Controversy over motive behind keeping NNPC’s N50b out of TSA continues

The circumstances surrounding the decision of the presidency to keep N50 billion outside the Treasury Single Account (TSA) has continued to draw scathing criticisms, as frantic efforts to control the damage gained momentum with the Nigerian National Petroleum Corporation (NNPC) seeking to dowmplay the comments of its chief executive, Dr. Mikanti Baru.
Prominent Civil Society leader, Auwal Rafsanjani, ties the N50 billion to a fund raising by the present administration for the 2019 election, while lamenting that transparency was still lacking in managing the country’s resources.
“It’s very disappointing and total betrayal to Nigerians. It is about second term campaign money mobilization since APC Government has no party structures due to its poor mishandling of the party affairs and failure to build a sustainable party which the President seems incapable to provide leadership. So they want to allocate resources for their desperate second term campaign.
“This also has confirmed that some people in the presidency have hijacked the government for their self interest,” he said.
On Friday, the NNPC said in a statement that Dr. Baru was mis-represnted in his comments to a House of Representatives committee on the huge amount.
Baru was quoted as saying that the President’s Chief of Staff, Alhaji Abba Kyari, directed the Corporation to keep the sum of N50billion away from the Treasury Single Account (TSA)
In its statement the corporation said: “NNPC wishes to state that the allegation is baseless, and is a clear misrepresentation of the truth, according to an online publication that made the allegation recently.
“By virtue of the operations of the NNPC, the Corporation had made series of compelling cases to the Presidency and the Central Bank of Nigeria to allow certain categories of accounts operate outside the TSA, as they contain co-mingled funds governed by detailed agreements with local and international implications.
“NNPC equally wishes to state that while these necessary approvals sought by the NNPC were graciously given by the Presidency, the Chief of Staff merely conveyed the notice of these approvals to the Corporation.
“In the same vein, members of the relevant committee of the National Assembly have requested for copies of such approvals, which were duly provided by the Corporation.
“To claim that the Chief of Staff single-handedly approved these exemptions was not only unfair but is a complete misrepresentation of facts to mislead the general public. ”
Recall that The Punch in its report this week gave a vivid account of what transpired in the House of Representatives committee. Its report:
The House of Representatives on Tuesday raised questions over a “purported ” presidential approval withholding some special Nigerian National Petroleum Corporation accounts from being transferred to the Treasury Single Account .
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The accounts, with funds worth N 50 bn , are still being kept by commercial banks in breach of the TSA policy , which provides that all accounts belonging to Ministries , Departments and Agencies of government should be transferred to the TSA .
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The TSA, a centralised Federal Government revenue account, is kept by the Central Bank of Nigeria .
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A Nigerian firm , SystemSpecs, provides the Remita electronic platform for running the TSA , saving the Federal Government revenue that could , ordinarily , have been lost .
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An ad hoc committee of the House chaired by a member of the All Progressives Congress from Kano State , Mr . Abubakar Danburam – Nuhu , found out that the NNPC directed some commercial banks to still keep the accounts outside the TSA .
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The CBN confirmed to the committee that it was aware of the excluded accounts, pointing to a document tendered by the NNPC saying that there was a presidential approval .
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The said approval was a memo written by the Chief Staff to the President , Mr . Abba Kyari, authorising the NNPC to exclude the accounts from the TSA.
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Expressing surprise over the discovery , Danburam – Nuhu stated , “Banks are still holding accounts with funds up to N 50 bn outside the TSA.
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“The banks claim that there is an approval by the President for the accounts to operate outside the TSA .
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“These are NNPC ’s accounts and the corporation must produce evidence of the presidential approval.”
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A senior official of the CBN, Mr . Dipo Fatokun, confirmed to the committee that the NNPC indeed wrote to inform the apex bank of the exemptions .
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However , Fatokun specifically mentioned accounts relating to Joint Ventures operations as the NNPC accounts covered by the exemptions .
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“The banks are actually holding some accounts. We are aware . It ’s not yet a case of 100 percent transfers to the TSA, ” Fatokun explained .
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He also informed the committee that some accounts still being kept by the banks had legal limitations , while others were accounts owned by the Judiciary and the National Assembly.
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“We are compiling a report on each of the banks and it will be ready soon ,” Fatokun told the lawmakers .
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A memo by Kyari, purporting to convey President Muhammadu Buhari ’s exemption directive , was analysed by members of the committee and was rejected as “not convincing.”
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One member , Mr . Edward Pwajok ( SAN ) , said the memo didn ’t say much other than opening with the line, “I have been directed .”
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Pwajok added that in the circumstances, the proper thing to do was to summon Kyari to convince the committee that Buhari indeed granted the exemptions .
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“Let him come here to show us the evidence of the directive given to him by Mr . President, ” Pwajok said .
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Another member , Mr . Simon Arabo , noted that Kyari’s memo appeared to be an “Executive Order ,” which had to be further examined by the committee .
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The committee made two rulings . The Group Managing Director of the NNPC , Mr . Maikanti Baru , was summoned to produce the presidential approval within 48 hours .
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It also directed the CBN to submit a reconciliation report on the accounts still kept by commercial banks before the end of this month.
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The committee commended SystemSpecs for the efficiency of its operations and urged the government to pay for its services .
Danburam -Nuhu stated , “SystemSpecs is being owed money for services it rendered to the country over a period of time . The company should be encouraged
“If a local firm has performed this well, why owe them money?
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“The committee will ensure that the money that is due to Remita and other stakeholders is paid.”