Pre-shipment inspection: FG paid $163m without appropriation

The committee investigating the crude oil pre-shipment inspection contracts yesterday uncovered the payment of $163.750m to Pre-shipment Inspection Agents (PIAs) and Monitoring and Evaluation Agents (MEAs) since 2009 without appropriation by the National Assembly.

Members of the committee raised concerns that based on the documents before them, there was no form of appropriation by the National Assembly on the amount spent.

They said Sections 80 and 81 of the constitution clearly spell out how monies belonging to the Nigerian government could be spent, but that the pre-shipment contracts did not follow such provisions.

The committee also was told that the Nigeria National Petroleum Corporation (NNPC) is owing the sum of N25 billion as part of its contribution to the funding of pre-shipment inspection activities of Nigeria’s crude oil.

This amount was accumulated between 2009 and last year despite huge millions of Dollars the corporation continually set aside for that purpose, it was learnt at the continuation of an investigative hearing of the House committee on public procurement.

The country’s top oil company failed to meet up with the obligation despite repeated reminders by the Central Bank of Nigeria (CBN), the lawmakers also heard.

The committee, chaired by Rep Wole Oke (PDP, Osun) was mandated to investigate allegations of breaches and violations of the Public Procurement Act, 2007, in engaging consultants for the pre-shipment contracts.

The panel established that while NNPC budgeted the sum of $20m for the purpose of defraying the outstanding every year, from 2011 to 2014, the corporation paid about $140m, well over the $80m set aside, against budgetary provisions.

But a representative of the CBN governor, Godwin Dauda, told the lawmakers that the amount was from fee collection for industry fund, and that PIAs usually submit their invoices/bills for verification at CBN, after which same would be forwarded to the ministry of finance for further verification and subsequent payment.