The Nation Newspaper

Tag: Subsidy scam

  • Otedola: Despite blowing the whistle on subsidy scam, Lawan wanted a bribe

    The Chairman of Forte Oil and billionaire businessman, Femi Otedola, said he informed ex-President Goodluck Jonathan about a subsidy scam that was being perpetrated during his presidency while explaining how he blew the whistle on those ripping off Nigeria in the oil sector.

    According to the oil magnate, there were some Nigerian companies who had claimed money for subsidy on petroleum products they did not import, leading him to discuss the situation with the former president.

    Otedola disclosed: “I realised that companies in Nigeria were claiming money for subsidy on petroleum products they never imported. When I saw how much was being stolen, I went to the then President, Dr. Goodluck Jonathan.”

    But Jonathan did not believe the businessman’s claims.

    “I told him my observations as to how much was being stolen as money for subsidy on the product they never imported. He told me later that he had consulted with the then Minister of Petroleum and that there is nothing of such. I then reached out to Senator Bukola Saraki who raised the issue on the floor of the Senate and thereafter, the House of Representatives set up a panel to investigate the allegation,” Otedola added.

    The oil mogul stated this while standing as a prosecution witness at high court sitting in the Federal Capital Territory as he recounted how Farouk Lawan, then-lawmaker in the House of Representatives and the Chairman of Ad hoc Committee inaugurated by the lower chamber to investigate oil subsidy scam had threatened to indict his oil company (African Petroleum Plc now Forte Oil) and demanded $3m to exonerate Zenon from a subsidy scam allegation.

    “The defendant (Lawan) reached out to me and I gave him the background information as to how the monies were being stolen. I gave relevant information to the ad hoc committee. I had two companies, which are in the oil and gas industry, which were AP and Zenon oil. The two companies had something to do with the defendant’s panel. AP submitted to the committee documents regarding all the importations of the company. Mr. Otaru, General Manager AP, had direct contact with the defendant’s committee,” he told the court.

    As Otedola narrated, Lawan had other ideas, saying: “On 18th of April, 2012, the defendant came to see me at my house in Abuja after the report of the committee had been laid before the House of Representatives in plenary. He told me that pursuant to what we discussed on the phone while I was in the UK, he was going to indict Zenon Oil and Gas Ltd. He demanded the sum of $3m to exonerate Zenon Oil. I asked him why he would indict a company that did not import petrol but diesel. He said most of the companies indicted had paid a bribe. I told him this was extortion.”

    Subsequently, the Forte Oil boss petitioned the Department of State Services regarding the issue and a plan for a sting operation was hatched.

    “After my petition to the DG DSS, I received a call from the DSS official – from Caleb – who told me that they were going to carry out a sting operation. He told me that I will be provided with serialised dollars to give to the defendant and they were going to install video-recording gadgets in my living and dining rooms. About six operatives of the DSS did the installation, I was given $620,000 serialised dollars. I took the instruction of the DSS and I agreed to play along.

    “On April 23, 2012, I was in my house in Abuja. The defendant came to my house and I handed over to him the $500,000 given to me by the DSS. After handing over the $500,000 to the defendant, I asked him what next. He said he would go to the House and discuss with its leadership. He said I should watch House plenary on the television. Shortly after, I watched it on the television where the defendant applied to the House in plenary that the name of Zenon Oil removed from the subsidy scam which was then removed,” the oil magnate recounted.

  • Court to police: Place convicted oil magnate under watch

    Court to police: Place convicted oil magnate under watch

    Justice Lateefat Okunnu of a Lagos High Court, Ikeja, on Monday ordered the state Commissioner of Police, Fatai Owoseni, to keep a convicted oil magnate, Ada Ugo-Ndagi, under watch pending when she would be transferred to prison.

    The judge also ordered the Medical Directors of Havana Hospital, Surulere and the Lagos University Teaching Hospital (LUTH), to both swear to an affidavit of means, clearly stating Ugo-Ndagi’s health status.

    Justice Okunnu gave the orders following the oil magnate’s failure to appear in court on Monday for sentencing.

    The court had on Friday convicted Mr. Walter Wagbasoma and Ugo-Ndagi, Chairman and Managing Director of Ontario oil and Gas Limited respectively, alongside their company for N754million subsidy fraud charge preferred against them by the Economic and Financial Crimes Commission (EFCC).

    At resumed proceedings of the court on Monday, Ugo-Ndagi, thorough her counsel, Mr. Y.A Kadiri, told the court that she was ill and has been hospitalised.

