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SERAP Sues Tinubu Over ‘Failure To Probe Missing $2.1bn, N3.1trn of Subsidy Payments’

Published

11 months ago

June 11, 2023

Editor

Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against President Bola Ahmed Tinubu over “the failure to probe the allegations that USD$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.”

The suit followed the grim allegations documented by the Auditor-General of the Federation in the 2016 and 2019 annual reports that the public funds are missing.

In the suit number FHC/L/CS/1107/23 filed last Friday at the Federal High Court in Lagos, SERAP is seeking: “an order of mandamus to direct and compel President Tinubu to promptly probe allegations that USD$2.1 billion and N3.1 trillion public funds are missing and unaccounted for between 2016 and 2019.”

SERAP is also seeking: “an order of mandamus to compel President Tinubu to direct the anti-corruption agencies to promptly probe fuel subsidy payments made by governments since the return of democracy in 1999, name and shame and prosecute suspected perpetrators, and to recover any proceeds of crimes.”

SERAP is also seeking: “an order of mandamus to direct and compel President Tinubu to use any recovered proceeds of crime as palliatives to address the impact of the subsidy removal on poor Nigerians, and to put in place mechanisms for transparency and accountability in the oil sector.”

In the suit, SERAP is arguing that: “The allegations that US$2.1 billion and N3.1 trillion of public funds are missing and unaccounted amount to a fundamental breach of national anticorruption laws and the country’s international obligations including under the UN Convention against Corruption to which Nigeria is a state party.”

SERAP is also arguing that, “The Tinubu government has constitutional and international legal obligations to get to the bottom of these allegations and ensure accountability for these serious crimes against the Nigerian people.”

According to SERAP, “Directing and compelling President Tinubu to promptly probe, name and shame and bring to justice the perpetrators and to recover any missing public funds would advance the right of Nigerians to restitution, compensation and guarantee of non-repetition.”

SERAP is further arguing that, “Allegations of corruption in fuel subsidy payments suggest that the poor have rarely benefited from the use and management of the payments.”

The suit filed on behalf of SERAP by its lawyers, Kolawole Oluwadare, Ms Adelanke Aremo, Ms Valentina Adegoke, and Ayomide Johnson, read in part: “There will be no economic growth or sustainability without accountability for the human rights crimes.”

“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.”

“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 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 NNPC also ‘illegally classified’ 239,800 barrels of crude oil valued at N5,498,045,220 as ‘crude oil losses.’”

“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 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 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.’”

No date has been fixed for the hearing of the suit.

Headline

Iran Gets Interim President After Raisi’s Death

Published

28 mins ago

May 20, 2024

Editor

Iran’s supreme leader Ayatollah Ali Khamenei assigned vice president Mohammad Mokhber to assume interim duties after the death of president Ebrahim Raisi in a helicopter crash a day earlier.

“In accordance with Article 131 of the constitution, Mokhber is in charge of leading the executive branch,” said Khamenei in a statement, adding that Mokhber will be required to work with the heads of legislative and judicial branches to prepare for presidential elections “within a maximum period of 50 days”.

Recall that President Raisi was confirmed dead on Monday after his helicopter crashed in a mountainous region of the country.

Raisi was travelling with Foreign Minister Hossein Amir-Abdollahian who also died in the accident.

Rescue teams had been scouring the area since Sunday afternoon after a helicopter carrying Raisi, the foreign minister and other officials had gone missing.

Early Monday, relief workers located the missing helicopter, with state TV saying the president had died.

“The servant of Iranian nation, Ayatollah Ebrahim Raisi has achieved the highest level of martyrdom whilst serving the people,” state television said Monday, with Mehr news agency also saying he was dead.

State television broadcast photos of Raisi, with the voice of a man reciting the Koran playing in the background.

Iran’s vice president for executive affairs Mohsen Mansouri posted on X a Koranic verse used to express condolences.

Meanwhile, Iran’s supreme leader Ayatollah Ali Khamenei has announced a five days of mourning for President Raisi.

“I announce five days of public mourning and offer my condolences to the dear people of Iran,” said Khamenei in an official statement a day after the death of Raisi and other officials in the crash in East Azerbaijan province.

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UK Threatens To Deport Physically-challenged Nigerian After 38 Years

Published

49 mins ago

May 20, 2024

Editor

The United Kingdom has threatened to deport a physically-challenged Nigerian man, Anthony Olubunmi George, over an alleged forged entry stamp in his passport.

George who has lived in the UK for 38 years, after he left Nigeria at the age of 24 in 1986, according to the Guardian UK.

The 61-year-old Nigerian has no criminal convictions and made several applications for leave to remain in the UK, which the Home Office has rejected, most recently on 7 May.

George’s case became the second African facing a huge disappointment with the UK Home Office after spending several years in Britain.

Vanguard reported last week that a 74-year-old Ghanaian Nelson Shardey, who has resided in the UK since 1977, was refused indefinite leave to remain despite being in the country for most of his adult life.

As the case of the Nigerian, he has never left the UK and has no criminal convictions, with the reports of having two strokes, which left him with problems with speech and mobility in 2019.

When George arrived, Margaret Thatcher was prime minister and Rishi Sunak is the ninth to hold office since George has lived in the UK.

He has endured many periods of homelessness and disclosed he has lost count of the number of friends who have given him shelter over the years, adding that he no longer has any close family in Nigeria.

The Guardian UK said in 2005, his previous solicitors submitted a forged entry stamp in his passport and have subsequently been reported to the police and the legal regulatory bodies.

George told the Guardian he knew nothing about the passport stamp until many years later. His current lawyer, Naga Kandiah of MTC Solicitors, cited his poor previous legal representation as the reason for George’s problems.

In his most recent refusal, Home Office officials said: “Unfortunately this is not something that is considered an exceptional circumstance.”

Kandiah has lodged an appeal against the latest refusal.

A previous Home Office rejection of his case states: “It’s open to your family and friends to visit you in Nigeria.”

George said, “I don’t know how many different sofas I’ve slept on – too many to count. I don’t have my life, living the way I’m living now. My health problems since I had my stroke are my biggest worry. All I’m asking for is some kindness from the Home Office.”

Headline

JUST IN: ICC Prosecutor Seeks Arrest Warrants For Netanyahu, Hamas Leaders

Published

2 hours ago

May 20, 2024

Editor

The chief prosecutor of the International Criminal Court has applied for arrest warrants for Israeli Prime Minister Benjamin Netanyahu and Hamas’s leader in Gaza for war crimes.

According to BBC, Karim Khan said there were reasonable grounds to believe that both men bore criminal responsibility for war crimes and crimes against humanity from at least 7 October 2023.

The ICC, based in The Hague, has been investigating Israel’s actions in the occupied territories for the past three years – and more recently the actions of Hamas as well.

Mr Netanyahu recently called the prospect of senior Israel figures joining the ICC’s wanted list “an outrage of historic proportions”.

Last week, 13 Western countries including the United Kingdom, Germany, Japan, Italy, Japan and others cautioned Israel over its resolve to launch a full-scale operation in Rafah.