The Nation Newspaper

Tag: Auditor

  • Fayemi mourns Ekiti Apc auditor

    Fayemi mourns Ekiti Apc auditor

    The Minister of Mines and Steel Development, Dr Kayode Fayemi, has expressed sadness on the death of the Ekiti State All Progressives Congress (APC) Auditor, Mrs. Iyabo Babatunde.

    Mrs. Babatunde, who served as Commissioner II at the State Universal Basic Education Board (SUBEB), during the administration of former Governor Segun Oni, died last Saturday.

    Fayemi, in a statement yesterday by his Special Assistant on Media, Olayinka Oyebode, said he received the news with shock.

    He lamented that Mrs. Babatunde’s death was not only painful, but devastating, especially now that the party needs the contributions of all its committed members to achieve its set goals.

    Fayemi, who described the deceased as faithful and devoted, said: “This is quite shocking, painful and devastating. Our condolences to the relatives and the leadership and members of our party.

    “Our prayer is that God grants the family the fortitude to bear the loss and  put an end to untimely death in our midst.”

     

  • Police arraign auditor for assault

    Police arraign auditor for assault

    The police on Tuesday arraigned a 36-year-old auditor, Omobolaji Ipadeola, in an Ikeja Magistrates’ Court f0r allegedly assaulting and tearing the uniform of a policeman.

    Ipadeola, a resident of Command Road, Ipaja, Lagos, is standing trial for alleged breach of peace and assault.

    The Prosecutor, Insp. George Nwosu, told the court that the accused committed the offences on Oct. 3 at Iyana-Ipaja, Lagos.

    Nwosu said that Ipadeola unlawfully assaulted a police sergeant on duty by hitting him and tearing his uniform.

    He said that a team of police officers were on patrol and stopped the accused who was driving his Honda Accord car, but he refused to stop.

    “The accused refused to stop initially but was intercepted in traffic, he was then asked to produce his vehicle document but he refused.

    “The police team leader instructed the complainant to take the accused to the station for questioning following his refusal to comply with their directive.

    “But the accused refused to go to the station and started fighting with the complainant and in the process tore part of his uniform,” he said.
    The offences contravened sections 166 and 172 of the Criminal Law of Lagos State, 2011.

    The News Agency of Nigeria (NAN) reports that section 172 provides for four-year imprisonment for the offence.

    Ipadeola pleaded not guilty to the charge and was granted bail in the sum of N50,000 with one surety in like sum.

    The Magistrate, Mr A.A Adesanya, adjourned the case till Oct. 26 for mention.

  • Unbundling NNPC is not an option for PIB, says auditor

    Unbundling NNPC is not an option for PIB, says auditor

    Splitting the Nigerian National Petroleum Corporation (NNPC) into several companies may not address the problem of lack of clarity in the fiscal terms,  Oil and Gas Auditor, John Adidi, has said

    Adidi, who spoke to The Nation on telephone, said when the laws guiding the industry, including the fiscal regime for the Joint Ventures (JV) and the Production Sharing Contracts (PSCs), were not made clear, it would not bring foreign investors back, adding it should rather be a reform.

    He said: “What the government should have done is to take a general look at the petroleum industry bill (PIB) and represent it either in bits so that whatever law that is made would be current.”

    The Petroleum Industry Bill (PIB), when passed into an Act, becomes the master reference law that governs the petroleum industry – from the upstream division (exploratory, development and production activities) through the midstream (gas processing) to downstream (servicing, refining, distribution, transportation,marketing/retailing)

    He said though crude oil price was falling globally, nevertheless oil is still the number one revenue earner for the country.

    He said the country needed to have a framework because anybody investing in the oil and gas is investing for the long term because it is capital intensive.

    “There is no way an investor would put money when he doesn’t know what the laws are, especially when the fiscal regime is not clear. No wise investor can put his money in the Nigerian oil and gas sector,” he added.

