The Nation Newspaper

Tag: subsidy fraud

  • Subsidy fraud

    Subsidy fraud

    • Ex-PDP chair’s son’s conviction a good deterrent. But what of the many others?

    The years that scammers masquerading as fuel importers ripped off the Nigerian treasury through fraudulent subsidy payments can appropriately be referred to as the years of the locust. Perhaps, for lack of courage to remove fuel subsidy, Nigeria descended into a bazaar of fraudulent fuel importation, as a major business for well-connected criminals, during the regime of former President Goodluck Jonathan.

    This tragedy was so prevalent that those who were well-connected to those in government saw it as the quickest way to become rich. Usually, without lifting a litre of fuel, those well-heeled criminals with the connivance of some unscrupulous government officials, presented fake import documents claiming to have imported millions of litres of fuel.

     In many advertised instances following investigations, after the end of the regime, some vessels which were listed as the carrier of the fuel imported were discovered to have been moored for years, in far way countries, rotting away. Yet, with such fraudulent claims, the scammers got paid millions in foreign and local currencies. 

    That better- forgotten era resonated last week, after Justice Mojisola Dada of the Special Offences Court of the High Court of Lagos State, sitting in Ikeja, convicted and sentenced Mamman Ali, son of former Chairman of the Peoples Democratic Party (PDP), Ahmadu Ali, to 14 years imprisonment, for his involvement in a N1,480,074,125.61 oil subsidy fraud. Sentenced alongside Mamman Ali was Christian Taylor, an oil marketer, who also bagged 14 years imprisonment. The convicts were charged for conspiracy to obtain money by false pretences, obtaining money by false pretences, forgery, and tendering false documents which contravene the Advance Fee Fraud and Other Fraud Related Offences Act 2006, and the Criminal Law of Lagos State 2011.

    Read Also: Presidency challenges opposition to present alternatives, not just criticisms

    Between them and two others still at large, they obtained the sum of N1,480,074,125.61 from the Federal Government, which they fraudulently represented as subsidy accruing to Nasaman Oil Services Ltd, under the Petroleum Support Fund, for the importation of 20,492,982.50 litres of premium motor spirit (PMS).

    There are many like the son of the former PDP chairman who creamed billions of naira from the coffers of the Federal Government. Sadly, only a few of those involved in that despicable rip- off of our nation’s treasury have been brought to justice.

    In his judgment, Justice Dada held that the convicts, by their nefarious actions, “undermined the integrity of Nigeria’s oil subsidy programme”. After sentencing them to 14 years imprisonment each, the judge also ordered them to forfeit all their identified assets and accounts linked to the crime, to the Federal Government. The court issued bench warrants for the arrest of Oluwaseun Ogunbambo and Olabisi Abdul Afeez, two suspects still at large.

    We commend Justice Dada who took over the matter, for concluding it, and serving the defendants with their just deserts.

    We also commend the Economic and Financial Crimes Commission (EFCC) for painstakingly pushing the matter through the various courts until conviction. It is regrettable that these matters lingered in courts for about 13 years.

    The EFCC had originally arraigned the convicts before Justice Adeniyi Onigbanjo on a 49-count charge, but the judge later withdrew from the trial.

    Ali and his partner were then arraigned on a 57-count charge before Justice Dada. While the delay portrays our criminal justice system in bad light, it is better late than never. Now that Ali and his partner have been convicted and sentenced, we wonder what happened to several others indicted with regards to similar fraudulent businesses during that ignominious period?

    We urge the EFCC and the courts to ensure that each of them enjoys their deserved comeuppance without further delay. Those who delivered hardship to Nigerians instead of the fuel they were paid to deliver, deserve their day in our courts of law.

  • N963.7m subsidy fraud: Oil marketer gets 10 years jail

    N963.7m subsidy fraud: Oil marketer gets 10 years jail

    Justice Lateefa Okunnu of an Ikeja High Court has sentenced an oil marketer, Rowaye Jubril, to 10 years imprisonment over a N963.7 million fuel subsidy fraud.

