By Clara Nwachukwu
LAGOS—The face-off between the Federal Government and some major oil marketers over subsidy claims deepened, yesterday, with the marketers challenging the federal government to publish the names of marketers and traders they paid subsidy claims to in 2012.
LAGOS—The face-off between the Federal Government and some major oil marketers over subsidy claims deepened, yesterday, with the marketers challenging the federal government to publish the names of marketers and traders they paid subsidy claims to in 2012.
Two of the marketers, Oando and Conoil insisted yesterday that they have nothing to hide. Over N4.2 trillion is allegedly owed marketers and traders for the importation of refined petroleum products this year.
The marketers also dared government to institute and wait for the outcome of legal proceedings against the marketers and traders, they claimed had committed some infractions in their reimbursement claims.
Meanwhile, investigations have revealed that except drastic measures are taken, products scarcity may not be averted because the amount government is willing to pay can barely cover the cost of the products import.
The challenge by the oil marketers came against the backdrop of claims and counter claims over subsidy payments between the ministries of Finance, and Petroleum Resources on the one hand and the oil marketers and traders on the other.
The marketers and traders have threatened to shut down their tanks this week if government did not pay them outstanding claims running into trillions of Naira, even as government said on Friday that it was investigating about 21 companies under investigation on “suspicion of fraudulent activities.”
A statement signed by the Minister of Finance, Dr. Ngozi Okonjo-Iweala, on Friday read in part: “Following the work of the Presidential Committee on Fuel Subsidy Payments led by Mr Aigboje Aig-Imoukhuede, the following firms (21) are being investigated based on evidence that they may have engaged in fraudulent activities under the fuel subsidy regime.”
However, the chief executive of one of the 21 companies toldVanguard that what Government was doing was “tantamount to witch-hunting.”
He asked: “Over 170 companies were indicted in the Aig-Imoukhuede’s report, why are they (government) singling out 21 for criminal investigations?”
He further challenged, “if they are sure of their claims, let them go to court to prove their case against the marketers. That way we will know that they are truly serious with what they want to do.”
Oando not indicted
The Managing Director/Chief Executive Officer, Oando Group, Mr. Wale Tinubu, in a telephone interview with Vanguard, noted that no member company of his Group was indicted for any wrong doing.
Although Oando is among the companies listed for further investigation, Tinubu, however, argued that there was nothing wrong with the move, saying, “the investigation is a step in the right direction. Those who are found to have committed some infraction should be made to pay the penalty; this way, government can recover some of the monies that were misappropriated.”
Tinubu, who insisted that Oando has nothing to be afraid of, also said that the Group has over the years proven to be a responsible corporate citizen, with billion dollar investments in both the upstream and downstream sectors of the economy.
He added that his company was listed because, “we seek payment for products delivered. All the marketing companies were told to verify their imports for the year and Oando has recently concluded its own verifications. So we are not in any way indicted for any wrong doing.”
The Oando boss further observed that the companies that Aig-Imoukhuede’s report indicted have been referred to for criminal proceedings and Oando is not one of them.
Outstanding payments
The Nigerian National Petroleum Corporation, NNPC, top the list of outstanding claims with $7billion, while the Depot and Petroleum Products Marketers Association, DAPPMA, is owed about $4billion.
Tinubu revealed that based on verifications, Oando is being owed about N60billion for product imports during the year, but nothing has been paid to his company
The Executive Secretary, Major Oil Marketers Association of Nigeria, MOMAN, Mr. Obafemi Olawore, during a VanguardConference on subsidy with the theme: “Fuel subsidy and the ethical deficiencies in public office in Nigeria,” said, member companies, which also include Oando, are owed over N200billion.
“Only one member has been paid in MOMAN. About N200billion is what is outstanding but they have paid only N14billion,” he said.
The Chairman of DPPMA, Mr. Dapo Abiodun, also told Vanguardthat no member company has been paid any claim since this year.
The Finance Minister said in its statement that government paid 31 oil marketers the sum of N42.67billion between April and August, and another N17billion to 14 oil marketers with a claim of between April and May. As a result, the Managing Director/Chief Executive of another company also listed for further investigation, challenged government to “publish the names of the marketers they claim to have paid.”
The oil chief, who spoke on the condition of anonymity, noted that “practically every marketer was indicted in the subsidy reports either by the House of Representatives or the Presidential Committee’s.”
Why scarcity is imminent
Vanguard investigations reveal that except drastic measures were taken as soon as possible, products scarcity may not be averted. This is because the amount government is willing to pay can barely cover the cost of the products import.
A Presidency source revealed that government is willing to pay only N21billion every month as subsidy claims.
However, the source noted, “This amount can only cover the cost of about six cargoes per month. Nigeria needs to import about 30 cargoes of fuel every month, so if government pays for only six, leaving an outstanding of 24, it means that there will be scarcity.”
Depot operators, many of whom are under throughput arrangement for government have warned that their products stock will be exhausted by this week. “If they (government) don’t do something very fast, we are definitely going to run into scarcity because no marketer is willing to import until payments have been made.”
We don’t know what govt is doing — Conoil
Conoil Plc, one of the companies listed for further probe, said it was not sure what government was up to.
A top management of Conoil, told Vanguard: “The Ministry of Finance demanded for additional documents, which we have submitted. While waiting for them to get back to us on the matter, they now published our name in the paper”.
The source added that Conoil has not done anything wrong and that the company intended to take up the issue after the Sallah holidays.
.jpg)
.png)