    While in support of the government policy to make the NNPC better run as a national oil company, Adidi maintained that it should be part of a larger reform. “NNPC still remains too complex so you need to have it broken down. It is too complex and big, that is why it is difficult to be handled by one person,” he said.

    Adidi said for now, there is no PIB. According to him, the last PIB was the 2012 version, which got to a certain level before the seventh assembly wound up

    He argued that the PIB not being passed into law meant that industry still operates the law that has expired in the country. He said the PIB was supposed to be reintroduced to the National Assembly by the executive because it is an executive bill.  According to him, the House of Representatives had indicated that they have been waiting for that bill to be reintroduced and the executive appears not too keen to do that, rather they wanted to use the extant legislation to do whatever policy review and reform they want to do.

    “One would have expected that the present executive looks at that PIB again and remove what they don’t want and represent it to the National Assembly because the bill has to go through the whole process again, first reading, second reading, committee stage and the third reading,” he said.

    Adidi said there is no clarity in the law guiding the industry. “We are in a depressed economy and the revenue due to the government is falling drastically. There is need for the government to have a think-tank that will look and carry out various economic researches, looking at how best to diversify the economy away from oil and then ensure that the revenue was increased to run the social programmes that the government has embarked upon,” he said.

  • Bank auditor murdered at dawn

    Last Thursday, 40-year-old Ayokunle Oluwagbemiga Ojo, an auditor with the Bank of Industry (BOI), Marina, Lagos, dressed himself in blue suit and shirt to match. He was ready for his usual daily trip to his office.

    After the day’s work, he had on his schedule, an official trip to Badagry and a training in Ghana at the week end.

    At 5.50 am, he stepped out of his Galilee Avenue, Eliot, Iju Ishaga home, leaving his wife, Omolara to prepare their three sons for school. He had promised to call and furnish his wife with information regarding the Badagry trip. Sadly, all that never happened.

    “That was the last I heard of him. I was still taking care of the children when I heard gunshots, at exactly 6.02 am. I didn’t imagine my husband would be affected because he left just ten minutes earlier. Later, I heard knocks on our door,” Omolara recounted yesterday, sobbing.

    The visitors came with terrifying news that sent her off-balance: Her husband had been shot by some unknown assailants – about 30 meters from their home!

    Eyewitnesses, it was learnt, later recounted what led to Ayokunle’s shooting to his elder sister, Deaconess Nike Olajusi.

    According to them, when he stepped out of his house, some unidentified men in black coat accosted him. The men reportedly demanded his laptop and he replied that he left it in his office the previous night. Then, they asked for his bag, and the Ikere-Ekiti-born Ayokunle wondered why they needed his bag.

    “Then, the men, I was told, threatened to kill him. They encircled him. They were said to have shouted a name – ‘Mopol’ – and a man came out of hiding and shot into the air to scare away passersby. Then, Ayokunle was shot in the head and the men escaped with his bag and mobile phone set,” Deaconess Olajusi said.

    The Nation learnt that immediately after he was shot, some sympathisers summoned the courage to ascertain what was happening. A community leader saw him in a pool of blood and raised the alarm. The police were called. A police team led by the Divisional Police Officer (DPO) Ajimuda Olatunji, hit the scene. Already unconscious, Ayokunle was taken to Ancillary Hospital, Iju, where he was pronounced dead.

    Deaconess Olajusi, who said she was alerted with a phone call by a relative, explained: “When I got to his house, where I was told they needed me at the hospital. I was shocked. At the hospital, I discovered he was shot in the head; there was so much blood on him.”

    Yesterday, his neighbours at the Galilee Avenue were still in shock. For the fact that the area had been crime-free in recent times, many believed it was an assassination. “This is not an ordinary robbery; this hired killing,” a resident said.

    His widow said her husband handled a debt recovery for his bank that week, leading to the arrest and detention of certain persons. The late Ayokunle was said to have expressed worries about the case.

