N1.1bn Fuel Subsidy Fraud: We’re Guilty –PPPRA

The Petroleum Products Pricing Regulatory Agency (PPPRA) yesterday admitted that it verified the documents used by Abdullahi Alao and two others to obtain the subsidy payments from the Federal Government.

Alao, son of Ibadan-based business mogul, Alhaji Azeez Arisekola-Alao; Opeyemi Ajuyah and Olarenwaju Olalusi are being prosecuted by the Economic and Financial Crimes Commission before Justice Lateefat Okunnu of a Lagos High Court in Ikeja.

The three oil marketers and their companies— Majope Investment Ltd. and Axenergy Ltd. were charged with N1.1 billion fuel subsidy fraud.

At the proceeding, EFCC counsel, Mr Francis Usani, called two officials of the agency to testify against the defendants.

The witnesses are: Head, Lagos Zonal Office, Mr Victor Chidok,  and Mrs Omolara King, a senior field officer of the PPPRA.

Chidok, in his testimony, confirmed that the set of 37 documents used by the defendants to obtain the subsidy payments from the Federal Government were verified by the PPPRA.

He said the documents were also verified by other agencies including the Department of Petroleum Resources, the Nigerian Navy and the customs before they were signed by the agency.

Also testifying, King said she was informed that the defendant’s vessel, MT Brig had berthed at Lister Jetty in Apapa on January 21, 2011.

The witness said she participated alongside other agencies in inspection of the vessel which was aimed at knowing the quantity and quality of the product brought in.

King said: “The haulage quantity was about 15,000 metric tonnes.

“The hoses were then connected to the vessel for discharge to the shore tank.

“After that I left because it is not humanly possible for me to be there throughout the duration of the discharge because it can take days”.

The witness said she did not participate in the dip to determine the quantity of the products discharged into the shore tank.

“For this particular transaction, we did not dip the tank but we signed the shore tank certificate on January 25, 2011.

“The shore tank certificate is very important because it determines the amount that will be paid to the marketer as subsidy”, she added.

Under cross-examination by Ajuyah’s counsel, Mr Oludare Falana, the senior field officer admitted that she did not know whether the 15,000 metric tonnes were all discharged.

King further admitted that the former head of Lagos zonal office of the agency, Mr Tope Ogundola, approved the transaction after checking the relevant documents.

The matter was adjourned till March 27 for continuation of trial.