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The upper chamber of the National Assembly has revealed how P the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), paid N200 million subscription without vouchers to United Kingdom (UK) firms.
The chairman of Senate Public Accounts Committee (SPAC), Senator Matthew Urhoghide, based the investigation on the 2016-2018 report by the Auditor General of the Federation, which is currently considered by the panel.
He claimed that the contract fee was paid to UK firms without the letter of advice from Ministry of Justice in line with circular Ref No SGF/PS/CIR/625/1227 which states, “all Ministries Department and Agencies (MDA) of government entering into agreement on behalf of the Federal Government with foreign countries and their agencies to make reference to the Federal Ministry of Justice for necessary advice and vetting to x-ray all agreements which has financial political or social obligation on Nigeria.
The chairman,who identified companies as PLATTS and PLATTS, Thompson Reuters,said they rendered online patent right for data/information gathering such as crude oil/product prices, vessel freight rates and tracking.
He said that NMDPRA must appear before the Committee and defend the allegations raised in the Auditor General’s report.
He stated that although the infraction was committed when the agency was known as PPPRA, but that does not mean that the agency will not answer for infractions because it has changed name.
But in its written response to the Committee, NMDPRA said, due to nature of the service rendered, it does not require the advice of Federal Ministry of Justice.
“The Agency is allowed access to the site upon evidence of payment. In other words, payments are made upfront as soon as the Agency is invoiced for the next payment circle which is usually annual.
“Since the payments are in foreign currencies, the PPPRA 283 authorizes the CBN to effect such payments on its behalf and thereafter advises the Agency on the exchange rate used for the posting into our cashbook.”
The query reads: “RRN200,670,992.36 Financial Regulation 601 states, ‘All payment entries in the cash book/accounts shall be vouched for on one of the prescribed treasury forms. Vouchers shall be made out in favour of the person or persons to whom the money is actually due. Under no circumstances shall a cheque be raised, or cash paid for services for which a voucher has not been raised.’
“Circular Ref No SGF/PS/CIR/625/1227 requires all Ministries Department and Agencies (MDA) of government entering into agreement on behalf of the Federal Government with foreign countries and their agencies to make reference to the Federal Ministry of Justice for necessary advice and vetting to x-ray all agreements which has financial political or social obligation on Nigeria which are of scientific or technological import that requires ratification.
“We further observed that, the sum of N200,670,992.36 (Two hundred million, six hundred and seventy thousand, nine hundred and ninety-two-naira, thirty-six kobo) was paid to 2 companies Platts/McGraw International Financial and Informal UK Ltd as Subscription for intelligence gathering for the agency.
“No due process was followed in the engagement of these multinational companies as there was no evidence of contracts award and agreement.
“There was no payment voucher raised for the payments in contravention of Financial Regulation 601, as the CBN was only advised to make payment by transfer of funds in foreign currency on the prevailing market rate.
“The audit teams consider this open ticket operation as susceptible to financial manipulation as there was also no letter of advice from the Ministry of Justice in line with extant regulations.
“This anomaly was due to the failure of the Executive Secretary to ensure that internal control procedures are properly followed. Risk the Agency may incur unauthorized or unapproved expenditures for which payment vouchers are not produced for audit in line with the provision of the law. Such expenditures may not have been incurred in the public interest.”
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