The Senate yesterday mandated its joint Committee on Public Accounts and Gas Resources to carry out a holistic investigation into the activities of the Brass Liquefied Natural Gas (LNG).
The upper chamber also asked the committee to probe alleged corruption that has taken place and report back within four weeks.
The resolution followed a motion on alleged โMonumental corruption at the NNPCโ raised by Senator Dino Melaye (Kogi West)
Melaye, in his lead debate, noted that the Brass LNG was incorporated by the Corporate Affairs Commission on 9th December, 2003 and limited by shares of $1million.
He observed that the shareholders of the company are: the Federal Government (N NPC) represented by Mr. Funsho Kukpolokun with $490,000 shares, 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, Eni International B.V with address in Amsterdam, Netherland represented by Mr. A. Forzoli with share of $170,000 . The fourth shareholder, Chevron Texaco Brass LNG Limited with address in Bemuda represented by Mr. J.R. Pryor has a share of $170, 000.
Melaye also observed that from the Corporate Affairs Commission (CAC) records, the following are Directors of the Company amongst other foreigners:
Gauis Obaseki Jackson, Former GMD NNPC; Yukubu Andrew, Former GMD NNPC; Ibogomo Gbeyansa, Staff NNPC; Dawa Joseph Thlama, Staff NNPC; Ige David, Staff NNPC; and Mr. Buba Mohamman.
He noted that that from the Memorandum of Understanding, the Brass LNG is supposed to be a Joint Venture Company with the NNPC having the controlling shares and their account domiciled with the Central Bank of Nigeria (CBN).
Melaye said that he was surprised that โthe account of this company is with Keystone Bank opened on 1st August, 2012 with account number 1005825168 a USA domiciliary account with a closing balance of USD 137, 086, 462:54 currently, while the sum of $ 648, 179, 487 was recorded as the accountโs last inflow on 19th September, 2016 and a withdrawal of $4 million was effected on the 18th November, 2016 without BVNโ.
The Kogi West lawmaker noted that a lot of questions are begging for answers as regards the company: โThe status of investment and principal objectives of the company? The Signatories to the Account? The status of the Federal Government investment? The returns on the investment? Was due process followed in the formation and appropriation of shares in the company?
Melaye said that he convinced that there is an urgent need to define the position of the company viz-a-viz its operation, management and mandate in order to halt this seeming corruption.
Chairman, Senate Committee on Gas, Senator Albert Bassey Akpan ,who seconded the motion, said that there was no cause for alarm.
Akpan said: โ I wish to make explanations on the motion to the knowledge of Senate. Mr. President, this issue has been on the front burner of Committee on Gas since last year and we had engaged Nigeria National Petroleum Corporation ( NNPC)on this matter over the last couple of months and what we found out as a committee is that the said account exists and the name of the account is Brass LNG/Nigeria LNG account.
โWhat this account does is that there was a presidential approval about few years ago or several years ago to use the dividends on LNG as part of NNPC joint venture as a portion of NLG account.
โWhat really happened was that when the Federal Government wanted the implementation of TSA, most of the banks had invested in dollars, account balances in their various transactions. The banks were insolvent. The said withdrawal of $3million and when the president directed Central Bank of Nigeria (CBN), we have looked into the matter.
โSo the only fund that came into the account which was about $3million was what was transferred to TSA and according to an aide to the president, this account has authorised signatories among which was the former GMD of NNPC Gauis Obaseki Jackson among others and the chairman of board of Directors to Brass LNG.โ
