The Nation Newspaper

Tag: Subsidy scam

  • EFCC loses bid to prosecute Capital Oil boss Ubah

    EFCC loses bid to prosecute Capital Oil boss Ubah

    The Economic and Financial Crimes Commission (EFCC) and two others lost on Thursday in their bid to prosecute the Managing Director of Capital Oil and Gas Limited, Patrick Ifeanyi Ubah and his company in respect of allegation of petroleum subsidy fraud.

    A Federal High Court in Abuja faulted a recent invitation sent to them by the EFCC and granted an order restraining the commission, the Inspector General of Police (IGP) and the Attorney General of the Federation (AGF) from moving against the two over the subsidy issue.

    The order of perpetual injunction was made by Justice A. Abdul-Kafarati while ruling on a fundamental rights enforcement suit filed by Ubah and his company.

    The judge upheld the applicants’ arguments and granted four out of the five prayers they raised in the suit, which challenged the decision of the EFCC to reinvestigate the complaint that Ubah and his company were involved in the petroleum subsidy fraud.

    Ubah and his company had argued that it was wrong for the EFCC, IGP, AGF and any other agency of the government to want to prosecute them on the same issue which a Federal High Court (FHC) in Lagos had exonerated them by virtue of its February 18, 2013 judgment in suit number: FHC/CS/07/2013 and a report by the House of Representatives committee which investigated the fuel subsidy fraud.

    They also relied on a letter dated February 12, 2013 written by the Police Special Fraud Unit, D Department to the Minister of Finance, clearing them of any criminal complicity in the allegation of subsidy fraud made against them.

    Justice Abdul-Kafarati declared that the February 18 judgment, the House of Representatives’ committee report and the police letter of February 12 “collectively tantamount to a complete and final exoneration of any criminal offence with regard to application for receipt of subsidy payment under the Federal Government of Nigeria Petroleum Support Fund (PSF) scheme.”

     

     

  • How Arisekola’s son, others obtained subsidy fund – Witness

    A Lagos High Court, Ikeja, heard on Wednesday how three oil marketers, including Abdulai Alao, son of an Ibadan- based business mogul, Alhaji Abdulaziz Arisekola- Alao forged documents to obtain N1.1 billion fuel subsidy payment from the Petroleum Subsidy Fund.

    The other two oil marketers are – Opeyemi Ajuyah and Olarenwaju Olalusi while their oil companies are Majope Investment Limited and Axenergy Limited.

    A prosecution witness, Mr. Oliver Chineke, told the court presided by Justice Lateefat Okunnu that the document used to commit the fraud did not emanate from his comapny, 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, who was led in evidence by the counsel to the Economic and Financial Crimes Commission, Mr. Francis Usani , told the court that he delegated one of his company’s surveyor, Mr. Mohammed Adedapo to inspect the vessel that brought the product.

    Chineke, who corroborated what Adedapo had earlier told the court said that it was discovered that out of the 15,000 metric tonnes of Premium Motor Spirit (PMS) brought in, only 4,000 metric tonnes was 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 was taken away.

     

     

  • How Arisekola’s son, others perfected subsidy scam – Witness

    How Arisekola’s son, others perfected subsidy scam – Witness

    Three oil marketers, Abdullahi Alao, Opeyemi Ajuyah and Olarenwaju Olalusi were on Wednesday alleged to have forged the documents with which they perpetrated N1.1 billion fuel subsidy fraud.

    A prosecution witness, Mr. Mohammed Adedapo, made the allegation while testifying at the resumed trial of the marketers before Justice Lateefat Okunnu of a Lagos State High Court, Ikeja.

    The marketers and their firms, Axenergy Limited and Majope Investment Limited were charged to court by the Economic and Financial Crimes Commission (EFCC) over alleged subsidy frauds.

    Adedapo, who is an inspector of petroleum products of Q and Q Control Marine Services Nigeria Limited told the court that Alao, who is the son of Ibadan business mogul, Abdulazeez Arisekola- Alao and other defendants allegedly obtained subsidy for 15,000 metric tonnes of petroleum products as against the 4,000 metric tonnes of petroleum products that was imported.

    The witness said the discharge was done at Lister Jetty in Apapa between January22 and 23, 2011.

    Led in evidence by EFCC counsel, Mr. Francis Usani, the witness said Q and Q was contracted by Oando Oil and Gas Plc to inspect the quantity of products brought in by a vessel, MT Brief on behalf of Majope Investment Limited.

    Adedapo maintained that the vessel that brought the petroleum products allegedly discharged about 4,000 metric tonnes of the products into the facility while it took away the remaining quantity of the product.

    He claimed that following the discrepancy discovered in the transaction, he wrote a protest letter to the captain of the ship to complain and state the fact of the transaction.

