By: Fatou Krubally
A parliamentary committee has given the Petroleum Commission 60 days to engage the relevant authorities and report on the status of petroleum sector funds.
The National Assembly’s Finance and Public Accounts Committee (FPAC) tasked the commission following concerns raised by auditors over the management and accountability of revenues generated from the country’s petroleum industry.
The directive was issued on Thursday during the committee’s scrutiny of the Petroleum Commission’s 2022, 2023 and 2024 annual reports and financial statements, where lawmakers examined unresolved audit findings relating to fund management, bank accounts and compliance with public finance regulations.
A key focus of the hearing was the Petroleum Sector Development Account and the Training and Resource (TNR) Fund, which auditors said continued to raise accountability concerns.
Auditors informed the committee that they had been unable to determine the status of funds reportedly managed before the establishment of the Petroleum Commission. They said repeated requests for information, including bank statements and account details from relevant institutions, had not produced the required documentation.
Committee members questioned why funds derived from petroleum licences, training obligations and other sector activities could not be readily accounted for, stressing that revenues generated under petroleum legislation should be fully traceable.
Lawmakers also examined revenues from signature bonuses, surface rentals and data sales paid by international oil companies and geophysical service providers. They expressed concern over the current arrangement under which the Petroleum Commission issues invoices while separate institutions control the accounts into which the payments are deposited, arguing that the system creates accountability gaps and complicates financial oversight.
FPAC subsequently directed the Commission to engage the Ministry of Petroleum and Energy and other relevant institutions to clarify the status of the funds and submit a report to the committee within 60 days.
The committee also revisited recurring audit observations, including the opening of an operational bank account at a commercial bank without documented approval from the Accountant General and the payment of staff salary advances based on net salary instead of basic salary, contrary to government practice.
Auditors further questioned expenditures from the Training and Resource Fund before regulations governing its utilization had been finalized, maintaining that no spending should have occurred in the absence of the required legal framework.
Petroleum Commission officials acknowledged some of the concerns but told lawmakers that several issues arose from administrative interpretations adopted during the institution’s early years and from arrangements that predated its establishment.
FPAC underscored the need for greater transparency, sound record-keeping and strict compliance with public finance laws, warning that recurring audit queries must be addressed rather than repeatedly appearing in the commission’s financial reports. The committee said it would review the commission’s response after the expiry of the 60-day deadline.