A Review of the Nigerian Energy Industry

Fuel subsidy probe: Senate subpoenas KPMG

Henry Umoru

31 May 2012, Sweetcrude, ABUJA — FOR its refusal to appear before the Senate Joint Committee on Petroleum Resources, Downstream, Appropriations and Finance, the Senate, Wednesday, issued a subpoena to the Managing Director of KPMG.

According to the committee, which is investigating the over N2 trillion fuel subsidy scam, the company’s management risks arrest if the invitation was not honoured.

In the letter signed by the chairman of the committee, Senator Magnus Abe, the Senate said: “Consequent upon our letter dated May 23, 2012 requesting your appearance and your refusal to oblige, the Joint Committee hereby issues this subpoena.

“By powers conferred on the committee by Sections 88 and 89 of the Constitution of the Federal Republic of Nigeria 1999 as amended, you are hereby commanded to appear before this Joint Committee on Thursday 31 May, 2012 at 10.00 am in Conference Room 022, Senate New Building.

“Failure to comply with this subpoena will lead to further measures available to the committee to cause your appearance.”

Kerosene for LGAs
Also Wednesday, the Senator Abe-led committee mandated the Pipeline Products Marketing Company (PPMC) to put in place a mechanism that would guarantee availability of kerosene at the local government level.

The advise was given at a public hearing organised by the committee, even as the company was told that it must deregulate importation of kerosene or issue separate licences to manufacturing and construction companies as that will enable them import their kerosene rather than hijack that, which was already subsidized by the Federal Government.

Managing Director of the company, Haruna Momoh had earlier admitted that there were sharp practices in kerosene distribution, adding that shortage of kerosene product across the country was due to the activities of manufacturing and construction companies that use the product for road construction.

Momoh who declined information on the amount of subsidy paid on kerosene since 2006, told the committee that it was the sole responsibility of Nigerian National Petroleum Corporation (NNPC) to import kerosene as well as issue subsidy payments claims.

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