The Nigeria National Petroleum Corporation (NNPC) has reacted to the allegations of missing funds raised by the Revenue Mobilisation and Fiscal Commission (RMAFC) insisting that no revenue due to the federation account is missing or unaccounted for.
The Acting Group Managing Director of the NNPC, Mr Abubakar Lawal Yar�Adua, during a meeting with the media in Abuja explained that what the Chairman of RMAFC is raising as missing revenue arose from lack of understanding of the workings of the corporation.
He said that the misunderstanding between his corporation and RMAFC is surprising to him, but blamed it on a disagreement on the issue of subsidies.
On NNPC�s opposition to the sale of refineries, Yar Adua who said he had spent all of his post graduate life as a refiner, said NNPC opposed the sale of the plants as scrap because that was not the correct situation.
He promised that once the issue of vandalised pipelines is rectified the refineries in Port Harcourt, Warri and Kaduna will come on stream, pointing out that before the pipeline rupture, Port Harcourt was operating at 90%, Warri – 85% and Kaduna – 75%%. The GMD insisted NNPC is not afraid of privatisation but is against selling off public institutions as scrap.
Referring to the lack of transparency in the corporation�s operations in the past, Yar�Adua said, �there will be no more hiding. Whatever we are doing must be transparent under my tenure there will be nothing to hide. Anybody found to be involved in fraud must face the music.�
Declaring further how determined he is to tackle corruption in the organisation, Yar Adua stated, �I am for zero tolerance for corruption. It is time something started happening. Our conditions of service is one of the best in the country, so there is no room for fraudulent activity.�
Also giving some insight into RMAFC�s allegations of missing funds, the Group Executive Director in charge of Finance and Administration, Mr. Stanley Lawson said that prior to November 2003, in order to take care of the subsidy on petroleum, domestic crude was sold to NNPC at a discount both in terms of price and the exchange rate and it helped NNPC build up strategic financial reserves.
Mr Lawson said following the commencement of payment for domestic crude oil at international market prices from 22nd October 2003, it affected the reserves built up over the prior years as it was exhausted on funding the subsidy element.
According to him, as a result by mid 2005, NNPC was no longer able to fully meet crude cost payments due to the subsidy and by the end of 2005, the total amount unpaid by NNPC summed up to N249 billion and N355 billion due to NNPC by way of subsidies
Aug252007