Audit-Report-on-NNPC

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Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) In another letter of 23 November 2012 with reference number PPPRA/LZ/IM.29/1/53 45 , PPPRA consented to granting waivers on the import documents that were not considered sensitive. The letter however did not define what a sensitive document was. A section of the letter which was signed by V.Z. Shidok, is as follows: “At that meeting (12 November 2012 meeting between PPPRA and PPMC) with the PPPRA it was resolved that the PPMC should as a matter of necessity, comply with the new checklist and where there are challenges regarding laying hold on documents of vessels that discharged their cargos prior to the issuance of the new checklist, the PPPRA will consider the submissions on the basis of each transaction with the view to giving a waiver on those documents that are considered not too sensitive.” 4.4.4.2. $0.98 billion over-claim of subsidies by NNPC for the review period 4.4.4.2.1. PMS Subsidy PPPRA, for the purpose of subsidy computation, verified 5,956,799,041 litres of PMS discharges between January 2012 and July 2013, and issued Payment Advice of N341,368,411,161.38 for the verified volume to NNPC between January 2012 and July 2013 46 . In 2014, PPPRA verified and advised additional 8,296,808,838.15 litres of PMS and issued Payment Advice of N405,724,354,637.17 47 for this volume. During our field work at PPPRA, we were provided with and reviewed schedules containing additional 1,754,158,047 litres of PMS imports and production with total computed subsidy of N86,470,326,324.45 acknowledged and verified by PPPRA but for which it had not completely issued Payment Advice. Table D1 below is a summary of the points above: Vanguardngr 45 Exhibit D4 – PPPRA’s consent to grant import documents waiver to PPMC 46 Appendix 6.1.20 - Summary of the PMS & DPK Volume Verified and Advised by PPPRA for Subsidy between January 2012 and July 2013 47 Appendix 6.1.22 – Summary of PMS & DPK Verified and Advised by PPPRA in 2014 Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 68
Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) PMS Imports and production between Jan 2012 and Jul 2013 Verified and advised by PPPRA between January 2012 and July 2013 Verified and advised by PPPRA in 2014 Acknowledged and verified by PPPRA but yet to be advised Volume (Litres) Subsidy N Subsidy $ 5,956,799,041.00 341,368,411,161.38 2,204,225,551.50 8,296,808,838.15 405,724,354,637.17 2,619,773,711.09 1,754,158,047.00 86,470,326,324.45 558,341,359.36 16,007,765,926.15 833,563,092,123.00 5,382,340,621.96 Table D1: Summary of PMS Subsidy (January 2012 – July 2013). Source: PPPRA Payment Advice, PPPRA records of verified imports, PwC Analysis 4.4.4.2.2. DPK Subsidy There was no evidence that PPPRA verified any of the DPK imported into Nigeria by NNPC/PPMC between January 2012 and July 2013 within the same period. In 2014, PPPRA verified and advised 4,406,522,494 litres of DPK and issued Payment Advice of N464,040,405,196.50 for this volume. During our field work at PPPRA, we were provided with and reviewed schedules containing additional 838,042,186 litres of DPK imports and production, with computed subsidy of N94,864,657,747.39 acknowledged and verified by PPPRA but for which it had not issued Payment Advice. Table D2 below is a summary of our finding on DPK subsidy: DPK Imports and production between January 2012 and July 2013 Volume (Litres) Subsidy N Subsidy $ Verified and advised by PPPRA Nil Nil Nil between January 2012 and July 2013 Verified and advised by PPPRA in 2014 4,406,522,494 464,040,405,197 2,996,322,110 Acknowledged and verified by PPPRA but yet to be advised 838,042,186 94,864,657,747 612,543,796 Vanguardngr 5,244,564,680 558,905,062,944 3,608,865,906 Table D2: Summary of DPK Subsidy (January 2012 – July 2013) . Source: PPPRA Payment Advice, PPPRA records of verified imports, PwC Analysis Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 69
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