Special Report

May 12, 2012

Oil subsidy report: President Jonathan’s litmus test on fight corruption

Oil subsidy report: President Jonathan’s litmus test on fight  corruption

President Jonathan

Commitment comes by spoken words and actions. For sometime, successive governments in Nigeria have mouthed their resolve to give Nigerians a new lease of life by eradicating corruption. But much as they hyped this resolve, they also ended up not achieving it and in some ways, unfortunately, championed it eventually.

President Goodluck Ebele Jonathan

 

The regime of President Goodluck Ebele Jonathan is another one that wants to bring the social vice to its knees starting with the report of the oil subsidy. Will he achieve it? Will he step on toes or will the cycle continue? These are definitely the barrage of questions Nigerians must be asking at the moment as Saturday Vanguard’s John Bulus x-rays the situation.

It was not as if the outcome of the subsidy probe was exactly pre-empted, but even before the Farouk Lawan Probe Committee of the House of Representatives embarked on the energy sapping , fact-finding exercise, many Nigerians had known that there will be culprits.

This is premised on the fact that corruption is endemic and has somewhat defined our national life. It is such that some Nigerians especially the so called bourgeoisies thrive more on sharp practices. And so, not a few Nigerians watched with bated breathe the Committee as it painstakingly unraveled the rot in the oil sector with concerned stakeholders and frontline actors in the sector which included various Government Agencies, Individuals, Ministries or Departments who took turns to answer what they know.

The large scale probe, indeed, came timely. Ostensibly occasioned by the removal of oil subsidy on January 1, 2012 amidst turbulent reactions and harshness, Nigerians wanted to know how the subsidy regime effectively served them. Consequently, the House of Representatives in its wisdom launched the probe.

As expected, the result was mind-boggling. Companies and individuals alike were found to have soiled their hands in one way or another. Of more worrisome is the involvement of some key government parastatals such as the Nigeria National Petroleum Corporation, NNPC, the Petroleum Products Pricing and Regulatory Agency, PPPRA who flagrantly and blatantly provided the dais upon which financial atrocities were committed such that burdens one to think that the persons in charge of the establishments were very unmindful of their actions and even their inactions.

Apart from companies and other corporate bodies which were found guilty by the panel and ordered to refund some amount of money to the coffers of the Federal government, the biggest case which will task the political tenacity of the government is the involvement of the two big masquerades on whose platforms evil blossomed.

The first is the  Ministry of Petroleum and the NNPC which allegedly opened the flood gate for  all kinds of practices.

Hear the Probe Panel: “The NNPC was found not to be accountable to anybody or authority. The corporation in 2011 processed payment of N310.4 billion as 2009-2011 arrears of subsidy on kerosene contrary to a Presidential directive which removed subsidy on kerosene in 2009 without any provisions in the Appropriation Act. Direct deductions from funds for the Federation Account in contravention of section 162 of the Nigerian constitution and illegal granting of price differential or discounts of crude oil price per barrel to NNPC to the tune of N108.648 billion from 2009-2011.”

The former national Chairman of the ruling Peoples Democratic Party, PDP, Dr. Ahmadu Ali who was also the Chairman of the PPPRA, another conduit pipe for funds siphon was also indicted.

On him the panel said: “The chairman of the board of the PPPRA from 2009-2011, and the entire members of the board during the period are hereby reprimanded and their decision which opened the floodgate for the bazaar is condemned in the strongest terms”.

The case also affected the former Accountant-General of the Federation who is now the Governor of Gombe State in the North eastern geo-political hemisphere of the country, Alhaji Ibrahim Hassan Dankwambo. The Panel alleged that his office made excessive payment amounting to 128 times within 24 hours.

Panel: “The particular Accountant General that served during the period 2009 was found to have made payments of equal installments of N999 million for the record of 128 times within 24 hours totaling N127.872 billion. The confirmed payments from CBN records were made to beneficiaries yet to be disclosed by the OAGF or identified by the committee. We however, discovered that only 36 marketers were participants under the PSF scheme during this period. Even if there were 128 marketers, it was inconceivable that all would have imported the same quantity of products to warrant equal payments.”

It also added: “All those in the Federal Ministry of Finance, office of the Director General of the budget, Accountant General of the Federation involved in the extra budgetary expenditure under the Petroleum Support Scheme between 2009-2011 should be sanctioned in accordance with the civil service rules and code of conduct bureau”.

But to most people, the foregoing is no more news. What is perhaps news now is the punitive measure that will be meted out to the guilty. Already, there has been a harvest of denials which sends a very bad signal that the reports of the probe may have been tampered with. Besides, there seems to be a push from some powerful quarters to exonerate some people who are considered sacred cows in the society.

For instance, the move may have led to the exoneration of some companies considered to have embarked on the illegal transactions. Key oil companies initially  mentioned amongst those which absconded after they allegedly collected over $230 million dollars for importing fuel but never did were exonerated.

Similarly, Governor Dankwambo was last week cleared from the indictment and there were also protests in Abuja against the prosecution or sack of key government officials over the saga. With the development, the all-round impression is that the report of the probe panel will, like others be swept under the carpet. And sadly, still, the development also reminds one of similar probes such as the Halliburton, etc whose reports are still begging for adoption.

