The Nation Newspaper

Tag: oil marketers

  • Fed Govt clears oil marketers’ subsidy

    Fed Govt clears oil marketers’ subsidy

    The Federal Government has paid oil marketers’ subsidy arrears for fuel imports up to the second quarter of 2013, the Executive Secretary of Major Oil Marketers Association of Nigeria (MOMAN), Obafemi Olawore, has said.

    Olawore, who did not disclose the amount, told journalists that government has cleared the arrears of 2012, and as well has paid for the first and second quarters of 2013, adding that the payment helped marketers moved to bring in vessels laden with products last month, which in turn boosted stock and ensured availability of petrol throughout the festive period.

    He explained that what is outstanding to major marketers, is the subsidy reimbursement for the second-half of last year, adding that it takes 45 days to process each quarter’s claims and until the period lapses, the last quarter cannot be included as part of the debt owed the marketers.

    Olawore however noted that other importers, such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) and depot owners, were yet to be paid, saying the Petroleum Products Pricing Regulatory Agency (PPPRA), has set up a committee to verify their claims. He appealed to the government to expedite action in processing their claims so they could place orders to avert a shortfall in the New Year.

    He praised the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke for being able to sustain uninterrupted product supply over the years. He said the minister also made efforts to ensure that the current payment was made. He appealed to her to ensure that the undue delays in payment of subsidies in 2013 do not snowball into 2014.

    He said that 2013 was a tough year for the marketers because of the undue delay of subsidy payments, but nevertheless expressed optimism that this year will be better.

    Olawore said: “The moment they (government) paid us, a lot of vessels were brought in and the stock level rose from between one and two days to 10 days. At some point, it was only the NNPC that was bringing in products because other importers stopped as a result of non-payment of subsidy. However, NNPC was not bringing in enough vessels. They (NNPC) tried their best to keep the country wet with products, but at a point we were not getting enough petrol from them.

    “But when NNPC brings in products, apart from the major marketers (Mobil, Total, Oando, Conoil, MRS and Forte), they give to Aiteo, NIPCO and Honeywell, but we do our best to share it for the overall interest of the industry.

    “To ensure continued uninterrupted supply of product and eliminate scarcity, timely payment of subsidy claims, foreign exchange component and interest is imperative,” he stressed.

  • Govt to recover N232b from oil marketers, says Okonjo-Iweala

    Minister of Finance, Dr Ngozi Okonjo-Iweala, said yesterday that the Federal Government wiil recover over N232 billion ($1.5 billion) overpayments to “fraudulent” oil marketers.

    Dr. Okonjo-Iweala, who is also the Coordinating Minister for the Economy, stated this at the National Council of Finance and Economic Development (NACOFED) in Minna, the Niger State capital.

    She said in 2006, the total petroleum subsidies paid to oil marketing firms amounted to N256 billion (about 1.6 billion dollars) and by 2011, the bill for petroleum subsidy payments had risen sharply to nearly N2.10 trillion (13 billion dollars).

    “Even more striking was the increase in the number of oil marketing firms. While most countries have a few well-organised fuel importers, Nigeria had a total of 143 such firms as at 2011.

    “The certification process to verify the actual delivery of imported fuel was also very lax, resulting in widespread fraud in the operation of the scheme,’’ she said.

    The minister said there were cases where some firms submitted payment invoices for fuel deliveries in Nigeria when their stated cargo ships were actually berthed elsewhere in South America on the same dates,

    She said that the subsidised prices for domestic gasoline in Nigeria also created arbitrage opportunities and resulted in widespread smuggling of fuel products to Nigeria’s neighbouring countries.

    To this effect, she said, Nigeria embarked on a comprehensive reform of the downstream petroleum sector by appointing the AIG Imoukhede-led Committee, who discovered lapses in the payment processes.

    “Following the discoveries, the Federal Government put in place a number of remedial measures to combat fraud in the subsidy scheme.

    “First, a tighter payment regime was introduced with new auditors and stricter guidelines for disbursement of subsidy payments. The increased scrutiny has slowed down the payment process somewhat but also greatly reduced the likelihood of fraudulent payments.”

  • Oil marketers forged documents to get N1.1b subsidy fund, court told

    A Lagos High Court, Ikeja, heard yesterday how three oil marketers, including Abdulai Alao, son of Ibadan business mogul, Alhaji Abdulazeez Arisekola-Alao, allegedly forged documents to receive N1.1 billion fuel subsidy from the Petroleum Subsidy Fund.