    “My husband did not fight with anyone. Before he left, he promised to notify me if he would be going to Badagry that day. He was always very helpful; no one could ever say anything bad about him,” she said.

    However, a source at the Iju Police Station (Red House) said the police were working on several theories with a view to unraveling his killers.

    “This is unusual, but we won’t leave any stone unturned. We cannot conclude about the motive yet, but we are working on several theories. I can confirm to you that the crime rate here has greatly reduced due to our zero tolerance stance on crimes. And when we have isolated cases like this, we will get to their bottom,” the source told The Nation.

    The deceased was said to have moved into his own house last December, while he became an Assistant Manager at the BOI earlier this year. “We don’t understand what could have caused this; his colleagues have been coming here. We are not certain if it has to do with his work,” a relative said.

    Meanwhile, residents and associates are mourning the murder of the “peaceful and generous man.” Yesterday, prayer warriors from the Redeemed Christian Church of God (RCCG) held fervent prayers against his killers. His widow sat in sobriety, her eyes half-closed. Their three children – aged 10, 6 and 4 years – seemed unaware of what had befallen them.

    A resident, Rasheed Moshood, a commercial motorcycle rider, told The Nation: “The man (Ayokunle) was good. He would always give me money anytime I had an opportunity to carry him. His killers must be found. They won’t rest until they are caught and brought to justice.”

    “His killers went away with his phone. We called it that day; nobody responded. Later that night, it went dead,” Omolara said.

  • PDP National Auditor seeks to join suit against NWC

    PDP National Auditor seeks to join suit against NWC

    The National Auditor of the People’s Democratic Party (PDP), Alhaji Fatai Adeyanju has asked to be included in a suit seeking to sack members of the party’s National Working Committee(NWC).

    Adeyanju, in an application argued yesterday by his lawyer, Ajibola Oluyede, also urged an Abuja High Court to replace the name of the party’s former Auditor, Bode Mustapha and stay further proceedings because a similar case was pending between parties before the Federal High Court, Abuja.

    His application stalled the planned hearing of all pending applications (preliminary objections and counter-affidavits in reply to originating summons).

    Oluyede claimed that, since his client was now the party’s National Auditor, it was only proper for him to be listed as a co-defendant, rather than Mustapha, whom he said was sacked by virtue of a judgment of the Federal High Court in Lagos.

    He relied on Order 10 Rule 35 of the court’s Rules and prayed the court to stay proceedings.

    Oluyede exhibited a copy of the enrolled order of the Lagos court, where the presiding judge directed the PDP to replace Mustapha, “since he was not an accountant”, as contemplated by the party’s constitution.

    He drew the court’s attention to a similar suit before Justice Adamu Bello of the Federal High Court Abuja, wherein the judge had asked parties to stay action on a report by the Independent National Electoral Commission (INEC) on the party’s last congress.

    Oluyede argued that the subject-matter of the suit before Justice Bello was the same with the current case.

    There was disagreement among other parties on how Adeyanju could become a party.

    Lawyer to the plaintiffs, Jibrin Okutepa (SAN) objected to Oluyede’s argument, contending that “an application for stay of proceedings can only be predicated on a pending appeal”.

    He said since the applicant, Adeyanju,was not a party in the suit, “the court cannot stay proceedings in the matter; where an applicant is neither before this court nor before Adamu Bello’s court”.

    Okutepa claimed that, “the affidavit evidence (before the court) has not shown any occurrence of change, as envisaged by Order 10, Rule 35, pointing out that even the existence of the said judgement has not been proved and urged the court to dismiss the motion.

    Lawyers to the 1st defendant, Chief Onyechi Ikpeazu (SAN) and 2nd – 3rd defendants agreed that the court was bound by the said order referred to by Oluyede since it has not been set aside.

    Other defendants argued that the applicant could only come by way of an application for joinder.

    It was the contention of the 15th defendant that by the provision of Order 10 of the court’s Rule, “a formal application is not needed for the proper party to be joined, only the discretion of the court is what is require”.

