MISSING OIL MONEY: Secret Investigation

According to the demand of Goodluck Jonathan, the Nigerian National Petroleum Corporation (NNPC) has made the full report on missing $20bn oil money investigation public.  

The president said that his government has nothing to cover on the matter. Jonathan also rejected accusations credited to the All Progressives Congress (APC) that his officials were boarding on last minute looting.  He reacted to the case via the statement by his Special Adviser on Media and Publicity, Reuben Abati.

The investigation titled “Auditor General for the Federation Investigative Forensic Audit into the Allegations of Unremitted Funds into the Federation Accounts by the NNPC”  has 3 main aims:

1. Analysis of remittance shortfalls from NNPC into the Federation Accounts;

2. Analysis of submissions made by key stakeholders in relation to these alleged shortfalls;

3. Producing an independent Forensic report detailing findings.

The Pricewaterhouse Coopers Limited which has prepared the report notes that authors provide no opinion,attestation or other form of assurance with respect to work or the information upon which their work was based.The Office of the Auditor-General for the Federation(AuGF) engaged PricewaterhouseCoopers Limited(PwC) to investigate any and all crude oil revenues generated by the NigerianNational Petroleum Corporation(“NNPC”)that was withheld or unremitted to the Federation Accounts between 1 January 2012 and 31 July 2013.

At the beginning of the report experts describe timeline of the allegations.

The report follows the timeline of events beginning with a letter in September 2013 by the former Governor of the Central Bank of Nigeria Sanusi Lamido to the President of the Federal Republic of Nigeria Goodluck Jonathan statin that from January 2012 to July 2013, NNPC had lifted$65bn worth of crude on behalf of the FGN but remitted only$15.2bn in to the Federation Accounts with$49.8bn as outstanding to the FGN.

In the result of investigation, the experts revealed a lot of serious violations:

1. Total gross revenues generated from FGN crude oil liftings was $69.34bn and NOT$67 billion as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.

2. Total cash remitted into the Federation accounts in relation to crude oil liftings was $50.81 bn and NOT $47bn as earlier stated by the Reconciliation Committee for the period from January 2012 to July 2013.

3. NNPC has provided information on the difference leading to a potential excess remittance of $0.74 billion(without considering expected remittances from NPDC). Other indirect costs of $2.81billion which were not part of the submission to the Senate Committee hearing have been defrayed to arrive at this position.

4.The resulting potential excess remittance indicates that the Corporation operates an unsustainable model. Forty six percent (46%) of proceeds of domestic crude oil revenues for the review period was spent on operations and subsidies. The Corporation is unable to sustain monthly remittances to the Federation Account Allocation Committee (FAAC), and also meet its operational costs entirely from the proceeds of domestic crude oil revenues, and have had to incur third party liabilities to bridge the funding gap.

Furthermore, the review period recorded international crude oil prices averaging $122.5 per barrel (Average Platts prices for 2012). As at the time of concluding this report, international crude oil prices average about$46.07 per barrel, which is about sixty two percent (62%) reduction when compared to the crude oil prices for the review period. If the NNPC overhead costs and subsidies are maintained (assuming crude oil production volumes are maintained), the corporation may have to exhaust all the proceeds of domestic crude oil sales, and may still require third party liabilities to meet costs of operations and subsidies, and may not be able to make any remittances to FAAC.

The experts therefore recommend tha the NNPC model of operation must be urgently reviewed and restructured, as the current model which has been in operation since the creation of the Corporation can not be sustained.

The report reflects the fact that $3.38 billion was spent on DPK subsidy for the review period. It also confirmed using third party vessel tracking platforms that all vessels carrying NNPC cargoes arrived in Nigeria within the periods disclosed by PPPRA.

It is important to note that although PwC has reviewed documents submitted by the key stakeholders involved. Analysts stated that work was conducted independently, and findings are based on the review of documentation, analytically reviews of data, and interviews conducted.

Ambode extends hand of partnership to Agbaje, others

The Lagos State Governor-elect, Mr. Akinwunmi Ambode, has called on the Peoples Democratic Party governorship candidate, Mr. Jimi Agbaje, and others who contested against him to join hands with his administration to build the state.

Ambode spoke on Sunday while delivering his acceptance speech at the APC secretariat in Lagos shortly after he was declared winner of the governorship election.

Ambode was announced winner of the Saturday election after securing 811,994 votes against his PDP’s closest rival, Agbaje who scored 659,788 votes.

