Fuel Subsidy Fraud: WalterWagbatsoma, Associates Forged Claims For N414 Million – EFCC Witness

By SaharaReporters, New York
A witness for the Economic and Financial Crimes Commission (EFCC)
yesterday told a court that Walter Wagbatsoma, Adaoha Ugo-Ndagi,
Fakuade Babafemi, Ezekiel Ejide and their firm, Ontario Oil and Gas
Limited,received payment in excess of N414 million by filing
fraudulent fuel importation claims. The suspects are part of numerous
fuel marketers standing trial for allegedly defraudingNigeria by
forging documents that enabled them to receive fuel subsidy payments
from the Petroleum Support Fund (PSF).
At a hearing at the Lagos High Court inIkeja, an EFCC detective, Shehu
Mohammed, testified that the four oil marketers and their firm scammed
the Nigerian government and conspired to receive an overpayment of
N414 million in fuel subsidies.
Prosecutors allege that the marketerscarried out their fraudulent
scheme by submitting false certificate of shore tank content. Mr.
Mohammed told the court that the suspects claimed they received 19
million liters of petroleum product, adding that they forged
certificates to support their fraudulent claim.
The prosecution witness said EFCC investigations at Integrated Oil and
Gas depots, OBAT Oil, the Debt Management Office, and the Central Bank
of Nigeria indicated that the suspects forged documents to carry out
their hoax.
"Analysis of the shore tank certificate we recovered from Integrated
Oil Services reads 12 million liters while the one that was given to
the commission by the Ontario Oil claims 19 million liters," said Mr.
Mohammed.He added that two separate certificates were obtained by the
commission, one from the source where the oil presumably originated,
the other presented by the suspects to claim subsidy payments.
"We discovered there were two shoretank certificates of 12 million
liters recovered from the Integrated Oil depot and one of 19 million
liters thatwas used by Ontario Oil and Gas Services to the PPPRA in
the payment of fuel subsidy claim," said the witness. He added: "We
also asked Integrated Oil to furnish us with evidence of payment by
Ontario Oil and Gas Services. Our finding reveals that Ontario Oil
paid Integrated Oil the sum of N37 million for the usage of the
facilities for 12 million liters."
The witness also alleged that EFCC investigations revealed that the MT
Union Brave, the ship reportedly usedby the accused to import the
fuel, discharged a quantity that was not more than 12 liters. Mr.
Mohammed said that OBAT Petroleum also admitted that Ontario Oil and
Gas discharged only 10 million liters, a far cry from the company's
forged documents claiming to have discharged 19 million liters.
"Our investigation at the OBAT Oil andGas revealed that Ontario Oil
discharged 10 million liter to their storage tank. OBAT showed that
exhibit marked (A), containing 10 million liters, emanated from them
while the one marked exhibit (A1), indicating 19 million, is not from
them. They said the shore tank marked exhibit (A1) did not
representthe true quantity discharged. There was overpayment of over
10 million liters in this transaction which is about N414 million,"
Mr. Mohammed further stated.
His testimony in court revealed that government agencies failed to
authenticate documents before approving fuel subsidy claims submitted
by oil marketers.
In a prior case involving another oil marketer, Jubril Rowaye, an
official of the PPPRA, Tope Ogundola, confessed to the court that the
agency did not verify documents submitted by oil marketers before
helping to process their claims. Mr. Ogundola said PPPRA officials
simply accepted the documents on the basis of "trust."
Saharareporters learned that PPPRA officials issued a query to, and
reprimanded, Mr. Ogundola for making the confession in open court.
Mr. Wagbatsoma, Ms. Adaoha Ugo-Ndagi, Mr. Babafemi, Mr. Ejide as well
as their firm, Ontario Oil and Gas Limited, are facing a nine-count
criminal charge related to their alleged fraudulent fuel subsidy
claims. Prosecutors allege that the suspects altered and forged
documents and conspired to obtain property by false pretences.
Justice Latifat Okunnu adjourned the trial to July 29, 2013.