Reps probe $4.44bn NLNG dividend

By Tordue Salem
ABUJA — THE House of Representatives ad-hoc Committee investigating the activities of the Department of Petroleum Resources (DPR), Nigerian National Petroleum Corporation (NNPC) and its subsidiaries has delved into another round of investigations over the alleged non-remittance $4.44 billion dividends that accrued to the Federal Government on investments in the Nigeria Liquefied Natural Gas (NLNG) project.

The House Committee on Public Procurement on its part has threatened to move against Total Upstream Nigeria Limited if it failed, within two weeks, to reverse its decision to “wrongfully” sell $43 million contract for Remotely Operated Vehicle Services to Oceaneering Limited, a foreign oil prospecting Company.

“The NLNG does not belong to NNPC; it belongs to the Federal Government

“The NLNG does not belong to NNPC; it belongs to the Federal Government

The contention over the NLNG funds, it was learned, followed a conflict in the records made available to the House Committee by the NNPC, the Office of the Accountant-General of the Federation and the Budget Office of the Federation domiciled at the Federal Ministry of Finance.

The official records of the NNPC shows that a total $4,443,936,946 billion was paid to the Federal Government through the NNPC as dividends from NLNG between June 2004 and April 2009.

The money was received by the NNPC in its capacity as the representative of the Federal Government in the Joint Venture NLNG project in which Shell Gas, Total and ENI International (Agip) are also shareholders.

In a letter dated May 28, 2009, the NNPC acknowledged that the dividends were paid for each of the years spanning between and including 2004 to 2009.

However the records of the Accountant-General of the Federation and the Budget Office of the Federation showed that dividends were only remitted to the Consolidated Revenue Account for only 2005 and 2007, amounting to about $127million.

Chairman of the ad-hoc Committee carrying out the investigations, Rep. Igo Aguma said the disparity was evidence that the lump sum of the dividends paid were not lodged into the Federation Account.

“They have accepted to have collected the money, but where is the money if it is not in the Federation Account as required by the law? This is the mystery surrounding this investment. The NLNG has not cash-called for the establishment of new trains but where is the dividend on the initial investments made by the Federal Government?” Aguma queried.

However in a swift reaction, the Group General Manager, Public Affairs, NNPC, Dr. Levi Ajuonuma said the lawmakers investigating the issue of NLNG were getting many things wrong.

According to him, the allegations were unfounded, as the NNPC could not have “stolen” such “huge funds” accruing to the Federal Government through the NLNG.

“The NLNG does not belong to NNPC; it belongs to the Federal Government. The idea held by the House Committee that NLNG paid $4.4 billion to the NNPC is not correct. Whatever profit or dividend NLNG makes goes to the Federal Government.

It is the Federal Government that decides what to do with the money. They may decide to re-invest the money in the same NLNG or otherwise. It is the decision of the Federal Government.

“So, how can anybody come out to say that we squandered that kind of money? The truth is that NNPC can never spend that kind of money, because it is not its money.

The Central Bank, the Accountant-General of the Federation and the Federal Ministry of Finance are keeping a close watch on the movement of that money. Everybody’s eyes are on NLNG. NNPC cannot dip its hands in that money,” Ajuonuma said.

Reps threaten Total with sanction

In a related development, the Chairman, House sub-committee on Public Procurement, Mr. Matthew Omegara while giving a briefing yesterday, alleged the falsification of figures in the award of the contract by Total, accusing it of disregarding the Constitution of Nigeria and the statues on oil and gas in Nigeria. He regretted that even after TILONE Nigeria Limited was declared winner in a competitive bid round with Oceaneering International, Total went behind to award the contract to Oceaneering Nigeria Limited.

He noted that despite the declaration of TILONE as the winner of the bid, Total Upstream Nigeria Limited failed to implement NNPC Board’s directives which gave approval that the contract consisting of four remotely Operated Vehicles be awarded to TILONE.

He disclosed that instead of implementing the NNPC Board directives, Total Upstream engaged the services of a foreign firm known as Oceaneering International claiming that TILONE was not the company with the lowest bid.

