Tuesday 4 September 2012

Subsidy payments: Oil marketers may sue Federal Government •‘Govt lied over N259bn payment’


The controversy surrounding the payment of subsidy on petroleum products may take another turn soonest as strong indications have emerged that the marketers, whose subsidy claims have not been paid by the Federal Government are considering going to court.

This line of action, one of our correspondents learnt, was being mulled by the marketers, whose subsidy claim payments were being delayed because of administrative infractions. Payment of some claims is, however, being delayed as a result of alleged fraudulent infractions.

The decision to go to court, it was gathered, was informed by the pressures being mounted on the marketers by the banks from which they took loans and the mounting interests on the debts.

The marketers maintained that, so far, only one-third of the total subsidy claims owed them had been settled by the government.

However, the decision to go to court appears not to be unanimous as some of the marketers are of the view that it will further delay the payment of their subsidy claims, which will further add to the interests on loans taken.

The crisis between the marketers and the Federal Government over subsidy payments deepened on Tuesday with the Jetties and Petroleum Tank Farm Owners Association accusing the government of misleading the public through falsehood.

The association said contrary to reports on Tuesday that its members had been paid N259.33bn as fuel subsidy, none of them had received any payment in the last six months.

The Secretary General, JETFON, Mr. Enoch Kanawa, disclosed this in a telephone interview with one of our correspondents.

Kanawa spoke just as the Nigerian Union of Petroleum and Natural Gas Workers dissociated itself from the current fuel scarcity, which resurfaced in Abuja.

The Acting General Secretary, NUPENG, Mr. Isaac Aberare, said in a statement on Tuesday that while union was not on strike, there were no products to lift in some of the fuel depots across the country.

JETFON and NUPENG’s reactions came barely 24 hours after the Federal Government released the identities of 79 oil marketers who allegedly received N259.34bn as fuel subsidy payment for the 2011- 2012 fiscal period.

The Minister of Finance, Dr. Ngozi Okonjo-Iweala, had in a statement signed by her Senior Special Assistant on Media, Mr. Paul Nwabuiku, on Monday said N34.6bn out of the total amount of N259.34bn was paid on August 22, 2012 alone.

She said contrary to allegations by the marketers, statistics had shown that the claims had reduced significantly due to the work of the Aig-Imoukhuede committee and the rigorous procedures, which had been adopted to check fraud in the subsidy claim and payment system.

Okonjo-Iweala said, “Contrary to the impression given by some marketers and their agents, the Federal Government has continued to pay marketers whose claims have been duly verified. This is in line with its commitment to encourage honest and professional private sector operators in the subsidy regime.

“As information shows, in addition to other verified payments made in 2011-2012, a total of N34.6bn was paid on Wednesday, August 22, 2012 alone. In all, a total of N259.33bn has been paid in 2011-2012.”

The minister had alleged that the number of claims by marketers and the amount paid had reduced significantly due to the work of the Aig-Imoukhuede committee.