Emefiele meets Senate today on alleged missing $9.5m PPT fund

Published March 9, 2021

Sunday Aborisade , Abuja

The Governor of Central Bank of Nigeria , Godwin Emefiele , is expected to lead top management staff of the Central Bank of Nigeria to the Senate today ( Tuesday ) .
They are expected to explain details of the alleged missing $ 9 . 5m interest which accrued from Petroleum Profit Tax investment.
They will appear before the Senate Public Account Committee to explain the alleged disappearance of the principal sum deposited , the tenor and rate of interest .
The Chairman of the Senate panel , Senator Mathew Urhoghide , had while scrutinising the 2016 auditor -general ’s report last week , declared that details of the PPT investment were shrouded in secrecy ,
The PPT is a tax applicable to upstream operations in the oil industry .
It is particularly related to rents , royalties , margins and profit sharing elements associated with oil mining , prospecting and exploration leases .
The committee had last week summoned the officials of the apex bank over alleged disappearance of the fund .
The summon was sequel to the consideration of the 2016 AuGF report.
The Accountant -General of the Federation, Ahmed Idris , had during the sitting of the Senate panel last week , failed to provide relevant documentary evidences regarding the said fund .
The committee therefore resolved to invite the CBN officials to give explanations on the issue raised in the AuGF report.
The report read in part , “ During the examination of transfers to Foreign Excess PPT / Royalty and Foreign Excess Crude Accounts, it was observed that during the year 2016 , amount totalling $ 6 m and $ 3 .5 m were credited to the Foreign PPT / Royalty and Foreign Excess Crude Account as interest on funds’ investments .
“ The authority for placing the funds which yielded the above interests totaling $ 9 . 5 m in deposit account, the principal sums deposited , the tenor and rate of interest were not made available for audit verification .
“ This observation had also been a subject of my reports since 2017 without any positive response from Central Bank of Nigeria.
“ Records made available for audit further revealed that the balance in the foreign PPT / Royalty and Foreign Excess Crude accounts as at 28 th December 2016 were USD0 .00 and USD251 , 826 respectively.
“ This suggest the foreign PPT / Royalty was depleted before the year end .
“ The accountant-general has been requested to provide the authority for the funds invested , tenor of the investment, rate unrest payable , certificate for the funds invested and forward same for audit verification .”
Meanwhile , the Senate panel had also last week, summoned the apex bank over N 121 bn outstanding subsidy paid to Independent Petroleum Marketers in 2016 .

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