According to him, investigations carried out by NNPC and other sister companies revealed that Total Upstream falsified the bid figures submitted by TILONE Nigeria Limited by adding various sums totaling about $10,975 million to the figure of $43 million earlier submitted, noting that this was a criminal offence.

“In what is playing out as a classic case of disrespect for constituted authority, Total Nigeria is defying the directives of NNPC/NAPIMS to follow due process as laid down by the procurement Act and avoid arbitrariness in its contractual relations in the oil sector.

“We wish to reveal here and we have our facts that Total Nigeria in complete disregard and defiance to due process and laws of the Federal Government of Nigeria awarded this contract to Oceaneering International as far back as July 12 2006 before the bid exercise was even conducted.

“We are of the view Total Nigeria’s intransigence constitutes gross impudence and an attempt to undermine the Public Procurement Act and authority of the NNPC and by extension that of the Federal Government on whose behalf the NNPC Act pursuant to the laws establishing same.

“The award of the contract to Oceaneering International has sounded a death knell on Federal Government Policy of Local Content Initiative drive, a well considered initiative by the Federal Government through which indigenous companies are made to participate and should benefit from the oil and gas sector.” He added.

The Committee therefore warned Total Upstream to immediately abide by the NNPC directives and award the full scope of the work to TILONE Nigeria Limited or face sanctions.

6 Responses for “Reps probe $4.44bn NLNG dividend”

  1. ayantunji lukman says:

    It’s the same old story.For a people to continue to be stuborn pedestrians in a supersonic age leave much to be regretted.Can’t these people for a moment reflect and see the mess they are causing the nation.
    Nigerians CHANGE.CAMBIO!!!!!!!!!!!!!

  2. Patrick Agbobu says:

    BELOW IS WHAT THE BBC IS REPORTING. I HOPE PRESIDENT YAR’DUA AND THE GROUP OF SELFISH ADVICERS KNOW WHAT THEY ARE DOING. SOME OF THE CORRUPT AND IDICTED EX GOVERNORS HE CALLS HIS FRIENDS ARE BEHIND THESE CRIMINAL ELEMENTS. THESE CORRUPT AND INDICTED EX GOVERNORS RECRUITED, TRIANED, ARMED AND ENCOURAGE THESE CRIMINALS. WHY CAN’T PRESIDENT YAR’ADUA GET IT. HE NEEDS TO STEP BACK, RETHINK AND RESTRATAGISE, HIS POLICY AND APPROACH TO THE NIGER DELTA. THE DAY THE RUSSIAN MAFIA IS INVOLVED IN THE NIGER DELTA, THEN IT IS ‘CAPUT’ FINISH FOR THE NIGER DELTA AND NIGERIA. PRESIDENT YAR’ADUA YOU MUST MOVE VERY VERY FAST OR THERE IS BIG AND SERIOUS TROUBLE I SEE!!
    YOU MUST LISTEN TO AMNESTY INTERNATIONAL. WHAT IS HAPPENING IN THE NIGER DELTA IS A VERY SERIOUS CRIME AGAINST HUMANITY. DO NOT ALLOW INTERNATIONAL BODIES TO GO AFTER OUR LEADERS AND PROSECUTE THEM FOR CRIME AGAINST HUMANITY. REMEMBER DAFOR AND TAYLOR. IF THE INTERNATIONAL COMMUNITY DECIDE TO PRESS AND PROSECUTE FOR CRIMES AGAINST HUMANITY, THERE IS NO WHERE TO HIDE. YOU MUST ACT NOW.
    REPORT BY BBC
    Militants in Nigeria are holding six members of the crew of an oil tanker, including its Russian captain.

    A statement from the managers of the ship, the Sichem Peace, said armed men boarded the vessel near Escravos and forced the men to come ashore.

    The ship was released and the remaining 13 crew moved it further offshore.

    A statement from the Movement for the Emancipation of the Niger Delta (Mend) said it was holding the men – three Russians, two Filipinos and an Indian.

    Root issues

    It said it had kidnapped the crew because they had disregarded its earlier warning to keep away from the Niger Delta.

