Audit-Report-on-NNPC

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.
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