Onwuka Nzeshi
9 July 2009
Abuja — House of Representatives Adhoc Committee investigating the activities of Nigeria National Petroleum Corporation (NNPC) and its subsidiaries yesterday grilled top officials of the Pipelines and Products Marketing Company (PPMC) and 27 oil marketing firms over allegations of fraudulent diversion of crude oil and refined products in the last ten years.
The interrogation of the Chief Executives of these firms arose from the suspicion that the country lost about N17 billion due to the malpractice allegedly perpetrated in connivance with some officials at the PPMC, a subsidiary of the NNPC.
Group Managing Director of NNPC, Dr. Mohammed Barkindo and some of his predecessors who were equally invited to the investigative forum were however excused because of the sheer number of firms already on the queue.
Among the firms whose officials were quizzed yesterday are MRS Oil and Gas, Transfigura Beheer B.V and Vitol S.A. MRS Oil and Gas was accused of procurring over 900, 000 metric tonnes of Low Pour Fuel Oil (LPFO) from the NNPC at subsidised rate of N8.30k only to divert same to the international market when its original destination was the local market. According to the committee, MRS Oil and Gas obtained the said products between September 2002 and March 2003, and allegedly short-changed the Federal Govern-ment to the tune of N14 billion.
On the other hand, Transfigura and Vitol were accused of engaging in multi-million dollar businesses in Nigeria but without being registered or paying taxes to the Nigerian government. The committee said 14 oil companies including Transfigura were indicted in a Bill of Lading scam sometime ago and there was need to investigate their activities in the country more thoroughly. Although the companies confessed to their non-registration, Managing Director of PPMC, Mr. Reginald Stanley, said the requirements of the NNPC at the time of the transactions did not stipulate that foreign companies trading in Nigeria should be registered in the country.
However, Acting Managing Director of MRS Oil and Gas, Mrs Amina Maina, said the products in question were not diverted but supplied to the domestic market.
She said the products received from NNPC at the period in question consisted of Low Pour Fuel Oil (LPFO), High Pour Fuel Oil (HPFO), AGO (Diesel), PMS (Petrol) and DPK (Kerosene) and that some of the products went to Benue Cement Company, United Nigeria Textile Limited and some other local companies.
Chairman of House Adhoc Committee, Honourable Igochukwu Aguma, said the interrogation was in furtherance of its investigations on the operations of key players in the oil sector. He expressed the determination of the committee to recover money lost in the illegal process of product diversion.
According to Aguma, local industries which ought to have benefited from some of the refined products were denied the opportunity to grow while products procured at subsidised rate and meant for domestic consumption were diverted to the international market for huge profits.
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