Swiss Oil Fraud: Jonathan Orders Investigations, Query’s Dieziani



President Goodluck Jonathan has ordered an immediate investigations into the revelation from a Swiss non-governmental advocacy organisation, the Berne Declaration over alleged fraudulent oil deals involving some Nigerian companies and top government shots in the oil sector.

President Jonathan also issued a query to the Minister for petroleum Resources, Mrs. Dieziani Alison-Madueke, demanding an immediate response
to the allegations contained in the detailed report.

This development is coming amidst lame refutal by NNPC spokeswoman Ms Tumini Green absolving the corporation of such monumental fraud.

FrontiersNews gathered that the departments likely to come under intense scrutiny are the Crude Oil marketing department of NNPC, Pipelines and Product Marketing Company (PPMC) and the Petroleum Product Pricing and Regulatory Agency (PPPRA).

Others to be investigated according to a top Presidency source are the owners of the companies mentioned in the damning report.

The source who spoke to FrontiersNews on condition of anonymity disclosed that President Jonathan has already sought explanation from Minister of petroleum resources, Mrs. Dieziani Allison-Madueke demanding to know the true position on the alleged massive fraud and report back to him
immediately.

A report released on Monday by a Swiss non-governmental advocacy organisation, the Berne Declaration, detailed how NNPC and oil marketers
connive with Swiss oil dealers to defraud Nigeria of over $6.8billions from 2009-2011 through the sale of crude oil below the market value.

While describing the Nigerian oil scam as the greatest fraud Africa has ever known, the report explained that “the schemes employed by Nigerian
and foreign fuel importers, includes creating offshore subsidiaries referred to as “letterbox companies”, ship-to-ship transfer to create
untraceable paperwork, payment of subsidy money to phantom and non-existing importers, and partnering with politically exposed.

Fingered in the alleged fraud are two of NNPC’s major trading partners: Geneva-based commodity trading firms, Vitol and Trafigura both registered
in Bermuda.

Major Nigerian fuel importers fingered in the alleged massive fraud are MRS Group, Ontario Oil and Gas limited, Rahamaniyya Group, Tridax Energy,
Mezcor Limited, Sahara Energy and Aiteo Energy Resources Limited.

nku5: The Cabal Starts To Sing?

I got this BB message minutes ago-

Very Important-Please broadcast - Petroleum Marketers are fighting back by exposing some of the subsidy deals.

They say Nigeria must know that Haruna Momoh the MD of PPMC and Deziani Allison Madueke Minister for Petroleum has been demanding and pocketing N50 per litre of Kero and petrol produced by local Refineries since Jan 2011 till date. The reason they gave to marketers is that it was marketers contribution to Jonathan's election, but it has continued even after the elections.

That the govt should probe Nezor SA and Tridax SA  two companies owned by the Peroleum Minister run by her junior brother. This two companies in the last 16 month of her tenure has from nowhere become one of the few companies lifting crude oil and one of the largest beneficiary of the subsidy.

The marketers want Nigeria to probe the new list of briefcase companies now lifting crude oil because they paid minimum of $1 million to Momoh and Deziani.

I think we hv started seeing the real faces of the cabals!

eGuerrilla: Indeed take dat.
Have we not been hearing about the companies 'manipulated' (fing.er#ed) here for sometime now?

I suppose he's seen the need to appear bothered by this latest revelation because it originates from a Swiss organisation. Personally, I won't hold my breath on this charade being any more than another attempt at playing to the gallery, as has been this case with earlier probes.

@nku5 back in Jan 2012 -- https://www.nairaland.com/844042/momoh-madueke-nezor-sa-tridax

The Blessing of Oil : A peculiar mess

November 11, 2013

Our parlous economic predicament is generally regarded as a “resource curse”, a phenomenon, which the free encyclopedia defines as a paradox of plenty, in which countries with abundant revenue from mineral resources show less economic growth with a beleaguered manufacturing sector when compared with other countries with less resource endowments.

The causes of such paradox are said to include exposure to global commodity market swings; weak and corrupt institutions, which condone fraudulent diversion from revenue streams from such mineral exploitations; government’s mismanagement of resources, and expected appreciation of a nation’s real exchange.

Let us briefly examine the identified causes of resource curse from the Nigerian perspective!

In reality, global commodity market swings cannot be responsible for the parlous state of our economy, as crude oil price climbed from less than $4/barrel to stabilise at over $100/barrel in the last three or so decades, while improved extraction technologies also more than doubled daily production output to about 2.5bn barrels; furthermore, price and output swings are often few and short-lived.

Conversely, we cannot dismiss the incidence of weak and corrupt institutions as a contributory cause of our inability to translate our huge resource endowment into a blessing for our people.

Incidentally, lately, in a report titled “Swiss Traders’ Opaque Deals in Nigeria”, a Swiss non-governmental advocacy organization, called ‘Berne Declaration’ accused the Nigerian National Petroleum Corporation (NNPC) of conniving with major Swiss oil trading companies to drain Nigeria of billions of dollars revenue through the sale of crude oil below market value!

