EXCLUSIVE: How Staff Of Nigeria’s Petroleum Training Institute In Delta State Misappropriated Over N1billion Of Institution’s Funds.

According to the report obtained on Monday, about N400million was misappropriated, while some contractors’ profiles used to bid for contracts were not aware of the existence of such contracts.

Some staff of the Petroleum Training Institute in Effurun, Delta State, have been indicted in the misappropriation of about N1billion of the Institution’s funds, our reporter has learnt.

In a 30-page report compiled by an Investigative Committee set up in 2020 by the Management of the Institute, on an Audit Query and obtained by our reporter, findings revealed that about 10 staff were found guilty of various financial offences.

The report has it further that the DFA and his staff made payments that were not certified by audit department.

An external auditor report also asserted that some contractors and consultants were not adequately supervised and monitored in the process of projects execution, especially with high cost of renovation works of over N900million at various blocks of flats.

Some staff of the Institute berated the Acting Principal/Chief Executive for recently granting Amnesty to the staff involved, which they said translated to misuse of power.

He was also among the indicted staff as he was the Director of Services of the Institute then as indicted by the Committee.

The report reads in part; “The Director of Finance and Accounts being the Sub Accounting Officer of the Institute, according to Section 420 Financial Regulation is responsible to authorize all payment, but he delegated this function to his subordinates.

“He was copied on a letter written by Fiksam that is signed by another company (Urban Code) which is very unusual and irregular. He ought to have notified the Principal/CE on this irregularity but he didn’t. The Committee views this as a deliberated means of concealing vital information that would have helped the Principal/CE to make an informed decision letter from Fiksam. Rather, he did the payments on the pretext that the minute of the Principal/CE to him of “pls handle” means “payment approved”.

“There were insertions made on vouchers that were not certified. There were some alterations in some of the payment vouchers, while the DFA and his staff made payment that was not certified by audit department.

“Most of the payments in question were not made to persons named in the payment voucher but with faulty instruments and some were not authorized by the original contractors/consultants.

“The payment to third parties was not presented to the DFA for inspection, neither was there any certificate showing that they have been seen by Audit. Most of the in-house estimates were over bloated.

“That the fees for the consultancy contracts were not determined using the appropriate scale of charges.”

One of the top management staff who confirmed the Committee report to our reporter on Tuesday, noted that the Committee was set up in 2020, when a new Principal/CE resumed, and received multiple petitions received from staff of the Institute.

“Yes, I am aware of the Committee, it was set up in 2020, when a new Principal/CE resumed, and I received multiple petitions from the institute staff,” he added.

In a related report compiled by an external Auditor obtained by our reporter on Monday, stated that capital funds appropriated in 2020 to enable completion of allaged and abandoned projects were not executed.

It reads; “Lack of due diligence in the award, execution and payment of contract jobs During our inspection of all on going and completed projects in the Institute, we observed that:

“Unregistered companies with Procurement Department were awarded contracts.

“Capital funds appropriated in 2020 to enable completion of allaged and abandoned projects were not executed. Abandoned projects for which appropriation were made include: construction of integrated jetty and offshore training facility(2011), completion of 700 metre network of Rd linking 3 research building phase 11(2013), construction of standard swimming pool at Aladja (2017) and construction of external works of corrosion study centre(2014) Some contractors and consultants were not adequately supervised and monitored in the process of projects execution, especially with high cost of renovation works of over N914.766.269.23 at various blocks of flats.

“Most of the contractors compromised the integrity of the projects by using substandard and wrong materials. The finishing stage of most of the buildings renovated was grossly below average Some assets procured by the institute were not put to use long after procurement.”

Meanwhile, some staff of the Institute in a letter addressed to the Minister Of Petroleum and dated 24th of July, accused the school management of shielding the concerned staff from all disciplinary actions.

The staff lamented that the Acting Principal/Chief Executive granted the indicted staff amnesty, which translated to misuse of power, to all indicted staff including himself.

The letter reads in part; “We write to the Honourable Minister of State Petroleum Resources (Oil) on the above subject matter as Concerned Members of Staff of Petroleum Training Institute, Effurun, Delta State Our main interest is to protect and promote public accountability, transparency, justice, and fairness in the conduct of public official in accordance with international best practices especially in a unique institute like the Petroleum Training Institute which was principally set up to provide skilled manpower to the Nigerian Petroleum Industry, the mainstay of the Nigerian economy.

“On 19 May, 2021, an Investigative Committee (Annexture A) was set up by the Management of the Institute on an Audit Query by the Chief Internal Auditor (CIA) to the Director of Finance and Accounts (DFA). After exhaustive work by the Committee, about ten (10) staff were found guilty of various financial offences, thereafter recommendations were made by the investigative committee. Thereafter, the management constituted a Disciplinary Committee (Annexture B) which recommended disciplinary measures as contained in the report.

“Since the conclusion of the Disciplinary Committee’s work, PTI Management has shielded the concerned staff from all disciplinary actions. However, on the 4 of June 2024, the Acting Principal/Chief Executive granted Amnesty, which translated to misuse of power, to all indicted staff including himself as he was the Director of Services of the Institute and among those indicted by the Committee.

“This has created a serious disharmony between him and members of top management which almost turned to confrontational but for restrain by some of the members, as a consequent of the amnesty granted, a serious tension was created in the Institute thus this letter for the Intervention of the Honourable Minister for peace to reign in the Institute.

“Finally, we are calling the attention of the Honourable Minister of State (Oil) to look into this matter with the view of entrenching a culture of transparency and accountability in the system, and sanctioning those found guilty based on the recommendation of the Disciplinary Committee in line with our extant laws.”