    The conviction is coming barely two months after two oil marketers, Walter Wagbatsoma and Adaoha Ugo-Ndali and their company, Ontario Oil and Gas Limited, were convicted of N754 million subsidy fraud by the same court.

    Delivering judgment yesterday, Justice Okunnu convicted Jubril and his company, Brila Energy Limited, of a 13-count charge preferred against them by Economic and Financial Crimes Commission (EFCC).

    The 13-count charge bordered on conspiracy, obtaining money by false pretext, forgery and use of false documents.

    The trial judge sentenced Jubril to 10 years imprisonment on Count One.

    The convict was also sentenced to eight years each on Counts Two to 13.

    She ordered that the sentences should run concurrently and commenced from the date of judgement.

    Justice Okunnu ordered Jubril’s company to refund N963.7 million to the Federal Government as restitution.

    The defendants were  first arraigned by the EFCC on November 2012 before the court.

    The EFCC said the defendants had obtained N963.7 million from the Federal Government under the Petroleum Support Fund between October 2010 and May 2012.

    The anti-graft agency said the money was obtained for the purported importation of 13,500 metric tonnes of Premium Motor Spirit (PMS).

    According to the EFCC, the  offences contravened Section 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006.

    It said the offences  contravened sections 467 and 468 of the Criminal Code Laws of Lagos State 2003.

  • Senate probes NNPC for alleged N5.1tr subsidy fraud

    Senate probes NNPC for alleged N5.1tr subsidy fraud

    THE Senate has initiated probe into an alleged N5.1 trillion fuel subsidy fraud, believed to have been stolen by some Nigerians in connivance with top officials of the Nigeria National Petroleum Corporation (NNPC) between 2006 and 2016.

    At plenary yesterday, the Senate alleged the NNPC failed to remit the funds into the Federation Account.

    In a motion sponsored by Senator Dino Malaye (Kogi West), the lawmakers said some corrupt Nigerians were hiding the funds in caskets, uncompleted buildings and in remote villages in different parts of the country.

    “Monies are not accounted for and that might be the reason why we now see petro-dollars buried in caskets and uncompleted buildings in remote villages in some parts of the country,” Melaye said.

    He drew the attention of the Senate to the continued refusal of the Federal Government to probe the NNPC, which he said got 51 per cent share of imported petroleum products into the country.

    Petroleum product marketers, some of who are facing trial for alleged subsidy fraud, were responsible for the remaining 49 per cent of the importation of the products.

    The senator observed that it was the Senate President, Bukola Saraki, who raised the alarm over subsidy fraud in the Seventh Senate, wondering why the government was trying only marketers.

    “While we are prosecuting the independent marketers, whose proceeds from subsidy stood at N3.83 trillion, the NNPC collected a total of N5.1 trillion on subsidy and this has never been investigated…

    “We have taken the lead in the fight against corruption in this chamber and I want to say we must do everything within our powers to investigate and bring whoever is found wanting to book,” Melaye said.

    Saraki noted that the alleged subsidy fraud was a serious matter, saying that it goes to the core of the fight against corruption, particularly as it affects the NNPC.

    At the end of the debate, the Senate mandated its Committee on Petroleum (Downstream) to investigate the NNPC’s accounts relating to fuel subsidy and the abuse of product marketing and distribution between 2006 and 2016.

    Saraki said: “A situation where individuals do what they like and are not accountable to anybody should be stopped. The committee should do a thorough job and ensure that they get to the root of this issue. It borders on the issue of corruption, which has been affecting the country negatively.”

  • Court picks January 26 for hearing on oil magnates’ applications

    Justice Lateefat Okunnu of the Lagos High Court, Ikeja, on Wednesday fixed January 26 for hearing of pending applications filed by the convicted oil magnates, Mr. Walter Wagbatsoma and Mrs. Ada Ugo-Ndagi.

    Wagbatsoma and Ugo-Ndagi are Chairman and Managing Director of Ontario Oil and Gas Nigeria Limited respectively.