    The other oil marketers are: Opeyemi Ajuyah and Olarenwaju Olalusi. Their companies are: Majope Investment Limited and Axenergy Limited.

    A prosecution witness, Mr Oliver Chineke, told the court, presided over by Justice Lateefa Okunnu, that the document used to commit the alleged fraud did not emanate from his company, Q and Q Control Marine Services Nigeria Limited.

    The witness said his company was contracted by Oando Oil and Gas Plc to inspect the quantity of products brought in by a vessel, MT Brave, on behalf of Majope Investment Limited.

    Chineke, a former Lagos Branch Manager of Q and Q Control Marine Services Nigeria Limited, was led in evidence by the counsel to the Economic and Financial Crimes Commission (EFCC), Mr. Francis Usani.

    The manager said he delegated one of his company’s surveyor, Mr. Mohammed Adedapo, to inspect the vessel, which brought the product.

    Chineke, who corroborated what Adedapo told the court, said it was discovered that of the 15,000 metric tonnes of Premium Motor Spirit (PMS) petrol brought in, only 4,000 metric tonnes were discharged at the Lister Jetty in Apapa between January 22 and 23, 2011.

    He said the remaining 11 metric tonnes of PMS remaining in the vessel were taken away.

    The witness said the development prompted Adedapo to write a protest letter to the ship’s captain.

    According to him, the EFCC later wrote to verify the figure on the document tendered by the defendant, which showed that 15,000 metric tonnes of PMS were delivered.

    Chineke said the defendants’ claim contradicted the figure on the Shore Tank Certificate in their file, which showed that about 4,000 metric tonnes were discharged.

    “It is not feasible to have two shore tank certificates with different figures from the same inspectorate company,” he said.

    The witness explained that the disparity made him to write to the EFCC on August 22, last year, that the documents with 15,000 metric tonnes did not emanate from the company.

    The letter was later admitted by the court as Exhibit P8.

    Under cross-examination by the defence counsel, Oludare Falana, O. Awonuga and D. A. Awosika, the witness said the company thoroughly cross-checked the figures and the quantity of the transaction before sending its report to Oando Oil and Gas Plc.

    Also, Justice Okunnu has granted Olalusi permission to travel to the United Kingdom (UK) for two weeks for business purposes.

    The judge said there was no evidence before the court that Olalusi would abscond, if his application to travel was granted. EFCC counsel, Usani, did not oppose the application.

    Justice Okunnu ordered the court’s Chief Registrar to release Olalusi’s international passport to enable him travel to the UK.

    The judge also ordered the accused to return the international passport to the Chief Registrar on the next working day after his return.

    She adjourned the matter till October 21 for the continuation of the trial.

  • 19 oil marketers get N192.5b subsidy claims

    19 oil marketers get N192.5b subsidy claims

    The Federal Government has paid 19 oil marketers with the total sum of N192, 502,279,966.50 this year.

    The sum was paid to clear the marketers’ subsidy claims.

    A statement from the federal ministry of finance signed by Paul Nwabuikwu said the finance ministry has so far paid N192, 502,279,966.50 to 19 oil marketing companies this year.

    Nwabuikwu noted that addition, a total of N135, 696,269,214.05 was paid to oil marketers in respect of verified 2011 and 2012 arrears.

    That sum, according to Nwabuikwu, was paid earlier this year.

    He said the payments were in” line with the ministry’s commitment to manage fuel subsidy regimein a transparent and efficient manner that protects and enhances the interests of the Nigerian people.”

     

     

     

  • Court picks May 24 for trial of oil marketers

    Court picks May 24 for trial of oil marketers

    A Lagos High Court in Ikeja on Wednesday fixed May 24 for trial of two oil marketers, Aro Bamidele and Abiodun Bankole, accused of N1.3 billion fuel subsidy fraud.

    The Economic and Financial Crimes Commission had arraigned the marketers on October 5, 2012 alongside their company, ASB Investment Limited.

    Justice Lateefat Okunnu set the trial date following the absence of the lead counsel of the marketers, Chief Anthony Idigbe (SAN), from court.

    The News Agency of Nigeria reports that Idigbe sent a letter through a counsel from his chambers, Mr. N.K. Oragwu, informing the court that he was outside the country.

    He urged the court to vacate the earlier dates fixed for the trial and pick fresh dates for the proceedings.

    The EFCC counsel, Mr. Toyosi Kutayi, did not oppose the call for the adjournment.

    The judge therefore fixed May 24 and 27 as well as June 5 and 6, as fresh trial dates.

