Oil marketers continue strike despite FG’s promises

Oil marketers in the country are still on strike despite the promises by the Federal Government on Thursday that verified subsidy arrears would soon be paid to them.

The marketers, who spoke to our correspondent on Friday, confirmed that the government had yet to contact them for deliberations.

The FG on Thursday, through the Ministry of Finance, directed the Debt Management Office to pay marketers all subsidy claims that had been verified.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had said the claims would be paid as soon as the Petroleum Products Pricing and Regulatory Agency provided the supporting Sovereign Debt Notes. But she did not disclose the total amount to be paid to the marketers.

The minister, in a statement by her Senior Special Assistant on Communication, Mr. Paul Nwabuiku, had said there was no need for the marketers to go on strike since the government was already addressing the subsidy payment issue.

Confirming the position of the marketers on Friday, the President, Depot and Petroleum Products Marketers Association, Chief Dapo Abiodun, said, “Of course we are still on strike. We have not heard from the government yet. There has been no meeting between us and government.”

He said officially, neither the association nor its members had been communicated to in that regard.

He said, “What we hear are just rumours that we’ll be paid.”

Our correspondent learnt from some members of the Jetty and Petroleum Tank Farm Owners of Nigeria that the government had yet to reach them on the development.

Marketers had said on Wednesday that they were awaiting proof from the government that it would actually pay the claims.

When asked if the current strike would be called off following the promise by the government to pay, they had said, “We will wait until we have a proof of that. Nobody has told us that.”

　

DAPPMA had said it would wait until the government’s intention to pay the verified subsidy arrears was formally communicated to it.

Abiodun, who spoke on behalf of the association, also said if the development was confirmed, the association might do some reconsiderations as regards the current strike embarked upon by its members.

The Chairman, Jetty and Petroleum Tank Farm Owners of Nigeria, Mr. Ifeanyi Uba, had said before the association would call off its strike, the government must meet its conditions.

He said, “We must have a Memorandum of Understanding with the government on how this business will be run. The government should settle the subsidy claims and design the future of this industry.”

In the same vein, the Executive Secretary, Major Marketers Association of Nigeria, Mr. Obafemi Olawore, had told our correspondent that, “Let the government pay; we are waiting.

“We don’t expect them to pay unverified claims; but they should be fast in verifying all the claims.”

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How PDP chieftain’s sons allegedly defrauded subsidy treasury – EFCC

The Economic and Financial Crimes Commission (EFCC) yesterday arraigned two sons of the ruling Peoples Democratic Party (PDP) chieftains before the Lagos High Court over Lagos for alleged fuel subsidy fraud.

The duo was Mahmud Tukur, son of PDP National Chairman Bamanga Tukur, Nasamu Ali, son of the party’s former National Chairman, Alhaji Ahmadu Ali and others, including Christian Taylor, a foreigner.

But, Abdullahi Arisekola, son of Ibadan frontline businessman Alhaji AbdulAzeez Arisekola-Alao, arraigned for two sets of charges before two judges, was remanded in the custody of the Economic and Financial Crimes Commission (EFCC) till Wednesday when his bail application will be heard.

These PDP leaders’ sons were among the 20 supects  who allegedly defraud the treasury of N13 billion.

“The Nation” reported that Tukur was arraigned alongside Alao, Ochonogor Alex and Eternal Oil and Gas Plc. before Justice Adeniyi Onigbanjo.

The accused persons are facing a nine-count charge of conspiracy, obtaining money by false pretence, forgery and use of false documents.

EFCC prosecutor Mr Rotimi Jacobs, alleged that they had between January and April, last year in Lagos, fraudulently obtained the sum of N1.8 billion from the Federal Government.

He alleged that the accused persons obtained the money from the Petroleum Support Fund for a purported importation of 80.3 million litres of Premium Motor Spirit.

The accused persons were also alleged to have forged a Bill of lading dated April 28, 2011, which they used in facilitating the fraud.

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

According to him, they also contravene Sections 467 and 468 of the Criminal Code Laws of Lagos State 2003.

All the accused persons pleaded not guilty to the charges.

Justice Onigbanjo, ruling on the bail applications filed by their counsel, Wole Olanipekun (SAN) and Olawale Akoni, granted them bail in the sum of N20 million each with two sureties in like sum.

The judge said one of the sureties must be a blood relative of the accused with a landed property in Lagos worth not less than N100 million, also with a verifiable title document.

He added: “The other surety must be a level 16 officer in the Lagos State or Federal Civil Service.

“The sureties must produce three years tax clearance and they must be verified by the chief registrar of the high court.

“The accused persons are to deposit their international passports with the EFCC, which must not be released without the express permission of the court”.

Justice Onigbanjo adjourned the matter till November 13 for trial.

Ali, Taylor and Nasaman Oil Services were arraigned before Justice Onigbanjo on a three-count charge of conspiracy and obtaining by false pretence.

Jacobs alleged that the accused persons between January and April 2012, fraudulently obtained N4.4 billion from the Federal Government.

He said the money was obtained as subsidy payments from the Petroleum Support Fund for the purported importation of 30.5million litres of Premium Motor Spirit (PMS) from SEATAC Petroleum Limited of British Virgin Islands.

The accused persons pleaded not guilty to the charges and were granted bail on the same terms earlier granted to the other accused persons.

The matter was adjourned to October 30 for trial.
Alao, alongside his company, Axenergy Ltd., was also arraigned before Justice Habeeb Abiru on another seven-count charge of obtaining money by false pretence, forgery and use of false documents.

