Senate Probes Kyari, Ajia, Bala Wunti Over Alleged N210trn Missing Funds, N5bn NNPC Transition Expenses

Immediate past Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, former Chief Financial Officer, Umar Ajia Isa and former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Dr. Bala Wunti are currently in fresh trouble over an alleged N210 trillion that auditors say was not properly accounted for between 2017 and 2023.

The trio, as a result have been summoned by the Senate Public Accounts Committee, warning that it would not hesitate to issue warrants of arrest against the former officials if they fail to honour the summons when the committee communicates a new date for their appearance.

The resolutions followed a meeting of the committee on Thursday where lawmakers reviewed audit queries relating to the financial records of the national oil company.

Chairman of the committee, Aliyu Wadada Ahmed, who briefed journalists after the meeting, said the former NNPCL management team is expected to appear before the panel alongside the current leadership of the company.

According to him, the present GCEO of NNPCL, Bayo Ojulari, is expected to lead the former officials and other relevant personnel, including external auditors who handled the company’s accounts during the period under review.

Daily Sun reports that Wadada said the committee’s decision followed what it described as unsatisfactory explanations from the oil company regarding queries raised in the audited financial statements covering the years under investigation. He explained that the Senate panel discovered discrepancies involving a total of N210 trillion, comprising N103 trillion linked to joint venture cash calls and another N107 trillion recorded as subsidy-related receivables and other sundry debts.

Advertisement

“The NNPCL should refund the sum of N210 trillion being the combined sum of N103 trillion and N107 trillion which were not properly accounted for as contained in the audit reports. NNPCL should and must account for the two figures.”

Wadada added that the committee also resolved that all production costs charged against crude oil revenue during the period should be remitted to the Federation’s treasury.

According to him, the decision was based on the committee’s position that the Nigerian National Petroleum Corporation and its subsidiaries, including NAPIMS, do not directly produce crude oil and therefore should not charge such costs against national oil revenue without proper justification.

Wadada said the committee also directed that the Office of the Auditor-General for the Federation conduct a comprehensive forensic audit of the NNPCL’s financial statements for the period under review.

The exercise, he explained, would be carried out in line with Section 85 of the 1999 Constitution, which empowers the Auditor-General to audit the accounts of government agencies and public institutions.

Beyond the larger financial queries, the committee also raised concerns over a reported N5 billion spent by the national oil company during the transition from the Nigerian National Petroleum Corporation (NNPC) to the Nigerian National Petroleum Company Limited (NNPCL).

Advertisement

The transformation followed the implementation of the Petroleum Industry Act (PIA), which converted the former corporation into a limited liability company.

However, the Senate panel questioned the justification for such expenditure.

“This committee also wondered how the NNPC spent a whopping sum of N5 billion on the change of name from NNPC to NNPCL.

“To us in the committee, this is unacceptable and satisfactory explanations must be provided.”

Wadada further disclosed that the committee had earlier issued 19 specific queries to the oil company based on issues flagged in the audit report, but the responses received from the organisation were considered inadequate.

According to him, the company claimed that the N103 trillion represented cumulative amounts spent by joint venture partners through cash call arrangements dating back to 2017.

Advertisement

The committee, however, rejected the explanation, insisting that the figure still remains unresolved in the company’s financial records.

“NNPCL responded that the N103 trillion represented cumulative amounts expended by NNPCL joint venture partners from JV cash calls since 2017.

“For us, this response is unacceptable and the figure of N103 trillion is still lingering and hanging on NNPCL.”

He also cited another N107 trillion captured in the company’s audited financial statements as subsidy receivables.

According to him, the document indicated that as of December 2023, the NNPCL listed the amount as sundry receivables allegedly owed by several banks and other entities.

“The subsidy receivables according to the audited financial statements stood at N107 trillion.

Advertisement

“As at December 2023, NNPCL recorded N107 trillion as sundry receivables which it claims are owed by different banks and other entities.

“When you combine the N103 trillion and the N107 trillion, NNPCL must properly account for N210 trillion.”

Despite the strong position taken by the committee, Wadada said the Senate remained supportive of the efforts of the Federal Government to strengthen transparency and accountability in the management of public funds.

He noted that the committee’s actions were in line with the commitment of the administration of President Bola Ahmed Tinubu to ensure probity in public institutions, particularly in the oil and gas sector which remains the backbone of Nigeria’s economy.

“The committee reaffirms its legislative support to the administration of President Bola Ahmed Tinubu which is working to ensure transparency, probity and accountability in the management of public funds,” he said.

The lawmakers are expected to communicate a new date for the appearance of the former NNPCL officials as investigations into the financial records of the national oil company continue.

Advertisement