How Diezani ignored due process in handling of N59.44 billion ‎NNPC funds – Audit Report

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The 2015 audit report of the Federation Account has uncovered how the embattled former Minister of Petroleum Resources, Diezani Alison-Madueke, usurped National Assembly powers to draw billions in cash from the joint venture cash calls account without appropriation.

The report published last month by the Office of the Accountant General of the Federation, AuGF, showed how Mrs. Alison-Madueke unilaterally approved the withdrawal of about N59.44 billion from the two accounts belonging to the Nigerian National Petroleum Corporation, NNPC.

About $292.09 million was withdrawn from the NNPC JVCC JP Morgan Chase Account in London, while another N2.47 billion was from the NNPC JVCC CBN (Central Bank of Nigeria) naira account, for purposes outside the objectives the funds were provided for by the government.

Apart from the abuse of due process in getting approval for the release of the funds, the report said the release of $289.2 million (about N56.97 billion at 2015 year end rate of N197 to $1) to the National Intelligence Agency was in “cash”.

An additional $2.89 million was charged by the CBN as commission on the transaction, bringing the total amount disbursed to $292.09 million.

The report said the NIA had sought President Goodluck Jonathan’s approval for the release of the funds “for the procurement of 13 items of expenditure to enable NIA to respond to the nation’s mounting diverse and complex security challenges.”

However, the audit team said it found no evidence President Jonathan granted the NIA’s request, other than a minute on the memo to former Minister of Petroleum Resources, Diezani Alison-Madueke, seeking the release of the funds from the NNPC Security votes.

It was not clear who sent the minute to the minister, or which authority the NNPC/NAPIMS relied on to disburse the funds, the report stated.

Apart from not disbursing the funds into an identified NIA official account, the report said NNPC/NAPIMs “mandated the CBN to make the payment in cash to the NIA DG,” an arrangement the report noted was ‘in violation of the existing government policy on e-payment for huge sums.”

Describing the transaction as “highly irregular”, the report observed that the “payment was neither budgeted for nor appropriated by the National Assembly.”

Another N2.474 billion disbursed to the Chief of Naval Staff Operations’ Main Account, the report said, was said to be for “payment of rent of 13 houseboats deployed under Joint Task Force Operation “Pulo Shield” in the Niger Delta.”

But, the report noted that “no list of these houseboats’ owners, the boats and the respective amounts due to each totalling the N2,474,295,000.00 disbursed was attached, or presented for audit verification.”

“All these payments were directed to be disbursed from the NNPC Security Votes. No detailed budget of the Joint Venture Operations was presented for audit verification, to confirm the provision of such huge amount as security votes, and whether these payments were included in such provisions,” the report added.

The NNPC GMD, along with the Managing Director of the investments management arm, the National Petroleum Investments Management Services, NAPIMS, were expected to explain who approved the suspicious transactions and transfers without appropriation in the 2015 Budget by the National Assembly.

Both are expected to also justify why the CBN made the transfers as well as evidence of interest payments on the account.

Besides, details from the final report, which has since been presented to the National Assembly, also revealed the irregular transfer of over $2.06 billion by the NNPC between the JVCC JP Morgan Chase Account and the Bank of International Settlement, BIS without proper authorisation and documentation.

Between August 20 and October 22, 2015, the report said, the audit team observed “suspicious inflows of about $950 million and outflows of about $1.1 1billion from the BIS account.”

“The purpose and authority for which these funds were transferred to and out of this account to the BIS Account could not be ascertained, as relevant information, in form of Mandates and other necessary approval memos were not made available,” the report noted.

Following an audit scrutiny, the report said it was found that the bank statement of the controversial account did not even bear any customer number.

Also, there were no records of any interest received and paid into the Federation Account from the account, despite its positive balance of about $1.077 billion (about N212.18 billion) as at December 31, 2015.

Equally, the NNPC top management has questions to answer over a dollar-denominated account considered illegal and unknown to the federal government but kept by the corporation for the collection of revenues from gas sales.

About $100.64 million (about N19.8 billion) in the account titled, “Nigeria Gas Limited, NGL, Funding Account,” was said to be from gas sales as feedstocks to the Nigeria Liquefied Natural Gas, NLNG. The amount was due to the Federation Account but was not paid in full.

Rather than the Federation Account, the report observed, part of the money was transferred to dedicated escrow accounts belonging to the Maritime and Coastguard Agency, MCA and Niger Delta Petroleum Resources Limited, NDPR.

NDPR is a subsidiary of the Niger Delta Exploration & Product, NDEP, Nigeria’s first integrated oil and gas company.

