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NEITI Accuses NNPC Of Not Remitting Bridging Allowances
The Nigerian Extractive Industries Transparency Initiative, NEITI, has accused the Nigerian National Petroleum Corporation, NNPC, of failing to remit to the Petroleum Equalisation Fund Management Board, PEF(M)B, bridging allowances for a significant number of years.
In its Fiscal Allocation and Statutory Disbursement, FASD, Audit for 2012 – 2016, obtained yesterday, NEITI stated that PEF had been unable to make the NNPC to pay for the amount it owed.
Though it did not state the amount the NNPC owed and the period over which the NNPC had defaulted, NEITI said PEF received N381.888 billion from major and independent oil marketers and the Pipeline and Petroleum Marketing Company PPMC, from 2012 and 2016.
According to the NEITI report, a total of N499 billion was received by PEF Management Board (MB) throughout the review period, 2012 to 2016, with N382 billion realised from Bridging allowance; while most of its expense was on claims amounting to almost N303.4 billion.
It noted that receipts in 2012 was N76.8 billion, increasing by 84 per cent to N141.66 billion in 2013, but decreased by 23 per cent to N109.6 billion in 2014.
The report added that receipts also increased by 56 per cent in 2015 to N170.83 billion, while it noted that financial statement for the year 2016 was yet to be finalized and therefore was not included in the analysis.
NEITI said, “With emphasis on NNPC; the fund finds it extremely difficult to ensure that NNPC pays the amount owed to the Fund and as a result, the Fund has outstanding huge amount receivables from NNPC for a number of years.”
The report further stated that while the NNPC remitted N13.535 trillion to the Federation Account from 2012 to 2016, it failed to remit to N373.878 billion to the federation over the same number of years.
In addition to the NNPC default, NEITI said it observed that PEF does not impose penalties promptly on defaulting independent and major oil marketers who failed to pay their contributions.
It added that PEF paid claims to major and independent oil marketers only after deducting the contributions and allowances due from the marketers to PEF(M)B, noting that in some cases, bridging claims were paid to some independent oil marketing companies without deducting the National Transportation Average, NTA, contribution due from them.
“When a marketer makes payment to the Fund resulting from the outstanding amount due, the Fund does not have a system to verify what transactions the amount paid relate. Detailed description is also not included in the bank statement. “Utilization of the Fund is not separated between the core activities and administrative purposes,” it noted.
To address these concerns, NEITI recommended “That the utilization of the Fund’s resources be disaggregated between primary activities, which include settlement of claims and receipt of NTA contributions, from the conventional administrative activities for management of Fund expenses.
“We recommend that management of PEF (M) B should have an aging analysis stating the period to which a marketer can be indebted. After these periods, we recommend that the management should not honor any claims due to independent or major oil marketing company until that company settles all previous indebtedness to PEF (M) B.
“It is also recommended that management should have a comprehensive schedule showing the list of marketers as well as the amount due from each marketer. We recommend that a competent staff be responsible for reconciling the amount paid by the marketers to the transactions to which the amount was due
NEITI described bridging allowance as the payment made by all licensed importers and marketers to PEF, adding that it is paid on the quantity of petroleum imported into the country. Currently, it disclosed that the rate is N6 per liter of imported petroleum products.
PEF is saddled with the responsibility of administering uniform prices of petroleum products throughout the country.
This is achieved by reimbursing a marketer’s transportation differentials for petroleum products movement from depots to their sales outlets in order to ensure that products are sold at a uniform pump price throughout the country.
The source of the fund is from the net surplus revenue recovered from oil marketing companies.
The Rivers State Chief judge, Justice Simeon Chibuzor Amadi has granted pardon to six inmates standing awaiting trial at the Port Harcourt maximum correctional center.
The six lucky inmates granted pardon on Tuesday by the state Chief Judge included Nwekeala Chizoba, Samuel Emmanuel, Aniete Kelvin, Ebube Fubara and Goddey Okpara who were on awaiting trial as murder suspects and have all spent between 10 years to seven years in the custody without a proper information filed against them in the court.
Justice Amadi during a special gaol delivery exercise last Tuesday at the Port Harcourt Maximum Correctional Centre opined that the special gaol delivery was part of activities lined up to commomerate the 2024/2025 legal year in the State and restated the commitment of the state judiciary in decongesting the correctional centre and ensuring that those inmates who are not supposed to be there are removed from the custody.
The state chief judge stressed the need for all stakeholders to work together to build a society that supports rehabilitation and gives a second chance to anyone or group of people who have fallen short of the expectation of the law and have been punished accordingly.
