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Tag: Oil Marketers

  • EFCC recovers N329bn from 10 oil marketers

    EFCC recovers N329bn from 10 oil marketers

    The Economic and Financial Crimes Commission (EFCC) has recovered N329 billion from 10 marketers from 2016 to date.

    The marketers defaulted in payment for products supplied to them by the Nigerian National Petroleum Corporation (NNPC) through its subsidiary, the Petroleum Products and Marketing Company (PPMC).

    About N20, 604, 109, 123.90 is yet to be recovered.

    The PPMC has written to the EFCC to help recover the funds.

    Following a petition against the marketers, EFCC Acting Chairman Ibrahim Magu raised a special task force to investigate how the marketers incurred the debts of about N349, 818,411,556.37.

    The Task Force, which was managed by the EFCC Zonal office in Kano, recovered the N329.150billion from 10 marketers.

    After the reconciliation at the weekend, the PPMC gave a status report to the Acting Chairman.

    The report, signed by Umar Ajiya reads in part: “Further to our previous correspondence to your office in respect of the above subject matter, please note that till date, the debts recovered from major oil marketers include N87, 028, 851, 268.17 and N242, 121, 256,468.03 for legacy and current debts respectively, leaving a balance of N20, 604, 109, 123.90 broken down into N4, 426,439, 240(legacy debts) and N16, 177,669, 883.90(current debts)

    “These amounts have been agreed with the marketers that they shall be deducted and paid from outstanding entitlements or payments due to the marketers from the Federal Ministry of Finance and which will bring to the end the debt recovery effort.

    We wish to express our profound gratitude for the successful collaboration between the EFCC and PPMC/ NNPC which largely resulted in the huge recovery of debt from the marketers from the inception of the recovery exercise in 2016 to date.”

    A source, who spoke in confidence, said if the EFCC had not moved in, some of the marketers would have been foot-dragging on the debts.

    “You can imagine what N349billion can do in the life of a nation. Some of these marketers were supplied products but they did not pay even after selling to customers.

    “The EFCC detectives are still working on the recovery of the over N20billion still outstanding,” he said.

    Earlier, the Head of Media and Publicity of EFCC, Mr. Wilson Uwujaren, had given an insight into the breakthrough by EFCC detectives.

    He said: “Findings by the operatives of the EFCC revealed that the oil marketers were actually indebted to the Federal Government to the tune of N91,519,485,204.44billion between 2010 and 2016.

    ”Further investigation into the allegation also revealed that the oil marketers had continued to obtain petroleum products from the government without proper payment, in violation of the NNPC/PPMC credit facility regulations.

    ”Upon the conclusion of the preliminary investigation, officials of NNPC/PPMC and all the managing directors of the concerned companies which are NNPC retails , Conoil Plc, Total Plc, OVH Energy Plc, Oando Plc, Forte Oil and Gas Plc, Mobil Plc, MRS Oil Plc, and NIPCO Oil Plc were invited to the Kano Zonal Office of the Commission where their statements were recorded following which the recovery process commenced.”

    Shady deals in the oil sector, including the fuel subsidy scandal, were said to have cost the nation over N1.3 trillion in 2011.

    But the manipulation of subsidy claims caused an uproar nationwide.

    The Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments had initially indicted 21 firms for fraudulent claims that cost the nation N382 billion but the list was later increased to 25 by the Federal Ministry of Finance, based on fresh evidence.

    The former Chairman of the Committee, Mr. Aigboje Aig-Imoukhuede, said of the N422 billion scrutinised, N18 billion was found to be duplication; N21 billion was cleared.

    He also confirmed out of the 116 oil marketing and trading companies (OM&T) invited, 107 honoured the invitation.

    He said: “Of the N422 billion, N18 billion was found to be duplication. So, the actual amount that was being verified is N403 billion. Of this amount, N21 billion was cleared and that leaves N382 billion as the sum in contention for which the committee recommended that the process of recovery should be made,” the report noted

     

  • Alleged $115m bribery: EFCC names Diezani’s abetting oil marketers

    Alleged $115m bribery: EFCC names Diezani’s abetting oil marketers

    The Economic and Financial Crimes Commission, EFCC, on Wednesday named three oil marketing companies which allegedly aided a former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, to distribute an alleged bribe of $115m to compromise the 2015 general election.

    An investigator with the anti-graft agency, Usman Zikari, who appeared as a witness before the Federal High Court in Lagos on Wednesday, claimed that three oil companies were used as conduits by the former minister, The Punch reports.

