KPMG report: 20 Nigerians EFCC should interrogate

The NNPC, the KPMG says, is a House of fraud

The now-famous KPMG report, uncovered by Premium Times after over a year in government’s closet, provides a most ample insight into the endemic corruption in Nigeria’s petroleum sector, headlining in forensic details nauseating and shocking systemic abuses in all aspects of our oil and gas industry.

From unauthorized violation of OPEC oil quota for Nigeria, to outright falsification of the exchange rates used for defraying government oil revenue, to barefaced exploitation of the subsidy regime, the report is clear and unequivocal  in its observations  conclusions.  It not only highlighted how rotten the industry is but it also clearly indicted officials and departments found to be involved in monumental corruption.

Although names were not mentioned in the report, a detailed analysis of the document by Premium Times has thrown up at least 20 government officials and businesspersons who have questions to answer as far as the audit is concerned.  Interrogating these persons is a good starting point for the Economic and Financial Crimes Commission, which has been mandated by Mr. President to probe the monumental corruption in the oil industry.

Olusegun Aganga

Mr. Aganga commissioned the audit of the NNPC and the PPPRA, which yielded the KPMG report. He was finance minister between April 2010 and June 2011. Mr. Aganga has explanation to make regarding why he failed to act on the report after it was submitted to his ministry. He also needs to explain whether indeed his ministry failed to forward the report to the petroleum minister as claimed by Mrs Diezani Alison-Madueke.

Diezani Alison-Madueke

She was in charge of petroleum ministry at the time the audit was completed. Mrs. Madueke told the House of Representatives ad hoc committee on management of subsidy on Tuesday that the report had not been acted upon because a copy was yet to be officially served her.

That should be done in the “next course of days,” she said, after which all the mentioned institutions under the ministry will “sit and reconcile” the findings.

But most of the corrupt practices identified by the audit has festered even under her leadership of the ministry. She has a lot of explanation to make, especially regarding the allegation that she ordered the PPPRA to shake down marketers shortly before the 2011 general election, to purportedly raise funds for the president’s campaign.

Femi Otedola

He is  owner and chief executive officer of Zenon Oil, which was named in the report amongst the unlisted off-takers that illegally got crude oil allocations in 2008. He has to explain how his company bypassed due process and cornered contracts even without being on the approved list of buyers for that year.

Aminu Dantata & Sayyu Dantata

They are the principals at Ovlas Trading and Supply also named in the report as one of the unlisted off-takers in 2008. They need to explain how they sneaked into the list and got allocation without following laid down procedure. While billionaire Aminu Dantata owns the company, Sayyu Dantata is the Chief Executive Officer of the group, named MRS, which also has Koggi Shipping, MRS Oil & Gas and MRS Investments.

Wale Tinubu
The report also listed Oando as one of the companies that earned illicit award of petroleum product importation contract even when they were not part of the approved prequalification list used for the fourth quarter of 2008 importation tender. The CEO of the company is Wale Tinubu.

Augustine Olusegun Oniwon

Mr. Oniwon currently serves as the group managing director of the Nigerian petroleum corporation(NNPC), the main focus of the independent audit. During the period reviewed by the audit (2007-2009), he was the group general manager, research and development, a position he held between 2005 and 2009.

The top-notch position, though not directly related to importation of refined products and subsidy payments, is a managerial position with the officials privileged to key decisions of the corporation. Still, Mr. Oniwon’s current position as the GMD allows him full access to records and information of past and present procedures including the fuel subsidy payment, exchange rate, manipulations in the award of contracts for importation and others.

Abubakar Yar’adua

Mr. Yar’adua acted as the GMD between 2007 and January 2009, and a greater part of the tenure came under the KPMG investigations. He should provide responses to the questions stretching the many alleged sharp practices in the industry during his time in office.

Mohammed Barkindo

As GMD between January 2009 and 2010, he supervised a corporation that sustained the same practices and procedures according to the report. He should avail investigators with answers to multiple areas of concerns. 

Chris Ogiemwoyi

Only a few NNPC portfolios are explicitly mentioned in the report as the group executive director(GED) in charge of exploration and production, the GED in charge of commercial and investment and the GED in charge of account and finance.