     

  • Subsidy scam: Court dismisses oil marketers’ objection

    The Lagos High Court, Ikeja, on Wednesday said it has jurisdiction to hear the case of alleged subsidy theft instituted against two oil marketers by the Economic and Financial Crimes Commission.

    The defendants, Aro Bamidele and Abiodun Bankole, as well as their company, A.B.S. Investment Company Limited, who were arraigned on October 5 last year before Justice Lateefat Okunnu, had filed a preliminary notice of objection, challenging the court’s competence to try them.

    EFCC filed an 18-count charge against the defendants bordering on conspiracy, obtaining money by false pretence, forgery and uttering.

    The commission had alleged that the defendants fraudulently obtained N1.3 billion from the Federal Government for the purported importation of 30 million litres of Premium Motor Spirits (PMS).

    But the defendants through their counsel, Chief Anthony Idigbe (SAN), in an application dated November 20, 2012, said the charges against them were grossly defective.

    They argued that the Federal Government lacks the locus standi to prosecute the offences against them in a Lagos State High Court, insisting that the court lacks jurisdiction to entertain the charges.

    Idigbe stated that the EFCC has no competence to prosecute his client before the Lagos High Court, since no fiat was obtained from the Attorney General of the state, arguing that the entire charge was grossly defective and incurably bad.

    He also stated that counts 5 to 18 of the charge against the defendants be struck out because they were brought under the Administration of Criminal Justice Code, Laws of Lagos, 2003, which has been repealed.

    Ruling on the defense’ objection, Okunnu said the application lacks merit.

    She said: “The Attorney General of the Federation and the EFCC are empowered to prosecute criminal offences under state laws even without a fiat from the state’s attorney general.

    “Section 211 (1) of the Constitution allows for circumstances in which any other body other than the Attorney-General can institute criminal proceedings against a person.

    “The EFCC Act which is an Act of the National Assembly also empowers the commission to prosecute criminal matters under a state law. This Act and the country’s constitution are superior to the Administration of Criminal Justice Law of Lagos State 2011.”

    On the argument by Idigbe that counsel to EFCC, Rotimi Jacobs (SAN), was incompetent to prosecute the defendants, Okunnu held that the commission was at liberty to engage the services of private persons to prosecute its matter with or without a fiat from the state’s attorney general.

    Dismissing Idigbe’s application to strike out counts 5 to 18 of the charge, Okunnu said the offences for which the defendants are charged was committed while the repealed law was still in existence.

     

  • Subsidy fraud: Oil marketers seek out of court settlement

    Subsidy fraud: Oil marketers seek out of court settlement

    Two oil marketers, Aro Bamidele and Abiodun Bankole, on Friday said they were in talks with the Economic and Financial Crimes Commission, regarding the N1.3 billion fuel subsidy charge preferred against them.

    They made this known through their counsel, Chief Anthony Idigbe (SAN), at the resumption of their trial before Justice Lateefat Okunnu of the Lagos High Court, Ikeja.

    The News Agency of Nigeria reports that the oil marketers were arraigned alongside their company — A.B.S Investment Company Limited on October 5.

    The defendants are facing 18- count charge bordering on conspiracy, obtaining money by false pretence, forgery, uttering among others.

    The EFCC had alleged that the defendants had fraudulently obtained N1.3 billion from the Federal Government for the purported importation of 30 million litres of Premium Motor Spirit (PMS).

    They had pleaded not guilty to the charge and were granted a N100 million bail each, with three sureties in like sum.

    However, during Friday’s proceedings, Idigbe told the court that the defence, having studied the charge, was discussing with the EFCC.

    He asked the court to give the defendants time to conclude their talks with the EFCC in order to resolve issues contained in the charge.

    EFCC counsel, Mrs. Taiwo Ogunleye, confirmed the development and did not oppose the adjournment made by the defence.

     

  • Subsidy fraud: EFCC re-arraigns two oil marketers

    Subsidy fraud: EFCC re-arraigns two oil marketers

    The Economic and Financial Crimes Commission on Monday re-arraigned two oil marketers, Oluwaseun Ogunbambo and Habila Theck, on an amended charge of N976.6 million fuel subsidy theft.

    The News Agency of Nigeria reports that the marketers were re-arraigned alongside their company, Fargo Petroleum and Gas Limited, before Justice Adeniyi Onigbanjo of a Lagos High Court in Ikeja.

    The defendants are facing a 10-count charge bordering on conspiracy, obtaining money by false pretence, forgery, uttering and use of forged documents among others.