“To my main opponent, Mr. Jimi Agbaje of the PDP, I thank you for a keen contest and invite you, alongside other governorship candidates, to join hands with me in moving Lagos forward,” he said.

Ambode also promised Lagos residents  that his administration would build on the legacy and achievements of his predecessors, Gov. Babatunde Fashola and Chief Bola Tinubu.

“I am humbled that you have placed your trust and faith in me.

“The love of this state and our common belief in what we can accomplish, our belief in what this state already is, and in what it is destined to become binds us together in a social and moral contract of high purpose.

“I shall honour that contract with every fiber of my being.

“This day I pledge to you that I shall devote myself to bringing even greater prosperity, growth and development to every inch of this state.

“I also pledge that I shall build on legacy and progress of my predecessors,” Ambode said.

The governor-elect promised to bring the best of ‎Lagos into his government saying that the people would be proud and glad for choosing him as their governor.

“The people of Lagos have demonstrated that Lagos is not about ethnicity or religion but about a common desire to enthrone good ‎governance.

“Lagos under my watch will not discriminate. It has not in the past, and will not in the present; not even in the future, there will be no political victimisation.

“By affirming your faith in the APC and in me, you have, for the first time in 16 years, married progressive governance at the national level with progressive government at the state level,” he said.

Ambode noted that finally, Lagos  state government and the Federal government would be of one vision, one mind and one accord.

“The ramifications of this harmonious unity are completely positive.

“This is a chance that we have worked toward for many years.

“The joint infrastructural and employment projects and collaboration between the state and the federal will quicken the improvement of our roads, schools, power generation and the entire array of social services.

“This new era of cooperation between the state and federal government promises to be a golden period for Lagos and for all Lagosians to share equally therein,” he said.

Ambode said Lagos would enjoy optimal development and growth through APC governance working in tandem at the state and federal levels.

“This cooperation and enhanced policy harmony will surely pay handsome dividends,” he said.

Ambode congratulated INEC for a job well done and keeping alive Nigeria’s hope for a brighter democracy.

APC wins in 13 states, PDP victorious in four

Winners of Saturday’s governorship election began to emerge on Sunday afternoon with the All Progressives Congress topping the Peoples Democratic Party in the results so far released by the Independent National Electoral Commission.

There were however still pockets of protests and killings in a few states even as the results were being announced and collation taking place in many other states.

The first to be officially announced victorious was Ogun State Governor Ibikunle Amosun, who defeated PDP’s Ganiyu Isiaka. Amosun of the APC is therefore set for a second term in office.

The Gboyega Nasir Isiaka Campaign Organisation rejected the result of the governorship poll, saying it was “unfortunate and a travesty staged to help the APC achieve victory.”

It claimed that the outcome of the election   was clearly not a true reflection of Ogun people’s wish and said that the result would be challenged as appropriate.

In the neigbouring Oyo State, Abiola Ajimobi, also of the APC became the first governor of the state to clinch a second term in office.

He defeated former governors, Rashidi Ladoja of the Accord Party and Adebayo Alao-Akala of Labour Party in the race.

While the governor polled 327,310 votes; Ladoja had 254,520 and Alao-Akala ,   184,111.

APC’s candidate in Lagos, Akinwunmi Ambode, polled 811,994 votes to defeat PDP’s   Jimi Agbaje,who scored 659,788 votes.

Agbaje accepted defeat and congratulated Ambode but the state PDP rejected the result, citing   ‘controversial’ circumstances within which the elections were conducted in the state as reasons.

The media aide of the governor-elect, Idowu Ajanaku, told one of our correspondents   on the telephone that Agbaje called to congratulate Ambode at 6.50pm on Sunday.

“Mr. Jimi Agbaje called at exactly 6.50pm to congratulate Mr. Ambode. He prayed for Mr. Ambode and told him that he was looking forward to a more prosperous Lagos, ” Ajanaku said.

Shortly after being declared winner, Ambode in his acceptance speech, extended his hand of fellowship to Agbaje by urging him to join in making Lagos a better place.

The governor-elect, who commended Agbaje for congratulating him , added that his government would not victimise those who voted against him.

He said, “To my main opponent, Mr. Jimi Agbaje of the PDP, I thank you for a keen contest and invite you, alongside other governorship candidates, to join hands with me in moving Lagos forward.”

Ambode also lauded   the people of the state for voting him and the APC, adding that by aligning Lagos with the centre, unprecedented development would come to the state.

He   gave special thanks to a former Governor of Lagos State, Asiwaju Bola Tinubu and Governor Babatunde Fashola for believing in him.