    According to him, the oil marketing companies – Auctus Investment Ltd., Northern Belt Gas and Mid-Western Oil and Gas – along with one Leonor Olaitan, were used by Diezani to lodge $89m out of the $115m in the bank.

    Zikari testified on Wednesday in the case of Dele Belgore (SAN) and a former Minister of National Planning, Prof. Abubakar Suleiman, who were charged with laundering N450m.

    The SAN and the ex-minister were arraigned by the EFCC before Justice Rilwan Aikawa.

    Led in evidence on Wednesday by the EFCC prosecutor, Mr. Rotimi Oyedepo, Zikari narrated how Belgore and Suleiman allegedly received N450m from the $115m Diezani bribe.

    The prosecution showed the court the document allegedly signed by Belgore and Suleiman showing that they collected the N450m.

    The witness added that an unknown aide to the former minister also took $25, 776,000 to the bank.

    He said in the course of investigation the managing director of the bank was invited by the EFCC and interrogated.

    The witness said, “During the interview with the MD, it was revealed that in December of 2014, the MD had a meeting with Mrs. Diezani, where she told him that an individual would be bringing money. That he should keep the money, when the money was complete she would give him further instructions.”

    The witness claimed that the money was brought in as promised and further instructions to convert the sum and distribute same was given via the email address of Diezani’s son, Ogbonna.

    He also showed the court the printed copy of the email exchanged between the MD and Ogbonna.

    Justice Aikawa adjourned further proceedings in the case till June 15, 2017.

  • Emefiele to appear before reps over forex sale to oil marketers

     

    The House of Representatives on Monday summoned the Governor of Central Bank of Nigeria, CBN, Mr Godwin Emefiele, over the apex bank alleged sale of foreign exchange to International Oil Companies (IOCs).

    Emefiele’s invitation by the House’s Ad hoc Committee on the Review of Pump Price of Petrol followed the committee’s rejection of the records of the foreign exchange transactions presented to it.

    The committee, which continued its public hearing on the issue in Abuja, ordered that the CBN governor should appear with details of all beneficiaries of the foreign exchange deals.

    He is also expected to give insight into the banks used by the apex bank in the transaction with the oil marketers.

    In the rejected record presented on behalf of Emefiele by Dr Alvan Ikoku, Director, Financial Market Department of CBN, he told the committee why the bank acted as third party to oil companies and importers of petroleum products.

    He said that the CBN took over the purchase of dollars from the IOCs and began to sell directly to petroleum marketers seeking foreign exchange to import products.

    It was, however, not revealed in the records how much the apex bank sold the currencies to the companies even when it stated that Emefiele determined the rate the currencies were sold to oil marketers.

    The committee Chairman, Rep Raphael Igbokwe, directed that the CBN boss should prepare explanations on the legal grounds or provisions that allowed IOCs to operate as financial institutions selling foreign exchange to Nigerians.

    According him, by so doing the IOCs acted as parallel financial clearing houses.

    The committee demanded explanation on the criteria for the allocation of foreign exchange to dealers as well as necessary documents to show such allocations to the marketers.

    It also ordered the appearance of Managing Director of Duke Oil and other oil marketers, who were invited.

    Igbokwe explained that the order was important as the representatives of the oil marketers were not in the capacity to respond to some allegations levelled against the companies.

    Commodore P.A. Efedue who represented the Nigerian Navy, explained that multiple charges by government agencies operating at the ports were responsible for most oil importers avoiding Nigerian ports.

    Efedue said that the charges were part of the reasons why some of the oil marketers preferred to deliver their products through ports in neighbouring countries.

    He said that the development was in spite of security which had improved tremendously at Nigerian ports.

    “The oil marketers come to my office every day and I ask why Lome, not Lagos port. They said the reason is that charges in Lagos are higher,’’ Efedue said.

    He, therefore, advised that the charges at the ports should be addressed to attract oil vessels to Nigeria’s ports, saying that the rate of insecurity in the country’s waterways had reduced.

    “Cases of piracy have reduced, so it is the charges that are the issue with the marketers.”

    He also said that the navy did not charge any money to grant approval to marketers, adding that the collaboration between navy and NIMASA was helping in securing the water ways.

    On his part, Commodore A.O. Bamidele of the Operations Directorate, Naval Headquarters, also reiterated that insecurity was not the reason for marketers preferring neighbouring countries’ ports.

    “It is not security; look at Lagos harbour and anchorage, we don’t have security challenges.

    “It is only in Bayelsa and Rivers area but we are making efforts to put it in check,” Bamidele said.

     

    NAN