He stressed that the National Judicial Council(NJC) encourages judges to pay more attention to criminal matters to enable them to decongests the correctional facilities, noting that since his assumption into office, his administration has been able to reduce the number of inmates in Nigerian Correctional Centres and the Port Harcourt Correctional Centre in particular, to less than 2,000 as against the over 4,000 inmates previously in the faculty.
According to him, “as they release the deserving inmates, they affirm their commitment to justice, compassion and rule of law but that they must not forget the fundamental principles of justice delivery system which is truth and fairness, integrity and equality before the law.”
I encourage you all the released inmates to return to your families and become better citizens. You must not engage in action that will return you all back to prison. Let me say that while the judges show empathy to you all, it does not absolved individuals from being held accountable for actions against individuals, corporate organisations and state which the law frowns at, ”he stated
The Chief Judge thereafter stood down the exercise to enable the DPP to intervene to case files following the fact that majority of the persons listed to benefit from the exercise are facing murder charges and adjourned to a date that will come before December.
Earlier in his goodwill message, the outgoing state Comptroller of Nigerian Correctional Centre, Port Harcourt, Felix Lawrence, who was recently promoted to the rank of Assistant Controller General, commended the state judiciary led by Chief Judge, Justice Simeon Chibuzor Amadi for their continuous effort aimed at ensuring justice and decongesting the facilities.
Other activities lined up for the event included special church service at St Paul’s Cathedral , Anglican Communion, Rebisi Port Harcourt, inspection of guard of honour by the state Chief Judge mounted by officers of the Nigerian police and a special court session held at the ceremonial court hall.
By: AkujobiAmadi
The Director General of Rivers State Bureau on Public Procurement (RBoPP), Dr. Ine Briggs, has explained that the Sir Siminalayi Fubara administration plans to enforce transparency in governance through public procurement.
Speaking at a one-day Public Procurement Enlightenment workshop organised in collaboration with the State Local Government Service Commission for newly elected chairmen, vice chairmen, secretaries and leaders of legislative assemblies, Dr. Briggs said it is key for grassroot development.
She stated that the Sir. Fubara administration plans to reduce wastage and at same time infuse efficiency in public expenditure.
The RSoPP DG said the local government political office holders remain key drivers in the new vision hence the workshop is to arm them with knowledge on how to execute projects in tandem with needs of the people.
“ Your role in the prudent management of public resources is, therefore, not just administrative it’s the cornerstone of delivering the dividends of democracy. Every procurement decision you make must reflect a commitment to fairness, transparency and accountability” Dr. Briggs submitted.
One of the key goals of the administration she further reminded the participants was to use their offices to foster economic growth through public procurement.
She warned that the law establishing the agency empowers it to penalise defaulters, but that what is more important is voluntary compliance to the laws.
In addition to that, she said urged the local government council leaders that champion the practice and implementation of public procurement law.
On his part, Acting Chairman of Local Government Service Commission, Pastor GoodLife Ben Iduoku averred that the aim of the workshop is to arm key stakeholders in the local government system to generate new ideas, innovation and strategies in tandem with government policies and programmes.
The workshop dealt on various topics on procurement planning, methods, Understanding Bid Process, including types of Construction Contracts and law.
Some participants were awarded excellence and meritorious awards as part of the programme.
By: Kevin Nengia
The 19th anniversary of the National Association of Proprietors of Private Schools (NAPPS), Rivers State Chapter, recently ended in Port Harcourt in grand style, with participants from various schools including proprietors, the academia, civil society groups and top government functionaries charting the way forward for educational improvement.
The 19th NAPPS anniversary christened, ‘Innovation and Adaptation: Transforming Challenges Into Opportunities’ was held at Casoni Hotels, Port Harcourt.
In his remarks, the Chairman of the Rivers State Chapter of the association, Dr. Jaja Adafe Sunday expressed gratitude to the members and executives for their untiring efforts towards the achievements of the body.
He sought the intervention of government on the lingering crisis on the economy as it is affecting the running of schools.
He decried high cost of things including fuel and raw materials which has adversely affected the running of schools and payment of teachers.
Dr. Sunday hinted that the current economic situation in the nation is biting hard on the operations of schools, saying inflation, removal of fuel subsidy, fuel scarcity, poor electricity supply, tariffs and lack of government grants are some of the challenges faced by schools, and urged the members to brace up to the challenges, as it is the panacea to building a brighter future.
Guest speakers from the health sector and the academia thrilled the gathering on the essence of basic education which they said is the key to national development.
Former Dean of the Ignatius Ajuru University of Education, Professor Azuru and the Chief Medical Director of Meridian Hospitals, Dr. Odo Iyke were some notable guest speakers who delivered lectures at the occasion.
Some distinguished proprietors also got special recognitions and awards.
The 19th anniversary cake was cut by the Rivers State NAPPS Chairman with representatives of the state government assisting.