The GED for E&P is named in connection with poor documentation of petroleum imports data, controversial review of official selling price of crude, and the dubious reduction of selling price of crude for NNPC, different from that given to other off-takers. Mr. Ogiemwoyi, a former minister of state for power, held that office for the period under review.

Shehu Ladan

Mr. Ladan, who later became the GMD of the corporation, was in charge of the commercial and investment directorate during that time. But for the fact that he has transited to the world beyond, he would have been at an immensely vantage position to shed light on most of the issues raised by the audit, given the two key roles he held while in the NNPC.

Stanley Lawson

Mr. Lawson was the GED for finance and accounts from December 2004 to April 2009, one of the longest terms ever for that very crucial portfolio. On his Linkedin page, Mr. Lawson is currently profiled as a Managing partner at Financial Advisory and Investment Consultants Limited.

Besides the GMD, the office would be most privy to nearly all operations reviewed by the audit, according to the report.

Aminu Babakusa

“Potential conflict of interest with COMD acting as agent to government and being under NNPC who is also its customer.”

That is the position of the report on the practice whereby crude sales to the NNPC were at lower prices than the official selling price, and that given to other dealers, a practice that resulted in significant revenue loss to the federation.

Between 2007 and 2009, the period primarily covered by the KPMG report, Mr. Babakusa was the Group General Manager in charge of Crude Oil Marketing Division(COMD). He was also the GED C&I briefly in 2009, and currently is the GED in charge of Business Development.

Michael Abiodun Arokodare

Mr. Arokodare is the current GED for Finance and Accounts. He took over from Mr. Lawson in 2009 after serving as a GGM in the directorate between 2007 and 2009. He should provide vital information and answers particularly with several of the past messy procedures believed to be continuing.

Gaius Obaseki

Many of the noted malpractices held on for years ahead and after the report’s review period of 2007 to 2009, it is believed. Mr. Obaseki is expected to appear before the ongoing investigation of the House of Representatives of the subsidy management and should be key to past investigation based on the KPMG report. He was the GMD between 1999 and 2003.

Funso Kupolokun

His was another controversial era expected to play a key role in any major probe. Mr. Kukpolokun headed the NNPC  since November 2003 to august 2007, partly covered by the report.

Oluwole Oluleye

Many of the alleged abuses by the NNPC were carried out, and still are, with the understanding of the Petroleum Products Pricing Regulatory Agency(PPPRA). Key amongst others is the subsidy payment management. The report indicts the NNPC for deducting the money at source without the required approval of the PPPRA, and at many times the corporation overpaid the subsidy charges.

At the helm as the PPPRA Executive Secretary from 2003 to 2009, was Mr. Oluleye. A government investigation into the disbursement of the Petroleum Support Fund by the PPPRA led to his suspension in 2008, and eventual removal from office in 2009.

Abiodun Ibikunle

Mr. Ibikunle took over as the Executive Secretary between 2009 and 2011. His tenure was marked by allegations by unions, oil dealers and lawmakers accusing him of lack of transparency. He assumed the position after working at the Department for Petroleum Resources(DPR).

Reginald Stanley

Mr. Stanley headed the Pipelines and Product Marketing Company (PPMC), another major subsidiary named in the report. The company is mentioned in connection with discrepancies noted in the volume of products allocated to marketers in various parts of the country, and a sub-optimal use of government-owned storage facilities which has led to an outsourcing of the demand and resultant loss of revenues to the nation.

Aliyu Sabon Birni

The Department of Petroleum Resources is named amongst others under the manipulated subsidy payments, and the unauthorized violation of OPEC quota for Nigeria and the Technical Allowable(TA) quota for monthly production.

“Non-adherence to TA has a potential to negatively impact on the country’s oil and gas reserves projections and plans,” the report said, citing instances where the TA was exceeded by Total and Chevron, NAE and Esso in 2010. Mr. Birni was the DPR Director in 2008.

Billy Agha

Mr. Agha was in charge of the Department of Petroleum Resources in 2009 and has a deep insight of the rot and monumental corruption in the industry during the period.


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