Senate begins probe of diversion of $1.05b NLNG dividend

THE Senate yesterday asked its Committee on Gas Resources to investigate alleged diversion of $1.05 billion by the Nigeria National Petroleum Corporation (NNPC).

It came after a statement on Monday by Senate President Bukola Saraki that it was illegal for the NNPC to unilaterally draw from the NLNG dividend funds without appropriation by the National Assembly.

Saraki said the dividends paid to the Federal Government from the NLNG business were supposed to be kept in the Federation Account and shared among the three tiers of government.

It all began when NNPC Group Managing Director Maikanti Baru, last week, said  the corporation was using Nigeria Liquefied Natural Gas (NLNG) funds to augment under-recoveries in the importation of Premium Motor Spirit (PMS).

He claimed that the landing cost of the product was higher than the government control price of N145 per litre.

Baru, who appeared before the Senate ad-hoc committee set up to investigate alleged $3.5 billion subsidy fund, noted that the fund was sourced from the NLNG dividend funds.

He said the decision was taken at the height of last fuel scarcity experienced in the country between December 2017 and January 2018.

At the plenary yesterday, Chairman of the Senate Committee on Gas Senator Bassey Akpan raised a point of order, seeking the permission of the Chamber to carry out a thorough investigation into the withdrawals and spending by the NNPC from the NLNG account.

Akpan noted that utilising the funds without appropriation by the National Assembly and without the knowledge of state and local governments was an illegal act that should be investigated.

He said: “The Senate Committee on Gas has received several calls, complaints and questions from the general public through phone calls, emails on the basis of what has been trending in the newspapers and social media on the unauthorised withdrawal of over $1 billion from the proceeds of the NLNG dividends account by the NNPC.

“The NLNG dividend account belongs to the three tiers of government and comes under the Consolidated Revenue Account. Therefore, any unauthorised withdrawal from the account without the approval of the National Assembly or any other structure of government is illegal.

“I, therefore, seek the leave of the Senate President to allow the Senate Committee on Gas to investigate this withdrawal and other withdrawals and the way and manner the account of the NLNG proceeds is treated by the NNPC and report back to the Senate.

Senate Leader, Senator Ahmad Lawan said the investigation of the NLNG dividend fund should be left for the ad-hoc committee, which he chairs and is already looking into the matter.

The 15-member ad-hoc committee was set up on October 16 to investigate the alleged secret spending of $3.5 billion by the NNPC on fuel subsidy.

Lawan said: “Mr. President, I don’t think at this juncture that the Senate Committee on Gas should go and investigate the utilisation of the $1.05 billion from the NLNG dividend fund.

“We are already doing that. But if the committee on gas is to do this, it means our work is over, because we adjourned. NNPC is presenting all their documents to the committee next week.

“We are sitting this afternoon with other stakeholders. So, I personally feel that this will subtract from what we are doing, and I think it will make our work unnecessary.”

Senator Emmanuel Paulker (Bayelsa Central) disagreed with Lawan, saying that the matter being investigated by the ad-hoc committee was different from the NLNG fund.

He said: “The ad-hoc committee was set up specifically to look into the alleged spending of $3.5 billion on fuel subsidy.

Read also: Senate to probe NNPC’s claim on diversion of NLNG’s dividend

“Subsidy issue should not be confused with the issue of the interest that arose from the dividend of the NLNG. So, I believe they are two different issues.”

Saraki agreed with Akpan and Paulker.

He said the Gas Committee’s investigation would be restricted to the utilisation of the NLNG dividend fund.

He noted that the dividend issue was beyond the alleged $3.5 billion subsidy payment and should be separately investigated by the Committee on Gas.

Saraki said: “Who knows, maybe the dividend is also being used for other things, may be for recurrent expenditure; we don’t even know. I think the ad-hoc committee’s investigation is wide, and Akpan is talking about dividend of NLNG being used for subsidy.

“Could it be that the fund is also being used for other things as well? I think they are two separate issues.”