The House of Representatives’ Adhoc Committee investigating the review of price of Premium Motor Spirit (PMS) on Wednesday uncovered the diversion of $141 million special intervention forex allocation and 50,000 Metric Tonnes of premium motor spirit (PMS).
The Committee chaired by Nnanna Igbokwe also put on further inquiry the allocation of $120 million forex allocated by Central Bank of Nigeria (CBN) to Swift Oil and Gas for importation of PMS.
Speaking during the resumed public hearing which was adjourned due to the Easter recess, Igbokwe while interfacing with Chief Executive Officer of Sermont Petroleum on the throughput arrangement with Nigerian National Petroleum Corporation (NNPC) retail.
Igbokwe who queried the authenticity of the documents on MT Ocean, Warri presented by the company to the Adhoc committee, requested for details of the total forex accessed by the Sermont Petroleum apart from the $7.6 million.
The lawmaker who accused the company’s representative of lying under oath, however demanded for status report on the throughput with NNPC retail with all supporting documents, all applications to CBN and debit and credit records of dollar accounts and remittances of funds to suppliers offshore within 10 working days.
Worried by the development, Igbokwe mandated the Police attachee from anti-Fraud unit and Sergeant-at-arms to take formal statement from the company’s representative.
During the screening of the documents presented by Bonny Ogiri, General Manager of Vine Oil & Gas, the adhoc committee alleged that the 15,000MT of PMS discharged by MT Oceanic is yet to be traced some 2015.
Igbokwe who frowned at the conflicting records submitted by Department of Petroleum Resources (DPR) adding that NNPC showed that the same PFI number reflect on the document for Ontario, Stallione and Vine Oil & Gas for the discharge of 20,000MT.
The Adhoc committee also queried the forex allocation to the company between 2015 and 2016.
Before adjourning, the Adhoc committee expressed concern over the $6.705 million and $7.350 million forex accessed by the company for importation of PMS while the documents obtained by the Committee showed that the product was supplied by NNPC.
While responding, Stilian Mitaker, Managing Director of Swift Oil explained that the company lost N60 million on interest accrued from the $6.705 million forex following the cancellation of the Letter of Credit (LC) obtained for the important in which was cancelled.
He added that the company also lost between N73 million and N74 million accessed from OICs through the CBN hence resolved to cancel the LC.
Mitaker who expressed frustration over the market challenges disclosed that the hike in the pump price of PMS was caused by the regulatory agencies NPA and NIMASA which demand for payment in dollars, as naira is not recognized use as legal tender, so we incur serious losses.
According to him, the lingering problem has continued due to delay in payment of forex differentials since 2014, devaluation of naira, among other factors adding that despite assurance given by the Minister of Petroleum to address the challenges, he noted that status quo remains.
While ruling, Igbokwe who disclosed that the Adhoc committee has issued with the 15 queries against the Company, noted that the company received up to $120 million forex from the apex bank, that required clarifications.
He however assured Nigerians and all the oil marketers that the committed will address the challenges highlighted by the oil marketers.
Igbokwe who frowned at the level of corruption within the system, noted that some companies wrote the committee over the use of their company’s names to access forex for importation of PMS for which they have no knowledge about.
To this end, the Adhoc committee adjourned to Monday, 15th May 2017 for further investigation on the queries.