    They were convicted alongside their company for defrauding the Federal Government of N754 million during the fuel subsidy regime.

    Counsel to the convicts, Mr. A.D Onyeke, told the judge that Ugo-Ndagi is not fit to appear in court on Wednesday for sentencing.

    Onyeke based his submission on the medical reports that emanated from the Lagos University Teaching Hospital (LUTH), and Havana Specialist Hospital, Surulere, Lagos.

    He said the medical reports were already before the court, stressing that from the documents, “it is evident that the convicted Ugo-Ndagi is not fit at this time to appear before the court to get her sentence.”

    Onyeke then proceeded to inform Justice Okunnu of pending applications filed by the convicted persons before the court which he said “required to be argued on one way or the other.”

    Counsel to the EFCC, Mr. Oladipupo Yeye, who confirmed service of the said applications, however prayed the court to give the commission some time to study and respond to the applications in question.

    After taking the submissions of parties, Justice Okunnu agreed with the prosecution that he needed time to study and respond to the applications.

    She therefore fixed January 26 for hearing of the applications.

     

     

  • EFCC to probe IPMAN over N10.9b subsidy fraud

    EFCC to probe IPMAN over N10.9b subsidy fraud

    The Economic and Financial Crimes Commission (EFCC) will this week, begin investigation into the alleged N10.9billion oil subsidy scandal rocking the top- hierarchy of Independent Petroleum Marketers Association of Nigeria (IPMAN), The Nation has learnt.

    The Presidency, it was gathered, directed the anti-graft agency to wade into the matter and make those found guilty to refund the money they have misappropriated during the fuel subsidy era.

    Industry sources said the decision of the government, was borne out of the need to extend investigation into the oil and gas sector, and further rid it of corrupt practices.

    The sources further said the IPMAN probe is in line with the anti-corruption crusade of President Muhammadu Buhari-led government.

    Its National President, Mr Chinedu Okoronkwo, said EFFC has invited the leadership of IPMAN to come and testify on the issue early this week.

    He said  the group anxious to see the begining of investigation into the issue, adding that the N10.9billion fraud, allegedly perpetrated by some top- management of IPMAN has given the association a bad name.

    He said: ‘’EFFC’s decision to investigate the activities of IPMAN, in relation to the alleged N10.9billion is welcomed.  In fact, the management of IPMAN would be happy to see the image of the marketers restored through the probe.  We would be happy to see the people who actually committed the offence, as well as see them punished in line with the constitution. The government is ready to rid the country of corruption. ‘’

  • Alleged subsidy fraud: Marketers seek acquittal

    An oil marketer,  Adaoha Ugo-Ndagi has told a High Court sitting in Ikeja to discharge and acquit her and two others of the N1.9 billion subsidy fraud brought against them by the Economic and Financial Crimes Commission (EFCC).

    Ugo-Ndagi, the Managing Director of Ontario Oil and Gas Limited, testifying last week before Justice Lateefa  Okunnu, said there was no truth in the charge.

    The witness maintained that the allegation was an attempt to settle old scores between Ontario and two rival key players in the industry.

    She urged the court to discharge and acquit her, Ontario and Mr Walter Wagbatsoma, the Executive Director of the firm, of the nine-count charge of conspiracy, obtaining property by false pretences, forgery and uttering.

    Led in evidence by her counsel, Edoka Onyeke, the defendant maintained that the company imported 19 million and 15 million litres of Premium Motor Spirit in the third quarter of 2010 and the transaction followed Petroleum Products Pricing Regulatory Authority (PPPRA) guidelines.

    According to her, the documents were signed by the relevant agencies including the PPPRA, Department of Petroleum Resources, DPR, Navy, Immigration, Customs, Ontario surveyors and surveyors representing Obat and Integrated Tank Farms.

    “I was not surprised that these tank farms were used by the EFCC to try and substantiate their charge against us.

    “Issues of discrepancy happens everyday in the industry and parties find ways to resolve them. We have had issues with them in the past and have even taken one of them to court for selling our product without authorisation.

