‘N 422 bn in Subsidy Fraud to be Refunded to Federal Government’ – Aig Imokhuede led Committee

The Fuel Subsidy Claims committee headed by
Managing Director of Access Bank, Aigboje Aig
Imokhuede has recommended in its report that N
422 billion be refunded to the Federal Government
by oil marketers.
The committee includes other notable personalities
such as MD of Stanbic IBTC, Mrs. Sola David-Borha;
Director General, Budget Office of the Federation, Dr.
Bright Okogu; Dr. Director General, Debt
Management Office, Dr. Abraham Nwankwo;
Accountant General of the Federation, Mr. Jonah
Otunla; and Executive Secretary, Petroleum Products
Pricing and Regulatory Agency (PPPRA), Mr. Reginald
Stanley.
Other members included former Group Executive
Director, Finance and Accounts, Nigerian National
Petroleum Corporation (NNPC), Mr. Michael
Akorodare; Deputy Director, CBN, Mrs. Onyinye
Ahuchogu; Mrs. David-Borha; National Secretary,
Independent Petroleum Marketers Association of
Nigeria (IPMAN), Mr. Mike Osatuyi; and Executive
Secretary, Major Marketers Association of Nigeria
(MOMAN), Mr. Obafemi Olawore.
The report was submitted to the Presidency on
Tuesday and showcased how the audit committee
discovered 17 methods used by oil marketers to
defraud the government of hundreds of billions of
Naira.
According to the report, they are itemized below:
1. No evidence of sales proceeds in the banks –
N157,549,854,482.55, meaning that the marketers
did not have evidence of sales proceeds based on
banks' available records at the date of verification;
2. Subsidy payments without the signatures of external
auditors and independent inspectors on shore tank
certificates – N121,897,757,962.56;
3. Subsidy payments for which mother vessels were not
found in locations claimed at the time of
transshipment – N21,361,071,313.24;
4. Subsidy payments for which there were no shipping
documents or evidence of payment for the products
in foreign exchange – N20,463,525,859.79;
5. $10 additional margin given to traders from
November 2010 to 2011 with approval of the Federal
Government contrary to the Petroleum Support Fund
(PSF) guidelines;
6. Specially mentioned transactions with various
infractions – N15,944,918,661.23;
7. Use of 1 per cent as bank spread instead of the
maximum 50 kobo approved by the CBN in
computation of foreign exchange rates used for
subsidy payments – N14,021,193,230.89;
8. Subsidy payments for which the mother vessels
could not be traced – N12,942,254,466.24;
9. Transactions disclaimed by banks –
N12,154,918,932.18;
10. Subsidy payments without proof of existence of the
mother vessel bill of lading or daughter vessel bill of
lading – N11,762,998,358.89; and
11. Subsidy payments for which mother vessels were no
longer operational at the time of transshipment –
N8,138,502,416.70.
12. Subsidy payments for which there was no copy of the
bill of lading for ship-to-ship transfer –
N4,634,317,239.53;
13. Payment of subsidy claims with no mother vessel bill
of lading in the file – N1,938,927,804.98;
14. Subsidy payments for which mother vessels were
located in the Far East (China) and in the South
Pacific when transshipment took place off the coast
of Cotonou – N1,713,787,473.21;
15. Differences between subsidies advised by PPPRA and
subsequent verification by external auditors –
N747,534,804.00
16. N20 million re-engagement fees not charged for non-
performance by marketers – N200,000,000
17. Difference between the volume on the shore tank
certificates and the volume used for the subsidy
payment – N33,383,300.79.
The oil marketers that committed these infractions
have been asked to refund the subsidy payments
they received unless they can provide contrary
evidence to the report of the audit committee.
Source: Dailypost
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