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House of Reps uncover N53bn NNPC insurance fraud

A House of Representatives committee investigating insurance of government assets yesterday said it has found that the NNPC inflated its premium payment by about N53 billion in the past three

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قديم 07-11-2012, 05:34 PM
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افتراضي House of Reps uncover N53bn NNPC insurance fraud

A House of Representatives committee investigating insurance of government assets yesterday said it has found that the NNPC inflated its premium payment by about N53 billion in the past three years.

The House Finance committee said an analysis of documents submitted to it by the Nigerian National Petroleum Corporation show that the corporation padded its insurance premium by $329.4 million (equivalent N53 billion) from 2009 to date.

Because of this discovery, the committee announced at a hearing session yesterday that it invited the NNPC managemnet to appear before it today to explain the discrepencies.

“For 2012 alone, NNPC increased its insurance premium from $10 million to $90 million with no corresponding increase in their assets,” committee chairman Rep. Abdulmumin Jibrin (PDP, Kano) said.

“They (NNPC) also did not build any refinery, no any major infrastructure put in place. We also observed that there was no any major disaster that befell NNPC within the period in question.”

He said the committee has also found that there is an outstanding insurance premium amounting to $12 million which the NNPC has not paid.

The House Finance committee instituted an investigation into the insurance of government assets following a motion on the matter adopted by the House in September.

NNPC has been the subject of several investigations by the House of Representatives, the major one being the subsidy probe which indicted the corporation for illegally deducting petrol susbidy claims of over N700 billion from the Federation Account.

House of Reps uncover N53bn NNPC insurance fraud

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