The Senate of Nigeria has summoned the immediate past Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, alongside the former Chief Financial Officer, Umar Ajia Isa, and a former Group General Manager of National Petroleum Investment Management Services (NAPIMS), Bala Wunti, over an alleged N210 trillion not properly accounted for in the company’s financial records between 2017 and 2023.
The Senate Committee on Public Accounts issued the summons in Abuja and warned that a warrant of arrest could be issued against the former officials if they fail to honour the invitation once the date for their appearance is communicated.
Chairman of the committee, Aliyu Ahmed Wadada, who announced the resolution after a meeting on Thursday, said the former management team must appear before the panel and be presented by the current Group Chief Executive Officer of NNPCL, Bayo Ojulari.
Wadada explained that the decision followed the committee’s review of audit reports which indicated that the national oil company had not properly accounted for a combined sum of N210 trillion within the period under review.
He added that the committee resolved that the NNPCL must refund the amount if it fails to provide satisfactory explanations regarding the funds.
“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,” Wadada said.
He explained that the committee also directed the company to remit to the treasury all production costs charged against crude oil revenue during the period under review.
“The second resolution of the committee is that the NNPCL should refund to the treasury all production costs charged against crude oil revenue for the period under review since the NNPC and its subsidiaries, NAPIMS and others do not directly produce crude oil,” he added.
The committee further directed that the Auditor-General for the Federation conduct a forensic audit of the company’s financial statements for the period under review.
“The Auditor-General for the Federation should carry out a forensic audit review of the audited financial statements of NNPCL for the period under review in line with Section 85 of the 1999 Constitution (as amended),” Wadada said.
The panel also raised concerns over a reported expenditure of N5 billion by the company for the transition of the Nigerian National Petroleum Corporation to the Nigerian National Petroleum Company Limited.
“This, to us in the committee, is unacceptable and satisfactory explanations must be given,” the chairman said.
Wadada explained that the committee arrived at the resolutions after the NNPCL failed to provide satisfactory responses to 19 queries raised from the audit report.
He said the company had claimed that the N103 trillion represented cumulative amounts expended by its joint venture partners through joint venture cash calls since 2017, a response the committee rejected.
“NNPCL responded that the N103 trillion represented cumulative amounts expended by NNPCL joint venture partners from JV cash calls since 2017. For us, this response is unacceptable and the figure of N103 trillion is still lingering and hanging on NNPC,” he said.
He also noted that the company’s audited financial statement recorded N107 trillion as subsidy-related receivables as of December 2023, classified as sundry receivables allegedly owed by various banks and other entities.
“When put together, NNPCL needs to properly account for N210 trillion,” he said.
Despite the concerns raised, the committee pledged its support for the administration of President Bola Ahmed Tinubu in efforts aimed at strengthening transparency, probity and accountability in the management of public funds.
Credit:thenationonlineng.net
