The Senate Committee on Public Account on Wednesday uncovered a difference of N120 billion in the payment of subsidy to the Independent Petroleum Marketers Association of Nigeria (IPMAN) by the Petroleum Products Pricing Regulators (PPPRA) in 2016.

The panel, relying on 2016 report by the Auditor-General for the Federation, said the subsidy amount reflected in the Federation Account Allocation Committee (FAAC) record was N443 billion, while the record presented by the PPPRA showed N563 billion.

“The amounts reflected in FAAC records at the OAGF (Office of the Auditor-General for the Federation) of N443,940,559,974.80 as subsidy payments during the year 2016 is at variance with the total amount paid of N563,283,294,925.47 in the records of PPPRA as subsidy payments during the year 2016,” the report said.

But the National President of IPMAN, Elder Chinedu Okoronkwo, told the committee members that the union has over 50,000 members across the country.

He added that the agency did not know the real beneficiary of the N80 billion difference.

He said: “We have over 50,000 members cut across the nooks and cranny of the country. We don’t know the real beneficiaries of the subsidy payments. If you give us the list of the beneficiaries of the subsidy, we can now reach out to them.”

The Committee, chaired by Senator Matthew Urhoghide, therefore, summoned the PPPRA to provide the list of the beneficiaries for IPMAN to respond to issue raised in the query.

The report said from records made available at PPPRA, it was observed that the sum of N121 billion was paid as outstanding subsidy commitments to oil marketers for 117 transactions in 2014.

It said the sum of N441.9 billion was paid to oil marketers as subsidy commitments for 324 transactions in 2015.

“From records presented for audit, there was no year 2016 PSF payment made as a result of the removal of subsidy on petroleum products with the increase pump price from N89 to N143.

“Only outstanding payments for previous years 2014 and 2015 and interest payments were made in 2016.

“We were unable to carry out verification visits to the Oil marketers to confirm their eligibility to draw from the Petroleum Support Fund. This was as a result of the PPPRA‟s inability to provide the letters of introduction for us to gain access to the Oil Marketers.

“We were therefore unable to confirm that the amounts disbursed were paid to legitimate Marketers,” the query read.

Source:- Daily Trust