Subsidy Fraud Update: Obat Tank Fails to Follow PPRA’s Regulation

Posted by African Examiner Featured, Latest Headlines, News Monday, November 18th, 2013

Ruth Bamidele, Lagos

At the resume trial of alleged fuel subsidy fraudsters, Walter Wagbatsoma, Adaoha Ugo – Ngadi, Fakude Babafemi, Ezekiel Ejide along with their firm, Ontario Oil and Gas Limited, defence counsel, E.D. Onyeke has established that the short term certificate issued by Obat tank farm is not in line with the Petroleum Products Pricing Regulatory Agency (PPPRA) guideline.

Onyeke showed the court one of the exhibit stating PPPRA’s regulation amended in 2009 that short term certificates issued by any tank farm must be duly signed by PPPRA representative and an official of the tank farm, where the fuel is being discharged.

Meanwhile, the short term certificate issued by Obat tank farm on 15th November, was signed by the tank farm official alone.

Led in counsel by Onyeke, Depot Manager for Obat tank farm, Mr Rufai Musibau revealed that the 5th defendant, Ontario Oil and Gas Limited, received 38,000 litres of PMS on 12th November,2010 with the truck number SA890RRV to an Ogun State destination.

The defendants are facing trial for N1.9 billion fraud they allegedly received an overpayment for 16million litres of petroleum they claimed to have supplied in 2010. Ontario Oil & Gas discharged petroleum products at the Obat Oil & Gas depot in the fourth quarter of 2010, the quantity discharged into the tank farm was investigated to be 10,446, 544 litres, but Ontario Oil & Gas claimed that products discharged into the tank farm was 19,523,892 litres and went ahead to claim subsidy for the same number of litres.