House of Representatives yesterday mandated its committees on Petroleum upstream and downstream when constituted to investigate the operations of the Joint Venture agreements of the Nigerian National Petroleum Cooperation and other oil companies with reference to leakages.
On this note the committees will also carry out a forensic assurance review of the books to establish the amounts of income that accrued to the Joint Venture Partners in the past seven years and actual amount remitted to the Federation account and report to the House in seven weeks.
This resolution was sequel to a motion entitled “recovery of revenues payable to the Federation Account from the Nigerian Nation Petroleum Corporation (NNPC) and it’s joint venture partners” sponsored by Hon. Nicholas Ossai noted that the NNPC and oil companies are expected to fund the joint venture and share the oil produced and other benefits with their interest holdings as contained in the agreement.
According to him, section 162 (1) of the Nigerian requires all collectable revenues of the government of the federation to be paid into the federation account adding that the sources of the joint venture income amount to billions of naira.
He said that besides the lifting of oil in the agreed sharing ratio, there are associated income or miscellaneous revenues accruable to the joint venture for which the Federal Government is entitled to a good share in accordance with the agreements.
“The operator companies net off these income against expenses (already settled) allegedly in collusion with officials of the NNPC to avoid the remittance of the income to the federation account.
“The joint Operation agreement largely favour the operator companies to the detriment of the non operator, the NNPC which is the agent of the Federal Government, he said.
The motion was unanimously adopted after it was put to voice vote by the Speaker of the House, Hon. Yakubu Dogara.
– Dyepkazah Shibayan, Abuja