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The Economic and Financial Crimes Commission (EFCC), yesterday, shut down a tank farm belonging to Obat Oil and Petroleum Limited at Kirikiri, Lagos, for alleged diversion of subsidy payment.
Petrocam Trading Nigeria Limited had reported Obat Oil to EFCC for allegedly diverting N1.2 billion, which it secured as loan from Sterling Bank on behalf of Obat Oil under a Joint Venture Transaction Memorandum of Understanding (MoU) to finance the importation of 15,000 metric tonnes of petrol for Obat under the Petroleum Products Pricing and Regulatory Agency (PPPRA) import permit for Q2, Q3 and Q4 of 2014.
According to The Nation, rather than pay back the loan, the oil marketer alleged that the money was diverted into the personal account of Obat’s Chairman, Oba Frederick Akinrutan.
Petrocam said in a document that it jointly signed an agreement with Obat to secure a loan to finance the business, whether by its own resources or through its bank, a condition Obat allegedly agreed to
However, it was later discovered that Obat Oil allegedly diverted the N1.2 billion meant for Petrocam to Asset Management Corporation of Nigeria’s (AMCON) account to clear a debt.
Managing Director of Petrocam Mr. Patrick Ilo, in a statement dated November 13, 2015, said: “Based on the agreement, Petrocam established six Letters of Credits with our facility at Sterling Bank, bearing the total risk of the transactions. It was further agreed that Petrocam will make an advance payment of the sum liable to Obat up front before subsequent transactions after the first two transactions were concluded, an obligation which Petrocam carried out to the letter by making payments in tranches to Obat account details.
TheNation
Petrocam Trading Nigeria Limited had reported Obat Oil to EFCC for allegedly diverting N1.2 billion, which it secured as loan from Sterling Bank on behalf of Obat Oil under a Joint Venture Transaction Memorandum of Understanding (MoU) to finance the importation of 15,000 metric tonnes of petrol for Obat under the Petroleum Products Pricing and Regulatory Agency (PPPRA) import permit for Q2, Q3 and Q4 of 2014.
According to The Nation, rather than pay back the loan, the oil marketer alleged that the money was diverted into the personal account of Obat’s Chairman, Oba Frederick Akinrutan.
Petrocam said in a document that it jointly signed an agreement with Obat to secure a loan to finance the business, whether by its own resources or through its bank, a condition Obat allegedly agreed to
However, it was later discovered that Obat Oil allegedly diverted the N1.2 billion meant for Petrocam to Asset Management Corporation of Nigeria’s (AMCON) account to clear a debt.
Managing Director of Petrocam Mr. Patrick Ilo, in a statement dated November 13, 2015, said: “Based on the agreement, Petrocam established six Letters of Credits with our facility at Sterling Bank, bearing the total risk of the transactions. It was further agreed that Petrocam will make an advance payment of the sum liable to Obat up front before subsequent transactions after the first two transactions were concluded, an obligation which Petrocam carried out to the letter by making payments in tranches to Obat account details.
TheNation