Consequently, ‘Berne’ report alleges that NNPC plays a significant role in maintaining the so-called resource curse. Prominent amongst NNPC’s reported shady deals are its partnership with Vito and Trafigura corporations, (two Geneva based commodity trading firms, which are registered in Bermuda, where they do not pay any tax). These two companies, incidentally, paid over $6.7bn for about 27 per cent of Nigeria’s crude oil exports in 2011.

The ‘Berne’ report further decries the unfortunate reality that Nigeria is the only major oil producing country that sells 100% of its crude to private traders rather than marketing it itself, and benefitting from the resulting added value! The report wonders why NNPC continues to allocate over 400,000 barrels of crude daily to its ‘comatose’ refineries, “as if they were operating at full capacity, while the excess allocations are sold at knockdown prices or exchanged for refined petroleum in shady swap contracts”!

The Berne report identifies the ‘MRS’ Group and its subsidiary, Petrowest Services SA amongst other culprits, which include Ontario Oil and Gas, allegedly owned by Ugo-Ngadi Adahoha. Others are the RahaManiyya Group, the Tridax Energy and Mezcor Limited, which were traced to allegedly close associates and the younger brother of the Petroleum Minister, Diezani Alison Madueke!

Furthermore, ‘Berne’ report also identified government mismanagement of resources as being contributory to our predicament of resource curse. This observation is underscored, for example, by our nation’s lopsided fiscal strategy, which, in spite of our severe infrastructural deficit, steadily commits over 70% of federal and state budgets to recurrent expenditure!

The Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala,’s promise to redress the expenditure imbalance with just 1-2% incremental rise in annual capital budgets does not demonstrate a convincing resolve!!

Worse still, a fiscal strategy, which accommodates over N2tn fuel subsidy (i.e. equivalent of about 40% of 2013 federal budget) annually is undoubtedly a misguided approach to successful planning!

Besides, Nigerians have wondered why better-endowed oil producing countries can earn respectable levels of income from a levy of a reasonable sales tax on fuel, while the Nigerian government conversely pays out a horrendously large component of its crude revenue as subsidy! It is inconsequential that a significant proportion of the 35m litres daily fuel supply is smuggled to neighbouring countries, nor does it seem to matter that ‘briefcase’ fuel importers are paid billions of naira in fuel subsidies, even when they have not brought in a drop of P.M.S!

Worse still, government’s attempt to support the poor with over 50% subsidy on kerosene prices has been largely undermined, as NNPC’s porous regulatory structures and systems appear to deliberately create huge opportunities for excessive profiteering, in its partnership with fraudulent fuel importers!

Real exchange rate appreciation as increasing crude resource revenue flow into the economy, has also been identified as a responsible factor for resource curse. But herein lies the obvious contradiction in our own nation’s experience, as bountiful forex revenue earnings and vastly extended imports’ demand cover in the last three decades, somehow failed to stop the naira exchange rate plummeting from 1:1 to over N170=$1.

Consequently, in the Nigerian context, there is a contradiction in the notion of the ‘Dutch Disease’ as increasing oil revenue has led to a much weaker naira, rather than the realistic expectation of a stronger exchange rate, which may have created a challenge to the manufacturing sector’s competitiveness.

The main reason for above contradiction in exchange rate valuation can be easily traced to the process by which CBN infuses export crude dollar revenue into the economy; the CBN’s substitution of naira allocations for dollar revenue constantly ensures that the ensuing excess naira liquidity ultimately weakens our naira, when pitched against CBN’s rationed weekly dollar auctions! Consequently, we have the paradox of increased dollar revenue instigating excess naira liquidity and ultimately a lower naira/dollar exchange rate!!

The above fraudulent rape of our resources notwithstanding, salt is further rubbed into our injury as poverty deepens in communities, which host oil exploration and exploitation, as both local and international oil majors defile the agricultural landscape and jeopardise the traditional mainstay of of subsistence fishing! In a recent report, Amnesty International also claims to have fresh evidence that Shell falsifies and manipulates oil spill investigations, and documents in Nigeria, and also mischievously blames sabotage for oil spills, which are sometimes caused by corrosion in its own aging pipelines.

Regrettably, there is yet no indication that the corporate rape of our resources with the partnership of NNPC is about to end!!

NNPC Dismisses Accusation Of Under-Hand Dealings By Swiss-Based Organization

November 10, 2013


The Management of the Nigerian National Petroleum Corporation, NNPC has denounced the recent report by Swiss -based NGO (The Berne Declaration) which accused the Corporation of collusion with some local and international oil traders to execute unfair industry practices.

In a chat with Journalists in Abuja, the Acting Group General Manager, Group Public Affairs Division of the Corporation, Tumini Green, stated that the publication is not only bogus but strewn with inaccurate and poorly researched data, which defies common sense and verifiable evidence on ground in Nigeria.

“For instance, how can anybody who claims to be a close observer of the Nigeria oil and gas industry say that the process leading to the award of Term Contract for lifting of Nigeria’s crude is shrouded in mystery, when it is common knowledge that the call for tender for this contract is periodically published by almost all the newspapers in Nigeria via paid advert placements by the NNPC,” Green quipped.

