against the summoned former management team if they fail to appear before it on a date to be announced soon.
Chairman of the committee, Senator Aliyu Wadada Ahmed (APC Nasarawa West), announced the resolutions after a meeting held on Thursday, informed that the incumbent GCEO, Engr Bayo Ojulari is expected to lead the NNPCL’s former management team.
Announcing the resolutions one after the other, Senator Wadada said: “NNPCL should refund the sum of N210 trillion, being the combined sum of N103 trillion and N107 trillion, which were not properly accounted for as contained in the audit reports. NNPCL should and must account for the two figures.
“The second resolution of the committee is that the NNPCL should reform to treasury all production costs charged against crude oil revenue for the period under review since the NNPC and its subsidiaries, NAPIMS and co do not directly produce crude oil.
“Three, that Immediate past management of NNPCL and NAPIMS, i.e, Mele Kyari as the then GCEO, Umar Ajia Isa as the then CFO and Bala Wunti as the then GGM, NAPIMS, should and must appear before the committee and to be led by the present management with the entire body of the external auditors that served within the period under review.
“Four, that the Auditor General for the Federation should carry out forensic audit review of the audited financial statements of NNPCL for the period under review in line with section 85 of the constitution of the federal republic of Nigeria (1999 as amended)”.
He added that the committee as contained in the audit report, wondered how NNPC spent a whopping sum of N5billion on change of name from NNPC to NNPCL .
“This to us in the committee, is unacceptable and satisfactory explanations must be given,” he said.
According to him, the committee came up with the resolutions due to inability of NNPCL to give satisfactory answers to the 19 questions posed to it from queries raised in the audit report.
“NNPCL, as a result of the questions that we asked, responded that the N103 trillion represented cumulative amounts expended by NNPCL Joint Venture Partners from JV Cash Calls 2017. For that, this response is unacceptable and the figure of N103 trillion is still lingering and hanging on NNPC.
“The Subsidy receivables according to the audited financial statement of NNPCL stood at N107 trillion. As at December 2023 NNPCL recorded N107 trillion as sundry receivables which it claims part of it was owed by some different banks and other entities. When put together, NNPCL need to properly account for N210trillion,” Wadada explained.
The committee, however, affirmed its legislative support to President Bola Tinubu-led federal government, which according to it, is doing everything possible in ensuring transparency, probity and accountability in the management of public fund.
