NNPC, DPR to Explain Zero Collection of Revenue – AuGF

• NNPC, DPR to Explain Zero Collection of Revenue – AuGF

The Auditor General for the Federation, Mr. Anthony Ayine, in his Annual Audit Report for 2016 has said that the Nigerian National Petroleum Corporation ( NNPC ) and the Department of Petroleum Resources (DPR) have cases to answer concerning the non-remittance of revenues for some months into the Federation Account.

According to the report, “It was observed from the CBN Components Statements that no collections were reported into the Federation Revenue Account by some revenue collecting Agencies for certain months of the year. It was not clear from available records why these months recorded no revenue collections and no explanation was provided for this.

“The Accountant-General has been requested to: Obtain an explanation from the Group Managing Director of NNPC and Director DPR for the non-collection of revenue during these relevant months. Ensure that any revenue found due for these months is remitted to the Federation Account, and evidence forwarded for audit verification.”

Ayine added that another abuse of financial regulation of the 2016 budget was found in the illegal movement of monies from two dedicated funds to purposes other than for the mandates of the funds.

He pointed out that monies were moved from the Stabilization Account for States and the Federal Government by the Presidency for the establishment of an Army Barracks and another sum as investment in the Sovereign Wealth Fund.

The two acts, according to him, apart from not being tidy on framework of recovery, are illegal. Just as another case of lending out the Ecological Funds meant to strictly check ecological challenges without records to track recovery.

“From available records, a total of N17,108,583,681.78 accrued from the Federation Account into 0.5% Stabilization Fund from January – December 2016.

“During the examination of Central Bank, Bank Statements for the year, we observed that the sum of N2,812,694,928.36 was funds released to the Nigerian Sovereign Investment Authority (NSIA), and N14,374,728,817.20 to the Federal Ministry of Defense from the Stabilization Fund.

“The Accountant-General has been requested to: Provide the authority for the Funds Invested, tenor of the investment, rate of interest payable, certificate for the funds invested and forward same for audit verification; Explain the utilization of N14,374,728,817.20 for the purpose of funding a new division contrary to the purpose for which the Fund was created; Provide evidence of refund of this sum of N17,187,423,745.56 back to the Stabilization Fund,” the report said.