Monday, 17 September 2012

N8 billion Subsidy Claims: Integrated Oil petition PPPRA

Integrated Oil and Gas Limited through its legal firm, Tayo Oyetibo & Co. has written to the management of the Petroleum Products Pricing Regulatory Agency, PPPRA, over an outstanding claim of about N8.68billion owed the company for petroleum products importation under the Federal Government’s Petroleum Support Fund, PSF. In a 10-page letter tiled, “Demand for the Immediate Settlement of Outstanding Refunds Owed Integrated Oil and Gas Limited Under the Petroleum Support Fund Scheme,” the lawyers gave the breakdown of PPPRA’s indebtedness to its client to include:
i.    Outstanding Principal PSF refund  —N6.548 Billion
 ii.    PPPRA Advice not yet issued for Access Bank’s —N0.5 Billion balance cargo of Dec 2011.
 iii.    PPPRA’s earlier short payments on our claims —N0.98 Billion
 iv.    Outstanding Accrued Interest  —N0.651 Billion
The lawyers maintained that their client submitted a total of 38 documents for the claims verification, adding that “From the date our Client joined the operation of the PSF Scheme, it has dutifully and honestly performed its obligations by importing and supplying Premium Motor Spirit (PMS) to the Nigerian market based on the agreement it had with the PPPRA.” They further maintained that the inability of the PPPRA to honour its part of the agreements “has completely hampered our Client’s ability to honour the contractual obligations it owes to its financiers notably, Access Bank Plc.”

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