    “Their arrest is meant to serve as a warning to others that there are root issues that have to be resolved with the Nigerian government before normalcy can resume,” the group said.

    This is the latest in a series of violent incidents in the Niger Delta, which has sharply cut Nigeria’s oil production.

    The Sichem Peace, which was seized about 20 nautical miles (37 km) from Escravos, was built in 2005 and sails under the flag of Singapore.

    Its managers, EMS Ship Management, said it was “working with the relevant authorities and professional advisors, and doing everything possible to secure the timely and safe release of the crew members.”

    It added that the safety of the crew was its “absolute priority”.

    The ship, it said, was now 100 miles offshore, and under the control of the remaining crew.

    Escravos is one of Nigeria’s main oil complexes, including a gas-to-liquids project and export terminal.

    Amnesty offer

    Earlier, Mend said it had blown up a major oil pipeline belonging to US firm Chevron, and an oil well head operated by Royal Dutch Shell.

    The statement has not been verified and there has been no response from Chevron.

    Last month Nigerian President Umaru Yar’Adua offered a 60-day amnesty to the militants of the Niger Delta, if they gave up their struggle.

    But Mend says it will not disarm until the government releases one of its leaders, Henry Okah.

    Mend says it wants the people of the Niger Delta to derive greater benefits from the region’s oil.

    But many criminal gangs have taken advantage of the lawlessness in the area.

