Senate Probes Alleged $784.2m Fraud in Oil Coy
Senate, yesterday, mandated its Committees on Public Accounts, and Gas to carry out a holistic investigation into the activities of Brass LNG and the complicity therein, as well as the alleged financial fraud worth $784, 265, 947.54.
The upper legislative chamber, which gave the instruction following a motion titled, “Monumental corruption at the NNPC” by Senator Dino Melaye (APC Kogi West), however, directed the committees to report back within four weeks.
Melaye, while presenting the motion, said the Senate noted that Brass LNG was incorporated by the Corporate Affairs Commission, CAC, on December 9, 2003 and that it is limited by shares of $1million. He listed the shareholders of the company as the Nigerian National Petroleum Corporation, NNPC, represented by Mr. Funsho Kupolokun with $490,000 shares; and Philip Brass Limited whose address is in Cayman Island, British West Indies, represented by Mr. R.L. Smith with a share capital of $170,000.
Others mentioned by the senator are Eni International B.V with address in Amsterdam, Netherland, represented by Mr. A. Forzoli with a share of $170,000, while the fourth shareholder, Chevron Texaco Brass LNG Limited with address in Bemuda represented by Mr. J.R. Pryor with a share of $170,000.
Melaye said the Senate observed from the CAC records names of directors of the company among other foreigners as Gaius Obaseki Jackson and Yakubu Andrew, both former Group Managing Directors, GMDs, of NNPC; Ibogomo Gbeyansa, Dawa Joseph, Ige David, all staffers of NNPC; and one Mr. Buba Mohammad.
The lawmaker said he observed from the Memorandum of Understanding, MoU, that Brass LNG “is supposed to be a joint venture company with NNPC having controlling shares and their account domiciled with the Central Bank of Nigeria, CBN”.
He, however, expressed surprise that “the account of this company is with Keystone Bank opened on August 1, 2012 with account number, 1005825168, a USA domiciliary account with a closing balance of $137,086,462.54 currently, while $648, 179, 487 was recorded as the account’s last inflow on September 9, 2016 and a withdrawal of $4 million was effected on November 18, 2016 without a Bank Verification Number, BVN”.
According to Melaye, a lot of questions are begging for answers as regards Brass LNG including the status of investment and principal objectives of the company; signatories to the account; status of the federal government’s investment; returns on the investment; and if due process followed in the formation and appropriation of shares in the company.
He, therefore, emphasized “an urgent need to define the position of the company viz-aviz its operation, management and mandate in order to halt this seeming corruption”.
While amending the only prayer of the motion, Senator James Manager (PDP Delta South) said the Committee on Gas should be made to assist the Committee on Public Affairs in the probe, while Senator Joshua Lidani (PDP Gombe South) seconded the amendment after which it was approved by senators at plenary through voice votes.
In his remarks, the Senate President, Dr. Bukola Saraki, commended his colleagues for the motion and directed it to the Committees on Public Accounts, and Gas for thorough investigation and to report back within four weeks.
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