25 July 2012

Nigeria: Subsidy Probe - FG to Recover N382 Billion From 21 Indicted Firms

The Presidential Committee on Verification and Reconciliation of Fuel Subsidy payment yesterday submitted its report to President Goodluck Jonathan with the indictment of 21 firms for making fraudulent claims.

The Aigboje Aig-Imoukhuede-led committee also asked the Federal Government to recover N382 billion from the indicted companies.

Speaking to journalists shortly after submitting the report, Aig-Imoukhuede said N382billion was part of the contentious N422 billion identified by the Technical Committee which he also chaired.

Aig-Imoukhuede, who briefed alongside the Attorney General of the Federation, Mohammed Adoke Bello and Presidential spokesman Reuben Abati, said the committee made 22 recommendations and has identified fraudulent cases for criminal investigation of 21 firms, short-time certificate issues and irregular payments.

The committee was constituted in July following the submission of the report of the Federal Government Technical Committee which looked into fuel subsidy management from 2010-2011.

On the contentious N422 billion, the committee noted that N18 billion was found to be duplication, thereby the actual amount that was being verified was N403 billion.

He said out of the N403 billion, the committee was able to clear N21 billion, leaving the sum of N382 billion as the sum in contention for which the committee recommended that the process of recovery be made.

He said 116 oil marketing and trading companies that participated in the petroleum subsidy scheme in the period of review were invited.

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