House Accuses NNPC, PPMC of Subverting Crude Oil Swap Probe

The House of Representatives Ad hoc Committee on Refined Products Exchange Agreement/Crude Oil Swap has accused the Nigerian National Petroleum Corporation (NNPC), its Crude Oil Division, and the Pipeline and Products Marketing Company (PPMC) of allegedly subverting its ongoing investigation into the operations of the swap agreement with oil traders.

 Speaaker Yakubu Dogara

The Chairman of the Committee, Hon. Zakari Mohammed, briefing journalists in Abuja on Thursday, explained that six agencies were invited to provide relevant documents and make submissions to the committee, and while three of them have complied, the NNPC, its crude oil division, and PPMC are yet to do so.

The other agencies which have since complied with the committee’s directives are Nigerian Extractive Industries Transparency Initiative (NEITI), Nigerian Customs Service (NCS), and Department of Petroleum Resources (DPR).

Mohammed (Kwara APC) issued a November 18, 2015 noon deadline to the defaulting agencies to comply with the committee’s directive else, “the full weight of the law as enshrined in the constitution will apply even if it means issuing a subpoena to them to appear here.”

He disclosed that the committee had had to send a reminder to the agencies, who responded last Tuesday, asking for a week, to provide the documents. He however described their delay as ‘irresponsible’ since the required documents, are already in their possession.

Some of the documents demanded included all documentation in respect of the contract deeds, award, transfer of crude, receipts of products and completion of contracts, annual reports from 2005 to date, Swiss Traders OPV in Nigeria Report, revenue losses if any, evaluation of the performance of the swap policy, and any other document that may assist the committee in its assignment.

“As a House, we want to expose these people who have taken monies that do not belong to them, return them to the coffers of government...we are talking of billions of naira loss.

“We want to use this medium to send a message to the Minister of Petroleum and the Minister of State Petroleum, that the most talked about change has not been effected in the NNPC, the rot is still there because what we have witnessed in the last few days is a clear case of irresponsible behaviour for those who should have the figures and facts to aid this investigation.,” Mohammed said. He disclosed that there were contradictions in documents on same issues submitted by the agencies, and they would be invited to explain the contradictions.

Mohammed also gave the assurance that the investigation would not go the way of others before it.

“This is why we have called to brief you, so that you know what is going on, even though we have met about six times already,” he said.

The Adhoc committee was set up following a motion sponsored in June 2015 by Hon. Michael Enyong (Akwa Ibom PDP) who alleged that the country has lost considerable revenue, from the oil traders involved in the crude oil swaps and Offshore Shore Processing Agreements (OPAs). There were allegations that the oil traders under-delivered petroleum products to the PPMC, the NNPC subsidiary responsible for taking delivery of the products after crude oil has been lifted by the traders.

The committee is charged with exposing corruption, inefficiency, and waste in the operations of the swap agreement, as a prelude to the efficient and transparent management of the nation’s  resources for improved revenue generation for the country.

Thisdayalive reportage.