NNPC still in rot, Reps tell Buhari

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The House of Representatives on Thursday called on President Muhammadu Buhari to carry out sweeping changes at the Nigerian National Petroleum Corporation, describing it as a corporation “still in rot.”

An ad hoc committee of the House, which is investigating the Refined Product Exchange Agreement contracts between the NNPC and various trading companies, stated in Abuja that the corporation had yet to imbibe the ‘change’ mantra of the current Federal Government.

The committee, which is chaired by a member of the All Progressives Congress, Mr. Zakari Mohammed, urged the President to use his good offices as the Minister of Petroleum Resources to re-position the NNPC to the advantage of Nigerians.

Otherwise known as SWAP, the crude exchange transactions involved the exchange of crude oil for refined petroleum products in which the corporation gave out 445,000 barrels of crude per day.

The House had on June 24, passed a resolution to probe the deals on account of allegations that nine companies benefited from the contracts through the Pipelines Product Marketing Company, a subsidiary of the NNPC.

On the list were Duke Oil, Mercuria, Sahara Group, Aitero, Glencore, Taleveras Nigeria Limited, Entena Oil and Gas, Tranfigura and Ontario Oil and Gas.

The motion on the subject was moved by a member from Akwa Ibom State, Mr. Michael Enyong.

Quoting the 2009-2011/2012 reports of the Nigerian Extractive Industries Transparency Initiative, Enyong said the loss of $8bn revenue was recorded due to “discrepancy between the value of the crude oil given out and the refined products delivered.”

However, the committee complained on Thursday that the NNPC and its subsidiaries were about to scuttle the investigation like they had allegedly done with previous investigations into their transactions.

Mohammed, who addressed a press conference on the National Assembly premises in Abuja, said since the ad hoc committee was set up, it had written the NNPC at least twice, requesting documents on the transactions but got no positive response.

He disclosed that only NEITI, Nigerian Customs Service and the Department of Petroleum Resources had responded to the committee’s requests.

Mohammed added, “The NNPC, its Crude Oil Division and the PPMC have not given us any documents.

“The NNPC is still in rot; we are calling on the Minister of Petroleum Resources (Buhari) and his minister of state to be aware that the corporation has yet to imbibe the current spirit of change.

“They still run the place the same old way and feel that they are not answerable to Nigerians. They are trying to subvert this investigation.”

Mohammed listed the documents which the committee requested for as those on contract bids, annual reports from 2005 till date and other useful information on award of contracts.

“These are documents that should be within easy reach in the corporation.

“They carried out the transactions; why is it difficult to produce documents on how the transactions took place?” He asked.

The committee threatened to subpoena the corporation and its officials if by Thursday next week, the documents had not been supplied.

Mohammed also clarified that the investigation did not exempt anyone proven to have been linked with the transactions in the “past”, including former ministers of petroleum resources.

During debate on the matter on June 24, Enyong had informed the House that Sahara Group received 90,000 barrels per day through an arrangement with Societie Ivorienne De Refinage, while Aitero received 90,000 barrels.

He added that Ontario Oil received 30,000 barrels, among others.

Part of his motion read, “Further aware that while one barrel of crude equals to 159 litres, the 445,000 barrels awarded to the above companies per day, when multiplied by 159 litres, will amount to 70,755,000 litres per day, whereas Nigeria consumes only 40,000 litres per day.”

Source: Punch