Reps To Investigate NNPC Joint Venture Operations

The House of Representatives has mandated a joint committee of the House to investigate possible leakages in the operations of the Joint Venture Agreements between the Nigerian National Petroleum Corporation (NNPC) and other oil companies operating in Nigeria.

The motion, which was adopted in plenary on Tuesday, also mandated the committee to carry out a forensic assurance review of the Joint Venture Accounts.

The decision to investigate the NNPC and other companies was reached after the members of the House of Representatives considered a motion calling for the recovery of revenues payable to the Federation Account from the NNPC and its joint venture partners.

Members of the House resolved to have a joint committee investigate the operations of the Joint Venture Agreements over the last seven years.

The committee is also to carry out a forensic assurance review of the joint venture books and establish the actual amount remitted to the Federation Account.

It is expected to report back to the house in seven weeks.

Alleged Abuse In Issuance Of Pioneer Status

Meanwhile, the House Committee on Finance is also to investigate possible cases of abuse in the issuance of Pioneer Status to some companies which in one instance cost the Federal Government over 1.8 trillion Naira.

The matter was considered after a lawmaker, Herman Hembe, said the Nigerian Investment Promotion Council had issued the Pioneer Status to companies other than those envisaged by the Companies Income Tax Act and the Investments Development (Income Tax Relief) Act.

The motion was passed unanimously and the committee is expected to recommend ways to recover the revenues lost by government.

The standing committees of the House of Representatives are yet to be announced and this means these investigations will be on hold till the committees are constituted.

If there is one clear challenge confronting the Federal Government now, it is that of finding ways of increasing its revenue in the face of unstable oil prices and growing expenditure.

This may be responsible for the renewed scrutiny the parliament has focused on the government’s finances and income.