He is accused of fraudulently obtaining N2.6 billion in December 2010 from the Federal Government as subsidy payments for the purported importation of 33.3 million litres of PMS from Ex-MT Gavros and Ex-MT Nippon Princess.

The prosecution alleged that Alao forged a bill of lading dated October 13, 2011, which he allegedly used in perpetrating the fraud.

According to Jacobs, Alao’s alleged offences contravene Sections 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006.

He said it also contravened Sections 467 and 468 of the Criminal Code Laws of Lagos State 2003. The accused pleaded not guilty to the charge and the judge ordered him to be remanded in EFCC custody, pending the hearing and determination of his bail application on August 1.

The court also fixed Aug. 1 for the arraignment of Walter Wagbatsoma, Adaoha Ugo-Ngadi, Fakuade Babafemi, Ezekiel Ejidele and Ontario Oil and Gas Plc.

The matter was adjourned following the absence of Wagbatsoma in court. His lawyer, Mr Babajide Koku (SAN), promised to produce him in court at the next adjournment date.

Koku said: “We have spoken to him and he’s making arrangment to appear in court to defend the charges against him.

“He would have been here this morning but he has problem with his flight but he promised to get a connecting flight and should be back by Monday.”

Counsel for Ugo-Ngadi, Ebenezer and Ejide, the 2nd, 3rd and 4th defendants, Mr. Wale Akoni (SAN), Abimbola Odeyemi and James Ogunyemi objected to the request on the grounds that it would delay the liberty of their clients.

They urged the court to allow separate trials for the defendants so that they could argue bail terms for their clients.

The judge rejected their request, describing it as premature.

Justice Abiru granted the request of Mr. Koku, counsel to the 1st and 5th defendants, for an adjournment.
He ordered that all the other defendants be remanded in EFCC custody, pending when they will be properly arraigned on August 1.

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FG orders payment of subsidy arrears to marketers

The Federal Government on Thursday moved to avert a nationwide fuel scarcity as it directed the Debt Management Office to pay marketers all subsidy claims that had been verified.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, said the claims would be paid as soon as the Petroleum Products Pricing and Regulatory Agency provided the supporting Sovereign Debt Notes.

She, however, did not disclose the total amount to be paid to the marketers.

The oil marketers, operating under the aegis of Depot and Petroleum Product Marketers Association, had threatened to go on strike if their claims were not paid by Thursday.

Specifically, they vowed to suspend fuel loading at the depots in Lagos and other parts of the country.

But the minister, in a statement by her Senior Special Assistant on Communication, Mr. Paul Nwabuiku, on Thursday, said there was no need for the marketers to go on strike since the government was already addressing the subsidy payment issue.

The statement reads, “The Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, has directed the Debt Management Office to pay marketers with verified claims as soon as supporting Sovereign Debt Notes are provided by the Petroleum Products Pricing and Regulatory Agency.

“The directive is to reinforce the Federal Government’s determination to ensure that there is no disruption in fuel supplies across the country.”

The statement recalled that payments based on verified claims resumed after a meeting of the Federation Accounts Allocations Committee in June this year, and payments totalling N17bn were made.

It also said, “To prevent overpayments, verification of claims is a cornerstone of the procedures adopted by the Federal Ministry of Finance for managing fuel subsidy payments.

“The minister clarified that following the report of the Presidential Committee headed by Mr. Aigboje Aig-Imoukhuede, it is clear that some marketers also owe government significant sums of money and that government expects that these will be paid.”

The minister also said that the review had produced a lot of useful details on what went wrong with the system and what needed to be done to ensure improvement.

The review process started in February when the Ministry of Finance and other relevant government agencies held a meeting with bankers and marketers at the instance of President Goodluck Jonathan.

This was followed by a session with the accounting and auditing firms to re-evaluate their work.

It said, based on the review, the services of the two audit and accounting firms responsible for certifying the documents and claims of the marketers before payment were terminated.

Subsequently, a committee was set up to verify oil subsidy claims, it added.

The Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payment, in its report, which was submitted on Monday, revealed that 21 companies that participated in subsidy payments were found culpable of fraudulent claims.

The report said that N21bn was cleared leaving N382bn as the sum in contention, the basis for which the committee recommended the process of recovery.

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Subsidy Probe: “There will be no Sacred Cows”- Jonathan

The report containing details of looting during the subsidy regime as prepared by the House of Representative has been formally handed over to the Attorney General and Minister of Justice, Muhammed Adoke, SAN by the president on Tuesday. The President had directed the minister to prosecute all those found guilty, saying they will be no sacred cows.

Speaking to the State House Correspondents in Abuja,  Adoke  assured that he would carry out Mr. President order, stating that the report  would soon be sent to the Economic and Financial Crimes Commission for further investigation.

Adoke who reiterated the president’s promise to Nigeria during the probe said “We don’t want situations where we are stampeded to initiate prosecution and we are unable to prosecute due to lack of or paucity of evidence.

“Now we have to ask the EFCC to do a thorough job as they have been doing and this report will help them tremendously. I have a specific instruction from the President that we should investigate and we should prosecute.

“I can assure you that we will prosecute all those that are found culpable. There will be no sacred cows. I am with a copy of the report. We are not going to victimise anybody, we are going to do this without sentiments and whoever is found guilty we are going to arraign him before a court of law and prosecute. If there is no enough evidence to prosecute anybody, we are not going to persecute anybody.”

Adoke further assured that the investigation into the matter would be done in the most professional way and to the best interest of the country, asserting that those found culpable would be prosecuted without sentiments.

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