    “So, if there were issues in the transactions, the tank farms ought to have notified us but nothing like that was done.”

    The witness wondered why their accusers failed to produce the waybills and truck out tickets used for the transactions to substantiate the allegations.

    “Both of them could not produce their waybills. They could not produce the tickets. Everybody who handled these operations miraculously dis-appeared,” Ugo-Ndagi said.

    Earlier during cross examination by the prosecution counsel, Mr Rotimi Jacobs (SAN), the witness re-affirmed that on several occasions, players in the industry do have variations in figures, which most times are resolved.

    Justice Okunnu adjourned the matter till February 8, 2016 for continuation of cross examination.

  • N1b subsidy fraud: EFCC re-arraigns Alao Arisekola’s son, others

    N1b subsidy fraud: EFCC re-arraigns Alao Arisekola’s son, others

    The Economic and Financial Crimes Commission (EFCC), has re-arraigned three oil marketers,  Opeyemi Ajuyah, Abdullahi Alao and Olanrewaju Olalusi over allegation of N1.1 billion fuel subsidy fraud.

    They were re-arraigned on an amended eight count charge alongside their companies; Majope Investment Limited and Axenergy Limited before Justice Lateefa Okunnu of a Lagos High Court sitting in Ikeja.

    The defendants were initially arraigned on October 10, 2012 on a nine count charge bordering on alleged  conspiracy, obtaining money by false pretences, forgery and use of fake documents.

    They  had pleaded not guilty to the charges and were subsequently granted bail by the court.

    During  trial last Friday on the matter, counsel to the EFCC,  Seidu Atteh, intimated the judge that the commission had amended the charges.

    The lawyer consequently prayed the court to order the defendants to re-take their pleas.

    He alleged that the oil maketers  fraudulently obtained N1billion from subsidy fund of the Federal Government  between January 2011 and April 2012.

    Atteh said that the money was for subsidy payments from the Petroleum Support Fund for the purported importation of 15 million litres of Premium Motor Spirit (PMS).

    The commission also alleged that  the defendants forged a bill of lading, cargo manifest and other documents which it claimed were utilised to have facilitated the fraud.

    Atteh said that the offences contravene Sections 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006. The offence is also said to violate Sections 363(a) and 364 of the Criminal Law of Lagos State, 2011.

    All  the defendants again pleaded not guilty to the new eight count charge preferred against them by the commission.

    Justice Okunnu  adjourned the matter till October 20, 2015 for trial.

  • EFCC re-arraigns Ahmadu Ali’s son, others for N4.5b subsidy fraud

    EFCC re-arraigns Ahmadu Ali’s son, others for N4.5b subsidy fraud

    THE Economic and Financial Crimes Commission (EFCC) has re-arraigned Mamman, son of Peoples Democratic Party’s (PDP) former Chairman, Ahmadu Ali, and two others for alleged involvement in N4.5 billion fuel subsidy fraud.

    Mamman Ali was re-arraigned alongside another oil marketer, Christian Taylor, and his company, Nasaman Oil Services Limited, before Justice Adeniyi Onigbanjo of a Lagos State High Court, Ikeja.

    They were initially arraigned before same judge on July 26,2012.

    A co-defendant then, Oluwaseun Ogunnbambo, jumped bail, a situation that made the commission to amend charges and re-arraign the defendants.

    In the amended charge, the defendants are now facing  a 49-count charge as against the former nine-count charge.

    The 49-count charge include conspiracy, obtaining money by false pretences, forgery and use of false documents to obtain money from the Federal Government from the Petroleum Support Fund (PSF).

    At the beginning of proceedings against the defendants, counsel to the EFCC,  Mr. Seidu Atteh, said the defendants had fraudulently obtained N4.5 billion from the Federal Government between January 2011 and April 2012.

    Atteh said the money was for subsidy payments from the PSF for the purported importation of 30.5 million litres of Premium Motor Spirit.

    The defendants were alleged to have forged a bill of lading and other documents, which they used in facilitating the fraud.

