Subsidy probe: Fraudulent marketers to make refunds, face trial

Hello Friends!    

In the News Today: (Courtesy Punch Newspapers).                                                                

Many fraudulent marketers who collected fuel subsidues in 2011 may be compelled to make “a huge refund” to the Federal Government, according to preliminary findings by the House of Representatives Ad-Hoc Committee on Subsidy Regime.

This is in addition to recommending that the Economic and Financial Crimes Commission should prosecute such marketers for “fraudulent practices along with their collaborators in government agencies.”Investigations by THE PUNCH have shown that the committee had already identified some fuel contractors who allegedly made bogus claims as subsidies but could hardly convince members that they brought any products into the country.

A source in the committee headed by Mr. Farouk Lawan told our correspondent in Abuja that “fraudulent transactions took place in 2011, all in a bid to make subsidy claims on petroleum products.”The source added, “From our preliminary findings, it is clear that the committee can safely draw certain conclusions.“Some fuel contractors have been identified to have clearly short-changed the Nigerian people.“They worked with identifiable collaborators in government agencies charged with the responsibility of managing the sector on behalf of the people.“There are false claims which have not been backed with enough evidence. From our preliminary findings, we can say, yes, some persons have questions to answer.”It was learnt that using the evidence before it, the committee was drawing the conclusion that the “books were doctored” to pave the way for subsidy claims on products that were either diverted or not intended to be delivered in Nigeria.

Lawmakers were said to be alarmed that in spite of taking submissions from the various government ministries and agencies that played a role in the transactions, there were still conflicting figures on the quantity of products consumed in the country.“On PMS (petrol), which is the main issue, we have heard conflicting figures from 35 million litres to 59million litres per day.“There has been no reconciliation of the figures by the agencies other than buck-passing”, another committee source told Punch's correspondent on Tuesday.Members were also said to have pointed to the conflicting figures on subsidy payments by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke; the Petroleum Products Pricing Regulatory Agency and the Minister of Finance, Dr. Ngozi-Okonjo-Iweala, as evidence of “weakening control and inefficiency in the sector.”The petroleum minister and PPPRA officials had earlier told the committee that the total subsidy claim for 2011 was N1.3tn.The finance minister said that the total figure up to December 2011 was N1.4tn.However, the Central Bank of Nigeria confirmed that the “actual payments” in its books for subsidy in 2011 amounted to N1.7tn.The committee, on further inquiries, discovered that “even the N1.7tn was a far cry from what the total subsidy claims should be.”One lawmaker said on Sunday, “The N1.7bn did not include the outstanding claims.“We have since found out that many marketers imported fuel and were not paid subsidy in 2011. We have the records with us; these figures are outside the N1.7tn.”The committee had raised the alarm on Thursday that the total subsidy claims for 2011 might hit “over N2tn.”Before 2011, there were about 49 companies registered to participate in the Petroleum Support Fund (or subsidy), but the number jumped to over 100 by the third quarter of 2011.Another member of the committee who craved anonymity said, “In 2010, the subsidy claims were about N620bn. In 2011, we paid N1.7tn on subsidy and still counting, with a negligible difference in our consumption rate.“What accounted for this uniqueness in 2011? That is where the problem is. So many briefcase importers emerged during the year, while regulatory agencies looked the other way.”When our correspondent sought the comments of Lawan, he evaded the questions put to him on the committee’s findings.

Lawan said that it would not be wise for him to pass judgment at this stage of the investigation.He said, “All I can tell you is that our work is in progress. I can’t pass any judgment as the chairman of the committee because anything I say now will be taken to be the final position of the committee.“But, I think our hearing has been open to the public and people can form their own opinions from what they have heard.”He told our correspondent that the last lap of the investigation would be to take a facility tour to verify the claims of some marketers and importers.“The committee shelved its sittings for Monday and Tuesday (yesterday) to resume on Wednesday (today).“This was to allow our members to attend to the budget defense meetings by their respective committees,” he added.

Last Words: My Concern has always been the contradictions in figures and statements between these two women! If the Minister of Petroleum and the Minister of Finance cannot be clear on this issue of subsidy / various allocation and consumption by Nigerians, then there is need for concern.

It is a welcoming idea that the "thieves" are being fished out gradually but we demand for more.

I am sure that if this ongoing investigation and gathering of relevant facts is done with all sincerity and respect for Nigerians to know the truth, we shall be pleased with the final report.

XOXO

Simply Cheska.