The NNPC Spokesperson explained that in practice, the Corporation sells Nigerian Government equity crude oil to Lifters/Traders engaged on Annual Term Contract basis. She stated that at present there are about 50 such term contracts.

“No company has a monopoly or exclusive right to lift any quantity of Nigerian crude oil. The process of selection of Traders/lifters is competitive and transparent. Traders lift crude oil according to the terms of Contractual agreements applicable to all traders, among others on (Free on Board) FOB basis and proceeds paid directly into designated Central Bank of Nigeria Crude oil sales accounts,’’ She said.

On the allegation that Nigeria’s crude is sold to some companies at special discounted rate, Green countered

“Nigeria Crude Oil is sold at published Official Selling Price (OSP) which is not only bench-marked against the internationally recognized pricing institution, Platts daily publications, but also fixed after a critical analysis of market fundamentals and price determinants at global level. OSP differentials are crude stream determined and cannot favour an individual or group of traders as being insinuated,’’ the NNPC explained.

Green thanked the Nigerian media for their sustained show of support for the growth of the oil and gas industry while appealing to them to always resist the temptation of endorsing foreign media reports about the industry as gospel truth.

Sincere 9gerian: The President in Jan 2012 wanted to cut-off the head of corruption and remove ALL forms of corruption in the fuel subsidy scheme by completely removing the subsidy but what did we see? Children of anger, Tinubu dogs and vultures trooped to the streets in protests.

Now the propagandists are out again to deceive themselves with claims of corruption in fuel subsidy scheme. Fuel subsidy was not started in 2009. It had existed for decades before GEJ came to power. How come we dont seem to find reports detailing the fraud that took place in the past?

More over, if there is no subsidy scheme, will there be subsidy money to steal? Why complain of lizards gathering around you when you keep fetching ant-infested firewood?

Ghana has removed fuel subsidy completely, I wonder what Nigeria is waiting for? There was no protest when Ghana did the needful. When it suits the ethnic champions, they'll use Ghana as example but when it doesn't, they'll look the other way. In Nigeria, ethnic champions, power mongers and those who have sworn to make the country ungovernable would take to streets to protest any change in fuel price. The price of Garri, rice,etc and LASU schools fees can double or triple but fuel price must remain the same in Nigeria. The Ijaw "fisherman" in Aso Rock must use all powers, physical and spiritual, including if necessary, 50% of national budget, to keep the fuel price CONSTANT, from year to year. Otherwise, agents of anarchy and Boko Haram will make the whole country ungovernble. Yeye dey smell.

Sincere 9gerian: The President in Jan 2012 wanted to cut-off the head of corruption and remove ALL forms of corruption in the fuel subsidy scheme by completely removing the subsidy but what did we see? Children of anger, Tinubu dogs and vultures trooped to the streets in protests.

Now the propagandists are out again to deceive themselves with claims of corruption in fuel subsidy scheme. Fuel subsidy was not started in 2009. It had existed for decades before GEJ came to power. How come we dont seem to find reports detailing the fraud that took place in the past?

More over, if there is no subsidy scheme, will there be subsidy money to steal? Why complain of lizards gathering around you when you keep fetching ant-infested firewood?

Ghana has removed fuel subsidy completely, I wonder what Nigeria is waiting for? There was no protest when Ghana did the needful. When it suits the ethnic champions, they'll use Ghana as example but when it doesn't, they'll look the other way. In Nigeria, ethnic champions, power mongers and those who have sworn to make the country ungovernable would take to streets to protest any change in fuel price. The price of Garri, rice,etc and LASU schools fees can double or triple but fuel price must remain the same in Nigeria. Yeye dey smell.

HNosegbe: Oga Jona hasn't even implemented Ribadu's report.

I'm supposed to take him serious?

take dat: So all those who protested are children of anger, and Tinubu's dogs and vultures? You are gradually becoming a dangerous lunatic!


The declaration isn't about fuel subsidy alone, it also includes crude oil deals but I am sure you didn't bother to read it before this spectacular display of idiocy! Pin-headed rabble rouser

You can as well continue to blame Nigerians for the rapacious plunder and mismanagement of our resources because its your job to defend Jonathan and Friends!

Sincere 9gerian: Tinubu dogs and vultures trooped to the streets in protests.

Now Ghana has removed fuel subsidy completely, I wonder what Nigeria is waiting for?

omenka: I bet your parents and relatives were some of the dogs and vultures you are refering to. And since you've decided to site ghana as a worthy example let me also tell you that the president of ghana the other day sacked a minister for ''intent to enrich'' herself through politics to a 'paltry' sum of $1mill!! What has been the response of your puppeteer to the grave financial atrocities committed daily by the horde of crooks he employed as ministers most recent of which was oduah's case I hate responding to your posts and lately, dont even bother to open threads created by you, but i was pissed beyond measure by the rubish you posted up there and jst had to let out steam. You stink and your life does too. The only distinction between you and a corpse is that you have yet to be embalmed!

Sincere 9gerian:
I dont care about what Tinubu dogs think about me. I am simply expressing my opinion. If my opinion runs contrary to the wishes of your master, Tinubu, I have no apologies for that.