FG Hires KPMG, PWC To Conduct Forensic Audit Of CBN, SEC, NIMASA, DPR

SAN FRANCISCO, August 13, (THEWILL) – A forensic audit of all federal government revenue generating agencies is about to commence.

The audit is on the order of the committee set up by the National Economic Council (NEC) to investigate the discrepancies between the money generated from crude oil sales and the amount remitted to the Federation Account under the Goodluck Jonathan’s administration.

Two accounting firms, KPMG and PriceWaterhouseCoopers (PWC), have been asked to conduct the exercise.

Agencies to be audited by the two firms are the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), Department of Petroleum Resources (DPR) and Nigeria Maritime Administration and Safety Agency (NIMASA).

Edo State governor, Comrade Adams Oshiomhole, who spoke on behalf of the committee, told journalists at the State House, Abuja Thursday, said that the committee could not rely on the audit report‎ earlier submitted by PWC because it was limited in scope.

According to Oshiomhole, the PWC report covered the allegation by former Governor of the Central Bank of Nigeria, now Emir of Kano, Sanusi Lamido Sanusi, that monies from crude sales were not being remitted to the CBN.

The Edo State governor disclosed that PWC complained to the committee that it could not do a thorough job because two critical agencies to the probe, CBN and Nigerian Petroleum Development Company (NPDC‎), did not submit themselves to the probe.

Oshiomhole said in appointing the audit firms for the probe, the committee received briefing from the office of the Accountant General of the Federation and other agencies.

‎Oshiomhole said: “We have decided to appoint two audit firms, KPMG and PWC, to carry out a forensic audit of all these agencies.

“The Federal Government will decide what to do ‎with the findings.

“Some of us are not accountant and two of my colleagues who are accountants are not finding it easy understanding the way these agencies operated their accounts.

‎”We don’t know how long It will take, but they must do it within time and must be very thorough but must exercise best professional judgment‎.

‎”PWC said some organisations did not cooperate ‎with it and so could not do a thorough audit. That was due to the political environment prevailing then. But now, the present administration is conducive. Buhari is willing to provide the enabling environment.

“KPMG said it refused to participate because the environment was not conducive.”

The Edo State government explained that all the affected agencies were expected to pay all revenues generated by them into the Federation Account in line with the constitution but that many of them did not comply.

On where the committee derived its power to appoint audit firms, Oshiomhole said:‎ “NEC is created by the constitution. NEC set us up. Whatever we do, is derived from the express mandate of the council.‎”

Dismissing the insinuation that the probe was witch-hunt, Oshiomhole said it is to lay a solid foundation for the growth of the country, stressing that all over the world, countries were run on taxes and that Nigeria was just fortunate to have oil.

Maintaining that the Federal Government was trying to ensure that taxes are collected properly just like it is being done in civilised countries,

Oshiomhole said: ‎”It is more about tomorrow. Not about yesterday. Nigeria cannot continue to be run like before. We want to lay the foundation for the country to be built on.

“We will do what a civilised country does. That government agencies are run in a constitutional manner. The president’s intention is very clear.

‎”This is how to give the ownership of the country to the people. ‎When Nigeria is properly run by tax payers’ money, the country will be more accountable to its people.”