“The purpose of this account was not made known to audit, likewise, the benefit of the operation of the account to the Federation,” the report noted.

Between January and December 2015, the report said, auditors found that about $94.07 million was transferred to the MCA Escrow Account, against $6.567 million into the NDPR’s Account.

However, the report noted that relevant documents relating to the operation of these accounts, namely cash books, bank statements, mandates, and payment voucher details, were not made available by NNPC for audit examination.

The AuGF said details on the utilisation of about $30.96 million (about N6.099 billion) realised from gas sales paid through the account could neither be ascertained nor confirmed in the Federation Account.

Also in this case, despite several requests, the report said the NNPC management failed to present for audit examination all the relevant documents, including cash book, bank statements and mandates.

About seven firms identified as customers were found to have made various payments into the account.

They include Century Energy Serv. Limited, United Refining Kachmann, Union Petroleum Services, Ocean Bed Trading Limited, Ice Energy & Petroleum, Mangrove Petroleum Supplies & Logistic and Unicorp Trading Limited.

The Group Managing Director of NNPC was asked to explain the purpose of the escrow accounts and the benefits to the three tiers of governments, as its operation remained suspicious.

When contacted via telephone last Tuesday, the NNPC Spokesperson, Ndu Ughamadu, said he was out of office and asked for time to cross check the details of the allegations before a formal reaction.

His response was still being awaited at the time of going to the press.

But, the Director, Consolidated Accounts Department, CAD, in the office of the Accountant General of the Federation, OAGF, Samson Arowojolu, said responses to audit queries are only allowed to be channeled to the Public Accounts Committee, PAC, once the final report had been submitted to the National Assembly by the A‎uditor General.

The 656-page audit report also recently revealed how cumulative unremitted revenue from domestic crude oil sales by the NNPC, stood at about N3.878 trillion as at December 31, 2015.

The report, which formed part of the submissions in the 2015 Annual Audit Report of the Federal Government Account by the Auditor General said the state–owned oil company withheld about N644.377 billion in 2015 alone.

The report, amongst many other stunning revelations, also said that at least 44 assorted arms belonging to the Nigerian police could not be accounted for between 2013 and 2015, raising fears the weapons could have ended up in the wrong hands.


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  • share Idea

    Anybody that have been following my comment would testify that I stated that PT and EFCC would never allow a week to pass without mentioning Deziani’s name. I’m still been vindicated.

    Let this administration keep fooling itslef with all these sponsored media attack on Deziani, everything has ‘SELL BY DATE’ APC drug is no longer working even against gullible people that have been taking the drug since this administration came on-board. Nigeria we hail thee

    • Onike24

      You must be soulless, utterly and totally beneath contempt; if you read the report and the only thing that bothers you is whether Deziani’s name is being mentioned daily, weekly, yearly or otherwise. I would have said Shame on you, but that would be an assumption that you are capable of feeling shame.

      • Okokondem

        What bothers me is the apparent obsession and fascination with this woman who without any doubt defrauded and violated the trust reposed on her to manage the country’s only source of income. But Nigeria has lost hundreds of billions of dollars from oil revenue to thievery and outright fleecing but you wouldn’t know by reading the weekly rehashing of Desiani’s crimes and illegal transactions at NNPC.

        For perspective it wouldn’t hurt to explain how people like Babangida, for instance, came about the wealth to afford his famous hilltop mansion. Continuing to exclusively focus on one individual, or one administration/regime for the depletion of Nigeria’s commonwealth in the past 50-60 years is wrong-headed to say the least. I’m sure you can see what is wrong with the exclusive and targeting of an individual or small number of individuals. I don’t expect you to agree but I know you do see what is wrong with that approach.

        • Onike24

          I don’t agree and whataboutery or whataboutism is the argument of fools.

        • Julius

          But, many stories were written about those people including IBB..right ?

        • Honestly Speaking

          It is the duty of an immediate successor that has a different thing to offer to comment on the immediate past. If they chose to look the other way its their cup of tea, jumping over to the former one before the immediate past govt. would look like and be tagged witch-hunting. Let us appreciate this effort as something in the right direction. If PMB leaves office too next govt, would have the day to ask them questions too. Impunity would disappear in our polity.

      • AlBsure23

        Media trial. You are part of it. More power to your elbow.

        • Onike24

          Media trail? Tarry a while, serious fraud office will finish their investigation and crown prosecution service will do the rest, the. you will know media trail. Nonsense, I don’t know why you people chose to support those that impoverish you. Why?

