Presidency exposes oil marketers

~*~ WHAT a WICKED Country ???

*** Presidency exposes oil marketers

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* Lists 6 ways they defraud NIGERIA:

*** MORE facts have emerged from the report of the Presidential Task Force on Fuel Subsidy Fund management as a top presidency official has disclosed six ways the marketers defrauded the country as discovered by the Aig Imoukhuede review committee.
Speaking in confidence to the Nigerian Tribune, the official stated that the marketers operated a sophisticated ring, which was only uncovered by forensic experts engaged by the Federal Ministry of Finance, adding we were all shocked with the depth of the scam and the tricks adopted by the perpetrators.
Admitting that he was not authorized to release the details, the official, however, affirmed that disclosing the full details would allow Nigerians to appreciate the level of rot within the society and what he called the passionate struggle of Mr President and the coordinating minister for the economy to sanitize the economy.

# According to the official, the first approach in the defrauding process involved the importation of products to fulfill supply contracts to the Nigerian National Petroleum Corporation (NNPC) and after presentation of documents to NNPC as evidence of supply, the products were then diverted to another vessel by ship to ship transfer.
Fresh Bill of Lading is generated, new Form M established and the same product is supplied to Nigeria a second time under the petroleum subsidy scheme. The products which have already been paid for by NNPC are then used to claim subsidy from the Federal Government. Effectively double dipping into the nation's pocket, he narrated.

# The second, which he called fake or false vessels declaration involved the identification of a dead or decommissioned vessel or using the name of live vessel which was not in Nigerian waters.
This, according to him, would be followed by the creation of Form M containing the fake or false vessel information while a Bill of Lading containing this false information, would also be generated, adding that no product is imported into Nigeria but fake vessel documentation is used to claim subsidy from the Federal Government.

# The third one the official called On-Shore Tank Back-Loading involved a genuine importation and discharge of products into On Shore Tanks in Nigeria while another vessel would berth at the jetty and the products would then be loaded back onto the vessel and exported out of Nigeria with the importer selling the product to recoup their initial funds outlay.
The original documents are then presented to Petroleum Products Pricing Regulatory Agency (PPPRA) and subsidy is claimed for products that were never sold in Nigeria, he said.

# The fourth approach is called the Land Border Smuggling through which a genuine importation of products would take place and the products trucked across a land border for sale outside Nigeria at near international market price while the shipping documents are then used to claim subsidy from Nigeria for products that were never sold in Nigeria.

# The Fifth approach also listed Bills for Collection Round Tripping as a common method adopted by the marketers, which involved the importer claiming that they had access to foreign credit facilities to finance their importation but would proceed to declare the fake vessel on the Form M alongside Bill of Lading containing false vessel information.
The documents are presented to PPPRA and subsidy is collected for products that were never imported into Nigeria.
The subsidy profit is then used to remit scarce foreign exchange out of Nigeria, he stated.

# The last method according to the official is the Rice and Beans method, which is perpetrated using the kerosene subsidy scam.
Because of the excessive profit made on kerosene imports, importers of kerosene illegally mix the kerosene with diesel (what is called Rice and Beans) to create adulterated diesel at a much lower cost than the landed cost of unadulterated diesel.
The adulterated diesel is then sold at slightly below diesel market price, the official narrated.

*** On what is being done to stop a re-occurrence of this scam, the top presidency official noted that President Jonathan had ordered water-tight procedure for verification of subsidy payments and the Finance Minister had got a marching order to scrutinise and closely vet claims.
The administration is putting in place measures that will never allow such practices to occur again.
The Minister of Finance is effecting presidential directive in that direction, the official stated.