    He said the offences contravened Sections 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006.

    He added that the offences also violated Sections 363(a) and 364 of the Criminal Law of Lagos State 2011.

    The defendants again pleaded not guilty to the charges preferred against them.

    But the judge  allowed Ali and Taylor to continue to enjoy the N20 million bail, which he had earlier granted them after their initial arraignment on July 26.

    Atteh told the court that the prosecution was ready to go into trial following its inability to apprehend Ogunbambo.

    Justice Onigbanjo adjourned the matter till June 30, for trial.

  • Court forces EFCC to close case against oil marketer

    A Lagos High Court, Ikeja, on Tuesday closed the case of the Economic and Financial Crimes Commission (EFCC) against an oil marketer, Oluwaseun Ogunbambo, alleged to have fled the country.
    The court presided by Justice Adeniyi Onigbanjo however fixed July 14 for Mamman Ali and one other oil marketer and their company to open their defence.
    They were all arraigned over their alleged involvement in subsidy fraud.
    The trial of the three oil marketers and their company had been stalled in the last six months following reports that Ogunbambo had jumped bail and fled the country to escape justice.
    At the resumed hearing, the counsel to the EFCC, Mr. Seidu Atteh, informed the court that he had recently taken over the matter from his predecessor.
    Atteh said he was informed that one of the defendants, Ogunbambo has allegedly absconded.
    He said as a result, the EFCC has not been able to execute the bench warrant issued against him by the court.
    He, therefore, appealed to the court for a short adjournment to enable the commission produce Ogunbambo or file an amended charge against other defendants.
    But counsel to Ali, Mr. Toyin Pinheiro (SAN), objected to the request for adjournment on the basis of Ogunbambo’s absence.
    Pinheiro said, “This matter commenced on July 2012. The prosecution listed 15 witnesses in the proof of evidence and they have only called two witnesses so far.”

     

  • Subsidy fraud: Court dismiss Ogunbambo’s application

    Attempt by an alleged fuel subsidy thief, Oluwaseun Ogunbambo to stop the police from arresting him over an alleged N1.3 billion scam was Wednesday dashed by a Federal High Court Lagos.

    Justice Mohammed Yunusa while dismissing a Fundamental Human Right (FHR) application brought before him by the accused, held that it is the constitutional duty of the police to arrest and prosecute suspects.

    The Special Fraud Unit (SFU) of the Nigeria Police had preferred a criminal charge against Ogunbambo before Justice Okon Abang for allegedly defrauding the federal government of N1.3 billion through petroleum subsidy.

    But in a bit to stop the police from arresting him on the basis of the charge, the accused through his lawyer, Ajibola Oluyede filed a FHR application before Yunusa seeking an injunction restraining the police from arresting him.

    The Inspector General of Police and the Commissioner of Police SFU were co-respondents in the suit which also sought an order that his being declared “wanted” by the SFU, without reasonable suspicion of his complicity in the charges, amounted to a violation of his right to liberty.

    In his submission, Counsel to the SFU, Dania Abdullahi, had urged the court to dismiss the applicant’s suit, arguing that Ogunbambo was simply trying to evade the course of law.

    The prosecution held claimed that efforts to arrest Ogunbambo had proved abortive.

    Abdullahi averred that the accused/applicant had been on the run in view of the overwhelming incriminating evidence against him and has resorted to exploit judicial process to delay his prosecution.

    However, Justice Yunusa in his ruling held that the police had the statutory right and duty to declare suspects wanted and arrest them.

    “Section 24 of the Police Act confers on the police the right to arrest, detain and prosecute offenders.

    “The police possess the Constitutional right to investigate allegations of fraud or criminal offences levied against any individual including the applicant.

    “They can also arrest any suspect with or without warrant, and where investigations reveals a prima facie case against the suspects, he will be charged to court.

    “It is my view that the applicant cannot restrain the police from carrying out its statutory duties.

    “The applicant is now an accused, a charge having been preferred against him.

    “This suit lacks merit and is accordingly struck out,” the court ruled.