Crimes series: How Former NNPC Boss Bala Wunti-Led NAPIMS’ Paid ₦1.27bn As Investment To A Questionable Company Bypassing Presidential Approval

Secrets Reporters

Documents obtained by SecretsReporters have raised questions over a ₦1,270,826,725 investment made by the National Petroleum Investment Management Services (NAPIMS) now NUIMS on behalf of the Federation during the tenure of its former Chief Operating Officer, Bala Wunti.

The documents indicate that the funds were released as an initial equity investment in an energy investment company. However, the records contain inconsistencies regarding the beneficiary’s identity. While one section identifies the company as Africa Energy Investment Corporation (AEICORP), another refers to it as FEICORP, creating uncertainty over the transaction records.

According to the documents, NAPIMS stated that the investment had presidential approval. However, when auditors requested the written approval authorizing the investment on behalf of the Federation, no documentary evidence was reportedly produced for examination.

The documents further indicate that records showing dividends, investment income or other returns from the ₦1.27 billion investment were unavailable during the audit review. As a result, the auditors said they could not verify whether the investment generated returns for the Federation or whether any such income had been remitted into the appropriate government accounts.

The issues raised in the documents bring into focus Nigeria’s legal framework governing the management of public funds.

Section 80 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) establishes the Consolidated Revenue Fund and provides that public funds may only be withdrawn in accordance with constitutional or statutory authority.

Similarly, Section 162 establishes the Federation Account and broadly defines revenue to include returns from government-owned investments, including dividends and interest earned from shares or other equity holdings. The Finance (Control and Management) Act also contains provisions governing the investment and management of public funds. Sections 9, 10 and 11 require lawful investment of public resources, proper maintenance of investment records and appropriate accounting for income generated from such investments.

The audit documents question whether these record-keeping requirements were fully demonstrated in relation to the ₦1.27 billion investment, noting the absence of documentary evidence of presidential approval and records showing returns on the investment.

These questionable spending by Bala Wunti contravenes the Fiscal Responsibility Act, 2007, which requires government corporations and agencies to prepare revenue and expenditure estimates, maintain proper financial records, remit operating surpluses where applicable and publish audited financial statements. The Act further requires public funds appropriated for specific purposes to be used only for those purposes unless lawful approval is obtained for any variation.

Beyond the investment transaction, the documents also raise questions over travel-related expenditure incurred by NAPIMS. Bala Wunti also paid ₦47,642,399.29 to Voyageguest Travel Limited and World Class Air Transport Ltd for estacodes and incidental expenses relating to officials who attended the 28th World Gas Conference held in Daegu, South Korea, between May 23 and 27, 2022. When federal official requested evidence of the approvals required under applicable government circulars, he didn’t present documents for review.

Officials who raised questions reference Civil Service Circular Ref. No. HCSF/CSO/HRM/Pol.1402/1 dated January 22, 2015, which regulates foreign training, conferences, seminars and official international travel by public officers, requiring approval by the appropriate authority before public funds are committed. They also cited Civil Service Circular Ref. No. HCSF/PS/SD/164/1/19 dated January 30, 2017, which requires approval and clearance documents to accompany expenditure relating to official foreign travel.

According to them, the approval documents and required clearance from the appropriate authorities were not produced for examination.

Financial Regulation 603 requires payment vouchers to contain full particulars of the services paid for and to be supported by relevant documentation, including invoices, receipts, approvals and other records necessary for verification while financial Regulation 415 places a duty on accounting officers to ensure economy and prudence in the use of public funds.

According to the Nigeria Public Procurement Act, 2007, procurement by federal government entities must comply with requirements relating to budgetary appropriation, procurement planning, transparency, competition and value for money, while responsibility for compliance rests with the accounting officer of the procuring entity, which Bala Wunti didn’t fulfil. Section 22 of the Corrupt Practices and Other Related Offences Act (ICPC Act), which sets conditions for the award of contracts and the expenditure of public funds, including the requirement for appropriate approvals and budgetary backing.