Sanusi Lamido, Balarabe Musa Urge Buhari To Charge Jonathan Over $20BN NNPC Funds (Full Text Inside)

Published 4 years ago by: MrJohn
at 14-05-2015 08:29AM (4 years ago)

(3756 | Gistmaniac) (m)


Former Central Bank Governor and now Emir of Kano, Muhammadu Sanusi II who blew the lid on the missing NNPC money has reviewed the recently released PWC auditors report on the missing NNPC monies. He shared his thoughts in a piece titled 'Unanswered questions on Nigeria’s missing oil revenue billions" published in the Financial Times yesterday May 13. Read what he wrote below

   
Quote
Just over a year ago President Goodluck Jonathan suspended me from my position as governor of the Central Bank of Nigeria after I questioned an estimated $20bn shortfall in oil revenues due to the treasury from the state oil company. As I said then, you can suspend a man, but you cannot suspend the truth. The publication last month of a PwC audit into the “missing billions” brings us a step closer to it.

    When I was central bank governor I raised three broad questions. First, did the Nigerian National Petroleum Corporation remit to the government the entire proceeds of its crude oil sales? Second, if it did not, is there proof of the purpose to which the unremitted amounts were applied? And third, did NNPC have the legal authority to withhold these funds?

    Contrary to the claims of petroleum minister Diezani Alison-Madueke, the audit report does not exonerate the NNPC. It establishes that the gap between the company’s oil revenues between January 2012 and July 2013 and cash remitted to the government for the same period was $18.5bn. And it goes into detail about the NNPC’s account of how it used that money, which raises serious questions about the legality of the state oil company’s conduct.

    The auditors say a significant part of the unremitted funds is supposed to have gone towards a kerosene subsidy that had been stopped two and a half years earlier by the late President Umaru Yar’Adua. His decree never appeared in the official gazette, leading some to question whether it ever had legal force.

    Evidence disclosed in the report suggests this is a sideshow. The executive secretary of the agency charged with administering subsidies confirmed that, acting on Yar’Adua’s orders, it had ceased granting subsidies on kerosene. There was no appropriation for such a subsidy in the 2012 or 2013 budgets.

    Throughout all this, Nigerians paid 120-140 naira a litre of kerosene, far more than the supposed subsidised price of 50 naira. Yet the state oil company withheld $3.4bn to pay for a subsidy that in effect did not exist. I have consistently held that this was a scam that violated the constitution and siphoned off money from the treasury.

    The second major item raised in the report relates to the transfer of oil assets belonging to the federation to the Nigerian Petroleum Development Company, a subsidiary of the NNPC.

    NPDC has paid $100m for these assets, from which it extracted crude valued at $6.8bn but paid tax and royalties worth $1.7bn in the period scrutinised by the auditors. PwC was unable to establish how much of the remaining $5.1bn should have been remitted to the government. But the report showed that, along with the private companies NPDC partnered with, it was extracting crude worth billions of dollars but yielding very little revenue for the treasury. I was investigating related transactions when I was suspended.

    The third major item is a claim of $2.8bn by NNPC for expenses not directly attributable to crude oil operations; PwC said “clarity is required” on whether such upfront deductions from remittances to the federation accounts are allowed, or whether the money should have been remitted to the government. Finally, there are duplicated ex­penses, “unsubstantiated” costs, computation “errors” and tax shortfalls; a total of $1.48bn has to be refunded.

    Of the $18.5bn in revenues that the state oil company did not send to the government, about $12.5bn appears by my calculations to have been diverted. And this relates only to a random 19-month period, not the five-year term of Mr Jonathan, the outgoing president.

    Nigerians did not vote for an amnesty for anyone. The lines of investigation suggested by this audit need to be pursued. Any officials found responsible for involvement in this apparent breach of trust must be charged.


The writer is the emir of Kano and a former governor of the Central Bank of Nigeria.


nametalkam at 14-05-2015 08:31AM (4 years ago)
(18079 | Hero) Online (m)

Former Central Bank Governor and now Emir of Kano, Muhammadu Sanusi II who blew the lid on the missing NNPC money has reviewed the recently released PWC auditors report on the missing NNPC monies. He shared his thoughts in a piece titled 'Unanswered questions on Nigeria’s missing oil revenue billions" published in the Financial Times yesterday May 13. Read what he wrote below



Quote
    Just over a year ago President Goodluck Jonathan suspended me from my position as governor of the Central Bank of Nigeria after I questioned an estimated $20bn shortfall in oil revenues due to the treasury from the state oil company. As I said then, you can suspend a man, but you cannot suspend the truth. The publication last month of a PwC audit into the “missing billions” brings us a step closer to it.

    When I was central bank governor I raised three broad questions. First, did the Nigerian National Petroleum Corporation remit to the government the entire proceeds of its crude oil sales? Second, if it did not, is there proof of the purpose to which the unremitted amounts were applied? And third, did NNPC have the legal authority to withhold these funds?

    Contrary to the claims of petroleum minister Diezani Alison-Madueke, the audit report does not exonerate the NNPC. It establishes that the gap between the company’s oil revenues between January 2012 and July 2013 and cash remitted to the government for the same period was $18.5bn. And it goes into detail about the NNPC’s account of how it used that money, which raises serious questions about the legality of the state oil company’s conduct.

