…Lawmakers urge NNPC to refund $20bn
Senate yesterday rejected a recommendation from its Committee on
Finance that the Presidency should withdraw fuel subsidy. The
development came during the formal consideration of a report by the
Senator Ahmed Makarfi-led Finance Committee which investigated an
alleged $49.8 billion unremitted oil fund by the Nigerian National
Petroleum Corporation (NNPC).Former Central Bank of Nigeria (CBN)
Governor, and now Emir of Kano, Sanusi Lamido Sanusi, had alleged that
the money, being proceeds of crude oil sales was not remitted into the
Federation Account by the NNPC. He had written President Goodluck
Jonathan on the alleged non-remittance of $49.8billion by the NNPC,
representing 76 per cent of the value of crude oil liftings from January
2012 to July 2013. But the committee stated that all the agencies,
which made presentations to it, agreed, after reconciliation, that $47
billion out of the $67 billion had been credited to the Federation
Account, leaving only $20 billion unaccounted for.
The report stated that part of the outstanding $20 billion was the
$5.254 billion spent on subsidy for Premium Motor Spirit (PMS) by the
Petroleum Products Pricing and Regulatory Agency (PPPRA), which was
covered by the Appropriation Acts of 2012 and 2013. It also stated that
the $3.512 billion spent on kerosene subsidy as certified by PPPRA for
January 2012 to July 2013, was still part of the $20 billion.
The upper chamber, however, adopted the committee’s recommendation that the NNPC must refund $262 million, being expenses it could not satisfactorily defend during the public hearing convened on the matter.
In rejecting the recommendation for subsidy removal, Senate resolved that “all stakeholders should be consulted and carried along as much as possible before abolishing the subsidy.”
Other recommendations adopted by the chamber are: “That the NNPC should refund and remit to the Federation Account, the sum of $262million being expenses it could not satisfactorily defend in respect of holding strategic stock reserve; pipeline maintenance and management cost; and capital expenditure;
“That the Senate accepts the subsidy deducted by NNPC in the sum of $1.2billion (N180) billion for the fourth quarter of 2011 since it was certified by PPPRA and appropriated by the National Assembly. This is without prejudice to the outcome of forensic audit conducted by the Office of the Auditor-General of the Federation and Price Waterhoue and Coopers (PWC).
“And that the Senate accepts the subsidy deducted by NNPC from January 2012 to July 2013 of $5.254billion (N813,803) billion since it was certified by PPPRA and appropriated by the National Assembly.
The red chamber also adopted recommendation that President Jonathan presents to the National Assembly, supplementary budget to cover the over-expenditure for N90.693billion for PMS subsidy for 2012 and the sum of N685.919 billion for kerosene subsidy expended without appropriation by the National Assembly in 2012 and 2013.
A little drama played out before consideration of the report. Senators Sadiq Yar’Adua and Gbenga Kaka tried to convince the chamber to postpone its debate. Yar’Adua raised three motions through the Senate Standing Orders 14 (A) 15 and 16. He opposed debate of the report, adding that the lawmakers were only served the report not more than two hours earlier.
He urged his colleagues to suspend the 73-page report to allow them more time to critically study it to enable them make relevant contributions, but Senate President David Mark ruled him out of order. Senator Kaka, who pointed to the lack of quorum in the chamber but did not raise any order to sustain his argument.
During eventual debate on the report, lawmakers kicked against removal of oil subsidy on ground that such move would bring about untold hardship on the masses. Senator Smart Adeyemi noted that the $49.8 billion allegation was raised “to score some political points. It is also clear that the synergy needed in various departments of NNPC is lacking. There is the need for this to be corrected for transparency and accountability, he says.
“This report is good and quite a number of recommendations are good. It is equally clear that there have been some abuses in the manner funds were managed. This report will not die, it will outlive this administration. A report like this demands us to make our point clear. We have seen a lot of exposures of some transactions that were not in conformity with our Constitution.
“One other issue that has generated controversy is whether oil subsidy should be removed or not. I am against removal of subsidy. Those who abused the implementation should be brought to book. We should appeal to the judiciary to ensure that those under prosecution are not allowed to leave the country”, he said.
Senator Ayogu Eze supported withdrawal of subsidy, but commended the committee for the professionalism in preparing the report. He said they “went the extra mile to get information as well as hired consultants to assist them in their investigation. We owe a duty to commend the committee for a work well done. It is amazing that people in authority will make statements that are inciting.
“We will recommend to the executive that we should do away with subsidy.”
