Fuel subsidy swindles: GEJ and ravaging economic terrorists After reading President Goodluck Jonathan’s timid response to government’s apparent helplessness in checking rampaging economic terrorists eating up 60 percent of subsidies meant to assist the poor, I did not know whether to weep or cry for my beloved country, Nigeria and if there was still hope for Nigeria getting out the self-inflicted woods of PDP administration in 2015. The President had mastered OBJ’s artful dodging of being an analyst or preacher over critical issues the public expects his profound solutions and what government has done, thereby further confounding the public on who is in charge of the economy and the apprehension of thieves milking to death the economy. Jonathan Jonathan August 28 lamented abuse of fuel subsidies at the launching of the national identity card scheme (which has suffered a serial launching epidemics since 1978) He claimed that these unnamed rich Nigerians, (he was perhaps too scared to name, just as the case of religious and political terrorist Boko Haram), exported 60 percent of the estimated N1.2 trillion (N720 billion) federal government spends yearly on fuel subsidies. This is excluding the other about two trillion naira that is lost every year through theft of crude oil and pilferage of oil revenues which all have remained unchecked despite several government probe reports un-acted upon by government that pretends to fight oil industry graft. Said Jonathan, “If you take the issue of subsidy of transport, what we do is subsidizing hydrocarbon (fuel), it does not go to the ordinary people. Government spends huge sums of money, hundreds of billions of naira every year in the budget, ask the National Assembly. Sometimes it is controversial subsidizing kerosene; yet it is not, it is going very high in the market, subsidizing the PMS (petrol) and so on. And those who make the money (read steal the subsidies) will come and use that money to induce the people suffering to riot against government”. After claiming that those who successfully steal the nearly one trillion naira subsidies turn round to instigate fuel price increase demonstrations as it was done in January 2012, President Jonathan gave no clue on what has happened to several government reports, why it has remained impossible to identify and prosecute big time subsidy thieves and what government is doing now to arrest the monumental thefts which have left the economy prostrate, with factory shutdowns and massive jobs’ Ebolastic hemorrhage. Left unanswered is the one poser I have repeatedly asked for years. Why does diesel in an officially deregulated market sell for N150-N160 per litre while kerosene in a regulated market allegedly subsidized by government sells for N140-N220 depending on the distance of supplies? In addition, is it not proven now, as it was in the case of so-called subsidy on petrol that Nigerians are paying for official corruption masked as subsidies? What would Nigerians lose if government deregulates prices of kerosene, removes dubious subsidies that benefit only a few politically exposed thieves, removes NNPC’s anti-investment monopoly to allow marketers to import whatever shortfalls in domestic kerosene production triggered by deliberate official crippling of refineries to promote unnecessary importation and payment of trillions of Naira dubious subsidies? Jonathan last week confirmed why his late boss, Umaru Yar’Adua discontinued further subsidy on kerosene because it did not benefit the intended people, the vulnerable, but pocketed by a rogue cabal. Since President Goodluck Jonathan was deputy in the Yar’Adua administration why is he still backing the NNPC to continue the dubious subsidies on kerosene and defy Yar’Adua’s order? Regrettably, Petroleum Minister Alison- Madueke is also parroting such riot bunkum if kerosene price is deregulated, though President has now added a new insight that the beneficiaries of the subsidy theft were the ones who turned round to provoke demonstrations. Who are the Nigerians going to riot? The truth over the years is that NNPC pretends to sell kerosene to marketers at N40.90 per litre, but reports say its officials demand extra N25 per litre before getting allocation, which in effect means that the fuel can never sell at N50 when marketers add their profit margin and supply and logistics costs. Already, the Senate Committee on Finance investigating the $10.8 billion-$20 billion missing or unremitted oil revenues in 18 months by NNPC as alleged by former Central Bank Governor Lamido Sanusi had seven months ago concluded that the N55 billion kerosene subsidy payment in 2013 was illegal. This verdict concurs with Sanusi and Ngozi Okonjo-Iweala, the Minister of finance and Coordinating Minister of the Economy position that the illegal spending should be probed via forensic auditing. But former NNPC GMD Andrew Yakubu had claimed the “missing” $10.8b is “in the pockets of Nigerians” as it was spent on Nigerians (via kerosene subsidy); Okonjo-Iweala doubts, remarking, “If the money was spent on operational costs, let us see evidence that it was spent in an authorised way. And if not, let the amount be remitted to the Federation Account.” However, the Senate has successfully swept the Sanusi howler under the rug as well as the Otedola- Farouk investigations indicting top oil marketers of subsidies’ fraud, with the major actors not yet in court, perhaps issues settled under the table of plea bargaining for electioneering slush funds. Rather than allowing self to be deceived that the current oil accountability deficit is political, I had counseled several months ago, President Jonathan should order the Economic, Financial Crimes Commission (EFCC), ICPC and the Police to go after these corporate rogue criminals. If not, it would be difficult in this electioneering period to convince the public that he is not shielding oil revenue thieves in order to mobilize funds for campaigns. Jonathan should lose the tongue of the Auditor General and order him to invite international auditing firms to do forensic audit of NNPC. Indeed, what is the outcome of the so-called forensic audit which Okonjo-Iweala made patriotic noise about? Why has Okonjo-Iweala suddenly lose her tongue for months now; or has she been cowed again by the cabal as it did when she served and resigned under the Obasanjo administration? Government is yet to give a public report on the NNPC and Petroleum Products Pricing Regulatory Agency (PPPRA) that were indicted for believably collaborating with unscrupulous petroleum marketers to defraud government of trillions of naira via paid-for but unsupplied fuel; in fraudulently obtaining foreign exchange for bogus imports; claiming subsidies for unsupplied products and for round-tripping and money laundering: all criminal offences against the state. Why is oil graft tough to fight? Because ALL is involved. The Petroleum Ministry, Budget Office in Presidency, Central Bank, NNPC, PPPRA, DPR, were all indicted in subsidy theft by Reps report and Presidency report. Therefore, whether Presijo likes the heat of the kitchen or not the public will knock him continuously until he serves public interest and not seemingly protect the interest of a cabal stealing national collective wealth. The NNPC, which is the supra-government that earns and eats national revenues without being accountable to even the president or National Assembly, is left untouched to further nurse the pockets of the powers that be. The Petroleum Industry Bill (PIB) is yet to be passed by NASS 13 years after being introduced, thereby allowing multinational oil corporations and government officials to continue revenue thefts. About two years after Reps fuel subsidy expose, what quantity of fuel is Nigeria consuming and paying subsidies on: 59 or 35 million litres per day? Have leakages been plugged? Not visible; as federal government prefers to offshore apprehension of oil and revenue criminals to foreign countries some of which are benefiting from the massive financial hemorrhage. Can this clueless and prodigal leadership be trusted to make the desired change to move the nation forward to use God-given wealth to improve the lives of the citizenry? Can similarly clueless citizenry be trusted to make the desired change in their benefit or are they going to simply throw up hands in surrender as GEJ has done; preferring to offshore to God the solutions to self-inflicted troubles for which Baba God has given us wisdom to resolve? We must diligently keep government on its toes, monitor it to deliver on its promises and make sure that the current National Assembly investigation into the jumbo fuel subsidies and NNPC racket is brought to beneficial end by jailing culprits that have collected illicit subsidies that made the price of petrol to sell N97 per litre compared to N18 in Venezuela.
Posted on: Thu, 04 Sep 2014 10:25:26 +0000
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