Still On “Missing” $20 Billion: NNPC Audit Report Exposes Double Subsidy Payments on Kerosene & Petrol

PricewaterhouseCoopers (PwC) has conducted an audit regarding the $20 billion oil money that former Central Bank of Nigeria (CBN) governor, Muhammadu Sanusi claimed NNPC failed to remit to the federation account.

 

Here are some excerpts of what the audit revealed, as reported by The Cable:

The PwC report, which was ordered released to the public by Jonathan on Monday, did not corroborate Sanusi’s figure but the findings were no less damning. PwC stated in the report that in the payment of subsidies for petrol (PMS) and kerosene (DPK) between January 2012 and July 2013, that there were gaps between what was paid and what was supposed to be paid.

It put the difference at $980 million (about N195 billion) and alleged “duplicated discharges” in subsidy computation. “Our review of the subsidy documentation revealed that the subsidy due to NNPC between January 2012 and July 2013 on PMS and DPK import was $8.99billion compared to the $9.97 billion stated by the Reconciliation Committee.

“The difference was due to the following: Exclusion of October 2011-December 2011 subsidy claims of $1.2billion. This does not relate to the review period of January 2012 to July 2013; $0.13billion increase in PMS subsidy claimed for the 19 months period, $0.09billion increase in DPK subsidy claimed for the 19 months period; duplicated discharges noted in subsidy computations “Our examination of the PMS and DPK import verified by PPPRA revealed that some discharges were apparently verified and subsidy advised to NNPC more than once,” the report said.

PwC alleged “repeated subsidy” for PMS amounting to N3,709,879,190 ($23,954,796) and another “repeated subsidy” for DPK amounting to N6,169,502,266 ($39,836,652). It said the there was another $36.05 million “over-statement” in PPPRA’s PMS subsidy payment advice to NNPC.

Read the full report on The Cable