An NGO, the Legion of Aggrieved Nigerians Against Crime (LANAC) and some lawyers have called on the nation’s anti-graft body to prosecute some top officials of a first generation bank (name withheld) with its headquarters in Lagos over their alleged involvement in a N5.2 billion crude oil sale fraud.
They have also petitioned the Senate President, Dr Bukola Saraki, and the Attorney General of the Federation and Justice Minister, Abubakar Malami, and the Director of Public Prosecutions of the Federation (DPP), Mr Muhammed Saidu Diri, over the alleged fraud.
Also petitioned is the Senate Committee on Anti-Corruption and Financial Crimes, Sen. Utazi Chukwuka Godfrey, over the alleged fraud committed since October 2014.
The petitioners — the National Coordinator of LANAC, Philip Odekeye, and Messers Wole Abdulkadir & Co., solicitors to Starross Energy Ltd — want the Economic and Financial Crimes Commission (EFCC) to arrest and prosecute the officials, who also issued dud cheques totalling N346 million which they said had been reported to the commission.
The letters were received and stamped on Dec. 14, 2016 at the Federal Ministry of Justice, while the Offices of Senate President and Senator Utazi received and stamped the letters on Dec. 9, 2016, copies of which were made available to the News Agency of Nigeria (NAN).
The petitioners stated that Starross Energy Ltd, a company legally registered under the Corporate Affairs Commission (CAC) for buying, selling, marketing and distributing all kinds of petroleum products, including crude oil, executed an agreement or MoU with its suppliers, who were the vessel handlers/managers of the crude oil tanker — MT Cosmic Jewel — and who were also marketing about 2,000,000 barrels of Bonny Light Crude Oil (BLCO) loaded in the vessel in October 2014 for NNPC/Joint Venture Operators, the owners of the crude.
They also stated that under the agreement or MoU, that the company as an affiliate or middleman was to bring “a ready, willing and able buyer’’ to buy the crude and that the difference between the price given in the MoU by the suppliers to the company and any price given by the company to any buyer brought to buy the crude was the consideration or profit for the service of the company in the transaction.
It was further agreed that any buyer brought shall pay the full cost of the cargo in dollars or naira equivalent to the nominated bank account of NNPC/Joint Venture Operators which in turn shall issue all the documents for the sale and transfer of ownership of the crude oil to such buyer after making full payment.
According to them, in October 2014 the company got a buyer who was acting as a frontman or agent for the bank, the management of the bank showed “great interest’’ in the crude oil deal.
“Several meetings were held at the conference room at the Head Office of the bank with the company officials and the lawyers on Oct. 27 and Oct. 28, 2014 respectively where they assured the company that the bank was actually buying the crude oil using the frontman as the buyer to resell to their Foreign Off takers and make profit.
“In preparation for the meeting on Oct. 27, the company on the eve of the meeting, tracked the loaded vessel — MT Cosmic Jewel — on the internet and printed out the AIS colour photographs and live ship map showing that it was on the Nigerian waters at about 8.39 p.m. on Oct. 26.
“The company took the photographs and other documents to the meeting, but would not release them unless the bank’s buyer made a commitment deposit of $2,000,000.00 and they agreed and accepted to give the company two cheques totalling N346 million (the Naira equivalent of $2,000,000.00 at that time) after they must have tracked and confirmed the cargo and agreed that the cheques would be cashed immediately by the company.
“The bank initiated the preparation of the Sales and Purchase Agreement (SPA) of Oct. 28, 2014 at the bank’s Head Office which reflected the two cheques totalling N346 million and asked the company to open a corporate account at the bank’s Head Office branch for instant transfer.
“On the strength of the repeated assurances given to the company by the bank and its buyer that the bank had paid sufficient funds into the buyer’s account to buy the crude oil, the company released the photographs of MT Cosmic Jewel map showing its location on Nigerian waters, Bills of Lading, Cargo Manifest, Certificate of Origin, CPA and other documents containing the telephone numbers, contact address and other vital information of the company’s suppliers to the bank and its buyer.
“After obtaining the cargo documents from the company, the bank and its buyer used the bank’s Head Office machines and computers to reproduce, scan and sent the documents by email to their Foreign Off Takers, and also used the Head Office’s internet facilities to track the cargo and confirmed that it was real.
“On presentation of the cheques, the two cheques bounced at the banking hall after both parties had earlier agreed that if the buyer and the bank or any person(s) or company circumvented the company, the N346 million commitment deposit would be forfeited as penalty to the company and in addition, the money equivalent to any loss suffered by the company (Starross Energy Ltd) in the event of any false pretence or circumvention would be paid to the company as provided for under Articles 8.5, 8.6 and 8.7 of the Sales and Purchase Agreement dated Oct. 28, 2014.
“The bank with the connivance of its management had cut off, bypassed and circumvented the company to conclude the deal,’’ the petitioners alleged.
“It then became clear that they had used the bank’s Head Office premises as scene of crime to deceive and to lure the company to the bank as a customer and had deliberately issued the two dud cheques under false pretences and obtained the company’s property or documents of the loaded Vessel — MT Cosmic Jewel — with intent to defraud it of the money or profit expected from the transaction.
The company claimed it suffered loss of over N5.2 billion covering the commitment deposit of N346 million and N4. 91 billion (being the difference in the price of N80.00 per litre given by the company to the bank and its buyer in the agreement or SPA of 28th October 2014 and N67.00 per litre given by the suppliers to the company which is N13.00 per litre multiplied by 378,000,000 litres (at 189 litres per barrel).
However, the Office of the Attorney General of the Federation says it has begun investigation into the matter, according to a letter signed by the Director of Public Prosecutions of the Federation (DPP), Muhammad Saidu Diri, on behalf of the minister.
The letter reads in part: “I am directed to acknowledge your letter (the petitioner’s) dated 4th May 2016 on the above subject matter and that it is being investigated.
“The outcome will be communicated to you as soon as action is completed on it.’’
Contacted for his comment, the Head of Public Affairs Department of EFCC, Wilson Uwuijaren, told NAN on telephone that the commission was not aware of the petition against the bank over the alleged fraud.
“We will always investigate all cases based on their merit and evidences available to the commission.
“The money is a huge sum. If there is any petition regarding this alleged fraud, I am very sure the commission would have investigated it.
“There are many petitions; the commission does not disregard any petition. If anybody petitions on financial matters, we will investigate it,’’ he said. (NAN)
MO/DA/PDE