The Central Bank of Nigeria (CBN) opened the controversial secret account for the Nigerian National Petroleum Corporation (NNPC) with an American bank J.P. Morgan account in the last quarter of 2002, NNPC Group Executive Director of Finance and Accounts Mr. Bernard Otti has said. Otti, who appeared before the joint Senate Committees on Petroleum Resources (Downstream), Appropriation and Finance probing the management of the fuel subsidies, said all enquiries about the account ought to be directed to the apex bank.
He said, "The account is operated by the NNPC in the CBN which has its correspondent banks to which the NNPC is not a party. I am aware of the existence of the J.P. Morgan account for the CBN. The NNPC operates that domicile account with the CBN. We have no direct contact with J.P. Morgan.
"The money paid into this account is the crude oil money belonging to Nigeria. We are not a party to that transaction. Our relationship with the CBN begins and terminates with that account. We have no relationship whatsoever with J.P. Morgan and we are not in the mandate. The CBN is the signatory to that account".
Replying Otti, the chairman of the committee, Senator Magnus Abe, said: "What you are saying is a distinction without difference because you've confirmed that there is such an account operated on NNPC's behalf by the CBN which had told us that it is the NNPC that operates the account"
The committee ordered the immediate closure of the account as members of the panel insisted that those involved in the opening and operation of the account be appropriately sanctioned for breaching the constitution by operating an account other than the federation account.
Daily Trust