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Probe Missing $2.1bn, N3.1trn Of Subsidy Payments Or Face Legal Action, SERAP Tells Tinubu

Published

11 months ago

June 4, 2023

Socio-Economic Rights and Accountability Project (SERAP) has urged President Bola Ahmed Tinubu to “set up a presidential panel of enquiry to promptly probe the grim allegations that US$2.1 billion and N3.1 trillion public funds of oil revenues and budgeted as fuel subsidy payments are missing and unaccounted for between 2016 and 2019, as documented by the Auditor-General of the Federation.”

SERAP urged him to “name and shame anyone suspected to be responsible for the alleged widespread and systemic corruption in the use of oil revenues and the management of public funds budgeted as fuel subsidy, and to ensure their effective prosecution as well as the full recovery of any proceeds of crime.”

SERAP also urged him “to promptly, thoroughly, independently, transparently and effectively probe all fuel subsidy paid by successive governments since the return of democracy in 1999, and to use any recovered proceeds of crime as palliatives to address the impact of any subsidy removal on poor Nigerians.”

In the letter dated 3 June 2023 and signed by SERAP deputy director Kolawole Oluwadare, the organisation said: “There is a legitimate public interest in ensuring justice and accountability for these serious allegations. There will be no economic growth or sustainability without accountability for these human rights crimes.”

SERAP said: “Your government should urgently act to follow due process of law in any policy to remove fuel subsidy, ensure that suspected perpetrators of these crimes against Nigerians are brought to justice and full recovery of any missing public funds.”

SERAP also said, “Arbitrarily removing fuel subsidy without addressing outstanding accountability issues in the alleged mismanagement of oil revenues and fuel subsidy payments would amount to punishing poverty and further impoverishing the poor while letting high-profile officials and non-state actors get away with their crimes.”

The letter, read in part: “Any removal of fuel subsidy should not be used as a ploy to keep the poor in poverty while those who allegedly stole oil revenues and fuel subsidy payments keep their ill-gotten wealth.”

“Allegations of corruption in oil revenues and fuel subsidy payments suggest that the poor have rarely benefited from the use and management of the revenues and payments.”

“Poor and socio-economically vulnerable Nigerians should not be made to continue to pay the price for the stealing of the country’s oil wealth while state and non-state actors pocket public funds.”

“We would be grateful if the recommended measures are taken within 3 days of the receipt and/or publication of this letter. If we have not heard from you by then, SERAP shall take all appropriate legal actions to compel your government to comply with our request in the public interest.”

“The proposed panel should be headed by a retired justice of the Supreme Court or Court of Appeal, and its members should include people with proven professional record, and of the highest integrity that can act impartially, independently, and transparently.”

“A comprehensive approach that prioritises accountability and full recovery of missing crude oil and public funds is required to address the problems of the implementation of fuel subsidy since 1999.”

“According to the audited reports between 2016 and 2019 by the Auditor General of the Federation (AGF), the Nigerian National Petroleum Corporation (NNPC) failed to remit N663,896,567,227.58 into the Federation Account. The Auditor-General fears that the money may be missing.”

“The NNPC also reportedly failed to account for the allocation of crude oil to refineries in 2019. 107,239,436.00 barrels of crude oil were lifted as domestic crude without any document. The Auditor-General fears that the crude valued at N55,891,009,960.63 may have been diverted.”

“The NNPC in 2019 also failed to remit N1,955,354,671,268.66 and N55,157,702,848.74 of generated revenues into the Federation Account, contrary to Section 162(1) of the Nigerian Constitution 1999 [as amended]. The Auditor-General fears that the money may have been diverted.”

“The NNPC also failed to account for N4,572,844,962.25 of ‘domestic gas receipts’, thereby ‘reducing the distributable revenue in the Federation account.’ The Auditor-General wants the money remitted.”

“The NNPC also in 2019 failed to account for 22,929.84 litres of PMS pumped from refineries and valued at N7,056,137,180.00. The Auditor-General fears that the PMS may have been diverted.”

“The NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’ The Auditor-General fears that the crude oil may have been diverted.”

“The Department of Petroleum Resources (DPR) in 2019 also reportedly failed to remit US$1,278,364,595.49 in revenue to the Federation Account. The money was deducted by the NNPC from the Oil and Gas Royalty assessed by the DPR.”

“The DPR in 2019 also deducted N19,840,081.29 as ‘stamp duty’ payments from contractors and consultants but the DPR instantly paid back the money to the contractors and consultants instead of remitting it to the treasury.”

“The DPR in 2019 also paid N137,225,973.35 to contractors and consultants for various contracts and consultancies but failed to deduct stamp duty. The Auditor-General wants the money recovered.”

“The DPR also paid N11,856,088,271.92 as salaries for 2019 but failed to deduct N118,560,882.72 as contribution of 1% Industrial Training Fund (ITF). The DPR in 2019 also failed to transfer US$35,738,342.95 year balance. The Auditor-General wants the money recovered and remitted.”

“The DPR in 2018 also withdrew without any explanation US$759,387,755.10 from DPR Signature Bonus Account rather than paid the money into the Federation Account.”

