How Corporation failed to remit N3.2trn in 2014

dimeji akinloye

March 14, 2016 10:39 PM

The auditor-general said domestic crude oil sales were under-remitted to the federation account.

NNPC

The Nigerian National Petroleum Corporation (NNPC) in 2014 failed to remit N3.2 trillion into the Federal Government coffer, the auditor-general of the federation,

While addressing newsmen on Monday, March 14, after submitting the 2014 audit report of the Integrated Payroll and Personnel Information System (IPPIS) to the national assembly, Ukura said domestic crude oil sales were under-remitted to the federation account.

READ: NNPC loses N267bn

He said discrepancies up to N10.6 billion were traced to the accounts of the national assembly, the NLNG and accounts of several ministries, departments and agencies.

“From the examination of NNPC mandates to CBN on domestic crude oil sales and reconciliation statement of technical sub-committee, FAAC amount not remitted was N3.2 trillion,” he said.

“Also, the $235-million sale of gas to NLNG was not paid to the federation account but transferred to some undisclosed Escrow Accounts.

“Another $346.2 million was stated to have been paid and received by the federation account, through NGL funding account as gas export sales, yet no document was available to confirm this.”

He also revealed another N73.5 billion discrepancies found from various special funds accounts of the federal government.

“Total payments amounting to N73.5 billion were made contrary to the established purpose of the funds,” he said.

“The sum of N36.4 billion was released to the office of the national security adviser for the rehabilitation and construction of dams instead of the federal ministry of water resources.

“Another N2.8 billion was spent for the procurement of hand sanitisers for schools and critical public places.”

The auditor-general further said N509 million recorded as payment for schools agricultural programmes could not be accounted for.

According to the report, N7.3 billion was deducted from various MDA accounts as tax but was not remitted into any account of the Federal Inland Revenue Service.

Kura calls on the federation account allocation committee (FAAC) to investigate the funds and ensure their recovery to the federation’s coffer.

dimeji akinloye