This copiously tasks the psyche of President Goodluck Jonathan who has repeatedly mouthed his resolve to fight corruption head on.

Only last week, the Board of Trustees and National Executive Council Arewa Consultative Forum, ACF, rose from a meeting in Kaduna to tell the President that he is losing the war against corruption.

A communiqué after the meeting signed by its national publicity secretary, Antony Sani explained that the group reviewed with deep concern, recent revelations of monumental corruption in the country, particularly in the police pension office, the fuel subsidy scheme as well as  other bribery convictions relating to Halliburton, Daimler and Siemens, in the USA and Germany.

It further said that “While commending the House of Representatives for conducting this major investigation in the horrendous scandal, the meeting called on the Federal Government to step up the war on corruption and live up to its pledge of not sparing the perpetrators of this crime”.

But President Jonathan has vowed that he will deal decisively with anybody found guilty in the oil subsidy probe. The President who talked so tough through his Special Adviser on National Assembly Matters, Senator Joy Emordi said that he won’t spare any one no matter how highly placed in the society.

“So, I can assure you that nobody is going to interfere with the report but you have to look at the people he selected to look into the rot in the system – men and women of proven integrity. As this one is happening here, another investigative panel is also taking place in the executive arm. Mr President is on the same page with the members of the National Assembly to rid the society especially the oil sector of the rot”.

According to her, “the investigation undertaken by the House of Representatives into the utilization of the petroleum subsidies is commendable. It is in line with the Federal government’s anti-graft war in the petroleum industry.

“The Executive and the legislative arms of government are on the same page on the issue and would collaborate towards ensuring that any rot in the sector is fully addressed. The issues that led to the investigation predated President Goodluck Jonathan’s administration. The President is poised to sanitize the oil sector and give it a new breadth of life through enhanced probity, transparent governance and zero corruption. Mr. President’s sincere desire of enthroning probity was clearly manifested by his choice of men of integrity to be involved and he did not mind crossing the partisan barrier to get his opponent in the Presidential election to lead the investigation. So, it is not surprising that the President should welcome what the House members have done and he is on the same page on the issues”.

In the same vein, the ruling party, PDP, has also thrown its support behind President Jonathan and vowed to fully concur with the report of the investigation probe panel.

“In line with the resolve of the Dr. Bamanga Tukur-led NWC that the new leadership of our great party, PDP, shall be in the forefront of the battle against corruption and in view of the principled stand and deep commitment of President Goodluck Jonathan on the matter, the NWC hereby restates unflinching support for every step so far taken by government to stamp out corruption.

“In this vein, the National Working Committee identifies with the various probes by the National Assembly in exercise of its legislative oversight functions. Specifically, the NWC welcomes the probe by the House of Representatives into the management of the petroleum subsidy”, it said in a statement.

Meanwhile, in view of the usual ways probe reports are handled in Nigeria, the above can only pass for rhetorics. They may sound wonderful  but the implementation poses some herculean tasks.

Already, there appears uneasy calm in the presidency over the report with the exoneration of both Otedola and Governor Dankwambo.

The same goes for NNPC which has denied committing any wrongdoing even as the 17 indicted oil marketing companies are threatening a N100 billion law suit against the House of Representatives, not neglecting the PPPRA which has challenged the House to prove the allegation that it stole N312 billion and also made 999 billion payments up to 128 times in a day to fictitious marketers.

While this holds, the biggest affront to the report that will leverage the culprits was the submission by the Political Adviser to the President, Alhaji Ali Gullack who said that the probe lacked credibility and “looks like the probe is targeted at some individuals”.

And he asked: “Why did they not invite Rilwanu Lukman? He was the Minister of Petroleum Resources during the period of the probe? Where is Mohammed Barkindo who was the Group Managing Director (GMD), Nigeria National Petroleum Corporation (NNPC) at the time? Where are the other key actors who were at the vanguard of the subsidy regime? The House of Representatives must probe these individuals before we can truly say they are doing the right thing, otherwise the report will lack credibility. What is worth doing at all is worth doing well”, he said.

Defending the President, Alhaji Gullack said: “President Jonathan is one person that wants things done and done correctly. He is the only President in the history of this country that has embarked on the cleansing of the oil and gas sector. He is the only President that has embarked on fighting corruption in the sector and for anybody to say that Mr. President is sitting on any report is unfair and a calculated attempt to tarnish the good name of the President”.

He said: “The Economic and Financial Crimes Commission (EFCC) has been given the mandate to go into the matter and you will also recall that not too long ago, Mr. President approved the appointment of Mr. Nuhu Ribadu, former EFCC chairman to help sanitize the oil and gas sector. The President is determined to do more if he is given the necessary support by Nigerians,”

With the avalanche of denials, the somewhat leeway given to offenders by Gullack and pressures seemingly mounted on President Goodluck Jonathan, skepticism has taken the better part of most Nigerians who now wonder if  he will live up to his word.

One has not forgotten that the reports of the Police Pension Fund Probe panel are still lying unimplemented. But on the oil subsidy, only time shall tell.