Fidelity bank banner UBA banner
Oil scam: Reps uncover illegal companies used by NNPC, MDAs

By News Express on 18/02/2016

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 4,300


The House of Representatives Adhoc Committee investigating crude oil swap for refined petroleum products has uncovered the illegal companies registered by Nigerian National Petroleum Corporation (NNPC) and some Ministries, Departments and Agencies (MDAs).

According to the chairman of the committee, Rep Zakari Mohammed, one of the companies listed in the documents obtained from the Office of the Accountant of the Federation (oAGF) for the ongoing investigative public hearing on the $24 billion crude oil swap scandal was Duke Global Energy Investment Limited, NNPC subsidiary.

Duke Energy Investment Limited was registered with Corporate Affairs Commission (CAC) in 2012 by NNPC, as an arm of Duke Oil Incorporated registered in Panama in 1989, to trade crude oil on behalf of NNPC at the international market.

Hamman Pategi (APC-Kwara) explained that Federal Ministry of Finance did not have representative on the Board of Duke Energy Investment Limited, as obtainable to other companies established by MDAs and privatised companies across the country.

While reacting to presentations of various stakeholders, members of the Adhoc Committee queried rationale for the 7.56 million barrels of crude traded by Nigerian National Petroleum Corporation (NNPC), 20 months after the expiration of the contract agreements between Duke Oil, Transfigura and other oil marketers.

The Committee also who queried the non-payment of tax by Transfigura to Nigerian authorities while a Nigeria company registered offshore pays its due taxes to its host country, however requested for all the annual financial reports of Duke Oil and Duke Energy Investment Limited since their establishments as well as evidence of relevant taxes paid to UK and Panama

Joseph Dawah, former NNPC Group Managing Director who appeared before the Committee, also confirmed that “in 2010, NNPC entered into OPA with Societe Ivoiriene de Raffinage refinery which expired on 3rd October 2013; crude for products exchange with Transfigura B. V of 60,000 barrels per day, which expired on 30th September 2013 and 90,000 barrel per day of crude for products exchange contract with Duke Oil Incorporated a subsidiary of NNPC.”

According to him, the NNPC former Secretary/Legal Adviser indicated that “NNPC and the contract holders had continued to ‘voluntarily’ operate the contracts,” which implies that “the contracts were deemed to have been renewed or extended on their terms by agreement of the parties.

In the bid to correct the anomalies in the swap arrangement, Dawah “requested approval from the then Minister of Petroleum Resources for renewal of the contracts. Upon receipt of the then Minister’s approval granted on 29th August 2014, the contracts were formally extended to cover the periods from their respective dates of expiry until the end of December 2014.

“If I had not got the Ministerial approval, I may have been the GMD with the shortest tenure because there is no way I would have allowed it to continue.”

He added that after obtaining the approval, NNPC eventually dropped for OPA based on value, while all the trading firms involved with the oil swap arrangement were contracted to continue with the OPA.

Dawah further argued that the OPAs delivers the highest yield for premium products per barrel of crude oil than the crude oil swap, based on an analysis of Yield Pattern Comparison conducted under his watch.

For his part, Babatunde Adeniran, Chairman of Duke Oil Board and NNPC Group Executive Director (Marketing) confirmed that Duke Oil sister company, pay requisite taxes in London but failed to disclosed whether the company pay tax in Panama where the company was incorporated in 1989.

He explained that all the profits made were remitted to NNPC which in turn pay into the Federation Account.

While responding to questions from the committee, Esther Nnamdi, PPMC Managing Director disclosed that the company in conjunction with NEITI negotiating direct refining of crude oil in order to meet domestic demand.

While reacting, the lawmakers also requested for copies of the taxes paid by Duke Oil to UK and other countries, just as they alleged that Duke Oil was used as laundering pipe by NNPC and proxies.

The lawmakers also expressed concern over the establishment of DUGIL, an umbrella company through which the N26 million tax was paid to Federal Inland Revenue Service (FIRS).

They further alleged that Transfigura breached all extant laws in connivance with officials of NNPC and its subsidiaries, in tandem with the reports from the Extractive industry and NEITI which described crude oil lifting in Nigeria as opaque.

•Sourced from Peoples Daily.

Source News Express

Posted 18/02/2016 12:48:10 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

 

You may also like...
APC protests Rivers killings

Obiano takes Anambra’s 30 lawmakers to America, comes...

US Report accuses Nigerian Police, Army of monumental...

Rivers APC accuses PDP of planning to break...

APC wins Ifako-Ijaiye Lagos bye election

Sara Suka on rampage in Kaduna, butchers 22-year-old...

Killer herdsmen strike in Kaduna, Benue

Cholera: 8 killed, 20 hospitalised in Kano

EFCC arrests oil vessel

Reps canvass military intervention to end Delta crisis...

PDP chairmanship: Bode George challenges co-aspirants to public...

Nigeria, Morocco sign 21 trade agreements

 

Latest News UK investigator probes murder of Ex-Finance Minister’s daughter Nnamdi Kanu to make live radio broadcast on Sunday evening Shehu Sani dumps APC 2019: ‘America has no preferred candidate’ Customs intercepts container with imported soup from China WhatsApp bans more than 100,000 accounts Why we sponsor The Nigeria Prize for Science and The Nigeria Prize for Literature — NLNG MD, Tony Attah Rivers Guber: Tonye Cole will defeat Wike in 2019 — Tatua Type-2 polio virus discovered in Bauchi 2019 elections: NYCN to hold nationwide town hall meetings Minimum Wage: ‘Nigeria still a third world country’, Ngige reacts to US comparison Adeniyi challenges online publishers to help Nigerians rediscover their voices

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (408,011 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (383,103 views) Shameless Genevieve Nnaji exposes breasts in public (315,482 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (258,407 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (237,980 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (224,725 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (204,512 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (185,945 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (170,737 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (166,126 views) Lagos plane crash: Journalist releases victims’ names (161,794 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (149,539 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (69) Business & Economy (3,699) Business Verdict (52) Columnists (949) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (559) Features (660) Global Business Monitor (304) International (2,552) Interview (165) Live Commentary (28) Love Matters (145) News (39,772) Opinion (1,125) Pidgin (13) Politics (7,315) Religion (881) Sports (1,735) Stock Watch (35) AMA & Al Jazeera Global Update

 

NLNG Prize for Literature 2018

Zenith Zero Balance

CBN banner

Firstmobile banner

 

 

 

NEWS EXPRESS TV

LIBYA vs NIGERIA 2-3 Goals Highlights

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement