…Questions N5bn spent on transition from NNPC to NNPC Ltd
…Threatens warrant of arrest
The Senate has summoned Mele Kyari, the immediate past Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPC); Umar Ajiya Isa, the former Chief Financial Officer; and Dr. Bala Wunti over an alleged N210 trillion that was not properly accounted for by the company between 2017 and 2023.
The Senate Committee on Thursday also threatened to issue a warrant of arrest against the former management team of the NNPC if they fail to appear before it on a date to be communicated to them soon.
Lawmakers also raised concerns about the expenditure of N5 billion by the national oil company on the transition of its name from Nigerian National Petroleum Corporation (NNPC) to Nigerian National Petroleum Company Limited (NNPC).
The decision to summon the former management team was reached during a meeting of the Senate committee held on Thursday.
Aliyu Wadada (Nasarawa West), the Chairman of the committee, who announced the resolutions to journalists, explained that the summoned former management team should appear before the committee alongside the current management, led by Bayo Ojulari, the incumbent GCEO.
Announcing the resolutions, Senator Wadada said, “NNPC 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.
“NNPC should and must account for the two figures.”
He added, “The second resolution of the committee is that the NNPC 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 the immediate past management of NNPCL and NAPIMS, that is 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 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 a forensic audit review of the audited financial statements of NNPC 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, based on issues raised in the audit report, was also concerned about the N5 billion reportedly spent by the corporation during its transition from NNPC to NNPC Limited.
“This to us in the committee is unacceptable, and satisfactory explanations must be given, ” he said.
According to the committee chairman, the resolutions were taken after the NNPC failed to provide satisfactory responses to 19 questions raised from queries contained in the audit report.
“NNPC, as a result of the questions that we asked, responded that the N103 trillion represented cumulative amounts expended by NNPC 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 NNPC, stood at N107 trillion. As of December 2023, NNPC recorded N107 trillion as sundry receivables, of which it claims part was owed by some different banks and other entities. When put together, NNPC needs to properly account for N210trillion,” he explained.
The committee, however, reaffirmed its legislative support for the administration of President Bola Tinubu, noting that the government is taking steps to ensure transparency, probity, and accountability in the management of public funds.
SOURCE: Businessday