Reps direct Total to refund $592m to Fed Govt

Reps direct Total to refund $592m to Fed GovtThe House of Representatives yesterday directed Total Exploration and Production Nigeria (TEPNG) to refund $592million to the Federal Government.

This was sequel to the consideration of the Report of the Committee on Gas Resources on the Need to Investigate the Contract for the Upgrade of OML 58 Upgrade 1, the Execution of Obite-Ubeta-Rumuji (OUR) Pipeline and the Northern Option Pipeline Projects,.

The cash was the excess allegedly paid on the contract awarded by the Nigerian National Petroleum Corporation (NNPC) and the National Petroleum Investment Management Services (NAPIMS).

This was one of the recommendations in the report of the Hon. Fred Agbedi-headed House committee on Gas at the Committee of the whole yesterday.

They approved the recommendations that the excess payment of $592million should be recovered from TEPNG in consonance with the recommendations of Tabor VFM Audit Report.

“That a forensic investigative audit into the cost over-run emanating from all change orders, including $2.2 billion on OML 58 Upgrade 1, $560 million on OUR Pipeline and $528 million on NOPL Pipeline Projects be conducted.”

Similarly, the House while considering the report of the same Committee on the Need to Investigate the Contract for the Modification of the EGP 3B Production Platform following the Joint Venture Agreement between the NNPC and Chevron Nigeria Limited said:

“That a supposed entity called Diakrino Services Limited which was engaged by NNPC/NAPIMS to conduct a Value for Money (VFM) audit at the cost of $1million was not a legal entity as was confirmed by the Committee from a search at the Corporate Affairs Commission.”

The lawmakers therefore directed that the $1million awarded to Diakrino Services Limited should be paid back to the Federation Account by four workers of NNPC/NAPIMS involved in managing the contract awarded to Diakrino.

They said they should also be apprehended and prosecuted for violating the Procurement Act, 2007.