House Insists On Investigating Alleged Financial Mismanagement In NNPC Pensions, Refineries

The House of Representatives has stated its resolve to investigate alleged financial mismanagement in the Nigerian National Petroleum Corporation (NNPC) and 17 other subsidiary agencies.

The House Committee on Public Accounts, therefore, vowed to invoke relevant sections of the constitution to compel the Group Managing Director (GMD) of NNPC, Mr. Mele Kyari, and heads of 17 subsidiary agencies to respond to various audit queries bordering on deliberate and reckless refusal to render accounts from 2014 to 2018 in breach of extant financial regulations.

The committee, at the weekend, said: “NNPC allegedly directed all the heads of the 17 subsidiaries invited to the public hearing not to honour the invitation sent by the House Committee on Public Accounts, in breach of extant legislations and provisions of the 1999 Constitution as amended.”

In a letter with Reference No: HR/PAC/SCO5/9NASS/PARA.5/001 dated December 20, 2019, addressed to the NNPC GMD the House had during its plenary session of Tuesday, December 10, 2019 mandated the committee to conduct an in-depth investigative hearing on the deliberate and reckless refusal of non-treasury funded agencies of government to be audited by the oAuGF for the period under review, with the view to ensure compliance with the provisions of Sections 80, 81, 85, 88 and 89 of the 1999 as well as Sections 15, 18, 20, 22, 24 and 25 of the Public Procurement Act, 2007.

In its second letter dated December 24, 2019 with Ref. No: HR/PAC/SCOS/9NASS/PARA.5/064 signed by its Chairman, Hon. Wole Oke, and separately addressed to the NNPC GMD, and heads of various subsidiary agencies, the committee had requested for copies of approved budget — both appropriation and internally generated revenue between 2014 and 2018; audited account and management account; budget performance report; evidence of remittance of audited accounts to the Auditor-General of the Federation; evidence of remittance of internally generated revenue and or operating surplus to Consolidated Revenue Fund (CRF) account to the committee ahead of the public hearing.

The affected agencies include: Nigerian Petroleum Development Company Limited; Kaduna Refining and Petrochemical Company; Petroleum Products Marketing Company Limited; Duke Oil Company Inc.; West Africa Gas Limited; Nidas Marine Limited; Hyson (Nigeria) Limited and Nigerian Gas Company.

Others are: National Engineering and Technical Company; National Petroleum Exchange; NNPC Pension Limited; Warri Refining and Petrochemical Company; Port Harcourt Refining Company; NNPC Retail Limited; Integrated Data Service Limited; National Petroleum Investment & Management Services (NAPIMS) and Petroleum Product Pricing Regulatory Agency (PPPRA).

However, in its third letter with Reference No: HR/PAC/SCOS/HR.252/12/2019/001, dated January 10, 2020 and addressed separately to the NNPC GMD and heads of the 17 subsidiaries, were invited to appear committee on Thursday, January 30, 2020 at 10:00am.

But in its response to the committee’s invitation to the investigative public hearing, PPMC through a letter with Reference No: PPMC/HQ/MD/11.01 dated January 24, 2020 and signed by Mohammed Umar, noted that: “The letter from NNPC Corporate headquarters on subject stipulating that NNPC headquarters and all subsidiaries of NNPC including PPMC have a consolidated Group Audited Accounts that is centrally submitted to the Auditor General for the Federation in line with NNPC Act.”

The committee, in its fourth letter with Reference No: HR/PAC/SCOS/HR.252/12/2019/212 dated January 24, 2020, addressed to the NNPC GMD announced a new date for the NNPC GMD and heads of the 17 subsidiaries to appear on Tuesday, February 4, 2020, urging that they are to come along with officers who are familiar with the issues at stake and may assist in providing answers to any question that could arise during the hearing.

Responding to the committee’s inquiry, PPMC via a letter with Reference No: PPMC/HQ/MD/1.01 dated January 31, 2020 signed by Mohammed Umar stated that: “A detail submission was received and acknowledged in your office via a letter from the office of the NNPC Chief Finance Officer (CFO) on the 27th of January, 2020.”