          • AlBsure23

            Why don’t you wait first for these institutions you mentioned to finish their investigation before you rail out your condemnations. You have proved that you are doing media trial.

      • The facts

        Share idea is right because the only person who can confirm whether approval was given or not is President Jonathan. However, it appears that president Jonathan was not contacted to confirm. Premium Times just assumed that approval was not granted because they have their biased mind against Deizani.

        • Onike24

          Aren’t you the same person? But if approval was given the audit report will show it, it is unauthorized once there isn’t a paper trail of authorization. Ngozi Okonjo Iweala did not spend a penny that was not authorized, every thing she did was documented, even when they were stealing money, she would ask Jonathan to document it. Has anyone called her a thief? No, because she documented her disagreements with questionable requests and didn’t personally enrich herself like Madam Deiz as she was so called.

          • The facts

            If an audit is being carried out and you need evidence, you contact the parties involved but in this case it appears that was not done. We haven’t heard about any audit on the ministry of finance yet so you can’t completely exonerate Okonjo Iweala yet. There’s no evidence to show Deizani enriched herself when she was in office as a minister. The property she has in Abuja was acquired when she was a director in Shell. The property in Port Harcourt was being built with a bank loan before it was aborted due to her illness.

          • Julius

            oh wow..she was a billionaire when she was working at shell ? lolz, you don’t even believe that. Do you ?

          • The facts

            I didn’t say she’s a billionaire but she was self sufficient before she joined the government.

          • Julius

            Yeah , she also had houses/mansions in Dubai, UK and the USA then…right ?

          • The facts

            No, and up till now she doesn’t have houses in those countries you mentioned. If you read the court documents properly and not Nigerian newspapers, you will never see where it was stated that she owns houses abroad. All that the courts mentioned was that the houses were ‘linked’ to her. There’s a clear difference between owing something and have a link to something.

          • Honestly Speaking

            When auditing is being done, they only check what you have done against the ‘laid down rules’ of how you should do it.Once you do not follow the laid down rules, you are already culpable. No need to call you and hear from you again. The above is a publication of the auditor-generals report, who by the way, is doing their normal duty. This is not a PT investigation, they are just reporting event and facts. Your contradiction may be that you are not happy someone you like to hate is doing something good. Just admit it and wait till another time he goofs.

          • The facts

            Who is someone doing good? Perhaps you’re also not happy with Deizani’s achievements that’s why you’re happy her name is being dragged in muds despite not court of law finding her guilty.

          • Onike24

            absolutely nonsense! I shall say no more; wait until the SFO finishes with her. I pity you and your ilk, even if she shared the money with you, it shouldn’t stop you from calling her a Jaguda baba ole.

          • The facts

            Well, I don’t know her from Adam and you’re entitled to your opinion. What I would never do is to judge someone based on allegations in the media. When a court of law makes a final decision on her case I’ll make my opinion about her.

        • Julius

          No, didn’t Dasuki said that Jonathan approved everything he did and Jonathan going around telling the whole world he didn’t know what happened ?

          • The facts

            Jonathan hasn’t said he didn’t know what happened. What he said repeatedly is that he did the right things while in office but he will not comment on matters that are before the court. This is to tell you that he’s a reasonable person compared to the people in government now that have already called people before the court thieves despite that they haven’t been convicted by a court of law.

          • Julius

            Get out and stop lying…he came to DC and when he was questioned about the $2.1 Billion that Dasuki distributed out for his re-election, he said he didn’t know “how” it happened. I was there listening and laffing. Reasonable is different from being lazy and clueless.

          • The facts

            Of course he didn’t know because the figures you’re quoting is a bogus figure. The actual amount that Dasuki has been alleged to have misspent is not up to that amount so Jonathan has the right to say he did not know where your billion dollar figures come from. The problem with people like you is that you just react to headlines without reading the details of stories. Have you actually taken your time to study the case against Dasuki and find out the charges against him. Besides, if the government is really looking for $2.1 billion, wouldn’t it be right to call in the people involved including Jonathan, Okonjo, CBN Governor etc to explain what happened?

      • Julius

        Very well response. Thank you for being diplomatic. Me, I would have called him every bad name in the book. Sis, people like him makes me go off on them. They are annoying !

        • Onike24

          I know if you know how long it took me to construct a civil reply; but i work with traders each one thinks himself a Mr Universe and as a mother you learn to convey your message ” diplomatically”

          • Julius

            “as a mother you learn to convey your message ” diplomatically”

            I kinda sensed it and I appreciate that. Again, thanks. It took me a while to jump into the gutter with them after reading them daily blaming, name calling and insulting us the Yorubas . I knew they are bullies and one thing about bullies is they can’t take what they dish out. I enjoy reading them whining. They are wrong to think that they have some secret license on insults and that nobody will call them out. Well, they are wrong. We shall rock on !!

