House Of Reps To Probe NNPC/Swiss Firm $6.8b Oil Payment Racket

The House of Representatives’ Committees on Petroleum Upstream and Downstream), and Justice are to investigate the Nigerian National Petroleum Corporation (NNPC) for allegedly conniving with a Swiss trading firm to swindle the country of $6.8billion.
The committees would question the corporation for selling the country’s crude oil below the market value through what is termed “Letter Box Companies.”
The decision of the lawmakers followed the prayers and the adoption of a motion by Abiodun Abudu-Balogun (APC, Ogun), that the fraud was reported by a Swiss Non-Governmental advocacy organisation, the Berne Declaration.
He said the report by the organisation declared the deal as the “greatest fraud Africa has ever known” that is draining Nigeria of billions of dollars in revenue.
He said: “The report by Berne Declaration, tiled: ‘Swiss Traders Opaque Deals in Nigeria,’ is so disturbing with details of the schemes employed by the NNPC and foreign oil companies to dupe the country of over $6.8billion
“A major partner of NNPC, Vitol and Transfigura Commodity Trading Firms was mentioned in the deals where large volume of our crude oil was sold below the market price, “ he said, stressing that it should be a source of concern that exclusive and untransparent partnerships of Vitol and Transfigura Commodity Trading Firms with the NNPC, gave them over 36 per cent of the market share, “with NNPC selling its crude at a discount.”
Balogun sought justification behind Nigeria being the only major oil producing nation that sells 100 per cent of its crude to private traders, rather than market it herself and benefit from the resulting added value with the greatest number of beneficiaries of export allocations.
He said another cause for worry is the sharp practices and deals in the NNPC crude oil allocations to local refineries that are not utilised, but sold fraudulently at knock- down prices to Geneva-based companies through Letter box companies by swap arrangement.
“What should also bother Nigerians is the numerous damaging allegations contained in the report against the NNPC and its subsidiaries accused of not publishing detailed financial reports since 2005,” he added..
The presiding  officer, Deputy Speaker Emeka Ihedioha referred the motion to the three House committees after it was unanimously supported when put to voice vote.
The committees are expected to put in their report in four weeks.



CKN NEWS

Chris Kehinde Nwandu is the Editor In Chief of CKNNEWS || He is a Law graduate and an Alumnus of Lagos State University, Lead City University Ibadan and Nigerian Institute Of Journalism || With over 2 decades practice in Journalism, PR and Advertising, he is a member of several Professional bodies within and outside Nigeria || Member: Institute Of Chartered Arbitrators ( UK ) || Member : Institute of Chartered Mediators And Conciliation || Member : Nigerian Institute Of Public Relations || Member : Advertising Practitioners Council of Nigeria || Fellow : Institute of Personality Development And Customer Relationship Management || Member and Chairman Board Of Trustees: Guild Of Professional Bloggers of Nigeria

3 Comments

  1. Dat is it,it is bcause our leaders are so corrupt n aid dis people in defrauding Nigerians in all areas including d foreign investors against d citizens of dis great country,4 instance mtn used to dupe us by not giving us good service n yet give us their service at high rate,thank God 4 GLO n Adenuga who rivalled them to beat down d rate atleast to an extent,talk of Julius berger among these companies,imagine d billions of dollars mentioned here whereas dis government claims they can't pay ASUU just 400 billion naira 4 citizens sake.We need a change of party n government in dis country hence there shud be divisions pls

    ReplyDelete
  2. Thank you Raphael for Ur observation, We need a change of govt. yes I agreed but a change of party? To which one? From PDP to APC I guess? broda, they are birds of a feather. PDP is led by fultures but ACN by vampires like Bisi Akande who wrecked Osun State as a gov., Asiwaju B.A.T who has turned Lagos State to his family biz & Buhari the ground father of Boko Haram. Is that the party you want us to change into? And Ur opinion is that we divide? Plz continue to pray for Naija cos I don't think you understand what division in Nigeria would cause. I think what we need is devine intervention

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    Replies
    1. Since you are a patient dog that will wait for PDP for more donkey years to come
      I have no problem with that.
      My problem with you is your labelling
      Buhari a pro BH with out any proof.
      Since you are anonymous I take it that you label people with bad names and then hide.
      We have tasted buharis/idiagbon rule
      He brought justice and descpline which are nowhere to be found in this environment.
      And the BH are failure of your Adminstration which is so corroupt that it is on the air live for all to see.
      What a shame I am disgusted at the
      PDP and jona who have lost and sold their selves so cheaply.

      Delete
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