He spoke at the resumed hearing of the Senate Committee on Finance’s public hearing on the allegation made by suspended Central Bank of Nigeria (CBN) Governor Mallam Sanusi Lamido Sanusi that $20 billion has not been accounted for by the NNPC.
Ukura said Section 85 (2) (3) of the Constitution barred him from auditing NNPC’s account.
He said the Constitution empowered him to list qualified auditors out of which those to audit NNPC could be selected.
Ukura told the committee that 20 of his officials were in NNPC, conducting periodic check on the corporation’s revenue and expenses. He said it included expenses on subsidy.
The Chairman of the committee, Ahmed Makarfi, mandated Ukura to confirm in writing that he was conducting check on the NNPC and that the checks cover all items identified by the committee, including subsidy issues.
On the $2 billion third part financing, the Group Managing Director of NNPC, Andrew Yakubu, said the submission to the committee gave a detailed account of the fund.
Yakubu said the details included Reserved Development Projects, Satellite Oil Field and others.
He said what NNPC is accounting for is the total oil lifting on behalf of the Federal Government.
On the controversial $6 billion said to have been paid to the Nigeria Petroleum Development Company (NPDC) by the NNPC, the Acting CBN Governor, Sarah Alade, told the committee that it depended on what the law provides.
Alade noted that they noticed that $6billion was on the operations of NPDC but “we don’t know what they are to actually remit” because “it depends on what the law says.”
She recalled that Sanusi stated at the public hearing that the law would determine what would go to the Federation Account of the $6 billion.
On reconciliation with NNPC, she said since they left the public hearing last week, they have not been invited for further reconciliation.
“The new figure, after reconciliation, we have not been invited to any reconciliation. On the second issue, which is the $6bn, for NPDC, we don’t know the portion to be paid to the Federation Account. The legal opinion, according to the governor, would determine what part should go the Federation Account.”
Makarfi said there was need to be specific instead of building figures.
He added that without being specific some people would continue to assume that the $6 billion was supposed to have been paid into the Federation Account.
He noted that though it was wrong to assume that $6 billion should go to the Federation Account, the committee would determine what part of the $6 billion should go to the Federation Account. But Makarfi said the NNPC ought not to have stated that $2 billion went to third party arrangement.
The committee chairman said his total calculation amounted to about $1.3 billion.
He said the committee was interested to know how much went to each of the financiers, including Exxon Mobil and Total Nigeria, out of the 67 billion lifting.
As the disagreement continued, Makarfi asked NNPC GMD whether he wanted to withdraw his submission to rework it.
He noted that it was obvious that if the entire figures provided by NNPC are calculated, they cannot add up to $2 billion.
Yakubu said the governing structure of the third party arrangement explained what went to the parties.
Makarfi insisted that the calculation did not still add up to $2 billion.
Yakubu noted that “in view of the confusion, there is the need to further clarify and align all figures.”
Yakubu also said on the $2bn third party financing of some projects, Reserve Development Project between January 2012 to July 2013 cost $1.53bn; remittance to FAAC is $211m and $700bn went back to third party financing arrangement.
The NNPC GMD added: “It is good that we have this opportunity to drill down to the dynamics of these funds and that is what we have been saying all along.
“We cannot take it on the face values without looking at the details. Now we are going into detail disbursements of these money.
“A substantial frame has gone back to the Federation Account and that is what we have been saying that if we had been patient enough to go into the details, we would be able to see them.
“Yes, we captured $2bn but we are seeing clearly in our details that it was actually $2.4bn and a substantial part of it had gone back to the Federation Account.
“The governance structure of the third party financing is what we will take back to see how we can have a detailed explanation to the distinguished committee to see how the third party financing governance is done.
“The escrow account system, and how it is managed from the beginning of the project to the end. When you borrow money from the bank or any financial institution, you have governance structure you will adhere to and when you have an escrow account, that means you will have some money trapped until the end of the obligation.
“These are some of the details that are beginning to come out and we have the opportunity to go back now to give a detail explanation including how the funds are being managed and then we would be able to account for every stream that is being managed within the third party financing.”
Petroleum Product Pricing Regulatory Agency (PPPRA) Managing Director, Farouq Ahmed, said in 2012, the total quantity delivered by the marketers that qualifies for subsidy claims was 7, 714, 735, 580.71 litres which corresponds to N461.40.7bn .
For 2013 (other marketers), he said the total volume delivered which qualified for subsidy claims was 8,997, 776, 652.81 litres which corresponds to N467, 620 ,657, 674.24.
He put the total claims for the two years at N928, 668, 365, 37.70.
He said in October 2011, the total volume of PMS based on the certificate granted to NNPC in terms of volumes delivery of PMS was 520, 464, 371 litres corresponding to N40, 385, 473, 266.32 while the volume for HHK is 171, 515, 288 litres and the total naira value for the two components (PMS and HHK) is N17, 643, 898, 129.01.
He said: “There is also one for October of the same year which is classified as October arrears and its for HHK alone.
“The volume is 18, 240, 866 litres corresponding to a value of N1, 935, 691.442.2. PMS volume delivered in November 2011 was 431, 755, 629 litres corresponding to N34, 63, 432, 840.66.
“Volume delivered for HHK was 129 209, 34 litres with the value of N13, 504, 495, 477.84. For December 2011 batch A, PMS in terms of volumes 960, 674, 907 litres corresponding to N77, 006, 459, 517.65.
“For HHK December 2011 batch A, volume was 94, 564, 678 litres corresponding to N10, 135, 880, 308.08. December batch B, volume delivered was 144, 961, 484 litres corresponding to N11, 318, 805, 386.1. December batch B for HHK the volume delivered was 88, 643, 792 litres corresponding to N9, 576, 977, 84.55.
“The total of PMS delivered in the first quarter of 2011 by the NNPC is 2, 057, 856, 391 litres corresponding to N162, 774, 171, 10.73 while the HHA was 504, 173, 658 litres corresponding to N52, 786, 942, 442.3.
“Therefore the total certification granted to NNPC by the PPRA for 2011 (PMS and HHK) was N215, 561, 113, 453.03.”
The committee directed the Nigeria Petroleum Development Company (NPDC) to submit in writing what it received from the NNPC and part of the $6 billion that went to the federation Account.
The Committee asked the Department of Petroleum Resources (DPR) if it received $869.9 million from NPDC.
The DPR told the committee that when companies pay money, it takes them some time to confirm the payment.
The agency, however, confirmed receipt of $415,239,365.66 and another $722,943,664.
The Federal Inland Revenue Service (FIRS) confirmed the receipt of $863 million from NPDC.
The committee asked NPDC to hasten the payment of the balance to FIRS since it (NPDC) accepted the liability of the balance in their submission.
Makarfi said the committee would start technical session after yesterday’s sitting.
He said the Senate had approved the appointment of a consultant while the executive was free to conduct its forensic audit.
He said the work of the consultant would enrich the submission of the committee to the Senate.