  3. Patrick Agbobu says:

    THEY ARE PREPARING THEMSELVES TO DO ANOTHER HALLIBURTON TRIP AND WASTE AS USUAL PUBLIC FUNDS. THEY WANT GHANA MUST GO BAGS TO EXCHANGE HANDS. I AM NOT HOLDING BRIEF FOR TOTAL OR ANY OIL COMPANY AS THEY ARE EQUALLY AS GUILTY. HOW CAN THEY BE ALLOWED TO REGULATE AND SUPERVICE THEMSELVES. THEY ARE ALLOWED BY THE NNPC AND THE GOVERNMENT TO MARK THEIR PAPERS. WHAT DO YOU EXPECT.
    45 MILLION NAIRA OVERSEAS TRIP FOR WHAT? THIS IS A SCAM THAT IS HAPPENNING UNDER OUR NOSE. THIS AGF MICHAEL AONDOAKAA IS THE WORST THING THAT HAPPENED TO THIS ADMINISTRATION. I DO NOT SEE THE REASON, WHY THE PRESIDENT IS STILL KEEPING HIM IN HIS CABINET. IT THERE ANYTHING THE PRESIDENT KNOWS, WHICH THE PRESIDENT IS NOT SHARING WITH US? THIS TRIP IS A DELIBERATE WASTE OF PUBLIC FUNDS. WE ALL KNOW WHO THE CULPRITS ARE. THEY ARE IN THE CORRIDOR OF POWER IN THIS ADMINISTRATION AND IN PREVIOUS ADMINISTRATION. THEY ARE IN THE PRESENT NATIONAL ASSEMBLY AND PAST ONES. THEIR NAMES ARE IN PUBLIC DOCUMENTS, DISPLAYED BY THE COURTS IN THE USA AND SWIZERLAND. THIS AGF IS PATRONISING NIGERIANS AND HE IS GETTING AWAY WITH MURDER. THIS AGF HAS BEEN DOGGED, IN PROTECTING HIS FRIENDS AND BACKERS, THE CORRUPT AND INDICTED EXGOVERNORS. THE IBORI AND ASSOCIATES, MONEY LAUNDARY AND FRAUD CASE WITH THE LONDON METROPOLITAN POLICE, IS ONE OF THEM. THE AGF PLACED A LOT OF ABSTACLES, ON THE WAY OF THE METROPOLITAN POLICE, SO THAT THEY CAN NOT GET IBORI AND ASSOCIATES. NOW HE IS SEEKING COOPERATION WITH THE SAME INTERNATIONAL POLICE. SHAME ON YOU AGF MICHAEL AONDOAKAA. THESE SAME CORRUPT AND INDICTED EXGOVERNORS RECCOMENDED THE AGF FOR THE POST. IT WAS REGARDED AS ONE OF THE PAY BACKS, FROM THE PRESIDENT, AS THESE CORRUPT AND INDICTED EXGOVERNORS CLAIMED THAT THEY BANK ROLED THE PRESIDENT’S ELECTION. THERE IS A POPULAR SAYING, WHICH SAYS THAT, SHOW ME YOUR FRIENDS AND I WILL TELL YOU WHAT YOU ARE. MR PRESIDENT IF THESE CORRUPT AND INDICTED EXGOVERNORS ARE YOUR FRIENDS, THEN IT MEANS A LOT. MR. PRESIDENT HAS NOT COME OENLY TO DENY THE CLAIMS OF THESE CORRUPT AND INDICTED EXGOVERNORS. MR. PRESIDENT SILIENCE IN LAW MEANS ACCEPTANCE. MR. PRESIDENT YOU MUST NOW SPEAK UP AND TELL US YOUR RELATIONSHIPS WITH THESE CORRUPT AND INDICTED EXGOVERNORS. MOST OF THEM ARE ALSO BEHIDE THE CRIMINAL ELEMENTS IN THE NIGER DELTA, SLAUGHTERING OUR MILITARY PERSONS IN COLD BLOOD. MR. PRESIDENT YOU SHOULD REMEMBER THAT, YOU SENT THESE MILITARY PERSONS TO THE NIGER DELTA TO MENTAIN LAW AND ORDER, AS THEIR COMMANDER IN CHIEF. YOU PROMISED TO NAME AND SHAME, THE BACKERS OF THE CRIMINALS IN THE NIGER DELTA, BUT YOU HAVE NOT DONE SO. IS THERE A HIDDEN AGENDA? WE MUST LOATH ANY BACKER OF THESE CRIMINALS AND ANY GOVERNMENT, THAT KNOWS THE BACKERS OF THESE CRIMINALS AND REFUSES TO NAME AND SHAME THEM, SHOULD FAIL AND DESERVES TO FAIL. NOW THEY HAVE SOLD THE IDEA OF AMNESTY TO YOU THROUGH THEIR AGENT THE AGF MICHAEL AONDOAKAA, BECAUSE HIS FRINDS AND BACKERS WILL BE THE MAIN BENEFICIARIES OF THIS SO CALLED AMNESTY. MR. PRESIDENT YAR’ADUA I HOPE YOU KNOW WHJAT YOU ARE DOING. THESE CORRUPT AND INDICTED EX GOVERNORS AND THEIR FRIENDS ARE THE WORST HUMAN BEINGS NIGERIA HAS EVER HAD. YOU SHOULD AVIOD THEM LIKE A VERY SERIOUS PLAGUE OR THEY WILL DRAG YOU DOWN WITH THEM. MR. PRESIDENT THESE CORRUPT AND INDICTED EX GOVERNORS ARE ALREADY A DISGRACE TO THEMSELVES, THEIR FAMILIES AND THEIR RACE. MR. PRESIDENT YOU HAVE A GOOD FAMILY NAME TO PROTECT AND YOU HAVE A GOOD RECORD AS GOVERNOR OF KASTINA STATE TO PROTECT. MR. PRESIDENT PLEASE THINK OF THE VERY GOOD AN IMPECABLE LEGACY YOUR FATHER AND YOUR ELDER BROTHER LEFT. THESE CORRUPT AND INDICTED EX GOVERNORS ARE CANCAR WORMS OF INIQUITY AND THEY MUST NEVER BE APPROACHED WITH ONE THOUSAND MILES LENGHT OF POLE. THEY ARE EVIL, THEY ARE SATAN. THEY ARE VERY, VERY, BAD PEOPLE

