Audit-Report-on-NNPC
Audit-Report-on-NNPC
Audit-Report-on-NNPC
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Investigative Forensic audit of crude oil revenues and remittances by <strong>NNPC</strong> (January 2012 – July 2013)<br />
o Per PPPRA’s template, Landing Cost also includes the extra expenses incurred by the other<br />
marketers.<br />
o By selling DPK to marketers at N40.90 and claiming subsidy at an Ex-depot price of N34.51<br />
without adjusting the Landing Costs for the extra costs borne by the marketers, <strong>NNPC</strong> had<br />
over deducted subsidies to an estimated amount of N31,522,234,881.06 ($204 milli<strong>on</strong>).<br />
2.8. NPDC lifting<br />
<br />
Under-recogniti<strong>on</strong> of NPDC liftings by $0.82billi<strong>on</strong> by Rec<strong>on</strong>ciliati<strong>on</strong> Committee<br />
The Rec<strong>on</strong>ciliati<strong>on</strong> Committee put the value of liftings in favour of NPDC at $6billi<strong>on</strong>. We did not<br />
receive any supporting documentati<strong>on</strong> from NPDC to validate this figure other than the submissi<strong>on</strong><br />
to the Senate by the former MD of NPDC, Mr Victor Briggs, who disclosed the total value of NPDC<br />
liftings from all its assets as $6.82billi<strong>on</strong>.<br />
While we were unable to verify the $6.82 billi<strong>on</strong> directly at NPDC, we performed a recomputati<strong>on</strong> of<br />
the values of liftings using informati<strong>on</strong> provided by COMD and arrived at a value of $5.65 billi<strong>on</strong> 11 .<br />
Discussi<strong>on</strong>s with COMD revealed that lifting data captured by COMD for NPDC might not be<br />
complete as COMD does not capture liftings d<strong>on</strong>e directly by NPDC’s Strategic Alliance Partners.<br />
Volumes recorded by DPR for NPDC did not c<strong>on</strong>tain the necessary pricing informati<strong>on</strong> for valuati<strong>on</strong>.<br />
<br />
Cash payments of $863 milli<strong>on</strong> by NPDC to FIRS not captured by Rec<strong>on</strong>ciliati<strong>on</strong><br />
Committee<br />
For the period under review, NPDC was yet to be assessed for tax by the FIRS. However, the company<br />
made several cash payments during and after the period which amounted to $863milli<strong>on</strong>. These<br />
payments were c<strong>on</strong>firmed by FIRS to have been received. We also traced the payments to CBN/FIRS<br />
bank statements with JP Morgan.<br />
<br />
Cash payments of $839 milli<strong>on</strong> by NPDC to DPR not captured by Rec<strong>on</strong>ciliati<strong>on</strong><br />
Committee<br />
Vanguardngr<br />
For the period under review, NPDC made several payments to DPR based <strong>on</strong> self-estimated royalty.<br />
We traced several cash payments made by the company to CBN/ DPR JP Morgan account statement,<br />
to the tune of $839 milli<strong>on</strong>.<br />
11<br />
Appendix 6.1.1 – Valuati<strong>on</strong> of crude oil revenue (NPDC secti<strong>on</strong>)<br />
C<strong>on</strong>fidential informati<strong>on</strong> for the sole benefit and use of the <str<strong>on</strong>g>Audit</str<strong>on</strong>g>or-General for the Federati<strong>on</strong>.<br />
PwC 29