NIGERIAN National Petroleum Corporation (NNPC) yesterday fingered the Central Bank of Nigeria (CBN) in the operation of a secret foreign account with American bank, J.P. Morgan.
While declining ownership of the account, NNPC said it was opened by the CBN on its behalf in 2002, which remains the sole signatory to the account till date.
The revelations were made before the Senate Committees on Petroleum Resources (Downstream), Appropriation and Finance investigating government's fuel subsidy scheme by the NNPC Group Executive Director (Finance), Mr. Bernard Otti.
The Finance Minister and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, had on Monday exonerated the ministry from knowing any details about the account, urging the committee to dig deep into the controversial foreign account.
Corroborating the argument, the newly appointed NNPC Group Managing Director, Andrew Yakubu, also reiterated that the CBN is the owner of the account, but the Committee Chairman, Senator Magnus Abe, insisted that Otti should appear before the committee to throw more light on the status of the account.
When he appeared on Tuesday, Otti said CBN operates the account on behalf of NNPC right from the onset when the account was opened in the U.S.
His words: "NNPC has no direct contact with the J.P. Morgan account. The account was opened by the CBN on behalf of the NNPC. It was opened in the last quarter of 2002 by the CBN for NNPC.
"The account is operated by NNPC in the CBN. CBN has its correspondent banks to which NNPC isn't a party. NNPC doesn't operate that account. NNPC operates domiciliary account with CBN."
Asked by the committee to be specific whether the NNPC or the CBN operates the account and whose money is paid into the account, Otti replied: "The money paid into the account is crude oil money of Nigeria. We are not party to that transaction. Our relationship with the CBN accounts begins and terminates with that account."
Otti reiterated that the CBN is the only signatory such that the NNPC is not even on the account mandate. “We have no relationship with Morgan whatsoever. We are not in the mandate”.
Not satisfied with the happenings as it relates to the account, the joint committee vowed to explore means to ensure that accounts not known to the Constitution are legalised and monies paid directly into the Federation Account.
The revelations were made before the Senate Committees on Petroleum Resources (Downstream), Appropriation and Finance investigating government's fuel subsidy scheme by the NNPC Group Executive Director (Finance), Mr. Bernard Otti.
The Finance Minister and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, had on Monday exonerated the ministry from knowing any details about the account, urging the committee to dig deep into the controversial foreign account.
Corroborating the argument, the newly appointed NNPC Group Managing Director, Andrew Yakubu, also reiterated that the CBN is the owner of the account, but the Committee Chairman, Senator Magnus Abe, insisted that Otti should appear before the committee to throw more light on the status of the account.
When he appeared on Tuesday, Otti said CBN operates the account on behalf of NNPC right from the onset when the account was opened in the U.S.
His words: "NNPC has no direct contact with the J.P. Morgan account. The account was opened by the CBN on behalf of the NNPC. It was opened in the last quarter of 2002 by the CBN for NNPC.
"The account is operated by NNPC in the CBN. CBN has its correspondent banks to which NNPC isn't a party. NNPC doesn't operate that account. NNPC operates domiciliary account with CBN."
Asked by the committee to be specific whether the NNPC or the CBN operates the account and whose money is paid into the account, Otti replied: "The money paid into the account is crude oil money of Nigeria. We are not party to that transaction. Our relationship with the CBN accounts begins and terminates with that account."
Otti reiterated that the CBN is the only signatory such that the NNPC is not even on the account mandate. “We have no relationship with Morgan whatsoever. We are not in the mandate”.
Not satisfied with the happenings as it relates to the account, the joint committee vowed to explore means to ensure that accounts not known to the Constitution are legalised and monies paid directly into the Federation Account.
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