Audit-Report-on-NNPC

Recommendations

Info

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 2.9. Pipeline maintenance and management costs Additional $2.8billion cost communicated by NNPC After the submission of our initial report to the <strong>Audit</strong>or-General for the Federation on 28 November 2014, the following was brought to our attention by NNPC regarding Pipeline Maintenance and Management Costs: o Initial submission made to the Senate Committee was understated and did not include all the costs defrayed from the proceeds of domestic crude revenue by NNPC in accordance with the NNPC Act. These costs also largely include the amounts incurred by the Corporation’s subsidiaries. o The total additional costs amounting to $2.81billion was funded from domestic crude revenue accruing from liftings of January 2012 to July 2013, and third party liabilities as follows: Expense type Total ($) Salaries and benefits 1,522,258,663 Monthly operations 478,684,782 Other third party payments (including training 955,212,837 course fees, estacodes, and consultancy fees) Total costs 2,811,153,197 2.10. Crude oil and product losses Computation of Crude Oil loss NNPC used a conversion rate of $100/barrel to value differences between the quantity of crude oil pumped at the terminals and quantity received at the refineries. We adopted the monthly average Platts 12 price to value the losses, considering that the revenue generated from Crude oil lifted during the review period had been accounted for using such Platts information instead of a fixed rate. Applying the monthly average Platts price to value the crude oil losses amounted to $73,851,144.93 13 higher than PPMC’s computation. Vanguardngr 12 Platts is an Energy and commodity price reporting Agency 13 See Table G5 in Section 4.7.4.1 Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 30
Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 3. Overview Vanguardngr Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 31
Page 1 and 2: Forensic Services Audit</st
Page 3 and 4: Table of Contents Review of crude o
Page 5 and 6: Table of Contents Review of crude o
Page 7 and 8: Investigative Forensic audit of cru
Page 29: Investigative Forensic audit of cru
Page 81 and 82:
Investigative Forensic audit of cru
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199:
show all

Audit-Report-on-NNPC

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?