Home Business FAAC kicks as NNPC deducts N29.857b for pipeline repairs

FAAC kicks as NNPC deducts N29.857b for pipeline repairs

0
0

TVC N. The Federation Accounts Allocation Committee (FAAC) has protested the deduction of N29.857 billion by the Nigeria National Petroleum Corporation (NNPC).

The NNPC had claim the money is the cost for pipeline repairs and other losses incurred, but FAAC insists that such withheld funds ought to be remitted to the federation account by the corporation.

According to New Telegraph, the NNPC deductions covered two months (July and August 2016) which the claimed claimed it spent on oil pipeline repairs, maintenance and products losses.

The report stated that FAAC was completely against what it termed NNPC’s unrestricted arbitrary deductions of oil proceeds due for remittance into the federation  account on the guise of covering cost for repairs of vandalised pipelines and other losses.

A sub-committee of FAAC set up to review and scrutinise FAAC accounts at its last week meeting in Abuja reportedly uncovered the deductions and raised an alarm on the issue.

The committee, in proposing a solution to arbitrary deductions by NNPC, advised FAAC on way forward.

Part of the committee resolution read: “The sub-committee resolved that NNPC should, as a matter of urgency, provide estimates and projections of these repairs to the Federal Ministry of Finance for consideration in the 2017 budget proposal.

“The sub-committee also requested that details of how previous deductions were expended should be made available to members for scrutiny to ensure accountability and transparency.” 

Efforts to speak with the NNPC’s Group General Manager Public Affairs Division, Mr. Ndu Ughamadu, on the issue was not successful.

But a source in the NNPC said the deductions covered three areas – security management cost, crude loss production cost and pipelines repairs.

“The deductions were in order and conform with the relevant laws setting up the NNPC including the Nigeria constitution. Specifically, the deductions were in line with section 7 of NNPC Act subsection b,” the source said.

The source added that the deductions do not contradict relevant sections of Nigeria’s 1999 Constitution such as section 80, sub section 1, as well as section 162, subsection c.

 

 

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *