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Reps demand forensic audit of $3.2bn NNPC pipeline project



The House of Representatives has called for forensic audit of three pipeline projects worth $3.288billion.

The House Committee on gas resources that investigated the contract for the upgrade of OML 58 Upgrade 1; execution of Obite-Ubeta-Rumuji (OUR) pipeline; and the Northern Option Pipeline Projects recommended forensic investigation into the projects.

The committee chaired by Fred Agbedi (PDP, Bayelsa) called for forensic investigative audit into the cost overrun emanating from all change orders, including USD 2.2 billion on OML 58 Upgrade 1, USD560 million on OUR Pipeline and USD 528 million on NOPL Pipeline Projects.

The committee admitted difficulty in establishing the true cost, claiming that all the parties involved in the contract gave contradictory figures.

The committee called for “thorough investigation of the professional and/or personal relationship between NNPC/NAPIMS Management and TEPNG on the one hand and TEPNG and local contractors on the other hand in relation to this project to establish claims by parties and ensure fairness of purpose.”

The House also resolved to recover the sum of US592million from TEPNG in line with recommendations of Tabor VFM Audit Report; and that all ‘contracts awarded in this sector should be subjected to Value for Money Audit.”