NNPC, oil marketers dispute subsidy probe report, threaten court action

The Nigerian National Petroleum Corporation and oil marketers indicted by the subsidy funds probe report of the House of representatives are kicking against their indictment.

In fact, the oil marketers have threatened to head to the court for a princely claim of N100 billion over their indictment by the House Committee headed by Hon. Farouk Lawan.
NNPC said over the weekend that it never engaged in sharp practices in the handling of the funds for the subsidising of petroleum products.
It declared the report as unfounded and absurd.
The position of the NNPC was made known by its Group General Manager, Group Public Affairs Division, Dr. Livi Ajuonuma, who said: “Such a claim is totally unfounded and absurd.
“We challenge both the CBN and Ad Hoc Committee to provide evidence that such payments as alleged were made to NNPC.
“They must show authorisation for the payments as well as breakdown of the amount, purpose for the payments, beneficiary accounts in which such payments were made and the utilisation of such payments.
“For the purposes of clarity subsidy payments to NNPC is not based on cash remittance.
“The mechanics of subsidy recovery by NNPC is not fund-based, but by way of deduction from crude cost due.
“As a matter of fact, from the commencement of the subsidy regime there was never a time when CBN paid any money to NNPC in respect of subsidy claim.”
Ajunuoma said the House embarked on “maligning and damaging the reputation of the Corporation as well as other key players of the industry.
“The committee seems not to be sure of its action as its intention was really not to clarify the subsidy payments.
“It is clear that the tone of the Committee’s report is not only damaging to the Corporation, but to the entire nation.
“Under the said Appropriation Act, certain budgetary items including subsidy payments to the NNPC are listed as first line charges on the income of the Federation.”
On the part of the marketers, the have briefed their lawyer, Chief Mike Ozekhome, to get set to head to the court over the report.
Companies indicted for the mismanagement of about N41 billion included AS Nigeria Limited; Somerset Nigeria Limited; Techno Oil Limited; Oil Bath Nigeria Limited; Muthaff Nigeria Limited; Stonebridge Oil Limited; Mobil Oil Nigeria; Petrotrade Energy Limited; Lucky Energy Limited; Rocky Energy Limited and Prudent Energy and Services Limited.
The companies are protesting their indictment without giving them the opportunity to defend themselves.
Ozekhome said on Sunday that he has been approached to represent the companies in the suit.