Winners and losers of the subsidy probe

Jonathan

 

The probe of subsidy administration in the country has thrown up winners and losers. They include institutions and individuals, write OLUKOREDE YISHAU and OLUKAYODE THOMAS

Nigerians

For many, the major winner of the probe of the fuel subsidy administration is the ordinary Nigerian who the Goodluck Jonathan administration made to go through hardship early this year, with its sudden withdrawal of subsidy on petrol—instead of checking the fraud that kept the subsidy bill ever on the rise.They took to the streets of Lagos, Abuja and elsewhere in January to register their displeasure over the government’s action. Now, they are vindicated with revelation of how money has been wasted-- all in the name of subsidy payment. 

Lawan and co.

Not a few also consider the chairman of the Adhoc Probe Committee, Farouk Lawan, and members of the committee as winners for standing their ground, despite pressure from the cabal fleecing the country to make them turn deaf ears to news of rot in the sector.

Losers galore

The losers are many. They include institutions, such as: the Nigerian National Petroleum Corporation (NNPC), many oil marketers, Petroleum Product Pricing Regulatory Authority (PPPRA) and two accounting firms, Akintola Williams Deloitte and Adekanola and co, who have been axed by the Federal Government from verifying subsidy claims. 

Akintola Williams Deloitte 

It is the oldest indigenous firm in Nigeria.  It was established in 1952 by Mr. Akintola Williams,  the doyen of the accountancy profession.  Information obtained from its website said: “Through astute management the firm has grown in size and scope of services to become the largest professional services firm in Nigeria.

“The firm started operations in Nigeria as Akintola Williams & Co in 1952. Between April 1999 and May 2004, two mergers with existing accounting firms were consummated which resulted in its being the largest professional services firm in Nigeria with a staff of over 600. The firm adopted the business name “Akintola Williams Deloitte” on July 30, 2004. 

“Over the years, Deloitte has built up a strong representation in several major African cities and has successfully undertaken a variety of business advisory and consulting assignments for clients in Nigeria and elsewhere in Africa.

“With the potent combination of extensive local knowledge, countrywide representation and international expertise, we are able to offer our clients the best services and solutions to meet their needs.

“Akintola Williams Deloitte is part of Deloitte’s West and Central Africa cluster, which is a member firm of Deloitte Touche Tohmatsu, an organisation of member firms devoted to excellence in providing professional services. We are focused on client service through a global strategy executed locally in over 140 countries. With access to intellectual capital of 170,000 people worldwide, our member firms deliver services in four professional areas:  audit,  tax,  consulting, and  financial advisory services. Our members serve more than one-half of the world largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast growing companies.”

Olusola Adekanola & Co. 

It is also an institution on its own, which has been ‘castrated’ by the latest development. According to its website, it “is the largest wholly indigenous accounting services firm in Nigeria, in terms of staff strength , spread of offices and in particular, the number of qualified chartered accountant. Notwithstanding this enviable position, we are still seeking to expand on the continent, blaze new trails in the industry and enrich the quality of our professional service delivery capability while forging new alliances/affiliations.”

The company said: “We provides industry-focused services for public and private clients. Our experienced staff, combined with our global network, allow us to provide the support you need—wherever you need it, at home and abroad, whatever the size of your organisation. 

“Our expertise in the field of auditing is legendary. Our plethora of seasoned auditors deploy innovative modern approach to auditing of accounts both in the private and public sector of the economy, from medium scale industries to large multinationals, irrespective of the sector of the economy.

“Over the years, we have worked with clients in implementing a wide array of value-added tax planning and compliance services to meet their need and requirements. We look forward to the opportunity to apply this experience and perspective to developing effective strategies and implementing them to achieve your financial goals. We have developed a progressive, proactive approach to tax planning, tax compliance and tax controversy resolution for the benefit of our clients. By carefully analyzing the facts, circumstances and underlying law and regulations, we can achieve the most beneficial result for our clients. We endeavor to ensure that our client’s tax’s  positions are sufficiently supported by substantial authority under the law and regulations to minimize their exposure to penalties and interest. “

NNPC

It is another loser struggling to untangle itself from the web of the probe. It is the organisation through which the Federal Government of Nigeria regulates and participates in the oil industry; it is the nation’s cash cow. 

Last December, the government released the report of a   forensic audit conducted by KPMG. 

 The audit, commissioned by the Ministry of Finance following concerns over NNPC  transparency, it detailed sharp business practices, violation of regulations, illegal deductions of funds belonging to the state, and failure to account for several billions of naira that should go to the federation account. 

Auditors found that between 2007 and 2009 alone, the NNPC over-deducted funds in subsidy claims to the tune of N28.5 billion. 

PPPRA 

It is also in deep mess like the NNPC. The PPPRA was established by the Federal Government in 2003 to monitor and regulate the supply and distribution, and determine the prices of petroleum products in Nigeria. 

However, almost a decade after it establishment, Nigeria is still battling with deregulation of the downstream sector.