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Reps discover unremitted N1.5 trillion FG’s funds

Posted by By JAMES OJO, Abuja on 2008/07/24 | Views: 1946 |

Reps discover unremitted N1.5 trillion FG’s funds


The House of Representatives yesterday made a shocking revelation that a whopping N1.5 trillion belonging to the Federal Government was yet to be remitted to the Federation Accounts by government ministries, departments and agencies between 2003 and 2008.

The House of Representatives yesterday made a shocking revelation that a whopping N1.5 trillion belonging to the Federal Government was yet to be remitted to the Federation Accounts by government ministries, departments and agencies between 2003 and 2008.

Closely followed was another disclosure by the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Alhaji Abubakar Yar’Adua, who said that the corporation spent $20.11 billion out of $77.031 it generated during the same period under review.

Chairman of the House Committee on Finance, Hon. John Enoh, while briefing some of the MDAs who came to testify before a public hearing said it was unfortunate that out of N3.6 trillion, N1.5 trillion was not remitted to the Federation Accounts.

While decrying the incident, Enoh lamented that his committee only received submissions from 60 per cent of the total MDAs saddled with the responsibility of collecting revenue for the Federal Government.
At the end of the investigations, he said that there was the possibility that the amount owed the Federal Government could go higher than what was discovered so far.

The investigation that had revealed the shortchanging of government was aimed at generating more revenue from internally generated sources than even what is being earned from the sales of crude oil.
Group Managing Director of the NNPC, Alhaji Yar’Adua, in his submission said his corporation was able to remit 56.221 billion US dollars into the Federation Accounts within the period under review.
He, however, told members of the committee that the corporation, under the Act establishing it has the powers to spend the 20.11 billion US dollars which he said comes under what is known in the corporation’s accounting system as ‘’Cash Calls’’.

On the high cost of diesel, the NNPC boss stated that since 2003 when the Federal Government deregulated the down stream of the oil sector, NNPC has been selling diesel at N61.1 while the same product sells up to N200 in the open market.
He admitted that there was crisis in the oil sector due to the decision of the Obasanjo administration to regulate and deregulate the down stream of the oil sector at the same time, which he noted put so much pressure on the NNPC.

"NNPC may collapse in the near future if we continue to sell diesel at N61.1. At the same time, companies in Nigeria are closing down due to the high cost of this product because due to lack of regular power supply in the country, 80 per cent of companies run on diesel and this is not good for our economy. I would like to appeal to members of this committee to put heads together with the executive arm of government so that we can find lasting solution to this,’’ he stated.
Speaking on the state of refineries in the country, Alhaji Yar’Adua disclosed that Warri refinery was producing at 90 per cent installed capacity while Kaduna refinery produces at 70 to 80 per cent capacity.

He, however, stated that the Port Harcourt refinery was engulfed by a mysterious fire which damaged its central cooling system but quickly said that the debris had since been cleared and the refinery may start production next week.

"We have not yet reached the level of total removal of subsidy on petroleum products. I think it is better for us to continue to subsidize so that Nigerians are not allowed to suffer unnecessarily because any increase in the pump price of petroleum products affects all parts of the economy.

Earlier, the Corps Marshal and Chief Executive of the Federal Road Safety Commission (FRSC), Chief Osita Chidoka, told members of the committee that the commission realized the sum of N2.5 billion between 2003 and 2008 and remitted same into the federation accounts.

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