Audit-Report-on-NNPC

Recommendations

Info

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 4.2.5. Summary of findings Summary of findings 50 40 30 20 10 0 $49.33 bn Value 4.2.6. Other findings $2.33 bn $47 bn Increase Reconciliation Committee Section Adjustm ent ($bn) 4.2.4.1 (1.46) 4.2.4.1 1.00 4.2.4.1 1.37 4.2.4.1 1.7 0 4.2.4.1 0.16 4.2.4.1 (0.44) T otal 2.33 4.2.6.1. Double valuations for crude sales under Unutilized Crude and Product Exchange We noticed from our review of the bank accounts where unutilized crude receipts are paid into, that amounts received from customers were usually more that the valuation reported to FAAC. Our investigation revealed a practice whereby crude oil lifted was valued at a lower price in the FAAC report than the price paid by the off taker. In these cases, after the buyer elects a pricing option under which the purchase will be made, NNPC prepares a separate valuation of the lowest under the three pricing option. NNPC would then report the sale to FAAC using the lowest price valuation while invoicing the off-taker a higher price. We requested for a schedule and valuation documents invoiced to buyers under unutilized crude and Product Exchange contracts during the review period, in order to fully quantify the impact of this practice on the Federation Account. Our request was not granted. Vanguardngr 4.2.7. Information provided subsequent to 28 November 2014. After the submission of our initial report to the <strong>Audit</strong>or-General of the Federation on 28 November 2014, the following was brought to our attention by NNPC regarding our findings on Revenue Remittance: Unremitted DPR revenue: NNPC notified DPR of our finding (in Section 4.2.4.4) that the payments for four DPR liftings did not reflect into the CBN/DPR JP Morgan account. We then received confirmation from DPR evidencing that the payments were made by NNPC. We Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 58
Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) traced the payments to CBN/DPR JP Morgan account bank statements and confirmed the inflows were made in the months following the due dates. Unremitted Domestic crude revenue: Following our finding in Section 4.2.4.3 that domestic crude revenues remitted to the Federation was short by $1.5billion, NNPC provided us post- FAAC reports confirming that the outstanding amounts were remitted in months after they were due. The table below summarizes the new position: Domestic crude sales remittances to the Federation account Lifting Month Payment month Unpaid amount per Latest evidence provided initial analysis ($) May 2012 August,2012 924,818,360 FAAC report for January 2013 stating that an extra sum of N143bn was paid to the Federation in September 2012 in between the August and September FAAC meetings. The naira amount is equivalent to $924million using a rate of N154.70/$ September 2012 December, 2012 38,764,696 FAAC report for January 2013 stating that the sum of N6bn relating to December 2012 proceeds was accounted for. The naira amount is equivalent to $38.7million using a rate of N154.78/$ May 2013 August, 2013 484,652,666 FAAC report for November 2013 stating that an extra sum of N75bn was paid to the Federation in September in between the August and September FAAC meetings. The naira amount is equivalent to $485million using a rate of N154.75/$ Total Total 1,448,235,721 Vanguardngr The effect of the two pieces of information above on our overall summary on revenue remitted based on proceeds of crude oil lifted between January 2012 and July 2013 is therefore as follows: $billion Cash received on initial report 49.33 DPR revenue now remitted 0.03 Domestic crude revenue now remitted 1.45 50.81 Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 59
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 57: Investigative Forensic audit of cru
Page 109 and 110:
Investigative Forensic audit of cru
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?