Auditor-General queries N2.3tr Excess Crude Account deductions
Home » Featured » Auditor-General queries N2.3tr Excess Crude Account deductions
The 2012 Auditor-General of the Federation (AGF) report has questioned the deduction of N2,308,749,174,308.54 Excess Crude Oil/PPT/Royalty from oil and gas revenue before the balance was paid into the Federation Account.
The query came on the heels of the inability of the Auditor General to obtain a legal authority for the creation of the Excess Crude Oil/PPT/ Royalty Account.
Of the total deductions, N477,448, 498,6 19.22 was drawn in favour of the Nigerian National Petroleum Corporation (NNPC) and N377,264, 685, 789.54 in favour of Department of Petroleum Resources (DPR). The Federal Inland Revenue Service (FIRS) got N1, 454,035, 989,899.78.
House of Representatives Committee on Public Account (PAC), acting on the report on the account of the Federation of Nigeria for the year ended 31st December 2012, said the deductions were in contravention of section 162(1) of the 1999 constitution.
It says: “The Federation shall maintain a special account to be called ‘The Federation Account’ into which shall be paid all revenues collected by the government of the federation, except the proceeds from the personal income tax of the personnel of the Armed Forces of the federation, the Nigeria Police Force, the Ministry or Department of government charged with responsibility for Foreign Affairs and the residents of the FCT”.
The report also discovered payment of various sums of interests to the Federal government’s Excess Proceeds of PPT/Royalty Account accruing from fixed term deposits that could not be established.
It was also reported that $219,247,398 .77 was credited to the FGN Excess Proceeds Crude oil sales account while and $443,844,581.47 was credited to PPT/Royalty Account as interest on fixed term deposits.
In addition, $221,219.79 was credited to the FGN Excess Proceeds of crude oil sales account while $453,803.13 was credited to PPT/Royalty Account as interest on ordinary deposits.
However it was noted in the report that “The authority for placing the funds which yielded the above interests in deposit account was not made available as requested.
“The banks where the deposits were made, principal sums deposited, tenor and rate were also not made available for audit verification as requested.
“During the examination of the statements of the Bank for International Settlement Account of FGN Excess Proceeds of PPT/Royalty Account, the AGF also observed that “an amount of $500m was debited into the account on the 29th August 2012 and described as interest on fixed term deposit.
“The nature/type of transactions that resulted to the debit interest of the above amount was not known.”
Also in the report, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC was queried by the Accountant General of the Federation to provide explanation for the flagrant attitude of withholding domestic crude sale revenue.
The NNPC was indicted in the report for failing to remit revenue from domestic crude oil sales totaling N936,027,634,479.81 as well as $998,881.77 interest earned on the Joint Venture Cash Calls in 2012.
It was also queried for failing to reconcile all arrears of JVCs since inception to the tune of $1,664,986.15 and N171,303,701 being arrears for year 2012.
Furthermore, queries were also issued on the $75.055,277.32 outstanding crude oil trade debtors; unauthorised movement of $50m from NNPC joint venture cash call account with JP Morgan Chase to another foreign bank account on February 28th, 2011 without any mandate or authority for the movement, as well as accrued interest of $1,249,999.99.
N30,259,561,402.73 was also a subject of query for NNPC over deduction of subsidy as well as N260b deducted at source by NNPC for petroleum subsidy fund (subsidy).
The oil corporation was also queried over N229,740,438,597.27 subsidy as reflected in the account of Petroleum Products Pricing Regulatory Agency (PPPRA) approved for NNPC without budgetary provision for the corporation in the Appropriation Act, resulting into extra-budgetary spending on subsidy by NNPC during the year.
The Department of Petroleum Resources (DPR) was also queried in the report over $706,880,265.22 unpaid by 21 oil companies as royalties on oil.
The Accountant General of the Federation has been informed to recover the outstanding royalties.
On its part, the Accountant General of the Federation, in the report was queried to explain the difference of N41,856,530,921.54 as well as pay back total sum of N1,901,213,713,587.07 into the Federation Account, out of which N1,132,619,890,792.96 is for joint venture cash calls (JVCs); N260b is for petroleum subsidy; N477,448,498,619.22 is for excess crude sale and N31,145,324,174.89 under remittance of revenue deducted at source by NNPC from the revenue proceeds in accordance with Section 162(1) of the 1999 Constitution.
In the report, the Accountant General of the Federation was asked to explain why the Federation Account Allocation Committee (FAAC) failed to share N385,908,800,442.40 to the three tiers of Governments out of the total net receipts of N5,682,942,672,167.61 after deducting cost of collection for the year 2012.
It was also observed that Federal Government share of N146,635,051,546.35 was paid directly to a separate SURE-P CBN Account in violation of the Constitution that provides that Federal Government’s share from the Federation Account should be paid directly to Consolidated Revenue Fund.
This was followed by a query on the transfer of the sum of N319,943,121,222.87 to SURE-P from the Federation Account, out of the total sum of N426,590,828,291.16 approved for the programme.
