BP fined, charged in oil spill

Oil giant BP and three of its employees were indicted on criminal charges including manslaughter and obstruction of Congress on top of a record $4-billion fine that the company will pay the government for its role in the oil spill disaster that scarred the Gulf of Mexico.

Attorney General Eric H. Holder Jr. announced the indictments in a televised news conference from New Orleans, where the grand jury has been investigating the 2010 explosion of the Deepwater Horizon oil rig off the Louisiana coast. Eleven people died in the explosion.

The announcement of the charges against BP employees came on the same day officials announced that BP had agreed to an unprecedented settlement involving a guilty plea to criminal charges.

In addition, BP agreed to pay more than $525 million in civil penalties to satisfy complaints by the Securities and Exchange Commission. That brings the total settlement cost to more than $4.5 billion – not including the billions the company has already paid to settle civil claims from residents, fishermen and businesses harmed by the spill.

In all, the company said it agreed to enter guilty pleas to 14 charges, including the eleven counts of manslaughter. But the government went further, charging individuals as well.

Two BP employees, Robert Kaluza and Donald Vidrine, who were described by Holder as the two highest-ranking BP supervisors on board the Deepwater Horizon when it exploded, were charged with manslaughter and other counts.

Capital Oil Faults Indictment over subsidy fraud

One of the indicted oil marketing companies, Capital Oil & Gas Industries Ltd, by the Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments headed by Mr. Aigboje Aig-Imoukhede, has described as “very shoddy”, the report, which recommended it for criminal investigation.

Capital Oil & Gas in a statement said the committee erred by accusing it of infractions by making claims of subsidy payments without proof of existence of the mother vessel bill of lading or daughter vessel bill of lading, in spite of indisputable documents evidencing the purchase, payment, sailing and discharge of the cargo in question.

The company also argued the committee was wrong to have recommended that it collected subsidy payments for which proof of mother-vessels were not found in locations claimed at the time of transshipments. This, it said, was notwithstanding that all the relevant documents regarding the importation of the cargo, including mother and daughter vessels documents and the bill of lading was made available to the committee.

In addition, Capital Oil & Gas said it had provided to the committee, letters from Vitol S.A and Delany both internationally-recognized oil trading companies confirming the transshipment and vessel positions, transshipment from International Cargo Surveyor Inspectors (SGS), one of the key inspection companies worldwide.

Subsidy Fraud: Governors lend support as Indicted marketers begin refund

Governors of the 36 states of the federation have backed the Federal Government in its efforts to recover the subsidy claims from the marketers. Governor Peter Obi of Anambra State, who disclosed the governors’ position at the end of the National Economic Council meeting, said the governors were excited that the Federal Government’s effort had started to yield result as some marketers had started to make refunds.

Obi, though did not disclose the names of the marketers who have started repaying the stolen money, said Nigerians need to show understanding by supporting the Federal Government’s efforts at recovering the funds.

According to Obi, “from the report we got, some have started refunding. It is a serious case that people were paid for vessels that were not anywhere near the Nigerian waters. And I think when the Federal Government does a thing that is courageous and right; they should be encouraged and can at least give them the courage to do more.