Fresh Subsidy scam: EFCC re-arraigns, Arisekola’s son, others

For the third time, Abdulahi, the son of the Ibadan based business tycoon,  Alhaji Abdulazeez  Alao Arisekola has been arraigned alongside four others in a fresh six-count N1.1 billion fuel subsidy scam.

Abdulahi was earlier arraigned before Justice Habeeb Abiru as well as Justice Adeniyi Onigbanjo on a nine count charge for subsidy fraud by the Economic and Financial Crimes Commission, EFCC, in July, 2012.

In this fresh six-count N1.1 billion theft charge brought against Alao,  he was accused alongside Opeyemi Ajuyah, Olanrewaju Olalusi and two companies; Majope Investment Limited and Axenergy Limited before Justice Lateefa Okunnu of the state  High Court, Ikeja. The defendants were arraigned on a six count charge bordering on conspiracy, obtaining by false pretence, forgery and uttering of  documents.

They were said to have conspired amongst themselves on February 14, 2011 to obtain the sum of N1,110,049,444.35  from the Federal Government of Nigeria by falsely claiming that the sum represented subsidy accruing to them under the Petroleum Support Fund, PSF, for the importation into Nigeria of 15,206.733 metric tons of Premium Motor Spirit (PMS), This according to EFCC is an offence contrary to Section 1 (3) of the Advance Fee Fraud and other Fraud Related Offences Act, 2006.

They all pleaded not guilty to the offences.  However, the court adjourned the case till  October 19, 2012 for hearing.

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.”

Subsidy Fraud Fallout: PPRA Moves to Streamline Fuel Imports

The Petroleum Products Pricing Regulatory Agency (PPPRA) has commenced the process of pre-qualification and registration of all existing and intending oil-trading companies that supply petroleum products to oil-marketing companies in Nigeria. This latest development is part of the renewed efforts of the agency to sanitize the subsidy scheme and ensure that only credible companies participate in the scheme in view of the abuse of the system that has led to the indictment of 25 oil-marketing firms for the abuse of the Petroleum Support Fund (PSF) scheme by the Aigboje Aig-Imoukhuede presidential committee.

Under the current bid by the PPPRA to sanitize the system, pre-qualified and registered companies would be under obligation to ensure that only reputable foreign oil traders with record of accomplishment in the fuel supply business are allowed to participate in the PSF scheme. 

PPPRA gave the oil-trading companies till September 7 to submit certain relevant documents for pre-qualification and registration. The documents must contain the name of the company; certificate of incorporation; share capital; country of origin and registration; names and profile of directors; Nigerian subsidiary, if any; and share capital. The companies must also provide information relating to their trading experience within the West African coast sub-region; details of indictment in the past, if any; main and address of trading offices; email address and annual turnover.