Jonathan under fire for appointing Aig-Imoukhuede to subsidy verification panel in the report of a Technical Committee set up to review fuel subsidy payments. Oil Subsidy Cabal’s Plot to Rubbish Aig-Imoukhuede’s Report Uncovered!! *** Jonathan Directs EFCC to Arrest Subsidy Thieves. Aig-Imoukhuede committee submits preliminary report on fuel subsidy Jonathan on the verification of the fuel subsidy claims and payments.
|Published (Last):||17 June 2008|
|PDF File Size:||16.66 Mb|
|ePub File Size:||19.20 Mb|
|Price:||Free* [*Free Regsitration Required]|
Details of the Committee findings: These changes in conjunction with the lack of adequate provisions for dealing with violations including criminal activities and of a deterrent to prevent oil marketing and trading companies from making false subsidy claims in the PSF guidelines and the inclusion by PPPRA of oil marketing and trading companies that did not meet the eligibility criteria even after the above changes in the PSF guidelines created significant opportunities for abuse of the subsidy process.
These opportunities were clearly exploited by both the operators and the regulators of the process to the detriment of the country. Abuse of the due diligence process for applicants to the PSF scheme, lack of transparency in the process for import allocations, payment of subsidies to oil marketing and trading companies in spite of lapses in presented documentation and the inability of PPPRA to use effective vessel tracking tools to verify the status and location of the vessels supposedly used to import petroleum products and to compare such information with the details on presented bills of lading contributed to the creation of opportunities for abuse of the subsidy payment process.
The inability imkukhuede PPPRA to use a transparent basis for the conversion factor from metric tonnes to litres used in the PPPRA template created opportunities for abuse in the determination of the volume of imported products for which subsidy should be paid.
There has been no consensus among the three tiers of Government Federal, State and Local to support the funding of the PSF since its creation in This was never sustainable and has led to a convoluted accounting process for cost recovery, with significant arrears of payment due to NNPC.
The Aig-Imoukhuede-led committee report on subsidy – integrity nigeria
This led to a situation where the Federal Government agreed with NNPC to deduct its approved subsidy claims from its crude cost obligations. NNPC was therefore deducting the approved subsidy amounts for any given month before transferring the net amount to the Federation Account.
There was no documentary evidence that this process was duly authorised by law, by the PSF guidelines or by any duly designated Government agency and there is therefore no legitimate backing for the current practice.
There is an obvious need to regulate the roles of NNPC in the downstream sector in the import, refining, storage, supply, distribution and retailing of petroleum products. In order to correct this situation, the Government has to implement at least one of the following options:.
While the Committee conducted detailed reviews of several aspects of the subsidy payment process, it is noted that the process ait NNPC is significantly more it- than the process for the private sector and would require a thorough forensic audit covering but not limited to subsody following:.
The Committee was unable to examine all the above to the extent required and therefore recommends that the Federal Government appoints consultants to repoort out the forensic audit of the NNPC subsidy claim process.
The Committee recommends that all the affected oil marketing and trading companies found to have violated various aspects of the PSF guidelines as highlighted in this report should refund the subsidy payments for a total sum of N,, The Committee recommends that the eligibility criteria for oil marketing and trading companies in the PSF guidelines should be revised by PPPRA to include the following:.
Will not be published. Notify me of follow-up comments by email.
Notify me of new posts by email. Aig-Imoukhuede Committee unravels how petroleum subsidy was shared July 2, In order to correct this situation, the Government has to implement at least one of the following options: While the Committee conducted detailed reviews of several aspects of the subsidy payment process, it is noted that the process for NNPC is significantly more it- than the process for the private sector and would require reprot thorough forensic audit covering but not limited to the following: The Committee recommends that the eligibility criteria for oil marketing and trading companies in the PSF guidelines should be revised by PPPRA to include the following: In this article featured Other News.
Website Notify me of follow-up comments by email. Nigeria to revamp mines, steel sector Next.