Audit-Report-on-NNPC

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013)
3.2. Scope Reconciliation
Below is a summary of the scope of the engagement as set out in the Terms of Reference, the status of
work done and relevant comments regarding areas of departure from scope:
Objectives per engagement
letter
Analysis of remittance
shortfalls from NNPC into
the Federation Accounts
(i) $49billion and later
$20billion by the CBN
(ii) $12billion by the Ministry of
Finance
Analysis of submissions by
key stakeholders in relation
to the alleged shortfalls
(i) Working with the National
Assembly and the AuGF to
identify all submissions
(ii) Reviewing all video records
of the Senate Hearings,
identifying oral submissions for
prospective interviews
(iii) Examining documents
submitted by various agencies in
respect of the allegations (NNPC
and subsidiaries, CBN, PPPRA,
FAAC, OAGF, MoF, FIRS,
Others)
(iv) Analysing and reconciling
proceeds (cash and non-cash)
from the sale of petroleum
products (processed locally,
exported, refined abroad under
OPAs, SWAPS, etc) by NNPC
and their remittance to the FGN
(v) Independently verifying the
quality of information received
in respect of the alleged
shortfalls
Examine crude oil and gas
production records
covering:
(i) Records of monthly crude oil
and gas production in
barrels/metric tonnes
(ii) Schedule of domestic
Status
Scope changes
(if any)
Comments
Done Not applicable Remittance shortfalls
appropriately analyzed
Done Not applicable Performed objectives stated in
scope
Vanguardngr
Done
We examined crude oil
production records
only rather than crude
oil and gas as per the
signed contract
We did this because the
allegations on unremitted funds
relate to revenues accruing from
crude oil sales
Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation.
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