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: FG recovers N29bn from suspects

The Federal Government has recovered N29 billion out of the N232 billion oil subsidy scam. The Minister of Finance and Coordinating Minister of the Economy, Dr Ngozi Okonjo-Iweala dropped the hint at the ongoing Nigerian Economic Conference.
She said the amount was recovered from some marketers who allegedly defrauded the Federal Government in the oil subsidy payment scheme. The minister maintained that the recovery exercise was part of government determination to fight corrupt practices in the oil and gas sector.
The minister said that about 50 marketers were being investigated over the subsidy scam. She attributed the slow pace of payment of the subsidy claims to the ongoing verification and thorough scrutiny of such claims by relevant agencies. Okonjo-Iweala reiterated that only genuine claims of oil marketers would be entertained.

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.

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.

Fuel Subsidy Scam: EFCC Arraigns 13 Oil Marketers

The Economic and Financial Crimes Commission has arraigned eight more directors of oil marketing companies and five oil-marketing and trading firms before the Lagos High Court in Ikeja, for fuel subsidy fraud. Six directors and four companies were arraigned before Justice Habeeb Abiru on eight-count charges bordering on uttering, obtaining and falsifying documents. Two directors and an oil marketing firm were arraigned before Justice Lateefa Okunnu on 18-count charge bordering on uttering, obtaining and falsifying documents.

The directors and the companies arraigned before Justice Abiru separately in batches were Anosyke Group of Companies Ltd, Ifeanyi Anosike, Dell Energy Limited, Emeka Chukwu, Ngozi Ekeoma, Downstream Energy Sources Ltd, Alhaji Adamu Aliyu Maula, Rocky Energy Ltd, George Ogbonna and Emmanuel Morah, being the first batch. The EFCC accused them of fraudulently obtaining N1,537,278,880.82 from the federal government by falsely representing that the said sum represented subsidy accruing from the importation of 15,000 Metric tonnes of Premium Motor Spirit.

Similarly, also arraigned before Justice Abiru on an eight count charge for the second batch, were Downstream Energy Sources Limited, Alhaji Adamu Aliyu Maula, Rocky Energy Limited, George Ogbonna and Emmanuel Morah. They were also accused of fraudulently obtaining N789,648,329.25 from the federal government by falsely representing that the said sum represented subsidy accruing from the importation of 14,273,0227 litres of Premium Motor Spirit.