Abuja —The Senate Committee on Upstream Petroleum has summoned the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Funso Kupolokun to appear before it today to explain sundry issues of alleged financial misdeeds.
Committee chairman, Senator Lee Maeba, in a letter dated October 27, 2004 raised nine points of financial and ethical misdeeds against Engr. Kupolokun which he said he had brazenly refused to address in past correspondence with the Senate Committee.
Among the allegations are that the NNPC inflated partners' estimate in the 2004 budget by $100 million (N13.5 billion) and the deduction of between five per cent and 40 per cent from the London accounts of NNPC into a special account of the GMD. Besides, Engr. Kupolokun is accused of using his position to influence lucrative contracts to special interest contractors at exorbitant terms.
Group Public Relations Manager of the NNPC, Dr. Levi Ajunoma, could not be reached last night to respond to the development.
The letter obtained by Vanguard last night read: "RE: INVITATION TO ANSWER QUESTIONS ON ISSUES AFFECTING NNPC
The Senate Committee on Petroleum Resources (Upstream) refers to the subject matter dated 21st October 2004, which invited you to a meeting on Tuesday 27th October, 2004.
The Committee in the said meeting which held successfully in spite of your absence, considered among other things the imperative of obtaining information pertaining to some critical issues in the said 2004 budget, which it has uncovered.
Consequently, you are invited to meet with the Committee on Monday, November 1st 2004, by 11.00 am prompt in Senate Committee Room 7.
You will be required in the meeting to provide answers to the following questions:
1. Why NNPC inflated partners' estimate to over US$100 million during its 2004 budget presentation.
2. Why you informed the Committee and the public that US$3.2 billion provided by the Federal Government was insufficient to fund the JV budget against the Committee’s suggestion for more fund, whereas later you travelled to Ghana with SPDC officials to arrange the borrowing of extra US$600 million, four weeks later. Why this financial inconsistency? Who authorised you to outsource for the money? Why were you so interested in the money?
3. Why the entire Bonga field development projects especially FPSO contracts awarded by EMEC of UK have been described as the most fraudulent in the history of contracts?
4. Why there are too many foreigners in the oil industry doing jobs Nigerians can do. The figures have almost tripled since you assumed duty.
5. Why you collaborated with INTELS Nigeria Limited in tariff fixing for logistic operations in the Oil and Gas Industry –– which had denied indigenous companies involvement in the lucrative logistics business in the industry and have defrauded the Federal Government of hundreds of millions of dollars.
6. Why there is widespread allegation that the process of remittance of money from crude oil sales is always resulting into loss of money due to improper exchange rate regime between offshore accounts and CBN crude accounts before final remittance to the Federal Government. How much do you know about this ugly development?
7. Before you assumed duty as GMD, there was the allegation of gross financial impropriety in the operation of some NNPC foreign accounts especially the one with HBSC London. That deductions ranging from 5% to 40% are being made and lodged in a special account for the GMD. There is no indication that the practice has stopped. What is the situation now?
8. How is the NNPC foreign account operated now? Give details of the structure of all the accounts for the past three years including details of the number of the accounts and the locations of the accounts.
9. What is the NNPC annual budget for the year 2004? Please give details. Why did you refuse to submit your budget to the Committee? Could this be established as part of your alleged disregard for the National Assembly?
Please accept assurances of the Committee’s highest regards.
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