NNPC’s Inefficiency Cost FG $65m – KPMG

A report by international audit firm, KPMG yesterday revealed that Nigerian National Petroleum Corporation’s (NNPC) inefficiency in dealing with demurrage, cost the country of 65million dollars between 2007 and December2010.

The audit firm whose representative appeared before the senate panel investigating the management of fuel subsidy also informed that Petroleum Products Pricing Regulatory Agency (PPPRA) fraudulently paid about N25 billion to oil markers and that the agency also granted unregistered companies as well as companies which had failed to deliver in the past its nod to import fuel into the country.

This revelation comes as the senate committee summoned minister of finance, Dr. Ngozi Okonjo Iweala and the former executive secretaries of the PPPRA to appear before it on Tuesday, next week over the subsidies. The committee also placed a subpoena on the chief executive officers of Folawiyo, Oando plc, to appear before it.

Representative of KPMG, Dimeji Salaudeen, stated that the report which has been submitted to Mrs. Okonjo Iweala, revealed that PPPRA did not comply with laid down procedures for issuance of import permit.

Salaudeen who claimed that the audit was at the instance of the finance minister said “unregistered companies, companies undergoing registration process got allocation, companies with historical poor performance based on PPPRA recommendation in deliverance also got allocation,” he said.

He also declared that the executive secretaries operated as sole administrators in the allocation of import permits, adding that the governing council of PPPRA was very weak as, “there was no sufficient inclusion of the board in carrying out critical decisions.”