“Subsidy records show that N443,940,559,974.80 was paid as total subsidy for 2016 but the money was not budgeted for. The payments were for outstanding Petroleum Support Fund (PSF) commitments for year 2015.”

“However, there was no payment in 2016. Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.”

“The Auditor-General fears that the oil marketers that received the subsidy payments may not have been ‘eligible to draw from the Petroleum Support Fund as the Petroleum Products Pricing and Regulatory Authority (PPPRA) failed to provide any document on the payments.’”

“N39,141,210,181.74 was also paid from the Federation Account in 2016 to different Oil Marketers in 26 transactions, being Payments of Interest and Foreign Exchange Differential on Subsidy but without any document.”

“The NNPC also made ‘zero profit’ and recorded ‘losses from its joint ventures in 2016. This is contrary to expectations that profits should be made from the joint ventures.’”

“The Ministry of Petroleum Resources, Abuja in 2016 paid N14,490,000.00 for the supply of 3 Nissan Almera Saloon vehicles 1.5 to the Ministry without proper documentation. The purchase of ‘the vehicles were made through direct procurement without competitive bidding by at least three companies, as required by Financial Regulations. There was no advertisement and bidding for this contract.’”

“Although ‘N12,442,500.00 was approved by the Bureau of Public Procurement for the vehicles, the Ministry made an overpayment of N2,047,500.00 to the car company.’”

“SERAP urges your government to prioritise getting to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.”

“Promptly investigating and naming and shaming suspected perpetrators and recovering any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”

“Section 13 of the Nigerian Constitution imposes clear responsibility on your government to conform to, observe and apply the provisions of Chapter 2 of the constitution. Section 15(5) imposes the responsibility on your government to ‘abolish all corrupt practices and abuse of power.’”

“Under Section 16(1) of the Constitution, your government has a responsibility to ‘secure the maximum welfare, freedom and happiness of every citizen on the basis of social justice and equality of status and opportunity.’ Section 16(2) further provides that, ‘the material resources of the nation are harnessed and distributed as best as possible to serve the common good.’”

“The UN Convention against Corruption and the African Union Convention on Preventing and Combating Corruption to which Nigeria is a state party obligate your government to effectively prevent and investigate the plundering of the country’s wealth and natural resources and hold public officials and non-state actors to account for any violations.”

“Specifically, article 26 of the UN convention requires your government to ensure ‘effective, proportionate and dissuasive sanctions’ including criminal and non-criminal sanctions, in cases of grand corruption.”

“Article 26 complements the more general requirement of article 30, paragraph 1, that sanctions must take into account the gravity of the corruption allegations.”

VANGUARD

News

UNIOSUN Appoints First Female Registrar In 18 Years

Published

3 hours ago

April 19, 2024

Editor

The Governing Council of Osun State University on Friday announced the appointment of Mrs. Atinuke Oguntunde as the institution’s third substantive Registrar.

Oguntunde’s appointment, being the first female to be appointed Registrar was coming after 18 years of the establishment of the university.

The institution was established by the Osun State Government during the administration of Olagunsoye Oyinlola on December 21, 2006 and it has had two substantive male Registrars.

Also appointed were; Mr. Muideen Lasisi, who got appointed as the 3rd substantive Bursar, and Dr. Olugbenga Adewuyi, who was appointed 3rd substantive university Librarian.

A release issued by the University’s Public Relations’ Officer, Ademola Adesoji, further disclosed that the appointments were approved by the Governing Council at its special meeting on Friday, following the completion of the selection processes and the recommendations of the Selection Panel.

Giving further details about the appointees, Adesoji said, “Mrs. Atinuke Oguntunde (native of Ilesha), the newly appointed Registrar, will bring a wealth of experience and expertise to her new role. Previously serving as the Deputy Registrar and College Secretary at the University’s College of Health Sciences. Mrs. Oguntunde has demonstrated exemplary leadership and dedication throughout her services in the University system.

“Her academic qualifications include a B.A.(Ed.) in English Education from the University of Ilorin and an M.A. in Literature in English from the same institution.

“Mr. Muideen Akintayo Lasisi (native of Ido-Osun) was until his appointment a Deputy Bursar at the National Open University of Nigeria. With a career spanning over two decades in finance and accounting, Mr. Lasisi’s appointment underscores UNIOSUN’s commitment to financial prudence and accountability. He holds academic qualifications including an HND in Accountancy from Osun State Polytechnic, a B.Sc. in Accounting from the University of Lagos, and an M.Sc. in Entrepreneurship from the National Open University of Nigeria.

“Dr. Olugbenga Wale Adewuyi (native of Ila Orangun), the newly appointed University Librarian, will bring his wealth of academic and professional experience to his new role. Dr. Adewuyi is renowned for his scholarly contributions and commitment to advancing library sciences and administration. He holds academic qualifications that include a B.A. in Dramatic Arts from Obafemi Awolowo University, an M.Sc. in Library Studies from the University of Ibadan and a Ph.D. in Library and Information Science from Babcock University.”

