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Subsidy scam: EFCC commences trial of Arisekola-Alao’s son

By on May 13, 2013

Abdulahi-AlaoThe Economic and Financial Crimes Commission on Monday began the trial of Abdullahi Alao, son of prominent businessman, Alhaji Abdullazeez Arisekola-Alao, before a Lagos High Court in Ikeja.

Abdullahi Alao and two others alongside their companies were charged before Justice Lateefat Okunnu for fraudulently obtaining N1.1 billion fuel subsidy payment from the Federal Government.

The other two oil marketers are Opeyemi Ajuyah and Olarenwaju Olalusi while their companies are Majope Investment Limited and Axenergy Limited.

At the opening of trial before the court presided by Justice Okunnu on Monday, the EFCC called its first witness, Mrs. Brenda Ataga, an employee of Oando Oil and Gas Plc, to testify against the defendants.

The witness, who was led in evidence by EFCC counsel, Mr. Francis Usani, said Oando had entered into an agreement with Majope Investment in 2010 for the supply of 15,000 metric tonnes of Premium Motor Spirit (PMS).

Ataga said Majope was to discharge the products at the Lister Jetty in Apapa that was being used as a tank farm by Oando before January 4, 2011.

According to her, Oando appointed a surveyor, Q and Q Control Services Limited to inspect the products when it was brought by Majope Investment.

“At the end of the day, instead of supplying the 15,000 metric tonnes as agreed, Majope Investment Limited discharged about 4,700 metric tonnes into the facility,” she claimed.

She said Oando Oil and Gas Plc paid Majope Investment Limited about N320 million for the 4,700 metric tonnes of PMS discharged into its facility.

Ataga said Ajuyah later told her that the business relationship was suspended due to the cost of demurrage the vessel had incurred off-shore.