Oil Subsidy Scam: Nigeria sacks 2 Auditing Firms

Ayorinde Oluokun/Abuja

In a surprise, but suspicious move, the Federal Government has announced the termination of its contract with Akintola Williams and Co and Adekanola and co, the two audit and accounting firms responsible for certifying the documents and claims of marketers before payment are made.

The sack of the two companies was announced in a press release signed by Paul Nwaibukwu, Senior Special Assistant to the Coordination Minister for Economy and Minister of Finance, Mrs. Ngozi Okonjo Iweala made available to the media today.

The Ministry also announced the setting up of a committee that will determine arrears of subsidy claims in 2011 as well as suspension of further withdrawals from the Excess Crude Account.

Though the House of Representatives Committee that probe subsidy payment between 2009 and 2011 had in its report submitted last Wednesday also recommended the sack of the two firms, there was no indication in the press release dated 19 April that the action was in fulfilment of the recommendation in the report which is yet to be adopted by the lower chamber.

The Federal Ministry of Finance however indicated that the sack of the two companies followed its review of the aspects of the implementation of the subsidy regime which it said has been going on for the past two months.

“The review process kicked off in February when the ministry and relevant government agencies held a meeting with bankers and marketers at the instance of President Goodluck Jonathan. This was followed by a subsequent session with the accounting and auditing firms to re-evaluate their work”, said the Finance ministry.

“The review has produced a lot of useful details on what was wrong with the system and what needs to be done to ensure improvement going forward.
“Based on the review, the Ministry has taken the following steps:

“The services of the audit and accounting firms responsible for certifying the documents and claims of marketers before payment have been terminated. The companies are Akintola Williams and Co and Adekanola and Co.

“The Ministry has established a committee made up of credible and experienced persons from the private and public sector with strong technical component under the chairmanship of Mr. Aigboje Imoukuede to examine the claims of payment arrears for 2011 currently being made by marketers. This is to ensure that only genuine claims are honoured.

“The ministry is also finalising a new and more effective system to replace the current arrangement and, in this regard, a second committee has been set up to propose a good way to forward.

“Based on other outcomes of the review, the ministry will take further actions as necessary”.

There are fears that the announcement by the Ministry may be designed to knock the bottom off the report of the House Committee which indicted officials of the Federal Government.