Pre-shipment inspection: FG paid $163 million without appropriation

The committee investigating the crude oil pre-shipment inspection contracts yesterday uncovered the payment of $163.750 million to Pre-shipment Inspection Agents (PIAs) and Monitoring and Evaluation Agents (MEAs) since 2009 without appropriation by the National Assembly.

Members of the committee raised concerns that based on the documents before them, there was no form of appropriation by the National Assembly on the amount spent.

They said Sections 80 and 81 of the constitution clearly spell out how monies belonging to the Nigerian government could be spent, but that the pre-shipment contracts did not follow such provisions.

The committee also was told that the Nigeria National Petroleum Corporation (NNPC) is owing the sum of N25 billion as part of its contribution to the funding of pre-shipment inspection activities of Nigeria’s crude oil.

This amount was accumulated between 2009 and last year despite huge millions of Dollars the corporation continually set aside for that purpose, it was learnt at the continuation of an investigative hearing of the House committee on public procurement.