     

     

  • Two in prison over N1.8b fuel subsidy scam

    The police have stepped up investigations into the alleged involvement of two persons in a N1.8 billion fuel subsidy scam, spokesperson of the Special Fraud Unit (SFU) of the Police Command, Ikoyi, Lagos, Ngozi Isintume-Agu, a Deputy Superintendent (DSP), said yesterday.

    A Magistrate’s Court in Apapa, Lagos, last week, remanded two suspects in the Ikoyi Prison for allegedly defrauding “the government of Nigeria” of about N1.8 billion in 2011.

    The suspects, Samuel Owa, 55, the Managing Director/Chief Executive Officer of Stonebridge Oil Limited and Olori Onassis Wajutome, 38, a worker with Vibrant Ventures, were arraigned before Magistrate Martins Owumi.

    They were arraigned by the SFU following their indictment by the team of auditors of the Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments.

    The committee alleged that Owa defrauded the Federal Government of Nigeria of a total sum of N1,784,715,258.14 by pretending that the company had imported and sold 15,000 metric tonnes of Premium Motor Spirit (PMS) under the Fuel Subsidy Regime of the 2011 fiscal year.

    The committee further alleged that Wajutome, a cargo Superintendent of the Vibrant Ventures, a warehousing agent appointed by Ecobank Plc, bankers and financiers of Stonebridge Oil Limited, for the importation of the PMS, aided Owa in committing the alleged offence.

    Magistrate Owumi remanded them at the prison till the adjourned date – June 24.

  • Falana, others petitions ‘spur fuel subsidy probe’

    Falana, others petitions ‘spur fuel subsidy probe’

    A Lagos High Court, Ikeja heard on Wednesday that the on-going investigation and subsequent prosecution of some oil marketers was the fall out of the various petitions submitted by Femi Falana(SAN), some members of the Civil society groups and the Minister of Petroleum Resources.

    A prosecution witness, Hammed Lawal disclosed this in his testimony at the ongoing trial of two oil marketers and their company before Justice Lateefat Okunnu.

    The Economic and Financial Crimes Commission had arraigned Samuel Bamidele, Abiodun Kayode Bankole and their company, A.S.B. Investment Company Limited for subsidy fraud.

    The EFCC’s operative, who was among those detailed to investigate the fuel subsidy infractions said that because the petitions were not specific, the commission decided to investigate the entire subsidy regime.

    He said it also became imperative for the commission to probe all transactions relating to the fuel subsidy regime because there was also a lot of public outcry against the misdeed.

    Lawal told the court that their investigations showed that the defendants fraudulently obtained payments from the petroleum support fund as subsidy for the importation of petroleum motor spirit (petrol) to the tune of N1, 341,471,735.67.

    He explained that analysis on the claims by the oil marketers showed that about 13,415 metric tonnes of fuel discharged by the marketers at Fatgbems depot did not emanate from Sweden as quoted in their “bill of lading.”

     

  • Subsidy scam: EFCC commences trial of Arisekola-Alao’s son

    Subsidy scam: EFCC commences trial of Arisekola-Alao’s son

    The Economic and Financial Crimes Commission on Monday began the trial of Abdullahi Alao, son of prominent businessman, Alhaji Abdullazeez Arisekola-Alao, before a Lagos High Court in Ikeja.

    Abdullahi Alao and two others alongside their companies were charged before Justice Lateefat Okunnu for fraudulently obtaining N1.1 billion fuel subsidy payment from the Federal Government.

    The other two oil marketers are Opeyemi Ajuyah and Olarenwaju Olalusi while their companies are Majope Investment Limited and Axenergy Limited.

    At the opening of trial before the court presided by Justice Okunnu on Monday, the EFCC called its first witness, Mrs. Brenda Ataga, an employee of Oando Oil and Gas Plc, to testify against the defendants.

    The witness, who was led in evidence by EFCC counsel, Mr. Francis Usani, said Oando had entered into an agreement with Majope Investment in 2010 for the supply of 15,000 metric tonnes of Premium Motor Spirit (PMS).

    Ataga said Majope was to discharge the products at the Lister Jetty in Apapa that was being used as a tank farm by Oando before January 4, 2011.

    According to her, Oando appointed a surveyor, Q and Q Control Services Limited to inspect the products when it was brought by Majope Investment.

    “At the end of the day, instead of supplying the 15,000 metric tonnes as agreed, Majope Investment Limited discharged about 4,700 metric tonnes into the facility,” she claimed.

    She said Oando Oil and Gas Plc paid Majope Investment Limited about N320 million for the 4,700 metric tonnes of PMS discharged into its facility.

    Ataga said Ajuyah later told her that the business relationship was suspended due to the cost of demurrage the vessel had incurred off-shore.