    The woman slumped and fainted in the dock just when Justice Okunnu was about to pronounce her sentence on Friday.

    Wagbatsoma was also not in court when the judge convicted them.

    He was arrested in Germany for alleged involvement in a multi-million pounds sterling transaction.

    He is presently in a United Kingdom prison in relation to the transaction.

     

     

  • Subsidy scam: Oil magnate faints in court

    Subsidy scam: Oil magnate faints in court

    An oil magnate, Mrs. Ada Ugo-Ndali, fainted in the dock on Friday shortly before she was convicted of a N1.7 billion subsidy fraud by a Lagos High Court sitting in Ikeja.

    Justice Lateefat Okunnu found Ugo-Ndali, the Managing Director of Ontario Oil and Gas Limited, and the company Chairman, Mr. Walter Wagbatsoma, guilty of N1.7 billion fuel subsidy fraud charge preferred against them by the Economic and Financial Crimes Commission (EFCC).

    Delivering judgement in the matter on Friday, the judge discharged and acquitted the Petroleum Products Pricing and Regulatory Agency (PPPRA) representative, Fakuade Ebenezer, of forgery allegations.

    After reading the judgement, Justice Okunnu stood the matter down for a 15 minutes break for allocutus plea by the convicted persons.

    When the judge returned at 1:15 p.m. to hear the defendants plea for mercy, the second defendant, Ugo-Ndagi suddenly slumped and fainted in the dock.

    When the woman was finally revived, she was breathing heavily just as counsels frantically called for medical assistance and ambulance.

    She was later assisted out of the court into a waiting black jeep by her lawyers.

    The vehicle sped out of the court premises immediately Ugo-Ndagi was brought in.

    The development forced Justice Okunnu to adjourn sentencing of the convicts till Monday.

    Wagbatsoma, Ugo-Ndagi and the oil company were arraigned on July 7, 2010 for collecting N1.7 billion from the Federal Government as fuel subsidy payable to Ontario Oil and Gas Nigeria Limited.

    They were arranged on an eight -count charge of obtaining money under false pretence from government, forgery and altering of documents.

     

  • Oil marketers lose bid to quash subsidy charge

    Three oil marketers -Mahmud Tukur, Alex Ochonogor and Abdullahi Alao – on Wednesday lost in their bid to quash the N1.5 billion fuel subsidy fraud charge preferred against them by the Economic and Financial Crimes Commission (EFCC).

    Justice Lateef Lawal-Akapo of a Lagos High Court, Ikeja, dismissed the application filed by the defendants and their firms – Eterna Plc and Axe Energy Limited – for lack of merit.

    The defendants are facing a nine-count charge bordering on conspiracy, obtaining money by false pretences and forgery preferred against them by the EFCC.

    The agency had alleged that they obtained the money from the Petroleum Support Fund for a purported importation of 80.3 million litres of Premium Motor Spirit (PMS).

    Their counsels – Messrs Olaniran Obele, Ebun Adegoruwa and Aderemi Oguntoye – however argued that the court lacks the jurisdiction to hear the case.

    They maintained that the proof of evidence did not support the offences alleged against the defendants.

    According to them, the criminal charge against their clients was an abuse of court process and should be struck out.

    The defence lawyers further argued that the EFCC failed to obtain a valid fiat from the Attorney-General of Lagos State to empower them to prosecute the defendants before the state high court.

    They said the issues in dispute related to fuel importation and revenue of the Federal Government hence the court has no jurisdiction to entertain the charges.

    But EFCC counsel, Mr. Rotimi Jacobs (SAN), in his response urged the court to dismiss the application because the issues raised had already being decided by the Court of Appeal, Lagos Division.

     

     

  • Alleged N789.6m subsidy scam: three oil marketers know fate Nov. 17

    Alleged N789.6m subsidy scam: three oil marketers know fate Nov. 17

    A Lagos State High Court sitting in Ikeja will on November 17 rule on the no-case submission filed by three oil marketers charged with a N789.6 million fuel subsidy fraud.

    Justice Lateefa Okunnu fixed the date after hearing the submissions of their counsels, Prof. Alfred Kasumu (SAN), Mr. Abubakar Shamsudeen and Mr. Eubena Ahmedu, as well as that of the counsel for the Economic and Financial Crimes Commission (EFCC), Mr Rotimi Jacobs (SAN).