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Home » Featured » Auditor-General queries N2.3tr Excess Crude Account deductions
The 2012 Auditor-General of the Federation (AGF) report has questioned the deduction of N2,308,749,174,308.54 Excess Crude Oil/PPT/Royalty from oil and gas revenue before the balance was paid into the Federation Account.
The query came on the heels of the inability of the Auditor General to obtain a legal authority for the creation of the Excess Crude Oil/PPT/ Royalty Account.
Of the total deductions, N477,448, 498,6 19.22 was drawn in favour of the Nigerian National Petroleum Corporation (NNPC) and N377,264, 685, 789.54 in favour of Department of Petroleum Resources (DPR). The Federal Inland Revenue Service (FIRS) got N1, 454,035, 989,899.78.
House of Representatives Committee on Public Account (PAC), acting on the report on the account of the Federation of Nigeria for the year ended 31st December 2012, said the deductions were in contravention of section 162(1) of the 1999 constitution.
It says: “The Federation shall maintain a special account to be called ‘The Federation Account’ into which shall be paid all revenues collected by the government of the federation, except the proceeds from the personal income tax of the personnel of the Armed Forces of the federation, the Nigeria Police Force, the Ministry or Department of government charged with responsibility for Foreign Affairs and the residents of the FCT”.
The report also discovered payment of various sums of interests to the Federal government’s Excess Proceeds of PPT/Royalty Account accruing from fixed term deposits that could not be established.
It was also reported that $219,247,398 .77 was credited to the FGN Excess Proceeds Crude oil sales account while and $443,844,581.47 was credited to PPT/Royalty Account as interest on fixed term deposits.
In addition, $221,219.79 was credited to the FGN Excess Proceeds of crude oil sales account while $453,803.13 was credited to PPT/Royalty Account as interest on ordinary deposits.
However it was noted in the report that “The authority for placing the funds which yielded the above interests in deposit account was not made available as requested.
“The banks where the deposits were made, principal sums deposited, tenor and rate were also not made available for audit verification as requested.
“During the examination of the statements of the Bank for International Settlement Account of FGN Excess Proceeds of PPT/Royalty Account, the AGF also observed that “an amount of $500m was debited into the account on the 29th August 2012 and described as interest on fixed term deposit.
“The nature/type of transactions that resulted to the debit interest of the above amount was not known.”
Also in the report, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC was queried by the Accountant General of the Federation to provide explanation for the flagrant attitude of withholding domestic crude sale revenue.
The NNPC was indicted in the report for failing to remit revenue from domestic crude oil sales totaling N936,027,634,479.81 as well as $998,881.77 interest earned on the Joint Venture Cash Calls in 2012.
It was also queried for failing to reconcile all arrears of JVCs since inception to the tune of $1,664,986.15 and N171,303,701 being arrears for year 2012.
Furthermore, queries were also issued on the $75.055,277.32 outstanding crude oil trade debtors; unauthorised movement of $50m from NNPC joint venture cash call account with JP Morgan Chase to another foreign bank account on February 28th, 2011 without any mandate or authority for the movement, as well as accrued interest of $1,249,999.99.
N30,259,561,402.73 was also a subject of query for NNPC over deduction of subsidy as well as N260b deducted at source by NNPC for petroleum subsidy fund (subsidy).
The oil corporation was also queried over N229,740,438,597.27 subsidy as reflected in the account of Petroleum Products Pricing Regulatory Agency (PPPRA) approved for NNPC without budgetary provision for the corporation in the Appropriation Act, resulting into extra-budgetary spending on subsidy by NNPC during the year.
The Department of Petroleum Resources (DPR) was also queried in the report over $706,880,265.22 unpaid by 21 oil companies as royalties on oil.
The Accountant General of the Federation has been informed to recover the outstanding royalties.
On its part, the Accountant General of the Federation, in the report was queried to explain the difference of N41,856,530,921.54 as well as pay back total sum of N1,901,213,713,587.07 into the Federation Account, out of which N1,132,619,890,792.96 is for joint venture cash calls (JVCs); N260b is for petroleum subsidy; N477,448,498,619.22 is for excess crude sale and N31,145,324,174.89 under remittance of revenue deducted at source by NNPC from the revenue proceeds in accordance with Section 162(1) of the 1999 Constitution.
In the report, the Accountant General of the Federation was asked to explain why the Federation Account Allocation Committee (FAAC) failed to share N385,908,800,442.40 to the three tiers of Governments out of the total net receipts of N5,682,942,672,167.61 after deducting cost of collection for the year 2012.
It was also observed that Federal Government share of N146,635,051,546.35 was paid directly to a separate SURE-P CBN Account in violation of the Constitution that provides that Federal Government’s share from the Federation Account should be paid directly to Consolidated Revenue Fund.
This was followed by a query on the transfer of the sum of N319,943,121,222.87 to SURE-P from the Federation Account, out of the total sum of N426,590,828,291.16 approved for the programme.
http://ift.tt/1BETsen
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