Economic and FinancialThe
Crimes Commission (EFCC)
has invited oil marketers to
appear before it with
documents evidencing all
transactions they did with
the Petroleum Products
Pricing Regulatory Agency
(PPPRA) and the Nigerian
National Petroleum
Corporation (NNPC).
EFCC’s spokesperson, Mr.
Wilson Uwujaren, who
disclosed this in Abuja,
however,
did not give the
names of the marketers
invited by the commission.
He said as part of the
commission’s new approach
to investigation, the
marketers were invited to
come with necessary
documents in respect of all
transactions they did with
NNPC and PPPRA.
Last week, EFCC raided the
offices of NNPC and PPPRA
carting away documents.
EFCC is also making contact
with international
organisations to look into
the involvement of shipping
agencies and vessels.
Acting Chairman of the
commission, Ibrahim
Lamorde, is leading the
investigation.
However, THISDAY was
informed that no arrest
would be made until full
investigation had been
carried out.
There have been sundry
allegations on the fuel
import regime, with many
suggesting that there were
massive over-invoicing,
diversion of products and
round-tripping.
Last week, PPPRA's
Executive Secretary, Mr.
Reginald Stanley, said while
Nigeria was consuming 35
million litres per day, the
country was importing 59
million litres on a daily
basis, leading to an excess
supply of 24 million.
Subsidy
payments on the
excess alone amounted to
N667 billion in 2011.
Stanley blamed "dishonest
marketers" for product
diversion to neighbouring
countries.
President Goodluck
Jonathan had promised to
carry out a thorough
investigation on the alleged
corruption in the
importation of petroleum
products.
He
said: “Let me assure
Nigerians that this
administration is
irrevocably committed to
tackling corruption in the
petroleum industry as well
as other sectors of the
economy. Consequently, all
those found to have
contributed one way or the
other to the economic
adversity of the country
will be dealt with in
accordance with the law.
“Furthermore, the legal and
regulatory
regime for the
petroleum industry will be
reviewed to address
accountability issues and
current lapses in the
industry. In this regard, the
Petroleum Industry Bill will
be given accelerated
attention. The report of the
forensic audit carried out
by KPMG on the NNPC is
being studied with a view to
implementing
the
recommendations and
sanctioning proven acts of
corruption in the industry.”
The president said that the
probe was initiated
following the demand by
Nigerians for accountability
and transparency in the oil
industry.
The January 1 removal of
subsidy on petrol by the
Federal Government
suddenly brought to the
fore the issue of embedded
corruption in the oil sector.
Already, the National
Assembly has commenced a
probe and has even
released the names of
people suspected to have
taken part in the oil
business.
The invitation letter to
EFCC which was addressed
to the acting chairman was
dated January 12, 2012,
received and stamped on
January 13, 2012.
“You will recall that the
Federal Government of
Nigeria has over the years
run a subsidy regime in
petroleum imports where
the difference between the
cost of importation and the
pump price is paid for by
the government of Nigeria
to pre-approved oil
marketing companies and
importers. Over the years,
the bill has grown
exponentially to
unsustainable levels.
“As petroleum minister, I
have become extremely
concerned with these
figures and following the
recent transfer of the
PPPRA to my ministry last
year, I have moved quickly
to change management and
inaugurate a
comprehensive reform
process which include
drastic cuts in the list of
importers, review of
payments and procedures,
as well as massive re-
deployment of staff within
the agency,” the letter to
EFCC read in part.
According to the Minister of
Petroleum, Mrs Diezani
Alison-Madueke, the EFCC
is to review all payments
made in respect of
subsidies on PMS and
kerosene and to take all
necessary steps to
prosecute any incidence of
"malfeasance, fraud, over-
invoicing, and related
illegalities in an open and
transparent manner".
She said as part of her
transparency efforts, she
had set up a unit which
would be headed by an
independent auditor to
review the KPMG and other
audit reports of NNPC and
other parastatals, and
immediately begin the
implementation of their
findings, ensuring, at all
times, full probity and value
for money.
According to her, “I am en-
panelling another audit in
my office to begin a
comprehensive review of
management and controls
within all parastatals in the
Ministry of Petroleum,
including but not limited to
NNPC, PPPRA and DPR.
“Accordingly, I expect a
report in 30 days to enable
us take further action in
reforming management,
personnel, and other
practices and procedures in
parastatals
within the
ministry. It should be noted
however that this process
has already begun in PPPRA
and DPR where
management
changes and reform are
beginning to yield desirable
results."
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