Subsidy probe report: Minister of Justice says government will prosecute culprits

Channels Television  
Updated May 22, 2012

The Minister of Justice and Attorney General of the Federation, Mohammed Adoke has assured Nigerians that he will prosecute all those who are found culpable in the subsidy report made available to the presidency.

The Minister of Justice and Attorney General of the Federation, Mohammed Adoke

Mr Adoke, who disclosed this while speaking at the presidential villa after receiving the report from the presidency, said he is taking the report to the Economic and Financial Crimes Commission (EFCC).

He however reiterated his earlier position that the cases will be properly investigated, to ensure that all loose ends are covered.

He said that the assignment will be carried out without sentiments and that whosoever is found culpable will be arraigned before a court of law.
He said that there will be no sacred cow and that government will not witch hunt anybody.

The House of Representatives ad Hoc Committee that conducted an investigative hearing on the management of the fuel subsidy fund recommended that some oil marketers and officials of both the Petroleum Products Pricing and Regulatory Agency (PPPRA) and the Nigerian National Petroleum Corporation (NNPC) be investigated and prosecuted by anti-graft agencies.

According to the report, those to be probed by anti-graft agencies are 121 oil marketers as follows:

1. 17 marketers that did not obtain FOREX but claimed to have imported petroleum products.

2. 15 marketers who obtained FOREX but did not import petroleum products.

3. 71 oil marketers to face probe and refund N230.1billion

4. 18 oil marketers committed other infractions.

Other issues for probe by the EFCC are:

How 3.171billion litres of Premium Motor Spirit (PMS) got missing. The 3.171 litres of PMS allegedly subsidised were not supplied to the Nigerian market.

Ex-PPPRA Executive Secretaries A. Ibikunle (August 2009 to February 2011) and Goddy Egbuji (February to August 2011) for further probe and trial.

Others are PPPRA’s GM Field Services, ACDO/Supervisor-Ullage Team 1 and ACDO/Supervisor-Ullage Team 2.

Ex-PPPRA Chairman Ahmadu Ali and board members reprimanded.

NNPC should be probed to determine solvency.

Those indicted in NNPC management and board between 2009 and 2011 should be prosecuted.

The report said: “The Committee identified that the marketers were often awarded superfluous quantities of products to supply but often did not meet the target.

“In 2009, PPPRA approved a supply of 11,341,507,500 litres of PMS for the marketers. However PPPRA confirmed the marketers discharged only 5,085, 206, 983 litres or 55.16 per cent under-discharge.

“Despite being aware of the under-performance by the marketers in 2009 or the defect in its procurement process and management, PPPRA increased the 2010 Approved Deliverables to 12,410,955, 000 litres. The marketers delivered only 6,226,586,543 that is 49.8 per cent under performance. In spite of the underperformance, there were no crises of product availability throughout 2011.

“This same ugly trend was maintained by PPPRA in 2011 during which it increased its approved quantity to 13,589,510,000 litres but however confirmed a delivery of 9,317,145,231 litres, an under performance by 31.4 per cent.

“(i) By PPPRA’s representation, the marketers received N680.982billion as subsidy for supplying 9,317,145,275 litres of PMS in 2011.

(ii)Curiously, PPPRA made another presentation that the marketers were paid N975.896billion for supplying 12,488,789,611 litres of PMS in 2011.

“Between (i) and (ii) above, PPPRA has confirmed that the sum of N294, 914billion was paid on 3,171,644,336 litres of PMS that might not have been supplied to the Nigerian market.

“The anomaly is hereby referred to the relevant anti-corruption agencies for further investigation.”