Audit-Report-on-NNPC

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Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) Crude Transport Payments The total claim of $5,457,006.98 out of the total claim $46,265,215.13 could not be substantiated due to lack of supporting documents. NNPC claimed the sum of $46,265,215.13 as crude transport payments during the review period, which was incurred on crude oil transportation from Escravos terminals to Warri refinery jetty using marine vessels. The supporting documents provided were third party invoices for the service rendered, NNPC Payment vouchers and NNPC Remittance advices. Marine throughput The sum of $6,707,826.05 could not be substantiated due to lack of supporting document. Environmental Remediation The following claims, totalling $10,257,161.07 could not be substantiated due to insufficient documents: 1. N442,975,320 ($2,846,296.53) payment in February 2012 2. N1,146,831,287.12 ($7,410,864.54) payment to settle PPMC’s outstanding third party liability in May 2013 Capital Expenditure – CAPEX The sum of $27,179,005.48 could not be substantiated due to insufficient supporting documents. The total amount verified as Capital expenditure was $96,073,430.27. Others No amount has been substantiated for the total claim on Pipeline Vandalism and Repair Cost of $11,896,654.71 and on Management Charge out Rate claim of $59,712,530.83.We were not provided with supporting documents for the costs. Vanguardngr Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 94
Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 4.6.5. Summary of Findings Summary of findings 1.2 1 0.8 0.6 0.4 0.2 0 Reconciliation committee $0.91bn Value $0.35 bn $0.56 bn Decrease Verified costs Section Adjustm ent ($bn) 4.6.4.1 (0.04) 4.6.4.2 (0.31) T otal (0.35) NNPC claimed that the sum of $905,318,411.32 (approximated to $910million) was spent on Pipeline Maintenance and Management payments during the review period. These payments included PPMC’s administration cost such as salary payments, indebtedness paid on behalf of their subsidiary, PPMC, capital expenditures, pipelines and facilities management etc. as explained in the findings above. The sum of $44,415,284.67 was found as a casting error in the schedule provided containing a summary of the claims. Description Amount ($) Actual Amount Claimed 905,318,411.32 Difference due Approximation /Rounding up 4,681,588.68 910,000,000.00 Casting error/ Arithmetical Inaccuracy 44,415,284.68 Unsubstantiated Costs 305,885,083.77 Substantiated Costs 555,018,042.87 905,318,411.32 Vanguardngr From our analysis of the supporting documents provided by NNPC, the sum of $555,018,042.87 could be substantiated using third party confirmation documents such as invoices and other documents provided. We were however unable to verify $305,885,083.77 due to exceptions such as casting errors/arithmetical inaccuracies, duplications of payments, insufficient/no supporting third party documents, wrong classification/inclusion of costs etc. Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 95
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