    Three members of the party – Abba K. Yale, Yahaya Aruwa Sale and Bashir Maigudu had sued and sought among others, an order nullifying the election from which the NWC members emerged. They also prayed the court to declare their positions vacant.

    The NWC members include Sam Jaja, Bala Bawa Ka’oje (National Treasurer), Solomon Onwe (Deputy National Secretary), Umar Tsauri (Deputy National Auditor),Olisa Metuh (National Publicity Secretary) and Bode Mustapha.

    Others are, Dr Kema Chikwe (Women Leader),Victor Kwon (National Legal Adviser) and Anunakar Mustapha (National Organising Secretary).

    The Plaintiffs are of the view that the NWC members were not nominated and elected in accordance with the constitution and guidelines of PDP) and as such, should not continue to hold office.

    They also relied on the INEC where it picked holes in the March, 2012, National Convention of the party, which produced the defendants.

     

  • Auditor’s report indicts NNPC, DPR, PPPRA

    Auditor’s report indicts NNPC, DPR, PPPRA

    The House of Representatives Committee on Public Account (PAC) is shocked at the level of manipulation Nigeria’s finances are being subjected to by those in authority.

    Subsequently, the Committee has asked the Inspector General of Police (IGP), Alhaji Mohammed Abubakar, to present the chief executives of the Nigerian National Petroleum Corporation (NNPC), Petroleum Products Price regulatory Agency (PPPRA) and the Director, Department of Petroleum Resources (DPR) before it answer the queries raised by the Office of the Auditor General of the Federation on the financial records.

    The 2007 Auditor General’s report revealed how money was being moved without authorisation and in flagrant disregard of the Constitution.

    The report reads: “In the year under review, sums totalling $174,000 and $911,224.15 were credited to the FGN Excess Proceeds of Crude Oil Sales Account as interest on Fixed Term Deposit and interest on Ordinary Deposit.

    “The authority for placing the funds, which yielded the above interest in the deposit account, was not made available for audit verification. The banks where the deposits were made, the principal sums deposited, the tenor and the rate of interest were also not made available for audit verification.

    “Sums totalling $213, 354, 142.31 and $20,515,048.62 were credited to the FGN Excess Proceeds of PPT/Royalty Account as interest on Fixed Term Deposit and interest on Ordinary Deposit.

    “The authority for placing the funds, which yielded the interest in deposit account, was not made available for audit verification. The banks where the deposits were made, the principal sums deposited, the tenor and the rate of interest were also not made available for audit verification. The Accountant General has been asked to produce these documents for audit verification.

    “The sum of $17,351,526.14 was transferred in April, 2007 from the Consolidated Revenue Fund Account to the “FGN Excess Proceeds of Crude Oil Sales Account”. The mandate authorising the transfer was neither made available for audit verification nor was the purpose of the transfer stated.

    “The Accountant-General has been called upon to produce the mandate authorising the transfer and also indicate the purpose of transferring such money from the Consolidated Revenue Fund (CRF) to Excess Crude Oil Account.

    “Amounts totaling $2,800,000,000.00 were transferred from the ‘FGN Excess Proceeds of Crude on Sales Account’ in November, 2007 to Fixed Term Deposit Account of an international bank.

    “The bank where the deposit was made, the tenor, the interest rate, the certificate of deposit, the authority for the deposit and the relevant bank statements were not produced for audit verification.

    “CBN Statement of Account for the ‘FGN Excess Proceeds of Crude Oil Sales Account’ revealed that $455,638,596.22 for June 2007 Excess Crude was credited to the account in July, 2007.

    “In August, 2007, this same amount was reversed and the account credited with a lower amount of $445,638,596.22, giving rise to a shortfall of $10,000,000.00.

    “Records showing details of full crude oil sales proceeds for the month of June, 2007, the benchmark figure and hence the Excess Crude amount were not made available so that the new amount credited could be verified.

