Okonjo-Iweala squandered $2.1bn without approval~FG

Firstclass newsline gathered that the National Economic Council,
chaired by Vice-President Yemi Osinbajo, on Monday accused a former
Minister of Finance and Coordinating Minister of the Economy under
ex-President Goodluck Jonathan, Dr. Ngozi Okonjo-Iweala, of spending
$2.1bn from the Excess Crude Account without authorisation.
"We looked at the numbers for the Excess Crude Account. The last time
the former Minister of Finance and Coordinating Minister of the
Economy, Mrs Ngozi Okonjo-Iweala, reported to the council, and it is
in the minutes, she reported by November 2014 that we had $4.1 bn.
"Today, the Accountant-General Office reported we have $2.0bn. Which
means the honourable minister spent $2.1bn without authority of the
NEC and that money was not distributed to states, it was not paid to
the three tiers of government," Edo State Governor Adams Oshiomhole
told State House correspondents after the NEC's 58th meeting in Abuja.
The 'unauthorised' spending, according to the economic council, is
among the several anomalies discovered in the management of the
nation's economy between 2012 and May 2015.
Within the period, the Nigerian National Petroleum Corporation was
said to have earned a total of N8.1 tn but remitted only N4.3tn.
Consequently, the Federal Government has constituted Oshiomhole,
Kaduna State Governor, Nasir el-Rufai; Akwa Ibom State Governor, Udom
Emmanuel; and Gombe State Governor, Ibrahim Dankwambo, into a panel to
probe the NNPC and the ECA between 2012 and May, 2015.
Oshiomhole, el-Rufai, Emmanuel and the Zamfara State Governor,
Abdulazeez Yari, jointly briefed journalists at the end of the
meeting.
Yari told the journalists, through the Director of Funds, Office of
the Accountant-General of the Federation, Mr. M.K. Dikwa, that council
members received the report of the ECA and unremitted funds by the
NNPC.
He said, "On that line, a four-man committee consisting of the
governors of Edo, Gombe, Kaduna and Akwa Ibom states was constituted
to go through the books of the NNPC and Excess Crude as well as the
Federation Account.
"The four-man committee will check the books of the NNPC, most
especially the issue of excess crude and what is not remitted into the
Federation Account.
"The Federal Government, in conjunction with the Central Bank of
Nigeria, will look inwards to see how to support and how much they
will give to states, especially on the issue of outstanding salaries
owed by the states and even the Federal Government."
Shedding new light on what transpired at the NEC meeting, Oshiomhole
said the NNPC and the Office of the Accountant-General of the
Federation were compelled for the first time to provide information on
the total sales of Nigeria's crude from 2012 to May 2015.
The Edo governor said, "We are talking about transparency; we are
talking about change. And what we saw from those numbers, which I
believe that Nigerians are entitled to know, is that whereas the NNPC
claimed to have earned N8.1tn, what NNPC paid into the Federation
Account from 2012 to May 2015 was N4.3tn.
"What it means is that the NNPC withheld and spent N3.8 tn.
"The major revelation here is that the entire federation, that is the
Federal Government, the states and all the 774 local governments, the
amount the NNPC paid into the Federation Account for distribution to
these three tiers of government came to N4.3 tn and the NNPC alone
took and spent N3.8tn.
"This means that the cost of running the NNPC is much more than the
cost of running the Federal Government. That tells you how much is
missing, what is mismanaged and what is stolen. There are huge
figures."
Oshiomhole said the only lawful way decreed by the Constitution was
that if the NNPC needed to spend money, it needed to prepare its
budget like every other business enterprise, get it scrutinised by the
executive and then forward same to the National Assembly for
appropriation.
He added, "If the Federal Government cannot spend without
appropriation, why should any agency spend without appropriation.
"This is what the Constitution provided for and this is what President
Muhammadu Buhari has promised to do; henceforth all money must go to
the Federation Account.
"If you were doing that, you would not have a situation where the NNPC
alone will spend N3.8trn and remit to the federal, states and local
governments N4.3trn, which means NNPC is taking about 47 per cent and
that explains all the leakages you are talking about."
El-Rufai recalled that he was part of the decision to put in place the
ECA during the tenure of former President Olusegun Obasanjo between
2004 and 2005 as an administrative arrangement to save for a rainy
day.
He said the account was set up in order to be accountable such that
every state and local government would know what they had in the
account though they could not spend it.
He said, "The Excess Crude Account is 52 per cent owned by the Federal
Government and 48 per cent owned by the states and the local
governments.
"So the decision of the NEC is to set up this committee of four to
look at the operations of the Excess Crude Account and make
recommendations to council on its future.
"The other thing the committee will do is to look at the operations of
the Federation Account, particularly the shortfall and again come back
to council with very clear recommendations as to what to do.
"We have not been given a time frame but as you can imagine state
governments are under pressure, many of our state governments are
unable to pay salaries on time without recourse to borrowing, so this
is very important to us.
"This is an all-governors' committee; we wear the shoes and we know
where they pinch. So we are going to do this as quickly as possible.
"The next meeting of the council is on July 23; we hope to complete
our work and be in a position to report to council on that day. So
within the next one month, we will be done by God's grace."
Firstclassnewsline.net