NNPC took illegal N1.4tn fuel subsidy -NEITI

by EVEREST AMAEFULE

Chairman, NEITI, Mr. Ledum Mitee

The Nigerian National Petroleum Corporation illegally paid itself the sum of N1.4tn between 2009 and 2011 as petrol subsidy, a Nigerian Extractive Industry Transparency Initiative audit report for 2009 - 2011, has shown.
The highlights of the report presented by the Chairman of NEITI, Mr. Ledum Mitee, to journalists in Abuja, also showed that the NNPC owed the Federation Account a whopping N1.3tn.
Further, the report showed that the corporation which is the custodian of the nation's oil resources, received $4.48bn from the Nigerian Liquefied Natural Gas which it has yet to remit to the Federation Account.
NNPC, it was also reported, engaged in foreign exchange scam by using exchange rates lower than what was obtainable at the Central Bank of Nigeria in its transactions. The scam led to the loss of N98.3bn by the government within the period of three years (2009 - 2011).
Similarly, operators in the oil and gas sector engaged in under reporting quantities they produced for the purpose of Petroleum Profit Tax assessment. This scam led to the loss of $2.65bn.
The report also showed that the unresolved difference between what the government received and what companies claimed they paid amounted to $68.4m
Another $311.85m represented cash flow to the Federation Account as claimed to have been paid by operators in the sector but the payments had not been confirmed in CBN statements.
The report indicated that Nigeria made $143.5bn (about N22.35tn) from oil and gas operations between 2009 and 2011. It also showed that the subsidy claims by the NNPC grew astronomically within the three years covered by the report.
Mitee said, "The financial report clearly underlines that contrary to the practice where subsidy payments are claimed from the Petroleum Support Fund through the Petroleum Products and Pricing Regulatory Agency by the qualifying oil marketing companies, the NNPC draws subsidy payments directly from domestic crude sales proceeds before remittances to the Federation Account.
"As a result, a sum of N1.4tn was claimed during the period by the NNPC as oil subsidy payments. Subsidy payments claimed by the NNPC increased by 110 per cent. For example, it rose from N198bn in 2009 to N416bn in 2010.
"In 2011 alone, it rose to N786bn. The increase between 2009 and 2011 alone was 186 per cent. The physical and process audit expected to be released in March is currently carrying out further validations on subsidy payment transactions to include other marketers.
"Another important revelation of the report is that financial flows from the NLNG include dividends and repayment of loans of which an amount of $4.84bn was received by the NNPC.
"The report confirmed that these amounts have not been remitted neither to the CBN/NNPC JP Morgan Account nor the Federation Account.
"Furthermore, the report observes that this has been a recurring issue as an amount of $3.99bn was also reported as received but not remitted by the NNPC in the previous audits.
"The audit report also reveals that the NNPC owes N1.31tn to the Federation Account as of December 31, 2011. This is a trade debt. This is because the sum of N928bn falls within the 90 days permissible period, leaving a balance of N377bn which the NNPC is currently paying by installment to the Federation Account."
When contacted, NNPC's General Manager, Media, Dr. Omar Ibrahim, said the corporation had yet to see the report.
"We have not seen the report. When we see it, we will study it and then respond. What we can assure Nigerians is that many of such reports had come out and they turned out to be false. A typical example is the Auditor-General's report that was released last year," he said.
The total fund accruing to the nation, according to the report, came through proceeds from the sales of equity crude, royalty, signature bonus, concession rentals, gas flaring penalties, PPT and companies income tax.
Mitee said, "A breakdown of these earnings shows that sales of crude oil and gas within the period under review amounted to $81.9bn. The total sum of revenues that accrued to government from PPT, royalty, signature bonus, gas flaring penalties and concessional rentals amounted to $45.7bn; revenue from companies income tax, value added tax and withholding tax within the period amounted to $6.1bn, while the sum of $4.8bn was reported as revenue from dividends and repayment of loans by the NLNG.
"The total cash flow to states arising from withholding tax and PAYE was $1.5bn while the total cash flow to other entities arising from the contributions to Niger Delta Development Commission and education tax was $3.2bn.
"The total financial flow represents a decrease of four per cent from what government earned in the sector in 2006 to 2008 when compared to total flow of $148.8bn as against the reported government earnings of $143.5bn for 2009 - 2011."
Mitee explained that the decrease was largely due to adjustments in the applicable average oil price despite fairly consistent production volumes.
Mitee said from the alleged scam of under reporting that led to under assessment of $2.65bn, a total of $442m had been recovered while some operators affected in the allegation were threatening legal actions.
He also disclosed that some companies refused to collaborate with NEITI and its auditors in the process of compiling the report.
The companies include NECONDE Energy Limited, SEPTA Energy Limited, Energia Limited and Emerald Energy Resources.
The NEITI chairman said the organisation would impose appropriate sanctions on the companies in accordance with its ( NEITI ) enabling Act.
The report said there was a need to confirm the ownership of the 49 per cent investments in the NLNG - whether it was for the benefit of the federation, the Federal Government, or the NNPC.
It called on the Federal Government to consider reviewing the daily allocation of 445,000 barrels per day to the level of available local refining capacity to avoid the gap process.
The report said, "Domestic crude oil sale proceeds should be paid to the CBN in the currency of sales, where it should be converted at the appropriate rate by the apex bank and then moved into the Federation Account. This is to forestall the exchange rate shortfalls.
"NNPC should promptly pay its debt to the federation. The Federal Government should review the deduction of subsidy claims from the proceeds of domestic crude by NNPC to align them with due process like other marketers who draw their subsidy claims from PSF.
"All revenues accruing to the Federation Account should be subject to provisions of the appropriation act and in accordance with the constitution. The CBN, the Federal Inland Revenue Service, and the Office of the Accountant-General of the Federation should meet and reconcile these payments. To avoid recurrence, regular reconciliation exercise should be carried out within the year of transaction."
It added that the NNPC should disclose all contingent liabilities in its financial statements to promote transparency and accountability, especially on alternative financing arrangements. 
Punch

