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FG approves 40 firms for Q3 petrol importation

By on July 25, 2013

The Federal Government has given approval to 40 companies to import 3.4 million tonnes of petrol in the third quarter of the year, according to a report by Reuters.

However, it reported that the list of fuel suppliers included companies previously named in the subsidy fraud investigation, but that large global trading houses have been left empty-handed.

“The list showed four companies that failed to cooperate with parliament’s probe were named as suppliers. These were Nepal, Fresh Synergy, Ibafon and Techno, which the parliamentary report showed collectively claimed subsidies of nearly $60m,” the report said.

“Nepal’s website lists its CEO as Ngozi Ekeoma, who has twice been arraigned by the Economic and Financial Crimes Commission in relation to fraudulent subsidy payments. She has pleaded not guilty to the charges. Phone calls to her company went unanswered,” Reuters added.

“At least three other companies awarded third quarter allocations – Masters, Matrix and MRS – were also ordered to account for their shipments or refund falsely claimed subsidy money in another government report released last June,” the report said.

While Matrix provided documents to Reuters showing it had since been exonerated by the authorities, the other firms were said to have declined or did not respond to repeated requests for comments by email and telephone.

“It was not clear if these companies had since repaid their debts or been cleared,” Reuters claimed.

“Nigerian authorities have taken some measures to improve controls,” said Marc Gueniat of Swiss NGO, The Berne Declaration, which campaigns against corruption in the developing world.

“But the fact that certain companies accused of participating in the fraud are continuing to benefit from allocations raises the question of whether the political will to change is sincere,” he added.

Petrol subsidy gulped N1tn ($6.2bn) last year, equivalent to 20 per cent of the federal budget and exceeding the N888bn budgeted for that purpose.

 

 

[Punch]