  • okpada

    Did you read this write up at all? This is an audit report by the office of the accountant general of the federation being submitted to the NASS. So what is diezani and not diezani in it. Do you want iweala to be mention when she was not involved in reckless approval and movement of money? Na waooooooo

  • AlBsure23

    Media trial.

  • Frank Bassey

    I do not endorse stealing of public resources under any guise. Any one involved does so at his or her own peril. But recent events at NNPC seem to suggest that the entire media blitz on Diezani is a strategy to divert attention from atrociously, nepotistic, corrupt, devilish happenings in NNPC (Northern Nigeria Petroleum Corporation) orchestrated by our saintly President. Just look at this:

    BUHARI’S RECENT APPOINTMENTS AT NNPC – SIGN OF AN UPRIGHT SAINT?

    1. Shaibu Musa – MD, NNPC Medical Services
    2. Ibrahim Birma – Group General Manager, Audit Division
    3. Ahmed Katagum – Group GM Shipping
    4. Kallamu Abdullahi – Group GM, Renewable Energy Division
    5. Dr Bola Afolabi – Group GM, Research & Development
    6. Adeyemi Adetunji – MD, NNPC Retail Division
    7. Usman Yusuf – Group GM, NNPC GMD Office
    8. Bala Wunti – in charge of Corporate Planning & Strategy
    9. Umar Ajiya – MD, Nigerian Products Marketing
    10. Muhammed Abah – MD, Warri Refining Petrochemical Company
    11. Malami Shehu – MD, Port Harcourt Refining Company
    12. Adewale Ladenegan – MD, Kaduna Refining Petrochemical Co
    13. Diepriye Tariah – MD, Integrated Data Services
    14. Rland Wubare – GM National Petroleum Investment Services
    NOTE: Maikanti Baru – still GMD, NNPC.

    Where are the oil-producing states? If this is not corruption; what is?

    • Black power

      Your query should be forwarded to the office of the president, am sure there’s an explanation for this.

      • Julius

        lolz.

      • Frank Bassey

        THE EXPLANATION IS NOTHING BUT TO FAVOUR THE 95% THAT VOTED FOR HIM, BEGINNING WITH HIS KINSMEN. OR DID HE TELL YOU SOMETHING ELSE?

    • Julius

      Be serious…are you saying your list should be addressed before the government sheds light on what happened and the reason the country is in a mess that she is now ?

      • Frank Bassey

        Please be more serious if you could. I am saying that you cannot be addressing a “mess” on one hand, then perpetrating more mess on the other hand and covering it. That is the point I am making sir!

        • Pat

          Buhari can never be his own judge. In the nearest future Buhari scorecard will be opened. Right now let us deal with those who messed up this country especially in the immediate past administration.

          • Frank Bassey

            Buhari can never be his own judge. In the nearest future Buhari scorecard will be opened.” You must be living in a burrow-pit. Just look at what you are saying. A President elected by the people cannot be judged by the people? We wait until his leaves office “in the nearest future” then we open his score card? Please leave this platform; or wait for a topic on child marriage.

          • Pat

            You really have no clue! Did you see how people passed their judgement on Jonathan at the right time?

    • marcos avelino

      Show us Jonathans list first

      • Frank Bassey

        I am glad NEMESIS is at work; and must be thorough about it.

  • Verdict

    One week one scandal!

  • Japhet Omoniyi

    What is this government doing about the scandals unearthed by investigative journalism of Premiumtimes? We have read a lot about Federal Mortgage Bank, Immigration Office, CBN and NNPC.

    • Adele Uhuru

      Nothing because they are no better- Fashola have been circumventing due process,whilst the sgf refused to follow due process with is grass cutting loot and attend the the National assembly’s invitation……….

  • Du Covenant

    I think the system we use in Nigeria is totally flawed. Our thieving civil servanst have consistently demonstrated they cannot be trusted, why can’t we put in place policies that will require 2 – 3 layers of approvals before any civil servant can withdraw one Kobo from any government acoount be it LG, State or Federal level?. We can’t continue to have individuals abuse public trust with impunity as it is done in Nigeria.

    • Pat

      There are even more than 3 layers you are proposing. Our problem is not lack of law or policy. Our problem are God fatherism, ethnic and religion sentiments. Those things make execution of law impossible.

  • BABUYANMA

    Jonathan and Mama Patience were involved