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Reps probe banks, NNPC over N17bn pension fund

Posted by By JAMES OJO, Abuja on 2008/01/15 | Views: 617 |

Reps probe banks, NNPC over N17bn pension fund


House of Representatives Committee on Privatization and Commercialization has launched a probe into management of the amount paid by Zenon Petroleum to acquire AP Petroleum shares, with claims that the money was lodged in some banks by the Nigerian National Petroleum Corporation (NNPC) Pension Fund.

House of Representatives Committee on Privatization and Commercialization has launched a probe into management of the amount paid by Zenon Petroleum to acquire AP Petroleum shares, with claims that the money was lodged in some banks by the Nigerian National Petroleum Corporation (NNPC) Pension Fund.

Controversy had ensued at the hearing when Zenon confirmed that it actually paid N17 billion against N14 billion claimed to have been paid by the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange, NSE
The committee had expressed worry on the allegations that N16 billion of revenue it generated for government in the sale of African Petroleum shares had been diverted into a 'call" account serviced by the NNPC Pension Fund Limited.

As a result, the committee wrote NNPC Pension Fund Limited requesting for statement of account in respect of AP Plc shares transactions.
Responding through a letter signed by Mrs. V.D. George on behalf of the Managing Director of NNPC Pension Fund, cheques for N14,172,749,181,00, was said to have been paid into the Maitama Abuja branch of one of the banks, while another N2,409,789,725.00 was paid into the Wuse Branch of the same bank.

In another request by the House Committee on Accounts, entitled: 'Re: NNPC Pension Fund-Lodgment of N14,172,749,181," NNPC through A.I Ahmed said that N14,172,749,181 was placed on ‘call' account, while another letter also signed by Ahmed, explained the second lodgment of "N2,409,789,725.00, on specific investment terms. As a result of these revelations, the committee decided to take action by summoning the banks and officials of the NNPC, in order to find out if Zenon actually paid N17 billion while only N14 billion was reflected in the records of transaction.

Vice Chairman of the Committee, Hon Abass Braimah confirmed the invitation of all the concerned officials for another investigative hearing today, adding that the committee would strive to find out how much was actually paid in the transaction.

'The constitution does not recognize any special account or call account as regards monies generated by an agency of government. All revenue from NNPC ought to have gone to the Federation Account, because African Petroleum is government property and as such anything generated from the sale of its shares, must go to the Federation Account," he said.

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