    The marketers – Adamu Maula, George Ogbonna and Emmanuel Morah – are being prosecuted alongside their firms, Downstream Energy Sources Ltd. and Rocky Energy Ltd.

    They were re-arraigned on April 1, 2014 on an amended 26-count charge bordering on conspiracy, obtaining money by false pretences, forgery, uttering and use of false documents.

    The EFCC alleged that the defendants did not import the 10,862 metric tonnes of Premium Motor Spirit (PMS) for which they received subsidy payment from the Federal Government.

    However, their lawyers in separate no-case submissions, urged the court to dismiss the charge for want of jurisdiction.

    “The entire 26 counts against the applicants all relate to matters over which only the Federal High Court had exclusive jurisdiction as provided in Section 251 (a)(g) (n) and (3) of the 1999 Constitution and Section 19 of the Admiralty Jurisdiction Act, 2004.

    “The entire evidence led by the prosecution and contents of the 26 counts amended information together with the extant laws, this honourable court lacks the jurisdiction to adjudicate on the information,” they said.

    The defence lawyers argued that the evidence adduced so far by the 11 prosecution witnesses has not established a prima facie case against the defendants.

    According to them the evidence of the prosecution witnesses was so manifestly unreliable with material contradictions and inconsistency that no court or tribunal could reasonably convict.

    They further argued that the charge was an abuse of court processes and was not filed in accordance with the due process of the law.

    In his reply, Jacobs urged the court to dismiss the applications and order the defendants to enter their defence.

    He argued that the 11 witnesses and 48 exhibits tendered by the prosecution had sufficiently established a prima facie case against all the defendants.

    According to him, the defendants colluded to defraud the Federal Government by obtaining subsidy payment without importing any product.

  • Subsidy scam: Oil marketers know fate November 17

    Ruling on the no-case submission filed by three oil marketers charged with a N789.6 million fuel subsidy fraud will be delivered on November 17 by the Lagos High Court, Ikeja.

    Justice Lateefa Okunnu fixed the date after hearing the submissions of their counsels, Prof. Alfred Kasumu (SAN), Mr. Abubakar Shamsudeen and Mr. Eubena Ahmedu, as well as that of the Economic and Financial Crimes Commission (EFCC), Mr. Rotimi Jacobs (SAN).

    The marketers – Adamu Maula, George Ogbonna and Emmanuel Morah – are arraigned alongside their firms, Downstream Energy Sources Ltd and Rocky Energy Ltd.

    They were re-arraigned on April 1, 2014 on an amended 26-count charge bordering on conspiracy, obtaining money by false pretences, forgery, uttering and use of false documents.

    The EFCC alleged that the defendants did not import the 10,862 metric tonnes of Premium Motor Spirit (PMS) for which they received subsidy payment from the Federal Government.

    However, their lawyers in separate no-case submissions urged the court to dismiss the charge for want of jurisdiction.

    “The entire 26 counts against the applicants all relate to matters over which only the Federal High Court had exclusive jurisdiction as provided in Section 251 (a)(g) (n) and (3) of the 1999 Constitution and Section 19 of the Admiralty Jurisdiction Act, 2004.

    “The entire evidence led by the prosecution and contents of the 26 counts amended information together with the extant laws, this honourable court lacks the jurisdiction to adjudicate on the information,” they said.

    The defence lawyers argued that the evidence adduced so far by the 11 prosecution witnesses had not established a prima facie case against the defendants.

     

  • Subsidy scam: EFCC re-arraigns Ahmadu Ali’s son, others

    The Economic and Financial Crimes Commission on Tuesday re-arraigned Mamman, son of former Chairman of the Peoples Democratic Party, Ahmadu Ali and two others over their alleged involvement in N4.5 billion fuel subsidy fraud.

    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.

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

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

    The charges border on conspiracy, obtaining money by false pretences, forgery and use of false documents to obtain money from the Federal Government through the Petroleum Support Fund (PSF).

    At the commencement of proceedings on Tuesday, 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 PSF for the purported importation of 30.5million litres of Premium Motor Spirit.

    The defendants allegedly 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 stated further 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.

     

  • Subsidy scam: Oil marketers move to quash charges

    Two oil marketers –  Mahmud Tukur and Alex Ochonogor, have asked  a Lagos High Court sitting in Ikeja to quash the N1.8 billion fuel subsidy fraud charge preferred against them by the Economic and Financial Crimes Commission.