  • Subsidy: Tukur’s son, two others challenge court’s jurisdiction

    Subsidy: Tukur’s son, two others challenge court’s jurisdiction

    Two oil marketers, Mahmud Tukur and Alex Ochonogor, alongside their company, Eterna Plc on Monday challenged the jurisdiction of a Lagos High Court, Ikeja, to hear the N1.8 billion fuel subsidy fraud charge preferred against them by the Economic and Financial Crimes Commission (EFCC).

    Mahmud is the son of Alhaji Bamanga Tukur, the National Chairman of the Peoples Democratic Party (PDP).

    The marketers filed their application before the court presided over by Justice Adeniyi Onigbanjo.

    The application dated May 3,2013 was filed by their counsel, Chief Wole Olanipekun (SAN).

    The defendants were charged to court alongside Abdullahi Alao, son of prominent Ibadan based businessman, Alhaji Abdullazeez Arisekola-Alao.

    At the resumed hearing of the matter on Monday, counsel to the defendants, Chief Olanipekun informed the court that the application had been served on the EFCC counsel, Mr. Rotimi Jacobs (SAN)

    Olanipekun said the application was seeking for an order quashing or striking out the charge for want of jurisdiction.

    He said, “The criminal charge was not instituted in accordance with procedural due process.”

    “This charge is a matter relating to the revenue of the Federation on which only the Federal High Court has jurisdiction.

    “The substratum of the charge is within the admirality jurisdiction of the Federal High Court”, he said.

    Olanipekun told the court that his clients filed the application late because they were still discussing with the Federal Government on the charge.

    “As at now, we are still discussing. I say this from the Bar even if my learned friend, Jacobs, claims not to be aware,” he added.

    Jacobs however, told the court that he was not aware of the said discussion between his client (Federal Government) and the defendants.

    He urged the court to allow the parties take the applications orally but the judge declined his request.

    Onigbanjo therefore adjourned the matter till May 28 for argument of the applications.

     

  • Subsidy scam: Ahmadu Ali’s son used forged documents – Witness

    Subsidy scam: Ahmadu Ali’s son used forged documents – Witness

    A prosecution witness, Mr. Chidi Onyedikwe, on Wednesday told an Ikeja High Court that some documents used by an oil marketer, Mamman Ali, to collect N4.4 billion subsidy fund were forged.

    Onyedikwe was testifying at the resumed trial of Mamman, who is being prosecuted by the Economic and Financial Crimes Commission (EFCC) over a subsidy scam.

    He was charged alongside Christian Taylor, a Sierra Leonean; Oluwaseun Ogunbambo, an oil marketer, and Nassaman Oil Services.

    Onyedikwe, the Lagos branch manager of Inspectorate Marine Services Nigeria Limited, had, on February 21, testified that the defendants used fraudulent documents to obtain the money.

    Under cross-examination by counsel to the defendants, Mr. Kolade Obafemi, and Mr. Adebayo Adenipekun, a Senior Advocate of Nigeria, the witness maintained that his company did not issue the documents.

    Onyedikwe listed the documents to include cargo transfer, certificate of quantity, certificate of quality and haulage, all bearing the logos, signatures and stamps of his company.

    He said: “As I said, we went through our operational records, our laboratory records and account records.

    “Those documents did not emanate from our company even though it was bearing our logos, stamps and signatures.”

    Onyedikwe said the haulage report showed that the defendants had imported the petroleum products and that his company had inspected the products.

    He said the company did not assign any of its inspectors to carry out the said transaction.

    The News Agency of Nigeria reports that the EFCC had in its charges, claimed that the defendants presented the documents to the Petroleum Products Pricing Regulatory Agency (PPPRA) to obtain the subsidy.

    The case, which is being heard by Justice Adeniyi Onigbanjo, was adjourned to May 28.

     

  • 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 scam: EFCC, marketers fail to agree on ‘amicable’ resolution

    Subsidy scam: EFCC, marketers fail to agree on ‘amicable’ resolution

    Two oil marketers indicted for their alleged involvement in petrol subsidy fraud have failed in their bid for out of court settlement with the Economic and Financial Crimes Commission.

    The oil marketers, Aro Sunday Bamidele and Abiodun Kayode Bankole had at the last sitting told the court that they were already negotiating with the EFCC regarding the N1.3 billion fuel subsidy charge preferred against them by the commission.

    But at the resumed hearing of the matter on Monday before Justice Lateefa Okunnu of a Lagos High court, Ikeja, the EFCC counsel, Tayo Olukotun informed the court that the negotiation process had failed.

    “My Lord, I wish to inform the court that negotiation between the parties has broken down. We were informed on Wednesday, January 24 of this development.

    “The defendants have filed a Notice of Preliminary Objection, we would like to respond to this and would be applying for a short time to respond,” Olukotun told the court.

    The oil marketers were arraigned alongside their company, A.B.S Investment Company Limited on October 5 last year.

    They are facing an 18- count charge bordering on conspiracy, obtaining money by false pretence, forgery and altering of documents.

    The EFCC 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 Spirit (PMS).