Audit-Report-on-NNPC

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Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 4.4.4.2.3. Inclusion of Quarter 4 2011 discharges in the Subsidy claim for the review period (January 2012 to July 2013) by NNPC During our review of NNPC’S supporting documents for the subsidy due between January 2012 and July 2013, we noted the following: ‣ Inclusion of PMS discharges between October 2011 and December 2011 of 2,066,025,835 litres with a computed subsidy of $1,056,426,431.26 48 . ‣ Inclusion of DPK discharges between October 2011 and December 2011 of 198,080,602.56 litres with a computed subsidy of $198,080,602.56. (Please see Appendix 6.1.24). Thus, subsidy amount of $1,254,507,033.82 which relates to PMS and DPK discharges between October 2011 and December 2011, were included in the explanations of PPMC as one of the reasons for the difference between the revenue realized and remitted into the Federation Accounts by NNPC between January 2012 and July 2013. This was however stated by the Reconciliation Committee as $1.2 billion. Per our discussion with NNPC, we understood subsidy is inherent in the process of transforming the crude oil lifted through Swap and OPA into finished petroleum products 49 . Thus, the subsidy claim of Quarter 4, 2011 would have related to crude oil lifting of 2011 and should not have been added to the subsidy claim between January 2012 and July 2013. 4.4.4.2.4. Summary Table D3 below is a summary of our comparison of the subsidy computation per the Reconciliation Committee <strong>Report</strong> and our reviews: Description Quarter 4, 2011 PMS & DPK Discharges PMS Import and production between Jan 2012 and Jul 2013 DPK Import and production between Jan 2012 and July 2013 Rec. Committee $’Billion Our Review $’Billion Difference $’Billion 1.2 Nil (1.20) 5.25 5.38 0.13 Vanguardngr 3.52 3.61 0.09 9.97 8.99 (0.98) Table D3: Comparison of the Reconciliation Committee and 0ur Computation (January 20120 – July 2013). Source: <strong>Report</strong> of the Reconciliation Committee; PPPRA records of verified import; PwC Analysis 48 Appendix 6.1.24 - Quarter 4, 2011 Discharges included in the <strong>Report</strong> of the Senate Committee on Finance on the Investigation of the Alleged Unremitted $49.8 Billion Oil Revenue by NNPC 49 Section 3.3.3 Domestic crude oil and revenue flow Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 70
Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 4.4.4.3. $24 million over-claim of PMS subsidy as a result of duplicated discharges in the PPPRA certificates to NNPC Data analytics carried out on the following data sets received from PPPRA indicated some duplications of previously verified discharges of PMS by PPPRA: January 2012 to July 2013 PMS discharges verified and advised between January 2012 to July 2013. January 2012 to July 2013 PMS discharges verified and advised in 2014. January 2012 to July 2013 PMS discharges acknowledged and verified but yet to be advised. Comparison of the quantity of the products conveyed by the Mother Vessels and the total quantity discharged by all the connected Shuttle Vessels indicated some duplication. The table below is the summary of the mother vessels and all the discharges with which we identified duplications. The details of these discharges are contained in Appendix 6.1.30 of this report. The over claim of subsidy as a result of the duplication amounted to N3,709,879,189.80 ($23,954,795.57). The details of the repeated verifications are as follows: Date of Discharge Discharge Depot Observed Vol (Ltrs) Landing Cost N Subsidy Due N 21-May-12 FORTE OIL, TOTAL, NIPCO & OANDO 18,216,777.00 156.47 1,365,529,603.92 21-May-12 NIPCO/Total/Forte Oil/Oando 18,216,777.00 142.96 1,119,420,946.65 36,433,554.00 2,484,950,550.57 10-Jun-12 Bovas Depot 6,543,163.00 153.48 470,911,441.11 10-Jun-12 Bovas 6,543,163.00 153.62 466,155,095.00 13,086,326.00 937,066,536.11 14-Sep-12 Folawiyo 44,320,751.00 123.78 1,873,438,144.77 14-Nov-12 Nispan 44,320,751.00 123.78 1,873,438,144.77 88,641,502.00 3,746,876,289.54 Subsidy Over-statement (highlighted)- N 3,709,879,189.80 Subsidy Over-statement (highlighted) - $ 23,954,795.57 Table D4: Details of repeated verifications of PMS between January 2012 and July 2013 4.4.4.4. $40 million over-claim of DPK subsidy as a result of duplicated discharges in the PPPRA certificates to NNPC Vanguardngr Data analytics performed on the following data sets received from PPPRA indicated some duplications of previously verified discharges of DPK by PPPRA: January 2012 to July 2013 DPK discharges verified and advised in 2014. January 2012 to July 2013 discharges acknowledged and verified but yet to be advised. Comparison of the quantity of the product conveyed by the Mother Vessels and the total quantity discharged by all the connected Shuttle Vessels indicated some duplication. Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 71
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