    “In view of the fact that the statements in question are bank statements ‘and the entries reflected physical cash movement, the Accountant-General of the Federation has been asked to state the status of the shortfall of the $10,000,000.00 not credited three weeks after the original lodgment was made.”

    The chairman of the Committee, Solomon Adeola, regretted that the report stated that all the anomalies were communicated to the Accountant-General of the Federation for prompt action and requested to produce the details from the CBN and forward same for audit verification.

    No action was taken.

    The document also revealed: “At the Office of the Accountant-General of the Federation, it was observed from the component statements of 2007 that Joint Venture Cash Calls (JVC) of N549,973b Excess Crude of N1,168 trillion and Petroleum Product Subsidy of the sum of N236,641b were deducted from proceeds of crude oil sales, while the sums of N25.951b and N62,542b were excess proceeds deducted in respect of Petroleum Profit Tax (PPT) and Royalties.

    “These deductions were made before the net revenues were paid to the Federation Account, contrary to the provisions of Section 162(1) of the 1999 Constitution, which requires all such revenues to be paid directly into the Federation Account.

    “The sums of N 13,081b and N 16,895b being 4 per cent and 7 per cent of total Non-Oil and Gas Revenues, were deducted as cost of collection from the Federation Account and paid to Federal Inland Revenue Service and Nigeria Customs Service.

    “There was no evidence to show that these rates were passed into law by the National Assembly. The Accountant-General of the Federation has been requested to produce the evidence showing that the rates for the deduction were approved by the Acts of the National Assembly, otherwise, advise the relevant collecting Agencies should seek formal legislative approval for the rates.”

    “Audit examination of the mandate letters from NNPC to CBN in January and February 2007 revealed that the benchmark amount of the Domestic Crude Oil Sales proceeds was not fully paid by N38,816 billion to the Federation Account. This balance should be paid to the Federation Account, forwarding relevant particulars for audit verification.

    “Of the total withdrawals made from the Account of the Excess Crude Oil in the year 2007, $1 ,604 billion could not be traced into the records of FAAC on Excess Crude Oil for the year.

    “Similarly, payments totaling $1,569b made from Excess Crude Oil/PPT/Royalty Revenues as per FAAC records were not reflected in the CBN Statement of Account for the year 2007”.

    NNPC boss Andrew Yakubu is also expected to shed light on the allegation that through NNPC mandates to the CBN, N549b was paid for Joint Venture Cash Calls but only N441b was actually recorded in the books of NAPIMS as overheads, leaving a difference of N108b unaccounted for.

    The Auditor General’s report revealed that the NNPC claimed to have allocated 3,834,798 barrels of crude oil to Port-Harcourt Refinery in the months of September and November, 2007. Audit verification, however, revealed that the refinery receipted only 2,245,744 barrels for processing, giving rise to a shortfall of 1,589,054 barrels valued at N15b.

    “The sum of $4,451b was appropriated in the 2007 Budget for Joint Venture Cash Calls (JVCC) and this was fully released to the NNPC for the benefit of the Joint Venture operators.

    “However, NAPIMS budget for the Joint Venture Operators in the same year was put at $4,114b, resulting in a surplus of $336m.

    “Further audit scrutiny of the records .of the JVCC in the books of NAPIMS showed that the Joint Venture Operators were paid $1,714b.

    “When compared with the $4,114,990b budgeted by NAPIMS for the Joint Venture Operators, a difference of $2,400b was revealed as budget under-implementation.

    “Amounts totaling N80b and $1 ,550b were irregularly diverted for the execution of programmes not included in the approved budgets of the Joint Venture Operators.

    “The programme and activities include performance balance/supply, Niger Delta security, NIPP projects and NAPIMS Overhead Cost”.

    Yakubu, the Executive Secretary of PPPRA Reginald Stanley, and the Director, DPR, Osten Oluyemisiola were given till this afternoon to appear before the Committee.