Senate committee discovers illegal NNPC account

Channels Television  
Updated July 2, 2012

The Minister of Finance and Coordinating Minister for the Economy, Dr Ngozi Okonjo-Iweala and the Accountant-General of the Federation, Mr Jonah Otunla have both denied having any knowledge of  details of  operation at the Nigerian National Petroleum Corporation NNPC with  JP Morgan. 

This was revealed on Monday at the continued probe of the fuel subsidy scheme.

The chairman of the panel, Senator Magnus Abe, declared that the JP Morgan account, where proceeds from the sale of crude oil kept unconstitutional and illegal.

He maintained that all revenue accruing to the federation account must be paid into the Federation Account in line with the provision of Section 80 (1) and (4) of the Constitution.

The Minister of Finance denied knowing the account number of the JP Morgan account saying the Ministry only has access to accounts within its jurisdiction.

The new GMD of NNPC, Mr Andrew Yakubu, while admitting he had knowledge of the account said the JP Morgan account is not managed by the NNPC.

The committee directed the Minister of Finance to liaise with the Minister of Petroleum, Mrs Diezani Allison-Maduekwe, to immediately stop the operation of the account.

Dr Ngozi Okonjo-Iweala also revealed that the federal government has paid N451billion for subsidy as at June this year.