As the House of Representatives ad hoc committee’s revealing probe into the management of subsidy funds in the oil sector enters day nine, oil corporations appearing before the panel today have denied allegations of inefficiency and malpractice leveled against them in the KPMG audit report.
On the hot seats today were Dee Jones Petroleum Limited, represented by managing director of the company, Mr. Richard Eze as well as Mr. Rodney Gavshon, managing director of Vitol Limited.
Speaking for Dee Jones, Mr. Eze expressed surprise at the allegations of malpractice leveled against the company in the audit report – allegations he strongly denied.
The Dee Jones’ MD was incapable of providing exact figures on the amount of subsidy owed the corporation by the Federal Government in 2011, saying the PPPRA determined what was paid.
Ad-hoc committee chair, Honourable Farouk Lawan put the question to the Mr. Eze, asking how much outstanding subsidy was still owed Dee Jones from 2011.
Mr. Eze’s stunned the committee when he admitted that he was uncertain of the exact figure of subsidy owed his company.
He said the amount of subsidy received by his company depends on the discretion of the Petroleum Product Pricing Regulatory Agency, PPPRA.
“Are you telling me that you import, you distribute the material and then PPPRA just decides what they give you and whatever they give you, you collect?” Hon. Lawan asked.
Mr. Eze responded, “that is how it is”, adding that the oil company has in the past queried what was given them, but said “whateve they give you, that is what you take”.
More drama ensued when Mr. Gavshon, speaking in defence of his company Vitol Limited, also indicted of malpractice in the KPMG report, refused to clarify why his imports, meant ofr Nigeria, were diverted to Cotonou and Lome, rather than arriving in Nigeria.
Hon. Lawan questioned Gavshon, asking whose responsibility it was to “make sure the imports actually reach Nigeria?”
Gavshon responded saying due to the sensitive nature of the documents requested, he will not be handing them over to the House investigative committee.
He asked “with respect” that Vitol Ltd. keep the documents private. The company is the only internation oil corporation to be invited to the probe and says revealing the documents will expose the company’s trade secrets to competitors.
