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Fuel Subsidy Probe Panel Submits Report…Indict Ahmodu Alli, Stella Ogiewonyi, Mike Adenuga & Others

Source: huhuonline.com
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Huhuonline.com can report authoritatively that the House of Representatives  Fuel Subsidy Probe Panel , Wednesday, submitted its report, and has indicted 69 oil firms for flawed transactions and indebtedness to the tune of N229.706billion.

Huhuonline.com checks shows that notable among the offending companies are those owned by PDP stalwart, Ahmodu Alli, Aviation Minister, Stella Ogiewonyi, Mike Adenuga and former minister for Internal Affairs, Captain Ihenacho.  

 
The report was scheduled for submission on Tuesday, but last minute 'horse trading' between proxies of those indicted and Reps members caused the twenty four hours delay. 'However, there are indications that some sections of the report may have been doctored, as names of certain persons who were initially indicted have disappeared from the latest report.' Said our source.

Nevertheless, Farouk Lawan-led committee's report recommended that the N229, 706,023,200, allegedly embezzled by the companies in fuel import between 2006 and 2011 should be refunded to the federal government coffers, adding that the defective transactions by the firms amounted to 3,453,690,070 litres of Premium Motor Spirit (PMS).  

While the House panel said that companies indicted in the probe would be investigated by the Economic and Financial Crimes Commission (EFCC) for onward prosecution,

Huhuonline.com findings have shown that the highest culprit among the 69 indicted oil firms in the subsidy largesse may be forced to re-pay up to N13, 252bn.

The committee also unveiled two oil subsidy recovery sources by the Nigerian National Petroleum Corporation (NNPC) as well as contradictory accounts from the NNPC, PPPRA and Central Bank of Nigeria (CBN) on the actual amount that accrued during the period under review.

'NNPC had two sources of recovery of its subsidy viz (1) direct deductions from domestic crude receipts accruable to the federation (2) payment by CBN through deduction from distributable revenues as per the Federation Account Component Statement. 'NNPC in its submission claimed to have earned N586bn as subsidy from the supply of 7,576,726,157 litres of PMS in 2011

'However, by PPPRA's presentation, NNPC was paid a subsidy of N667.553bn for supplying 5,470,007111 litres of PMS

'By CBN's presentation, NNPC was paid the sum of N844.944bn as subsidy in 2011

'In addition to CBN's payment of N844.944bn as represented on the Federation Account Component Statement, NNPC made a direct education of N847.942bn as subsidy in 2011, bringing all claims by NNPC on subsidy in 2011 to N1, 692.886trn.

'PPRA in its presentation to the House of Representatives had hinted that the noticeable upsurge in subsidy payment in 2011 was due not only to increase in subsidy per litre but also to the computed arrears due NNPC for HHK discharges.

'This was established from NNPC submissions to be N284.580bn. This payment of subsidy arrears on HHK was an illegality, having been proscribed by a presidential directive in 2009. NNPC was stopped from further collecting subsidy on HHK.

'The corporation abided by the presidential directive but unilaterally reversed the situation without any counter-directive or order from the President.'

It further recommended that the Office of the Accountant General of the Federation (OAGF) should refund N213.678 billion excess payments made by it, above the Petroleum Products Pricing Regulating Agency (PPPRA's) proof of payments in 2009.

'The OAGF should explain over payment of NNPC subsidy receipts to the tune of N146.746billion (2009), N421.197billion (2010) and N1, 025,353billion (2011).'

Recall that the probe panel was set up by the House of Representatives after the January protests by the organised labour over hike in the pump price of petrol by the federal government from N65 per litre to about N145 before it was re-considered for N97 per litre.

While the hearing lasted, there were glaring discrepancies in claims by the different government agencies involved in the management of the fuel subsidy regime. The Coordinating Minister for the Economy and Minister of Finance, Dr. (Mrs.) Ngozi Okonjo-Iweala, claimed that the federal government paid the sum of N1.4 trillion on fuel subsidy in 2011. The CBN governor, Sanusi Lamido claimed the subsidy on fuel was N1.7 trillion, while the committee of the House probing the subsidy regime relied on documents at its disposal which proved that N2 trillion was paid on fuel subsidy.

Some of the marketers indicted by the committee are Conoil Plc, ASCON Oil and Gas Company, Anosyke Group of Companies Limited, Total Nigeria Plc., Techno Oil Limited, Mobil, Acorn and IPMAN.