The Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments has indicted 50 oil marketing and trading companies (OM&T) whose transactions were categorised as not legitimate.
In its report on PMS Shore Tank Discharges and Sales Proceeds for 2011, which was submitted last Friday to President Goodluck Jonathan and obtained exclusively by THISDAY, the committee categorised the transactions examined into those it considered legitimate and those, which required investigation and recovery by the law enforcement agencies.
The report noted that of 857 transactions valued at 1,112,836,823,380.43 which were examined by the committee, 661 transactions valued at N880,644,248,166.23 were verified as legitimate, while 196 transactions valued at N232,192,575,214.20 were not verified as legitimate.
The 197 transactions not verified as legitimate involved 50 oil marketing and trading companies, while the 661 transactions verified as legitimate covered 71 companies.
The 15-man committee chaired by the Managing Director/Chief Executive Officer of Access Bank Plc, Mr. Aigboje Aig-Imoukhuede, had made several recommendations in its report of July 24, 2012 aimed at addressing concerns about the operations of the petroleum import subsidy scheme.
Two key recommendations in its earlier report submitted to the president were the need for 100 per cent verification of shore tank certificates and a forensic examination of oil marketing and trading companies PMS sales proceeds.
Jonathan had directed the committee to undertake the verification of the shore tank and sales proceeds’ records of 114 oil marketing and trading companies, and to also engage the services of professional auditors to assist in field examinations of OM&T records and operations.
The new report, the outcome of the committee’s assignment which covered the period between August 24, 2012 and November 14, 2012, showed that Capital Oil and Gas Industries with 26 transactions valued at N43,291,043,936.54 led the group of oil marketing and trading companies whose transactions were not verified as legitimate.
Others are Matrix Energy, 20 transactions valued at N23,074,416,154.95; Master Energy oil and Gas Ltd, 2 transactions valued at N2,908,996,291.29; Eterna Plc, 9 transactions valued at 9,260,029,689.91; Nasaman Oil Services, 5 transactions valued at N5,320,342,111.28; Pinnacle oil and gas Ltd, 6 transactions valued at N8,697,762,027.67; Ontario Oil and Gas Ltd, 4 transactions valued at N4,585,421,262.30; Honeywell Oil and Gas, 9 transactions valued at 8,604,912,618.40; and Acorn Plc, 5 transactions valued at N6,551,718,868.12.
Also listed among the fifty companies are Spog Petroleum Ltd with 11 transactions valued at N12,157,563,405.86; Majope Investment Ltd, 1 transaction valued at 1,220,049,444.35; Mob Integrated Services, 2 transactions valued N2,137,328,914.10; Top oil and Gas Development Co. Ltd, 7 transactions valued at N8,784,159,205.96; Menol Oil and Gas Ltd, 9 transactions valued at N7,141,605,716.79; Pinnacle Contractors Ltd, 2 transactions valued at N2,755,646,744.04; Capital Oil Plc, 2 trancations valued at N1,216,298,517.20; Ceoti Ltd, 3 transactions valued at N4,085,691,466.33; Caades Oil and Gas Ltd, 2 transactions valued at N993,558,199.59; and Sifax Oil and Gas Company ltd, 1 transaction valued at N1,033,119,489.60.
Others are Vivendi Energy Nigeria Ltd, 3 transactions valued at N1,643727,955.33; Venro Energy Ltd, 5 transactions valued at N5,634,001,891.53; Yanaty Petrochemicals Nig. Ltd, 5 transactions valued at N6,962,191,091.04; Eurafric Oil and Coastal Services Nig. Ltd, 6 transactions valued at N6,130,006,149.03; and Alminnur Resources Ltd, 3 transactions valued at N2,274,395,443.51.
Also indicted were Naticel Petroleum, 3 transactions valued at N2,851,470,938.97; Brila Energy Ltd, 1 transaction valued at N963,796,199.85; ASB Investment Company, 3 transactions valued at N3,016,551,783.83; Lingo Oil and Gas Company Ltd, 2 transactions valued at N3,143,671,202.84; Downstream Energy Resources Ltd, 3 transactions valued at N3,737,448,590.58; Anosyke Group of Company Ltd, 4 transactions valued at N3,130,728,338.17; Avant Garde Energy Ltd, 1 transaction valued at N1,166,701,600.96; AX Energy Ltd, 1 transaction valued at N1,471,969,643.31; and Eco-regen Ltd, 2 transactions valued at N3348,101,218.60.
The report also indicted Fargo Petroleum and Gas Ltd, 1 transaction valued at N976,653,110.28; Geacan Energy Ltd, 2 transactions valued at N2,990,419,650.76; Imad Oil and Gas ltd, 3 transactions valued at N3,675,744,234.65; Integrated Resources ltd, 2 transactions valued at N1,166,486,996.04; Nadabo Energy Ltd, 3 transactions valued at N2,419,627,297.78; Nepal Oil and Gas Service Ltd, 2 transactions valued at N2,353,911,979.10; Ocean Energy Trading and Services Ltd, 1 transaction valued at N1,778,180,051.20; Owa Oil and Gas Ltd, 2 transactions valued at N1,354,333,793.94; P.O.N Specialised Services Ltd, 1 transaction valued at N1,413,507,951.50; and Prudent Energy and Services Ltd, 1 transaction valued at N1,360,898,638.10.
Others are Rocky Energy Ltd, 1 transaction valued at N1,620,110,167.58; Somerset Energy Services Ltd, 2 transactions valued at N2, 690,777,275.83; Stonebridge Oil Ltd, 1 transaction valued at N1784,158,258.14; Sulphur Streams Ltd, 3 transactions valued at N4,758,693, 052.00; Valviza Petroleum Ltd, 1 transaction valued at N1528,916,453.16; Xalon Petroleum Ltd, 1 transaction valued at N432,534,404.15; and Zalex Energy Resources Ltd, 1 transaction valued at N703,195,788.16.
The report said that the committee referred transactions requiring investigations by the law enforcement agencies to the Special Force Unit (SFU) of the Nigerian Police Force, except in instances where they involved OM&Ts that were currently being investigated by the Economic and Financial Crimes Commission (EFCC).
In the case of Capital Oil and Gas Industries, the report noted that due to the extent of irregularities established in the review of the OM&T, none of their transactions could be verified as legitimate.
It added that the SFU had concluded that the company should be prosecuted for a number of criminal infractions and the amount of subsidy claimed should be recovered.
Among the 71 OM&Ts whose transactions were verified as legitimate, Oando Plc led with 86 transactions valued at N127, 544,106,949.68.
The report noted that to assist in its investigation, the committee engaged the services of Messrs. Ernst and Young, chartered accountants, and that the auditors visited 79 OM&Ts for on-site examination and also interviewed an additional 35 OM&Ts.