    EFCC counsel, Mr. Francis Usani, alleged that the defendants conspired with one Olugbegan Adesanya (still at large) to fraudulently obtain N976.6 million from the Federal Government of Nigeria.

    Usani alleged that the defendants obtained the money as subsidy payments from the Petroleum Support Fund (PSF) for the purported importation of 13.6 million litres of Premium Motor Spirits (PMS).

    He said the PMS was purportedly purchased from one Seatac Petroleum Limited and imported into Nigeria through MT Diplomat Ex MT Milleura.

    Usani further alleged that the defendants had on October 14, in Lagos, forged a document entitled Certificate of Origin, Port of Loading Antwerp, Belgium, which was used to facilitate the fraud.

    Usani added that the defendants falsely claimed that the document was issued by Seatac Petroleum Limited.

    According to him, the offences contravened Sections 1, (sub-sections 1,2,3) and 8 of the Advanced Fee Fraud and other Fraud Related Offences Act, Laws of the Federation of Nigeria.

    Usani also said the offences contravened Sections 363 and 364 of the Criminal Laws of Lagos State, 2011.

    The defendants, however, pleaded not guilty to the charges.

     

  • Subsidy scam: Two oil marketers challenge court jurisdiction

    Subsidy scam: Two oil marketers challenge court jurisdiction

     

    Two oil marketers, Aro Bamidele and Abiodun Bankole, on Thursday challenged the jurisdiction of a Lagos High Court in Ikeja to hear the alleged theft of N1.3 billion fuel subsidy charge against them.

    The News Agency of Nigeria reports that the marketers made this known in a preliminary notice of objection filed by their counsel, Chief Anthony Idigbe (SAN).

    Bamidele and Abiodun were arraigned alongside their company, A.B.S Investment Company Limited, on October. 5, before Justice Lateefat Okunnu.

    The defendants are facing an 18-count charge bordering on conspiracy, obtaining money by false pretence, forgery and uttering.

    The Economic and Financial Crimes Commission had alleged that the defendants had fraudulently obtained N1.3 billion from the Federal Government for the purported importation of 30 million litres of Premium Motor Spirits.

    At Thursday’s proceedings, Idigbe in the application dated November 20 also argued that the charges preferred against the accused were “grossly defective.”

    He said:”The Federal Government lacks the locus standi to prosecute the offences contained in the charges preferred against the defendants in this court.

    “The court does not have jurisdiction to entertain the charges. The entire charge is grossly defective and incurably bad because no fiat was obtained from the attorney general of Lagos State.”

    Idigbe further argued that the EFCC has no competence to prosecute the defendants before the court.

    Responding, EFCC counsel, Mr. Rotimi Jacobs (SAN), told the court that the prosecution was served with the application a few days ago and needed time to prepare their response.

    The judge consequently adjourned the matter till December 21 for mention.

     

  • Subsidy Scam: EFCC arraigns two oil marketers

    Subsidy Scam: EFCC arraigns two oil marketers

    The Economic and Financial Crimes Commission on Wednesday arraigned two directors of oil marketing companies in an Abuja High Court over fuel subsidy fraud.

    The two, Saminu Rabiu and Jubril Rowaye, directors of Alminnur Resources Limited and Brilla Energy Limited respectively, were arraigned before Justice Adebukola Banjoko.

    The News Agency of Nigeria reports that Rabiu and Rowaye were arraigned on 17 counts of conspiracy and fraud.

    The two were accused of fraudulently using their companies to obtain N1.5 billion from the Petroleum Support Fund as payment for the importation of 10,000 tonnes of Premium Motor Spirit.

    The commission alleged that Rabiu and Rowaye, at various times, forged different bills of lading for PMS that was not supplied in a bid to claim the subsidy on fuel.

    The two pleaded not guilty to the charges.

    After taking their plea, counsel to Rabiu, Mr. Reuben Nnah, filed an application for bail.

    Nnah urged the court to grant his client bail on liberal terms.

    In another bail application, counsel to Rowaye, Mr. Richard Oluyede, prayed the court to admit his client to bail.

    Oluyede said his client before the arraignment had been on administrative bail granted him by the EFCC.

    The EFCC counsel, Sylvanus Tahir, who did not oppose the bail application, however, prayed the court to impose conditions that would ensure that the accused attend their trial.

    In her ruling, Banjoko granted bail to the two oil marketers.

    Banjoko admitted them to bail in the sum of N10 million each with two sureties each in like sum.

    The judge ordered that each of the sureties must be resident in Abuja and must depose to an affidavit of means, showing that they could meet the bail bond.