    Their request is contained in a preliminary notice of objection filed before the court presided by Justice Lateef Lawal-Akapo.

    Charged alongside the two oil marketers is Abdullahi Alao, the son of Ibadan based business mogul, Alhaji Alao Arishekola on a nine-count charge of conspiracy, obtaining money by false pretences, forgery and use of false documents.

    Also to answer charges before the court is Tukur’s company – Eterna Plc.

    The EFCC had alleged that the defendants allegedly obtained N1.8 billion from the Federal Government for a purported importation of 80.3 million litres of Premium Motor Spirit.

    Counsel to the defendants, Tayo Oyetibo (SAN), while moving the application, said the proof of evidence did not support the offences alleged against his clients.

    Oyetibo said the criminal charge preferred against them was an abuse of court process which should be struck out in the interest of justice.

    In view of this, he submitted that the court should discharge and acquit the defendants of the charges brought against them by the commission.

    Oyetibo told the court that the charges against the defendants arose from a joint venture agreement between Eterna Plc, Axenergy Limited, Sahara Energy Resources and Ontario Oil for the importation of fuel into the country.

    Oyetibo said it was not proper for Tukur and Ochonogor, who are the Managing Director and Head of Financial Control of Eterna Plc to be charged for the alleged offences.

  • Subsidy scam: Oil marketer loses bid to quash charges

    An oil marketer, Oluwaseun Ogunbambo, has lost in his bid to quash the N4.4 million subsidy fraud charges preferred against him by the Economic and Financial Crimes Commission (EFCC).

    Justice Adeniyi Onigbanjo of a Lagos High Court sitting in Ikeja on Tuesday declined to strike out an application filed by Ogunbambo, seeking to quash the fuel subsidy fraud charges preferred against him and three others by the commission.

    The judge dismissed the application for lacking in merit.

    Those charged by the EFCC alongside Ogunbambo are – Mamman Ali, son of Dr. Ahmadu Ali, a former Chairman of the Peoples Democratic Party (PDP), Christian Taylor and their firm – Nassaman Oil Services Limited.

    Ogunbambo was however absent in court on Tuesday.

    In the application filed by his counsel, R.A Oluyede, the defendant had prayed the court to quash all the charges and information filed against him for lack of jurisdiction.

    The application brought pursuant to Sec 66(b) of the 1999 Constitution of the Federal Republic of Nigeria and supported by a 26 paragraphs affidavit deposed to by one Kunle Shote, also urged the court to discharge him.

    Responding to the application on point of law, EFCC counsel, Rotimi Oyedepo, asked the court to dismiss the application on the ground that it is premature at this stage when plea had been taken by the defendant and trial had commenced.

    Oyedepo said the issue of competency of the charge cannot be raise at the stage when the prosecution has not close its case and had only called three witnesses, adding that it cannot be said that the information filed against the defendant is an abuse of court process.

    Justice Onigbanjo in his short ruling dismissed the application for lacking in merit.

     

  • Subsidy scam: Court Issues bench warrant against oil marketer

    Justice Adeniyi Onigbanjo of a Lagos High Court, Ikeja, on Monday issued a bench warrant for the arrest of an oil marketer, Mr. Oluwaseun Ogunbambo.

    The trial judge issued the warrant following the defendant’s continuous failure to appear in court for trial.

    The Economic and Financial Crimes Commission (EFCC) had arraigned Ogunbambo for allegedly collecting N979.6m fuel subsidy without supplying the product.

    Arraigned alongside Ogunbambo are Habila Theck and their company, Fargo Energy Limited.

    They were arraigned on July 31, 2012 on a six-count charge of conspiracy, obtaining money by false pretences, forgery and use of forged documents.

    At the last adjourned date, the EFCC had accused Ogunbambo of using delay tactics to stall the commencement of his trial by pretending to be sick.

    But counsel to the oil marketer, Mr. Mobolaji Akintunde, had then told the court that his client had sustained a spinal cord injury after falling from a bathtub.

    Akintunde told the court that Ogunbambo was presently receiving treatment at the Nigerian Army Reference Hospital in Yaba, Lagos.

    He presented a medical report signed by one retired Brigadier General J.A. Aremu, to back up his claim but Justice Onigbanjo ruled that the authenticity of the medical report should be verified.

    At the resumed hearing on Monday, counsel to EFCC, Emmanuel Jackson, told the court that though the medical report had been verified to be authentic, but there was nothing in it to suggest that the oil marketer is not fit to continue with his trial.