Also, the committee in its fifth letter with Reference No: HR/PAC/SCO5/HR.252/12/2019/275 dated February 4, 2020 while acknowledging the receipt of the PPMC’s letters with Ref. No: PPMC/HQ/MD/11.01 and PPMC/PPMC/HQ/MD/1.01 dated 24th and 31st January, 2020, observed that consolidated group audited accounts centrally submitted on behalf of NNPC and all subsidiaries to the oAuGF, is insufficient evidence to the committee.

Against this background, the committee warned that it would no longer condone PPMC Managing Director’s refusal to honour civil invitation.

It stated: “Be warned that unless you honour this last invitation, the committee may recourse to its legislative powers under Sections 88 and 89 of the 1999 Constitution (as amended) and extant laws to compel your appearance.

“In view of the above, you are to cause appearance before the committee unfailingly on Monday, 10th February, 2020 by 10:00am. You are to come along with officers who are familiar with the issues at stake and may assist you provide answers to any question that could arise during the hearing.”

The committee, worried by the repeated disregard for the Parliament, had via a three-page letter date February 11, 2020 and addressed to the NNPC GMD and Chief Finance Officer, acknowledged the receipt of a letter with Reference No: CFO/11.04, which detailed the response of the NNPC Chief Finance Officer, reaffirmed its stance for the NNPC GMD and heads of all the subsidiaries to submit relevant documents and appear before the committee and give account of their stewardship.

The committee cited the provisions of Sections 85(4), 88 and 89 of the 1999 Constitution as amended which empowers both the oAuGF and the House to carry out investigation into any matter or conduct of affairs of any person, ministry, authority, government departments.

It said: “In view of the foregoing the committee wished to restate its initial request for the production/submission of documents as it relates to the subsidiaries of the corporation and to emphasize that the committee has powers to demand for any paper, book, record or document in possession of any person. The reasons advanced by Umar Ajiya Isa, Chief Financial Officer, are not tenable and do not take cognizance of the constitutional role and powers of the Committee.”

However, in its response to the committee’s request, NNPC via a letter with Reference No: GGM/GPAD/07 dated February 19, 2020 signed by Samson Makoji, on behalf of the Group General Manager, Group Public Affairs Division, said: “We regrettably state that the GMD NNPC, Mallam Mele Kyari, the Chief Financial Officer, Mr. Umar Ajiya, and other key Executives of the NNPC have undertaken a compelling official trip out of the country geared towards the strategic interest of the economy of the nation.

“Arising from the above, honourable Chairman, the GMD has requested that you kindly consider and reschedule NNPC’s appearance at your esteemed Committee to a future date, and do express deep regrets on our absence.”

The committee, however, frowned on the NNPC’s latest letter with Reference No: NNPC/GPAD/008.5 dated 5th January, 2021 signed by Dr. K. A. Olateru, Group General Manager, Group Public Affairs Division, in which he urged the committee to direct all enquiries about Port Harcourt Refining Company (PHRC) to the NNPC Group Managing Director.

“We refer to your letter dated 7th December, 2020 with Ref. No: HR/PAC/SCO5/9NASS/QUE.9/984 to the Managing Director, Port Harcourt Refining Company (PHRC) on the Committee’s constitutional mandate over matters relating to public finance management audit and expenditure and the subsequent resolution of the Honourable House to conduct an in-depth investigative hearing on the refusal of MDAs to render audited accounts to the Auditor General for the examination.

“The Chairman is kindly invited to note that PHRC is a subsidiary company of the NNPC and all budget and audit matters are handled by the corporate headquarters for the NNPC group. Consequently, kindly direct your enquiries as contained in your referenced letter to the Group Managing Director, NNPC.”

The committee while giving update on the development last week Friday unanimously resolved to invoke relevant sections of the 1999 Constitution and Legislative Houses (Powers and Privileges) Act, 2018 on the NNPC and its 17 subsidiaries to appear before the committee unfailingly on the various audit queries of the Office of the Auditor General of the Federation immediately.