  4. Patrick Agbobu says:

    THE REPORT OF AMNESTY INTERNATIONAL ON NIGER DELTA, IS THE TURTH, THE WHOLE TRUTH AND NOTHING BUT THE TRUTH. ANY PERSON WHO FAULTS THIS IMPECCABLE REPORT IS NOT ONLY ECCONOMICAL WITH THE TRUTH BUT IS IN ANOTHER PLANET AND IN CLOUD-CUCKOO-LAND. THE NIGERIAN AUTHORITY KNOWS THAT AMNESTY INTERNATIONAL IS AN IMPARTIAL BODY AND THEY PERFORM THEIR DUTY WITHOUT BLEMISH. IF IT WAS POSSILE FOR NIGERIA TO INFLUENCE THEM WITH THE USAUL GHANA MUST GO BAG, TYEY COULD HAVE DONE SO. AMNESTY INTERNATIONAL IS A HIGHLY RESPECTED INTERNATIONAL IMPARTIAL ORGANIZATION. NIGERIA AND THE OIL COMPANIES MUST BE ASHAMED OF THEMSELVES. NIGERIA SHOULD INTRODUCE A WINDFAL TAX ON THESE OIL COMPANIES TO CLAW BACK THE HUGE PROFITS THEY HAVE MADE OVER THE PERIOD. NIGERIA MUST ASK THE OIL COMPANIES TO CLEAN THE MESS THEY CREATED AND PENALISE THEM PUNITIVELY FOR THE MESS. THE MONEY FROM THE WINDFALL TAX, EXCESS CRUDE AND 30% OF OUR EXTERNAL RESERVE SHOULD BE USED IMMEDIATELY FOR THE DEVELOPEMENT OF NIGER DELTA

    MR. PRESIDENT YOU ARE NOT LISTENING. YOU SHOULD USE NIGER DELTA MONEY TO DEVELOPE THE NIGER DELTA IMMEDIATELY. ABUJA AND ENVIRONS WERE RAPIDLY DEVELOPED WITH THE MONEY FROM THE NIGER DELTA. THE SAME INTEREST AND SPEED THAT WAS USED TO DEVELOPE ABUJA SHOULD BE USED TO DEVELOPE THE NIGER DELTA. THIS WILL BE A WIN WIN FOR NIGERIA. THE CRISES WILL STOP, INVESTMENTS WILL RUSH IN, THE YOUTHS WILL BE GAINFULLY EMPLOYED, NIGERIA WILL MAXIMISE HER CRUDE OIL AND GAS PRODUCTIONS,TOURISM WILL FLORISH, NIGERIAN INTELLECTUALS AND BUSINESS PEOPLE ABROAD WILL COME BACK TO NIGERIA AND CREATE A LOT OF JOBS. AS LITTLE AS 100,000.00 (ONE HUNDRED THOUSAND) POUNDS COULD ESTABLISH A SMALL COTTAGE INDUSTRY OF A SMALL FARM AND ABOUT SIX WELL PAID JOBS CAN BE CREATED. BY SIMPLE CALCULATION, ABOUT ONE MILLION NIGERIANS ABROAD CAN RAISE THIS TYPE OF MONEY. THAT IS ABOUT SIX MILLION NEW JOBS. MR. PRESIDENT LISTEN! LISTEN!! LISTEN!!! LISTEN!!!. TIME IS NOT ON OUR SIDE AND YOUR SIDE MAKE HASTE NOW!!!!!
    :

  5. kayekoiki says:

    My fellow Nigerians, please permit me to laugh loud and roll on the floor on this little tip of information. If this money is not recovered, everyone involved should be subjected to a firing squad. Without this decree, there will be no justifiable end results. In China, if you are found guilty of any form of embezzlement(s), that person already knows his/her faith; death by hanging. Just of recent in Britain, couple of lawmakers and a prominent house speaker unconditionally resigned due to misuse of public funds. Assumed this happened in China, they would have been executed OR sent to life imprisonments. In Nigeria right now, this will never happen. The Government should set up a special court to deal with these “MISCREANTS”; They are menaces to our society, and the WORLD at large. All financial institutions that give refuge to these illegal “CAPITAL FLIGHTS” should be dealt with by the UN. Nigeria has become a place where the foxes are guarding the chicken scoop; How many chicken do we expect to survive. These corruptions have become a “DOMINO” effect on the nation; One hand washes the other one. The late Bush (US)administration have predicted that within the next 20 years, Nigeria will cease to be a legitimate nation. Time is tick_tocking.

  6. Grand Master says:

    demdem

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