Fuel Marketers Threaten Strike ’Morrow …As FG Sues Oil Coys, EFCC Arraigns 19 Suspects

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), yesterday threatened to shut its operations within 48-hours if government fails to pay subsidy claims to marketers.

Mr Dapo Abiodun, President of the association, made the ultimatum in a telephone interview with newsmen in Lagos.

Abiodun said that failure on the part of the government to pay all verified and outstanding subsidy claims would lead to members’ suspension of supply and distribution of petroleum products nationwide.

“We are not fighting government but what we are saying is that government should pay all our outstanding subsidy claims which have affected our operations.

“If after 48-hours government fails to effect payment, we, the members of DAPPMA are going to put our operations on hold nationwide pending when it is paid.’’

Abiodun said that banks were charging marketers about N1.80k as interest on a litre of petrol on a monthly basis due to non-payment of the subsidy claims by government.

He said that it cost members about $30 million dollars (N4.68 billion) to import 30,000 metric tones of petrol, adding that non-payment of subsidy has resulted to huge debts from funds borrowed from banks.

According to him, the bank loans used to finance importation of petroleum products have continued to accrue interest over and above the 45 days.

Abiodun also said that the decision of Federal Government to suspend indefinitely all verified and outstanding subsidy payments since January had exposed its members to financial crisis.

“Our members have been exposed to harsh effects of the devaluation of the Naira that will make it impossible to fully repay the outstanding dollar denominated loans when eventually payments are made by the Federal Government.”

Abiodun said the situation has made it imperative for them to demand also the payment of all accrued interests over and above the contractual period.

He said the association was not against the ongoing investigation of the 2011 subsidy claims by marketers, but requesting for the full payment of 2012 subsidy claims so far.

“We have subjected ourselves to the various panels of investigations but nothing came out of the reports.

“The government does not have any reason to hold the payment of claims when marketers have duly imported the products.”

Our correspondent reports that the Jetty and Tank Farm Owners Association of Nigeria (JEPTON) on Monday embarked on an indefinite strike over the non-payment of subsidy claims.

Meanwhile, the Federal Government yesterday filed a suit against two oil companies and their managing directors, who allegedly collected about N2 .5 billion for the importation of petrol but did not import the commodity.

The defendants are Integrated Resources Ltd. and its Managing Director, Durosola Omaggenigun; and Pinnacle Oil and Gas and its Managing Director, Peter Mba.

They were charged before a Lagos High Court sitting at Igbosere.

The Economic and Financial Crimes Commission (EFFC) will arraign the defendants on Thursday before Justice Samuel Candide-Johnson.

In a four-count charge signed by Mrs Olabisi Fatunde, the Director of Public Prosecution of the federation, the government said that the defendants committed the crime between 2010 and 2011.

The charge stated that they collected the money under false pretence of importing 32.3 million litres of petrol.

The government said that the defendants claimed to have used the money to import about 19.3 million litres of petrol from the Nimex Petroleum Ltd.

It further alleged that they also claimed to have purchased about 13 million litres of the product from the Alcamo International Ltd.

In a related development, the Economic and Financial Crimes Commission (EFCC) on yesterday said that it had concluded plans to prosecute the first batch of 19 suspects involved in the fuel subsidy fraud.

In a statement issued by its Acting Head of Media and Publicity, Mr Wilson Uwujaren, in Abuja, EFCC said that some of the suspects including Nasaman Oil Services, Eternal Oil and Gas Plc, Ontario Oil & Gas Plc and Nadabo Energy Limited would be arraigned in Lagos, today.

Also to be arraigned in Lagos are Pacific Silver Line Limited, Axenergy Limited, Fago Petroleum and Gas Limited and 12 individuals.

The statement also listed the 12 individuals to include Mamman Ali, Christian Taylor, Mahmud Tukur, Ochonogor Alex, Walter Wagbatsoma, Adaoha Ugo-Ngadi, Fakuade Ebenezer.

Others are Ezekiel Ejidele, Abubakar Peters, Jude Abalaka, Oluwaseun Ogunbanbo and Abdullahi Alao.

Some of the suspects are among the over 140 individuals and organisations suspected of being involved in the subsidy payment scam, currently under investigation.

The  accused persons are expected to be arraigned before Justices Adeniyi Onigbanjo and Habeeb Abiru of the Ikeja High Courts.

According to the charge sheet dated July 19, 2012, the accused persons are facing a 9-count charge bothering on conspiracy, obtaining money under false pretences, forgery and use of false documents.

The EFCC alleged that they had on April 28, 2011 in Lagos, fraudulently obtained N676.9 million from the Federal Government, purporting same to be payment accruing to Eterna Oil under the Petroleum Support Fund.

The commission also accused the marketers of falsifying claims to have purchased 33, 288, 388 litres of Premium Motoring Spirits (PMS) from Mercury Energy Trading AS and imported to Nigeria through Ex-MT Fulmer, Ex-MT Emirates Star and Ex-MT Panther.

Alao will also face another 7-count charge bothering on obtaining money under false pretences, forgery and use of false documents before Abiru.

He is accused of fraudulently obtaining N2.5 billion in December 2010 from the Federal Government as subsidy payments for supplying 13,364,284 and 20,014,627 litres of PMS from Ex- MT Gavros and Ex-MT Nippon Princess.

They are also facing a 9-count charge bothering on conspiracy, obtaining money by false pretext, forgery and use of false documents.

The EFCC, in the charge sheet signed by Mrs O.O. Fatunde, alleged that the accused persons fraudulently obtained over N1.9 billion from the Federal Government under the Petroleum Support Fund from July to December 2010.

All the accused persons were also alleged to have forged bills of lading and other vital documents which they allegedly used in perpetrating the fraud.

The anti-graft agency said their alleged offences contravened Sections 1(3) of the Advance Fee Fraud and Other Fraud Related Offences Act of 2006.

The offences also contravened Sections 467 and 468 of the Criminal Code, Laws of Lagos State 2003, it added.

Rivers State Governor, Rt. Hon. Chibuike Rotimi Amaechi (middle), commissioning the Indorama Eleme Petrochemicals’ new Polyethylene Terephthalate (PET) facility, yesterday. With him are Group Managing Director of Indorama Worldwide, Mr Amit Lohia,(left),Managing Director, Indorama Eleme Petrochemicals, Mr Manish Mundra (right).