Fuel subsidy scam: Noose tighten around Uba

Attempts by the Chairman of Capital Oil and Gas Industries Limited, Mr. Ifeanyi Uba, to exonerate himself of alleged N53.4 billion fuel subsidy scam may have suffered a setback as the Nigerian Police, a London court and the Assets Management Corporation of Nigeria (AMCON) are tightening the noose around him.
Not long after the police authorities issued a report indicting him of involvement in the scandal, a London court which seized Uba’s asset worldwide has refused to vacate its order just as AMCON appealed a separate ruling in favor of the oil chief.
The Federal High Court, Abuja Division had on December 12, 2012 discharged an earlier order (of November 13, 2012) it had made freezing Uba’s property. The court had granted AMCON possession of property belonging to the company and its owner pursuant to Section 49 and 50 of AMCON Act.
The London court case was instituted by Access Bank, which, through Cosmas Maduka’s Coscharis Motors, had advanced Capital Oil a N21 billion loan for PMS importation last year, was again heard on Monday December 3, 2012.
The Special Fraud Unit of the Nigeria Police (in Ikoyi, Lagos) had detained Uba for alleged involvement in a N22.4 billion subsidy scam, just as an Aigboje Aig-Imoukhuede-led Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments, had indicted him, alongside many oil marketers.
It was learnt the oil magnet who is now being monitored by security operatives spent about 11 days in detention, and was released on October 19, 2012.
A police report had affirmed that ``Capital Oil and Gas Limited forged documents, made fraudulent representations, obtained by fake pretences and stole federal Government money by claiming monies paid on these fraudulent presentations.

Police Indict Capital Oil, Ubah for Subsidy Fraud

An interim investigative police report on the involvement of Capital Oil and Gas Limited in the fuel subsidy scheme has established that the company and its Managing Director/Chief Executive Officer, Mr. Ifeanyi Ubah, and four of the company’s staff, colluded with others to defraud the Federal Government of Nigeria of billions of naira.

The four indicted staff of Capital Oil are its Executive Director, Operations, Mr. Orji Joseph; General Manager, Operations, Mr. Ogbuokiri Chibuzor; Depot Manager, Mr. Okorie Onuabuchi; and Head of Training, Mr. Nsikan Usoro.

The report showed that Capital Oil was involved in 26 transactions covering the importation of 538,740,000,000 litres of petrol and was paid N43.291 billion as subsidy claims in 2011. The report detailed the arrest and interrogation of Ubah and four others by the SFU between September and October, during which it was discovered that the alleged irregular claims were made based on fraudulent fabrication and forged documents in which about N43.291 billion was paid to Capital Oil as subsidy claims. The report noted the irregularities were in the form of alterations, wrong reference numbers and duplication of vessels, coupled with cargo quantity inflation.

Subsidy Scam: Uba, 6 Others to Remain in Custody

The Special Fraud Unit (SFU) arrested six managers of Capital Oil and Gas for their alleged involvement in the fuel subsidy fraud in addition to Mr. Ifeanyi Uba who was earlier picked up by the unit.  

Uba is expected to remain in custody pending the conclusion of the investigation and interrogation over his role.

The five managers arrested with Uba include, Executive Directors, Operations and Special Duties, Mr. Joseph Orji and Mr. Afam Azubuike respectively. Others are, General Manager Operations, Mr. Chibuzor Ogbuokiri; Depot Manager, Mr. Godfrey Okorie and Head, Training Unit, Mr. Nsikan Usoro.

Capital Oil and Gas was indicted by the Aigboje Aig-Imoukhuede led Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments. According to the panel, out of the sum of N62,501,511,789.24 obtained fraudulently through the fuel subsidy structure, Uba’s company alone was allegedly involved to the tune of N22.4 billion.