Ambode said like former United States President, Abraham Lincoln, his government would be run “with malice toward none and with charity for all.”

The Speaker of the House of Representatives, Aminu Tambuwal (Sokoto); a former Speaker of the House, Aminu Masari (Katsina); and erstwhile Minister of the Federal Capital Territory, Nasir el-Rufai(Kaduna) also emerged victorious.

El-Rufai floored Governor Mukhtar Yero of the PDP.

The other APC governorship election winners are Governor Abdulfatai Ahmed (Kwara), Abdullahi Ganduje (Kano), Atiku Bagudu (Kebbi), Mohammed Abubakar (Bauchi), Ibrahim Geidam(Yobe) and Jibrilla Bindow (Adamawa).

Bindow handed Mallam Nuhu Ribadu, a former Chairman of the Economic and Financial Crimes Commission a shocking defeat.

Ribadu conceded defeat     when     results from   most of the LGAs showed that he was trailing behind in results from the LGAs.

Ganduje, who is the current deputy governor of Kano State polled 1,546,434 votes. His PDP rival, Salihu Tokai had 509,726 votes.

The governorship candidate of the APC in Benue State, Samuel Ortom, raced to victory by polling 387,753 votes as against PDP’s   Terhemen Tarzoor, who scored 296,189 votes.

Geidam   polled   334, 847 votes to defeat   Adamu Waziri of the PDP,who had 179, 700 votes.

PDP’s candidates Udom Emmanuel,   Ibrahim Dankwambo,   Dave Umahi, and Ifeanyi Ugwuanyi   triumphed in   Akwa Ibom,   Gombe, Ebonyi and Enugu states respectively.

Umahi   garnered 289, 867 votes as against Labour Party’s Edward Nkwegu,who came second with 124, 817 votes.

Ugwuanyi   polled 482,227 votes to defeat Okey Ezea of the APC, who got 43,839 votes.

Results from 16 out of 18 LGAs in Cross River State   showed that the PDP candidate, Ben Ayade, was leading clearly.

From the results announced as of 11pm on Sunday, Ayade secured 283, 549 votes, while the APC candidate,   Odey Ochicha and his Labour Party counterpart, Fidelis Ugbo, polled 52, 562 and 35, 848 respectively.

Imo State Governor and APC candidate, Rochas Okorocha, was   clearly winning in 20 out of 27 LGAs in the state as of 8pm on Sunday .His PDP counterpart and Deputy Speaker of the House of Representatives, Emeka Ihedioha, was trailing behind.

INEC later declared the announcement of the results inconclusive.

The results of the election in Abia ended in a deadlock midway following the reversal of the cancellation of three council   results by the Returning Officer, Prof. Benjamin Ozumba.

Ozumba had announced the cancellation of results from Osisioma, Obingwa and Isialangwa North Local Government Areas on the grounds of “incontrovertible evidence of violence’’ and reports from international observers.

The returning officer reversed the decision after Governor Theodore Orji-led chieftains of the PDP consulted with the Resident Electoral Officer, Prof. Selina Oko and Ozumba.

The governor was in company with   the Minister of State for Defence, Col. Austin Akobundu(retd); the PDP National Publicity Secretary, Olisa Metuh and Chief Onyema Ugochukwu .

Ozumba said the cancellation was reversed due to fresh information concerning the conduct of the election in the three councils.

He said that polling centres with issues would be isolated and decisions taken on them later.

The pronouncement heightened tension at the centre, leading to the adjournment of further announcement of results.

The controversial result from Osisioma, which had earlier been announced, showed that PDP scored 42,442 while APGA polled 1, 017.

Meanwhile, results from 10 LGAs have so far been announced.

In his reaction, All Progressives Grand Alliance   governorship candidate, Alex Otti, described the governor’s appearance at the collation centre as ‘‘an abuse of power, designed to intimidate and exert undue influence on the electoral officials.’’

The PDP lost its grip also on Plateau State as its candidate, GNS Pwajok was defeated by APC’s Simon Lalong.

As of last night Lalong scored 537,050 votes while Pwajok had 501,938 votes.

Results from 16 out of 18 LGAs in Cross River State   showed that the PDP candidate, Ben Ayade, was leading comfortably.

From the results announced by INEC, on Sunday, Ayade secured 283, 549 votes, while the APC candidate,   Odey Ochicha and his Labour Party counterpart, Fidelis Ugbo, polled 52, 562 and 35, 848 respectively.

In Gombe State, Governor Ibrahim Geidam of the PDP had an easy ride as he coasted to victory by beating his APC counterpart, Inuwa Yahaya. He scored 285,369 votes while Yahaya had 205, 132 votes.