Chairman of the Water Resources Committee, Senator Heineken Lokpobri, slammed Sanusi for making spurious allegations. “There are offices that no matter who you put, it will be difficult to completely defeat corruption because of the nature of the office. The only way out is to do away with corruption.
The Senate President said both the legislative and executive arms of government were guilty in the failure to fight the ineficiency in the petroleum industry.
Senate equally endorsed the committee’s recommendation that the Petroleum Industry Bill (PIB) should be given accelerated passage to curb corruption.
The major thrust of the report was its submission that “there was never any unremitted $49.8 billion” as it stated that “the committee could not see how the figure of $49.8 billion was arrived at by the former CBN governor in the first instance.”
The upper chamber, however, adopted the committee’s recommendation that the NNPC must refund $262 million, being expenses it could not satisfactorily defend during the public hearing convened on the matter.
In rejecting the recommendation for subsidy removal, Senate resolved that “all stakeholders should be consulted and carried along as much as possible before abolishing the subsidy.”
Other recommendations adopted by the chamber are: “That the NNPC should refund and remit to the Federation Account, the sum of $262million being expenses it could not satisfactorily defend in respect of holding strategic stock reserve; pipeline maintenance and management cost; and capital expenditure;
“That the Senate accepts the subsidy deducted by NNPC in the sum of $1.2billion (N180) billion for the fourth quarter of 2011 since it was certified by PPPRA and appropriated by the National Assembly. This is without prejudice to the outcome of forensic audit conducted by the Office of the Auditor-General of the Federation and Price Waterhoue and Coopers (PWC).
“And that the Senate accepts the subsidy deducted by NNPC from January 2012 to July 2013 of $5.254billion (N813,803) billion since it was certified by PPPRA and appropriated by the National Assembly.
The red chamber also adopted recommendation that President Jonathan presents to the National Assembly, supplementary budget to cover the over-expenditure for N90.693billion for PMS subsidy for 2012 and the sum of N685.919 billion for kerosene subsidy expended without appropriation by the National Assembly in 2012 and 2013.
A little drama played out before consideration of the report. Senators Sadiq Yar’Adua and Gbenga Kaka tried to convince the chamber to postpone its debate. Yar’Adua raised three motions through the Senate Standing Orders 14 (A) 15 and 16. He opposed debate of the report, adding that the lawmakers were only served the report not more than two hours earlier.
He urged his colleagues to suspend the 73-page report to allow them more time to critically study it to enable them make relevant contributions, but Senate President David Mark ruled him out of order. Senator Kaka, who pointed to the lack of quorum in the chamber but did not raise any order to sustain his argument.
During eventual debate on the report, lawmakers kicked against removal of oil subsidy on ground that such move would bring about untold hardship on the masses. Senator Smart Adeyemi noted that the $49.8 billion allegation was raised “to score some political points. It is also clear that the synergy needed in various departments of NNPC is lacking. There is the need for this to be corrected for transparency and accountability, he says.
“This report is good and quite a number of recommendations are good. It is equally clear that there have been some abuses in the manner funds were managed. This report will not die, it will outlive this administration. A report like this demands us to make our point clear. We have seen a lot of exposures of some transactions that were not in conformity with our Constitution.
“One other issue that has generated controversy is whether oil subsidy should be removed or not. I am against removal of subsidy. Those who abused the implementation should be brought to book. We should appeal to the judiciary to ensure that those under prosecution are not allowed to leave the country”, he said.
Senator Ayogu Eze supported withdrawal of subsidy, but commended the committee for the professionalism in preparing the report. He said they “went the extra mile to get information as well as hired consultants to assist them in their investigation. We owe a duty to commend the committee for a work well done. It is amazing that people in authority will make statements that are inciting.
“We will recommend to the executive that we should do away with subsidy.”
Chairman of the Water Resources Committee, Senator Heineken Lokpobri, slammed Sanusi for making spurious allegations. “There are offices that no matter who you put, it will be difficult to completely defeat corruption because of the nature of the office. The only way out is to do away with corruption.
The Senate President said both the legislative and executive arms of government were guilty in the failure to fight the ineficiency in the petroleum industry.
Senate equally endorsed the committee’s recommendation that the Petroleum Industry Bill (PIB) should be given accelerated passage to curb corruption.
The major thrust of the report was its submission that “there was never any unremitted $49.8 billion” as it stated that “the committee could not see how the figure of $49.8 billion was arrived at by the former CBN governor in the first instance.”
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Fuel subsidy stays – Senate |
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