    The auditors say a significant part of the unremitted funds is supposed to have gone towards a kerosene subsidy that had been stopped two and a half years earlier by the late President Umaru Yar’Adua. His decree never appeared in the official gazette, leading some to question whether it ever had legal force.

    Evidence disclosed in the report suggests this is a sideshow. The executive secretary of the agency charged with administering subsidies confirmed that, acting on Yar’Adua’s orders, it had ceased granting subsidies on kerosene. There was no appropriation for such a subsidy in the 2012 or 2013 budgets.

    Throughout all this, Nigerians paid 120-140 naira a litre of kerosene, far more than the supposed subsidised price of 50 naira. Yet the state oil company withheld $3.4bn to pay for a subsidy that in effect did not exist. I have consistently held that this was a scam that violated the constitution and siphoned off money from the treasury.

    The second major item raised in the report relates to the transfer of oil assets belonging to the federation to the Nigerian Petroleum Development Company, a subsidiary of the NNPC.

    NPDC has paid $100m for these assets, from which it extracted crude valued at $6.8bn but paid tax and royalties worth $1.7bn in the period scrutinised by the auditors. PwC was unable to establish how much of the remaining $5.1bn should have been remitted to the government. But the report showed that, along with the private companies NPDC partnered with, it was extracting crude worth billions of dollars but yielding very little revenue for the treasury. I was investigating related transactions when I was suspended.

    The third major item is a claim of $2.8bn by NNPC for expenses not directly attributable to crude oil operations; PwC said “clarity is required” on whether such upfront deductions from remittances to the federation accounts are allowed, or whether the money should have been remitted to the government. Finally, there are duplicated ex­penses, “unsubstantiated” costs, computation “errors” and tax shortfalls; a total of $1.48bn has to be refunded.

    Of the $18.5bn in revenues that the state oil company did not send to the government, about $12.5bn appears by my calculations to have been diverted. And this relates only to a random 19-month period, not the five-year term of Mr Jonathan, the outgoing president.

    Nigerians did not vote for an amnesty for anyone. The lines of investigation suggested by this audit need to be pursued. Any officials found responsible for involvement in this apparent breach of trust must be charged.


The writer is the emir of Kano and a former governor of the Central Bank of Nigeria.

Reply
bankadetoun at 14-05-2015 09:15AM (4 years ago)
(2348 | Gistmaniac) (f)

It is well
Reply
dembal at 14-05-2015 09:21AM (4 years ago)
(284 | Upcoming) (f)

na una no.just passing
Reply
echeeche at 14-05-2015 09:51AM (4 years ago)
(9431 | Hero) Online (m)

Cloud are gathering
Reply
beneno at 14-05-2015 10:01AM (4 years ago)
(25964 | Addicted Hero) (m)

oooooh
Reply
sirdykepapa at 14-05-2015 10:34AM (4 years ago)
(71 | Newbie) (m)

They should be investigated to the later and charged then jailed to serve as a deterrent to anyone who has his eyes on public funds.
Reply
Wysetots at 14-05-2015 11:03AM (4 years ago)
(8130 | Hero) (m)

Quote
You can suspend a man, but you cannot suspend the truth Karma


God's judgement cannot be evaded.....all the lives lost from all the lootery will not let y'all have peace.
Reply
dafemoclassi at 14-05-2015 01:14PM (4 years ago)
(101 | Upcoming) (m)

This is just the beginning of the end of all Nigeria enemy's...The political looters ? Hopefully GMB will investigate and recover every amount stolen ( from IBB regime to GEJ government ) which were banked locally and internationally...big thanks to Emirate central bank ( Dubai ) who frowned and ready to closed all Nigeria politicians account holder in their country? More importantly, NASS , state assembly , and all political office holder's wages & allowances must be cut by 50% ! Almighty God, Allah will give GMB to accomplish his best wishes to salvage poor NIGERIANS !!!
Reply
winace at 14-05-2015 01:16PM (4 years ago)
(30152 | Addicted Hero) (f)

Good. And we shld start all dis jailing tins from Babangida to Jonathan and their families of thieves o.
Reply
Deepsea81 at 14-05-2015 02:35PM (4 years ago)
(302 | Upcoming) (m)

Yes oo start from here:   Hopefully GMB will investigate and recover every amount stolen ( from IBB regime to GEJ government ) anything short of that is trouble start from IBB if you truly want to be a man. Show the strength of your balls from IBB
Reply
freethinker at 14-05-2015 09:05PM (4 years ago)
(5202 | Gistmaniac) (m)

MAD MAN
Reply
freethinker at 14-05-2015 09:06PM (4 years ago)
(5202 | Gistmaniac) (m)

MAN MAN THAT DONATED MILLIONS OF NAIRA TO KANO VICTIMS
HE OPENED ISLAMIC BANK
Reply
eoadex2003 at 15-05-2015 10:46PM (4 years ago)
(2626 | Gistmaniac) (m)

Quote from: freethinker on 14-05-2015 09:06PM
MAN MAN THAT DONATED MILLIONS OF NAIRA TO KANO VICTIMS
HE OPENED ISLAMIC BANK

Read ur comment again definitely u know u are thinking wt ur anus not ur brain.
Reply
elchymo at 19-08-2015 02:47AM (4 years ago)
(22529 | Addicted Hero) (m)

Let's watch and see how it goes
Reply