Reps summon oil company’s chief over diversion of $9.1m

total
The Managing Director of Total Nigeria Plc has been invited by the House of Representatives to explain the position of the company over alleged diversion of $9.1million.

Total was alleged to have collected as part of the Federal government special intervention fund through the Central Bank of Nigeria (CBN) for the importation of Premium Motor Spirit (PMS) for avoidance of scarcity of the product in the country.

This emerged Thursday at the continuation of a public hearing by the Nnana Igbokwe – led ad hoc committee on the review of petrol pump price.

The committee expressed concern over the discrepancies in the presentation and documents of the oil company that were at variance with those presented by the Department of Petroleum Resources (DPR), Nigeria Ports Authority (NPA) among others.

Total’s N2.1b indebtedness to Pipeline and Product Marketing Company  (PPMC) also became a subject of controversy as the 14 days credit sales agreement that does not give them room to default in payment appear to have been jettisoned.

“Forex collected by you was on the 22nd June, 2016, but I want to draw your attention to products consummed by you before collecting forex to pay”.

“How come you are owing this huge sum when you are to pay for any product received from PPMC on or before 14 days.

“It is even more worrisome that the document before us shows that the N2.1b reflects that the indebtedness I arising only from Dual Purpose Kerosene (DPK).

“So we stand by the decision that the transaction you are doing with PPMC is opaque, your through-put documents are not included here; neither is your credit sales.

“The entire process of your acclaimed reconciliation with PPMC is fraught with irregularities”, Igbokwe said.

Total’s representative, Funmi Ogunmade, in his response said dispute with the DPR over certain transactions with PPMC had made reconciliation of records difficult.

“I will crave your indulgence to step down the decision as taken by your committee due to the irreconcilable differences between us and PPMC”, Ogunmade said.



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