Report recommends complete overhauling of the NNPC

The House of Representatives investigation into the misappropriation of the fuel subsidy funds has indicted the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Products and Pricing Regulatory Agency (PPPRA), seeking huge refunds from both government-run establishments.

The NNPC is to refund N705.4 billion of subsidy funds it illegally deducted for itself, while the PPPRA is to pay back N312 billion into government coffers.

The report also recommends the “complete overhaul” of the management of the NNPC, and that the Executive Secretaries of the PPRA between 2009 and 2010 be prosecuted for supervising the fraud.

The report was released on Wednesday, after months of delay which was purportedly linked to pressure on members of the Farouk Lawan committee to tone down the content of the document.

The details of the report indict the two offices, as well as marketers that failed to import petroleum product after collecting fees.

“The management and board of the NNPC should be completely overhauled and all those involved in the following infractions be further investigated and prosecuted by the relevant anti-corruption agencies,” the report read.

The infractions include NNPC’s deduction of N285billion in excess of the PPPRA recommended figure in 2011, subsidy deductions of N310billion for kerosene against a presidential directive, and illegal granting of price discount on crude oil price per barrel to the tune of N108.6billion.

Also the defaulting marketers are to refund N8.66 billion, while those that failed to attend the investigations are to pay back N42 billion. The report will be deliberated on and its contents approved or rejected next week.

The document lists 15 companies that obtained foreign exchange without importing fuel.

Two audit firms, Akintola Williams Deloitte, and Olusola Adekanola were also recommended for blacklisting for three years.

The committee recommended a petrol subsidy of N557billion for 2012 and N249 billion for kerosene subsidy, while it recommended consumption level of petrol to be pegged at 33 million litres per day for 2012.

The report also recommended that all those involved in the infractions be prosecuted by the Economic and Financial Crimes Commission (EFCC).

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