Audit-Report-on-NNPC

Recommendations

Info

Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 4.6.6. Subsequent information after submission of draft report 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 Pipeline Maintenance and Management Costs: Initial submission made to the Senate Committee was understated and did not include all the costs defrayed from the proceeds of domestic crude revenue by NNPC in accordance with the NNPC Act. These costs also largely include the amounts incurred by the Corporation’s subsidiaries. Initial submission included costs incurred between January to March 2012 which could not have been deducted from revenues from domestic crude oil liftings between January 2012 to July 2013. The new information has therefore included costs covering April 2012 to October July 2013. The table below summarizes the comprehensive cost information provided by NNPC as incurred between April 2012 and October 2013 (the period when the associated revenues from January 2012 to July 2013 crude liftings would have been received). Comprehensive NNPC costs between April 2012 - October 2013 Expense type Total ($) Salaries and benefits 1,522,258,663 Monthly operations 478,684,782 Other third party payments (including training 955,212,837 course fees, estacodes, and consultancy fees) Total costs 2,811,153,197 We confirmed these additional costs received to the group’s accounting platform on SAP. Vanguardngr Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 96
Investigative Forensic audit of crude oil revenues and remittances by NNPC (January 2012 – July 2013) 4.7. Crude and Products Losses 4.7.1. Introduction NNPC accounted for $0.76billion as crude oil and refined product losses incurred due to pipeline vandalism and crude oil theft. These losses were claimed to have been incurred during pipeline transfers of crude oil lifted from terminals to refineries for processing, and the subsequent transfers of refined products from refineries to depots and/or inter–depot transfers. NNPC categorized the crude and refined product losses as thus: Crude oil losses: Losses suffered by NNPC along pipeline systems in its efforts to supply crude oil to refineries. The losses were determined as differences (in barrels) between the crude oil pumped at the terminals and the crude oil received by the refineries. Crude oil is transferred from the following pipeline networks. Chevron Escravos to WRPC WRPC to KRPC NPDC to WRPC and Bonny to PHRC Refined Product losses: These were described as losses suffered along pipeline systems in the process of transferring refined petroleum products/white products (PMS, DPK or AGO) from refineries to depot or from inter depot transfers. They were accounted for as the differences between quantity transferred (in litres) and quantity received, during the review period. NNPC broke down the losses as follows: Description Amount ($) Crude Oil Losses 465,809,647.05 Refined Product Losses 296,047,770.15 Total 761,857,417.20 Table G1 – Summary of Product Losses between Jan 2012 and July 2013 We reviewed and analysed the losses claimed by NNPC, assessed the reasonableness of the claims, and examined support documents provided. Key stakeholders in crude/refined product distribution process There are currently four (4) refineries owned by NNPC in Nigeria located in Port Harcourt, Warri and Kaduna. In addition there is a network of pipelines and depots strategically located throughout Nigeria linking these refineries. Vanguardngr Below are the key stakeholders with their roles and responsibilities in the distribution of crude oil from terminals to refineries and from refineries to depots or inter depot transfers; Confidential information for the sole benefit and use of the <strong>Audit</strong>or-General for the Federation. PwC 97
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 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46: Investigative Forensic audit of cru
Page 95: Investigative Forensic audit of cru
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?