UNIOSUN Vice-Chancellor, Prof. Clement Adebooye, while reacting to the appointments, stated that it marked a significant milestone in the institution’s journey towards academic excellence and institutional advancement.
PUNCH

News

Alaafin: Kingmakers Appeal As Court Strikes Out Case Against Makinde

Published

3 hours ago

April 19, 2024

Editor

Oyo State High Court sitting in Awe, Oyo State, has struck out a case filed by the Oyo kingmakers ( Oyo Mesi) against the state governor, Seyi Makinde, the state Attorney General and the Commissioner for Local Government and Chieftaincy Matters on the vacant stool of Alaafin of Oyo over administrative defect.

The PUNCH reports that the stool became vacant after the death of the late Alaafin of Oyo, Oba Lamidi Adeyemi III, who died at the age of 82 and ruled for 52 years.

The claimants in the suit no HOY/14/2023 are the Bashorun of Oyo, Chief Yusuf Layinka; Lagunna of Oyo, Chief Wakeel Oyedepo; Akinniku of Oyo, Chief Amusa Yusuf; Areago Bashorun, Chief Wahab Oyetunji and the Alapo of Oyo, Chief Gbadebo Mufutau.

They were seeking court injunction restraining Makinde and his agents from overruling their choice on the selected candidate for the vacant stool.

According to them, “due diligence was followed in the selection/appointment of the candidate for filling the vacant stool of Alaafin of Oyo duly conducted by the kingmakers of Alaafin of Oyo Chieftaincy.”

While ruling on the notice of preliminary objection as filed by the defendants, on Tuesday, Justice Ladiran Akintola said there was no proof of service to notify the governor of the outcome of the selection process as carried out by the kingmakers.

The failure to serve the notice of the outcome on the governor thereby affects the substantive case, and as such, the case was struck out.

It was stated in the ruling that, “This court found merit in the Notice of Preliminary Objection filed by the defendants/applicants against the claimants/respondents in this case.

“The same succeeds, accordingly all the issues raised for determination of this court by learned counsel on both sides are thereby resolved in favour of the defendants/applicants but against the claimants/respondents.

“Consequently, the suit initiated by the claimants/respondents in this case against the defendants/applicants is thereby struck out.”

In a telephone interview with The PUNCH, on Friday, the lead counsel for the claimants, Kunle Sobaloju (SAN) said a notice of appeal and motion for injunction pending an appeal have been filed at the Court of Appeal and Oyo High Court, respectively.

Commenting on the judgment, Sobaloju said the judgment that was passed, on Tuesday, was on a preliminary objection filed by the defendant which is the Governor of Oyo State, Attorney General of the state and Commissioner for Local Government and Chieftaincy Matters.

He said, “By that preliminary objection after we filed our case which they challenged against on the ground that we did not comply with the condition precedence of filing an action of that nature.

“According to them, what was the condition precedence, they said the Secretary of the Local Government, Atiba Local Government did not notify the governor of the Oyo Mesi on the selection of Prince Lukman Gbadegesin as the candidate to fill the stool of Alaafin of Oyo.

“Our response to that objection is to the effect that that duty is imposed on by the law, that is Section 19 of the Chieftancy Law on the Secretary to the Local Government and not on the kingmakers and we exhibited evidence that the kingmakers forwarded their decision to the Secretary of Atiba Local Government.

“We also exhibited a letter from the Secretary of Atiba Local Government acknowledged by the Ministry of Local Government and Chieftaincy Matters. That is the only means to which the governor can be involved. You can not go to the governor and serve him directly.

“We also argued that even the issue is an issue of evidence that the governor can only prove whether he was served or not with proof of evidence. It is not the issue that the court can determine by way of preliminary objection.

“However, it is the failure to serve the notice of the decision of the kingmakers on the governor that affects our case, and as such, it was struck out.

“We have filed a notice of appeal and motion for injunction pending an appeal. What was considered on Tuesday was the notice for preliminary objection. The merit of the case is yet to be considered.”

News

Drama As Two Ebonyi Commissioners Fight In Public

Published

4 hours ago

April 19, 2024

Editor

Two commissioners from Ebonyi State reportedly fought shamelessly in public during the defection ceremony of chieftains of the PDP into the APC held at Ebiaji, Ezza North Local Government Area of Ebonyi State.

The two commissioners Victor Chukwu, Commissioner for Environment and Jude Okpor, the Commissioner for Information, engaged in the fight which attracted the attention of the state party chieftains from the area.

An eyewitness who identified his name as Nwite told Vanguard that the two commissioners, not minding their social status, engaged themselves in fierce fight which took the intervention of some stakeholders and security agents to stop the fight.

“Nobody told me anything about it. I saw everything myself. I don’t know the cause of their fight but they fought and this is the 5th fight between them”, he aid.

“As a leader of thought in my place, this is embarrassing to me, our people and the people of Ebonyi State. It happened during the defection of some people into APC at Ezza North.

“It was a very big fight and it was not hidden”, he added.

The two Commissioners who are said to be stakeholders in their various communities had a field day as they reportedly exchanged blows, not minding those that were watching them.