Tunde Bakare Lashes Out At CAN Again

Fiery Pastor and serving Overseer of the Latter Rain Assembly, Pastor Tunde Bakare, has again lashed out at the leadership of the Christian Association of Nigeria (CAN), saying the body has become nothing more than a political appendage of the government.

Speaking during the Sunday service in his church at Ogba area of Lagos State, the controversial cleric questioned the moral judgment the leadership of CAN had to criticise and call the ex-Federal Capital Territory (FCT) Minister, Mallam Nassir el-Rufai, a “bigot” over recent statements which, he claimed, did not originate from the former minister.
“It is rather unfortunate that CAN has chosen to confirm its description by the Catholic Church as an arm of the government in power, by fanning the propaganda of agents of the administration that El-Rufai is a bigot for a statement that did not originate from him and whose meaning should be clear to non-mischievous persons,” Pastor Bakare.
“This is nothing but feeding on mass neurosis and widening the gap between people of different faiths in the country. Is CAN saying the gentleman, who wrote the offending statement and happens to be a Christian is a bigot?” he queried.
Speaking further, Pastor Bakare wondered why both the government and the leadership of CAN had not found suitable answers to a recent challenge thrown at the government by the former Minister of Education and Vice-President of the World Bank, Dr Oby Ezekwesili.
Bakare wondered why the government would rather choose to verbally assault Dr Ezekwesili through its various spokespersons, adding that “it is wrong to attack the messenger while ignoring the message.”
Speaking in the same vein, the lawyer-turned pastor and convener of the Save Nigeria Group, likened the situation in Nigeria to that of a house with a leaking roof, which needed corrective measures to prevent it from total collapse.
He therefore opined that one major way for Nigeria to be saved from total collapse was for the country to be given the “Ghanaian treatment.”
Commenting on the proposed merger between the Action Congress of Nigeria (ACN) and the Congress for Progressive Change (CPC), with a view to wresting power from the Peoples Democratic Party (PDP)-led government, Bakare insisted that unless the merger was built with the genuine mind to save the nation, it would fail.
Naij

Hillary Clinton Nails It In One Sentence

Anyone who thinks that women are no longer being oppressed is sadly misinformed. One of Hillary Clinton's most important tasks for the future is to continue to champion equality and feminism in America. Also, please tell people not to mistake feminism for female supremacy, because that's absolutely not what feminism is.

Rollie Williams

Upworthy

Are Nigerians returning from the US or UK helping or hurting Nigeria? – Nigerians speak

Battabox recently shot a video where it asked Nigerians if Nigerians returning from the US or UK are helping or hurting the country. The responses they received were interesting.
“I don’t think they are helping,” says one man. “They are just coming in to cash in on the ample opportunities in this country to get on and deteriorate – because Nigeria is a consuming environment.”
“People coming from the UK – most of them have gone there to struggle so they can’t be coming back to help us!” says another man.
However others beg to differ. “They come back and want Nigeria to function like in the West so that is a good thing,” says an older gentleman.
Watch the video below and share your thoughts in comments.
CP-Africa

