The Nigerian National Petroleum Corporation (NNPC) yesterday explained how the alleged missing $10.8 unremitted fund was spent, insisting that money was never missing. Addressing a press conference in Abuja, the Group Managing Director of NNPC, Engr. Andrew Yakubu, stated that the sum in question had been expenditure incurred as part of statutory responsibilities which the corporation executed on behalf of the federal government.
Yabuku, who was represented by the Group Executive Director, Finance and Accounts, NNPC, Mr. Bernard Otti, stated that the $10.8 billion was still undergoing through normal process and procedures of accounting reconciliation.
The NNPC boss gave the breakdown of the expenditure stating that subsidy claimed was $8.49 billion, pipeline management and repair costs, $1.22 billion, products/Crude oil losses, $0.72 billion and cost of holding strategic stock reserve $.37 billion, adding ‘these are being subject to the normal inter-agency reconciliation exercise.’
He said: “It is our duty in NNPC to continue to inform the general public the things are the way they are, and what we are saying at this time is that $10.8 billion is not missing, rather it is undergoing the normal process and procedure of accounting reconciliation.
The $10.8 billion reflects the expenditure incurred by NNPC in the period under review and are made up of the following: subsidy claimed is $8.49 billion, pipeline management and repair costs, $1.22 billion, products/Crude oil losses, $0.72 billion and cost of holding strategic stock reserve $.37 billion”.
Saturday Mirror recalls that Central Bank of Nigeria (CBN) governor, Mallam Lamido Sanusi Lamido had raised the alarm over the unremitted funds in a letter sent to President Goodluck Jonathan which was leaked to the media.
After series of interagency meetings clarifications were made by the Coordinating Minister of the Economy and Minister of Finance, Dr. Ngozi Okonjo- Iweala; Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke; Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi; and Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Andrew Yakubu at a joint press conference where the parties assured that $30 billion had been reconciled while reconciliation of the outstanding $10.8 billion was still on-going.
“It is pertinent to use this medium to address certain concerns on the legality of expenses incurred by the corporation in the course of discharging the above enumerated mandates on behalf of the Federal Government and people of Nigeria.
“Let me assure you that as a law-abiding corporate entity NNPC’s processes and procedures are guided by the provisions of the law. Whatever expenditure we have incurred in the discharge of the above national responsibilities are backed by the law setting up the corporation, section 7 Sub-section A and B of the NNPC Act states interalia: the corporation shall maintain a fund which shall consist of (a) such monies as may, from time to time, be provided by the federal government for the purposes of this Act by way of grants or loans or otherwise howsoever; and (b) such monies as may be received by the corporation in the course of its operations or is in relation to the exercise by the corporation of any of its functions under the Act, and from such fund there shall be defrayed all expenses incurred by the corporation,” the GMD cited.