Reps direct Total to refund $592m to FG

The House of Representatives has directed that Total Exploration and Production Nigeria (TEPNG) refund $592 million to the federal government after concluding investigations into the budget of certain projects.

The House of Representatives had received a report of the Committee on Gas Resources led by Fred Agbedi, which covered contract for the upgrade of OML 58, upgrade 1, the execution of Obite-Ubeta-Rumuji Pipeline and the Northern Option Pipeline Projects.

The Nigerian National Petroleum Corporation and the National Petroleum Investment Management Services were said to have overpaid the oil and gas company for the awarded contract.

Besides the recommendation that Total refund the sum to the Federal Government, the committee also made other discoveries;

That a forensic investigative audit into the cost overrun emanating from all change orders, including $2.2bn on OML 58 Upgrade 1, $560m on OUR Pipeline and $528m on NOPL Pipeline Projects be conducted.

That the actual cost of the projects as awarded by NNPC/NAPIMS and TEPNG be ascertained as it is difficult to ascertain the actual cost since all the parties do not agree on the cost.

That a supposed entity called Diakrino Services Limited, which was engaged by NNPC/NAPIMS to conduct a Value for Money audit at the cost of $1m, was not a legal entity as was confirmed by the committee from a search at the Corporate Affairs Commission.

Four staff members of NNPC/NAPIMS involved in managing the contract awarded to Diakrino have been directed to refund the contract sum of $1 million to the Federation Account.

The lawmakers said the firm should also be apprehended and prosecuted for violating the Procurement Act, 2007.

Lawmakers also considered the recommendation 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.

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