The House of Representatives has given the Hydrocarbon Pollution Remediation Project (HYPREP) a 7-day ultimatum to appear before its Public Accounts Committee (PAC) and respond to audit queries involving over ₦400bn. The queries are contained in the 2021 and 2024 reports of the Auditor-General of the Federation. The ultimatum was issued after HYPREP failed to appear before the committee despite four previous invitations.
The audit reports raised several queries, including HYPREP's failure to submit its audited accounts to the Office of the Auditor-General of the Federation between 2017 and 2021. The reports also queried the alleged irregular award of contracts and non-deduction of statutory taxes amounting to $2.1 million. Furthermore, the reports noted the payment of ₦986 million for consultancy services without evidence of execution.
The committee, led by Chairman Rep. Bamidele Salam, extended a similar invitation to the Chairman of the Board of Trustees of the Ogoni Trust Fund to answer questions relating to the management of funds for the Ogoni cleanup. The Ogoni cleanup is a major environmental restoration initiative aimed at addressing decades of hydrocarbon pollution in the region. The project was launched in 2016 and has made some progress, with 30 of the 65 sites identified for remediation closed out.
The audit queries also include alleged irregular payments, such as ₦315 million for training and ₦7.2 billion for poorly executed contracts. Additionally, the reports raised concerns over the non-deduction of ₦32 million in statutory taxes and the engagement of external solicitors at a cost of ₦31.8 million without approval from the Attorney-General of the Federation.
The 2024 Audit Report presented before the committee raised further queries, including an unverified payment of ₦1.5 billion in compensation and non-retirement of ₦14 million in cash advances. The committee also expressed concern over the alleged denial of access to project documents and records relating to ₦27.5 billion in projects. HYPREP and the Ogoni Trust Fund will also be required to address questions surrounding the $1 billion reportedly committed to the Ogoni cleanup.
The committee's scrutiny is part of the National Assembly's constitutional responsibility to examine public expenditure and follow up on issues raised in the reports of the Auditor-General. The audit queries do not establish wrongdoing but require HYPREP to provide explanations, records, and supporting documentation to the committee. Failure to appear before the committee could result in the House taking further steps to compel the agency's accounting officer to attend the proceedings.
The Ogoni cleanup initiative is rooted in the environmental assessment and recommendations of the United Nations Environment Programme (UNEP). HYPREP's mandate covers environmental remediation, livelihood restoration, provision of potable water, and public health interventions in affected Ogoni communities. The committee's actions aim to ensure transparency and accountability in the management of public funds allocated for the cleanup initiative.
Key points
- The House of Representatives has issued a 7-day ultimatum to HYPREP to respond to ₦400bn audit queries.
- The audit queries include allegations of irregular payments, non-deduction of statutory taxes, and poorly executed contracts.
- The committee's actions aim to ensure transparency and accountability in the management of public funds allocated for the Ogoni cleanup initiative.
