A Review of the Nigerian Energy Industry

Govt fires 2 accounting firms over fraudulent subsidy scheme

*Sets up c’ttee to probe 2011 subsidy claims

21 April 2012, Sweetcrude, Abuja – The Nigerian Government weekend sacked the accounting and auditing firms of Akintola Williams & Co and Adekanola & Co, following the shoddy oversight function they performed on its behalf in the management of the now discredited petroleum subsidy scheme.

The Federal Ministry of Finance had engaged the firms to verify documentations and claims submitted by oil marketers and contractors so as to ensure that only genuine claims are paid.

The House of Representatives ad hoc Committee which probed the management of the subsidy scheme had also blacklisted the firms in its final report, recommending a ban of 3 years for the companies for complicity and failure to do what they were hired to do.

“Concerned about the management of the subsidy regime, the Federal Ministry of Finance has for the last two months been reviewing aspects of the implementation of the subsidy regime related to its functions. The review has produced a lot of useful details on what was wrong with the system and what needs to be done to ensure improvement going forward,” a statement from the ministry of finance disclosed.

The review process kicked off in February when the ministry and relevant government agencies held a meeting with bankers and marketers at the instance of President Goodluck Jonathan. This was followed by a subsequent session with the accounting and auditing firms to re-evaluate their work.

Based on the review, the Ministry has taken the following steps:
• The services of the audit and accounting firms responsible for certifying the documents and claims of marketers before payment have been terminated. The companies are Akintola Williams and Co and Adekanola and Co.

• The Ministry has established a committee made up of credible and experienced persons from the private and public sector with strong technical component under the chairmanship of Mr. Aigboje Imoukuede to examine the claims of payment arrears for 2011 currently being made by marketers. This is to ensure that only genuine claims are honoured.

• The ministry is also finalising a new and more effective system to replace the current arrangement and, in this regard, a second committee has been set up to propose a good way to forward.

Based on other outcomes of the review, the ministry will take further actions as necessary.

In a related development, the Federal Accounts Allocation Committee (FAAC) has put on hold further depletion of the Excess Crude Account (ECA).”

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