21 October 2015, Abuja — The House of Representatives on Tuesday mandated its Committees on Petroleum (Upstream and Downstream), when constituted, to investigate the operations of the Joint Venture agreements between oil companies and the Nigerian National Petroleum Corporation (NNPC) following concerns that the income from that arrangement was not properly accounted for.
The investigation will entail a forensic assurance review of the agreements in the past seven years with a view to establishing the actual income that accrued to the oil companies, and the definite amount remitted to the federation account.
The House expressed concern that income from sources such as sale of assets, marine transportation, pipeline transportation and others, which form part of the JV operations are unaccounted for, and not usually paid into the distributable pool by the oil firms.
“We brought this issue up in the 7th Assembly, in 2012. Nothing was done. Are we going to sit as representatives of the people, in the face of dwindling oil revenues? The Federal Government’s contribution to the JV is sourced from the Appropriation Act, but when you ask questions, someone says its operational cost,” he said.
- This Day