Also in Delta State, INEC adjourned further action on the results till 7am on Monday. Before then, PDP’s Ifeanyi Okowa was leading in 20 out of the 24 LGAs in the state.

There were earlier reports on Sunday that the APC had made history by producing the first elected female governor in Nigeria in the person of Jummai Aisha Alhassan of Taraba State. But as 12 midnight her reported victory had yet to be confirmed.

My ministers must declare their assets –Buhari.

The President-elect, Muhammadu Buhari, says those seeking political appointments in his administration will be forced to declare their assets before taking office and before leaving.

Buhari said this during an interview with Sahara TV on Sunday.

He said this would encourage accountability and reduce corruption.

He said, “All those that were governors, ministers, permanent secretaries, head of foreign staff and all those with political appointments will have to declare their assets on the assumption of their appointment and definitely with the courts. And once they leave they have to re-declare their assets.”

Buhari, who insisted that last-minute defectors would not be given appointments in his government, promised not to interfere with the judiciary in the fight against corruption but would strengthen the nation’s justice system.

He stated that his administration would not “become embroiled in investigation of every ministry, and then the government will not have time to move forward.”

The President-elect slammed the Minister of Finance, Dr. Ngozi Okonjo-Iweala, for the depletion of the Excess Crude Account.

Okonjo-Iweala had said a significant portion of the billions of dollars drained from ECA over the past two years was distributed to governors instead of being saved for a rainy day

However, Buhari said the finance minister’s excuse was not acceptable.

“I’m afraid the finance minister has no cause to complain because the governors cannot force the central government to act outside the constitution,” he said.

On the contentious issue of oil block ownership and an equitable distribution of the country’s wealth, he suggested that partisan politics in Nigeria was the cause of the uneven distribution in the oil sector.

Buhari said that he wanted to formalise the oil sector in the country.

Go to tribunal, INEC tells aggrieved politicians

The Independent National Electoral Commission has asked aggrieved politicians to take their grievances to the election petition tribunals.

The commission said that though some pockets of violent incidents were recorded during Saturday’s governorship and State Houses of Assembly elections, it still maintained that the exercise recorded a pass mark.

The electoral body stated this in a statement issued in Abuja on Sunday.

It said that INEC’s records showed that there were 66 reports of violent incidents targeted at polling units, the commission’s officials, voters and election materials.

The elections were held in 29 states, while the state Houses of Assembly elections were held in 36 states.

No election took place in the Federal Capital Territory, Abuja.

It said its general assessment showed that the elections went well across the country.

The commission said that preliminary reports it got showed that 88.9 per cent of polling units opened for accreditation between 8am and 10am across the country and that only 5.2 per cent had yet to open as of 1 pm.

Also, it claimed that 73 per cent of the polling units had commenced voting by 2.30 pm.

The commission said, “The process of accreditation with Smart Card Readers was also successful in a majority of the polling units.

“Initial challenges were recorded in Edo and Abia states, but the technical teams deployed to support the states were able to resolve the issues in a timely manner.”

Overall, it said that many parts of the country remained relatively peaceful during the elections, but claimed that some states, however, recorded a significant number of violent incidents.

It listed states that were mostly affected as Rivers, Akwa Ibom, Cross River, Ebonyi and Ondo states.

The electoral body said, “INEC’s records show that there were 66 reports of violent incidents targeted at polling units, the commission’s officials, voters and election materials.

“These were in Rivers State (16 incidents), Ondo (eight), Cross River and Ebonyi (six each), Akwa Ibom (five) Bayelsa (four), Lagos and Kaduna (three each), Jigawa, Enugu, Ekiti and Osun (two each), Katsina, Plateau, Kogi, Abia, Imo, Kano and Ogun (one each).

“The commission is investigating these incidents and will do everything within its powers to bring the culprits to justice.”

INEC commended Nigerians for once again demonstrating their resolve and commitment to participate in the electoral process and by doing so, contributing to deepening democracy in our country.

The commission called on every citizen to maintain the peace “as the results of the governorship and state Houses of Assembly elections are being processed, and to accept the official outcomes.

“It would like to emphasize that winners can only emerge after collation of the official results and on the basis of the requirements prescribed by the legal framework.

“Any aggrieved persons or groups are encouraged to seek redress at the tribunals.”

INEC reminded all stakeholders that the process was not yet completed and urged restraint in their comments, as it strived to bring the process to an orderly, peaceful and credible conclusion.