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Reps Query Subsidy Overpayments to Otedola’s Company, Others

By on June 21, 2012

The House of Representatives Committee on Petroleum Resources (Downstream) has unraveled a series of over-payments made to major oil marketers from the Petroleum Equalization Fund (PEF).

The oil companies mentioned in this recent investigation include Forte Oil (formerly African Petroleum), Mobil, Total, MRS, Oando and Conoil. Forte Oil is owned by embattled businessman and friend of the Jonathan administration, Femi Otedola.

The Chairman of the Committee Hon. Dakuku Peterside stated that the committee had discovered anomalies in the documents submitted to it by the major oil marketers. The discrepancies included duplication of entries, fraudulent entries and application of multiple rates for products lifted in the same time horizon.

The anomalies were discovered to have cost several billions in over-payment to the oil companies.

Peterside said, “The House mandated this committee to look into the activities of the Petroleum Equalisation Funds and to ensure that they work in accordance to the law and that Nigerians get value for money.

“These funds belong to the Nigerian people. Each time we stop to buy fuel, we contribute to the bridging fund. We have heard of people who collected products meant for Maiduguri, sell it in Lagos and collect billions as bridging allowance. Many people contribute to the funds, but a few people want to squeeze us dry.”