“They planned to sack Keshi” – Uchegbulan tells President Jonathan

By Phillip Eta

Amanaze Uchegbulan, the former Vice President of Nigeria Football Association, has sent words to President Goodluck Jonathn, revealing the the Sports Minister, Bolaji Abdullahi and the federation, had already concluded plans to sack Stephen Keshi.
Keshi led his boys to an impressive 2-1 victory over favourites Cote d’Ivoire on Sunday, but Amanze said most of the people who praised him, wanted him out.
“Many of those commending Stephen Keshi yesterday for Nigeria’s victory against Ivory Coast had concluded plans to sack him,” he said on Sunday.
According to him, there was even a plan at a time, to boot Keshi out, while the Africa Cup of Nations was ongoing.
“At a time, they were even considering sacking Keshi in South Africa. Later, they wanted to sack two of Keshi’s assistant coaches.
Amanze went ahead to throw his support around the former Togo boss, insisting that he was on the right track and building a team for the future.
“Look at the game the Eagles played today. Great game. Great game. I told them that Keshi is building a team and that he was on the right track.

“But the minister wanted him out and the federation bought his plan. I wish the Presidency could have somebody who understands sports and who will help in advising them on the right way to run sports. Many of the people congratulating Keshi now including the minister wanted to sack him.
“They have concluded that he would go after the Nations Cup. But look at the game Nigeria played under Keshi today.
“Superb game. Please, let them leave them to continue the good work that they are doing. It takes time to build a solid team and Keshi and his colleagues are doing the right thing.”
DailyPost

Victoria Jackson, Former 'SNL' Comedian, Calls For 'White History Month'

The Huffington Post  |  By Ron Dicker  

Victoria Jackson (pictured at the Republican Convention) says white men should be encouraged "to save our country."

Victoria Jackson, former "Saturday Night Live" comedian turned ultra-conservative gadfly, delivered a rant on Thursday in which she targeted "Black History Month" and suggested that whites ought to create their own annual celebration.
"Now, that the white race is becoming a minority in America, perhaps we need to make ... say, January, White History month," she wrote on her website, according to the political blog Wonkette.
Jackson later took down her screed, but Wonkette and the Hollywood Reporter reported most of it.
Jackson wrote that America's decline parallels the end of white men's dominance, then offered this:

'Find a white, middle-aged Christian man today and hug him. And then, encourage him and your white Christian sons to stand up, be leaders again, and save our country from the God-hating communists like Alec Baldwin and Obama."

Head over to Wonkette for the complete text.
None of the above should come as a surprise; Jackson, 53, is decades removed from her show business glory at "SNL" but has found a new public platform in venting controversial beliefs.
Among other recent declarations, Jackson agreed with a friend's statement equating the Sandy Hook killer with doctors who do abortions, defended Rep. Todd Akin's views on rape by saying she would be "blessed" to have a child whose father raped her, and blasted the gay characters on "Glee."
She wasn't a big fan of Occupy Wall Street, either.

Youths Lock Catholic Church, Demand Priest's Removal

The Holy Family Catholic Parish, Uratta in Owerri North Local Government Area of Imo State was yesterday locked by youths of the parish preventing the parish priest from conducting a church service. The angry youths numbering over 100 were said to have stormed the church as early as 5.30am and locked the main entrance of the church with two big padlocks.

They also hoisted fresh palm fronds at the front of the church gate. The youths who were wearing black clothes barricaded the entrance of the church demanding the immediate removal of the parish priest, Rev. Fr. Raymond Onuoha, accusing him of hardness, lack of respect for the parishioners and under-development of the parish. Some of the placards displayed by the youths read: "Enough is enough", "Fr. Raymond, you have over-stayed", Fr. Onuoha, we are not fools, our silence is not cowardice", "You must leave", "Onuoha, Uratta parish has remained under-developed", "You denied St. Anthony station Owaelu mass because of money".
The spokesman of the demonstrating youths, Mr. Brendan Onyemaucheya alleged that the parish generated enough money yet it remained undeveloped. According to him, there was no meaningful development at the parish after the exit of Fr. Obiukwu despite the huge sums contributed by six stations of the parish. He further alleged that the embattled parish priest taxed the stations heavily without considering the numerical strength. Efforts to enter into the church premises to speak to the parish priest, Fr. Onuha, failed as the youths barricaded the entrance.
The parishioners who arrived for the first Sunday mass service of the month were astonished as opinions were divided on the action of the youths. While some of the parishioners supported the move by the youths, others called for caution saying the youths should adopt dialogue to resolve the matter.
Reacting, the Archdiocese’s Director of Commination, Rev. Fr. George Nwachukwu condemned the action of the youths saying they would have channeled their grievances to the Archbishop, Most Rev. Anthony Obinna, for peaceful resolution.
According to him, the Catholic Church has a way of resolving its problem not through what he called barbaric act. He, however, stated that the demonstrating youths might not be Catholic faithful.
Naij