Petroleum corporation admits undertaking illegal projects

The Nigerian National Petroleum Corporation executed over $1.299 million additional gas projects apart from those approved for it in the 2009 Budget, without the approval of the National Assembly, the House of Representatives Committee on Gas Resources said on Tuesday.

In a series of joint venture projects with the major oil companies, the corporation’s representatives admitted at a budget performance meeting, that it executed mostly inconclusive projects that were not budgeted for, against basic budgetary rules.

For instance, it executed 10 projects against the approved nine for Shell Petroleum Development Company. It also said it took the decision to save cost.

By budget rules, exchanging appropriated project called virement, without the approval of the National Assembly is criminal and carries a jail term of seven years if convicted.

“Spending like this where you ought to have first sought virement from the National Assembly to do so is responsible for the recent imprisonment of one of my godfathers,” said Igo Aguma, the chairman of the gas committee.

“He engaged himself in extra budgetary expenditure. You can now see the implication of your action,” he told Mr. Chukwu, the Group Executive Director, Exploration and Production of the NNPC.

Mr. Aguma said the corporation had carried similar extra-budgetary expenditures in other joint ventures involving other companies.

“This action of yours, where your commission exceeds its approval in this year’s budget is unconstitutional and punishable by seven years imprisonment without option of fine,” he said.

Mr. Chukwu said the corporation opted for the additional projects at no additional cost to that shown in the budget.