Delta raises suspicion over shortfall in payment of 13 percent oil derivation

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…engages two consultants to probe FG records

Delta raises suspicion over shortfall in payment of 13 percent oil derivation

Delta raises suspicion over shortfall in payment of 13 percent oil derivation

Governor Ifeanyi Okowa

By Festus Ahon

DELTA State Government, Wednesday raised suspicion over what it was being paid as proceeds from the 13 percent oil derivation, disclosing that it has engaged two consultants to probe the suspected shortfalls in the payments.

The State Commissioner for Information, Mr Charles Aniagwu who disclosed this in Asaba while briefing newsmen after the State Executive Council meeting, said the consultants would review records at the Nigerian National Petroleum Corporation, NNPC, Federal Ministry of Finance and other relevant agencies with a view to reconciling the figures and find out if the Federal Government has been faithful to its obligation.

Saying the decision to probe into the proceeds of oil derivation was part of measures to revive the state economy following the impact of the COVID-19 pandemic, Aniagwu said: “There are instances where the Federal Government would say that they are paying subsidies. On such occasions, if the total amount is N100.00, for instance, and the government pays N40.00 for subsidies, they will now base the 13% derivation on N60.00 instead of the initial N100.00.

“This is what we want to reconcile, hence we are engaging the services of the consultants. If at the end of the day, nothing is discovered, the consultants will not be paid but if anything is realised, we will apply for refunds, and the consultants will be entitled to 11.5%”.

Speaking further, the Information Commissioner said the State Executive Council, approved N809 million as counterpart to fund projects being handled by UNESCO and other global agencies, adding that N600 million was also approved as counterpart fund for the Sustainable Development Goals, SDGs projects.

While explaining that the approval of the counterpart funds was also part of measures to revamp the state economy, Aniagwu said the Medium Term Expenditure Framework for the 2021 budget estimate was also approved.

He said the completion of Oghoye Floating Market in Warri North Local Government Area of the state at the cost of about N4.3 billion was also approved by the Council.

Vanguard News Nigeria

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Source: Vanguard News.

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