Nigeria's state oil company is assuming "carte blanche" and spending nearly half the proceeds from crude oil sales before they reach the treasury, according to a long-awaited audit into billions of dollars of allegedly "missing" oil revenues. The audit, carried out by PwC and published in full late on Monday on the orders of outgoing President Goodluck Jonathan, recommends an "urgent" overhaul of the way Nigeria manages its oil industry, which it describes as "unsustainable". Mr Jonathan commissioned the report last year after Lamido Sanusi , the outspoken former governor of the Central Bank of Nigeria, claimed that the Nigerian National Petroleum Corporation had withheld more than $1bn a month in revenues owed to the treasury between January 2012 and July 2013. PwC does not come up with a headline figure for the total sum of money that should have been remitted to the treasury. But the audit raises questions about the legality and rationale behind a series of multibillion-dollar transactions, including on kerosene and fuel subsidies, as well as the way oil assets were transferred to a subsidiary of the NNPC and the scant revenues derived through third party financing of oil blocks. The auditors found a total of $1.48bn in "duplicate" subsidy claims, comput-ation errors, "unsubstantiated costs" and unpaid taxes - a sum Diezani Allison-Madueke, the petroleum minister, has now ordered the NNPC to refund. They also found a discrepancy of more than $2bn in the total value of crude oil sales. This, and other questions on the reliability of NNPC data, suggests that colossal sums of money passing through the state oil company were barely auditable.
This section provides readers with the latest news regarding anti-corruption issues worldwide.
What are the main functions and operations of your agency?
QUESTION #11 FROM OUR SURVEYS
- A review of the literature on ACAs indicates that there is no standard approach or model when it comes to the establishment of an ACA and the definition of its mandate.
- Some ACAs have been created from scratch, while others have built on existing ombudsman offices, special units within police departments, or justice departments.
- The ACAs included in this initiative are no different. The majority of ACAs have some preventive and investigating functions, but prosecution is carried out by less than half.
Apr 09, 2015
The Directorate on Corruption and Economic Crime (DCEC) was established in September 1994 under the Corruption and Economic Crime Act Model and staffed by the former members of the Hong Kong agency and local personnel. The Directorate is an... Read More
OF COUNTRIES HAVE FREEDOM OF INFORMATION LAWS
FROM OUR COUNTRY CROSS-ANALYSIS
The existence of anti-corruption laws is the first step in addressing corruption and creating an enabling environment for ACAs to operate effectively. Anti-corruption laws and regulations such as freedom of information, conflict of interest legislation, whistle-blower protection and financial disclosure, can facilitate the investigative and prosecution functions of ACAs.
For this reason, many countries have introduced this type of laws, as the data collected highlights. This may appear encouraging for the seemingly widespread existence of a comprehensive legal system in support of ACAs activities. It is however important to stress that the data presented capture the existence of the laws (“de jure” system) and not whether the laws are implemented (“de facto”).