The
management of Ontario Oil and Gas limited has denied any fraudulent sale of
refined petroleum products as alleged by Union Bank Plc in an ex parte
application
filed by the Economic and Financial Crimes Commission, EFCC.
The company spoke
on Monday about a commercial transaction between her and the bank which dates
back to 2014.
A Federal
High Court in Lagos had on Monday ordered the interim forfeiture of N1.96
billion allegedly belonging to the company over alleged fraudulent sale of
refined petroleum.
According to
a statement by the company, Ontario speaking through its counsel, Ben Udoh,
acknowledged approaching Union Bank Plc for a facility to import and market
petroleum products in 2014 but denied allegations of fraudulent diversion of
proceeds.
“Indeed, we
approached Union Bank in 2014 for an $11 million facility. A letter of Credit
(LC) was issued same year but was amended to $9.9 million in May 2015. The said
sum ($9.9) was paid to the supplier, Petrocam Trading Limited.
“Contrary to
impressions created by Union Bank, there was no case of fraudulent diversion
and conversion of proceeds as alleged. We would like to confirm on good
authority that the products were duly imported and sold in the open market,” Mr
Udoh said.
He added, “Total
proceeds from the transaction was N1.9 billion, and in line with our offer
letter and best practice, same amount was provided for. The management of Union
Bank was subsequently advised to bid for appropriate foreign exchange to
discharge the LC.
“Unfortunately,
Union Bank, for reasons best known to them, failed to heed several exchanges
for the liquidation of the debt which Ontario diligently dealt with within the
60-day expiration of the facility.”
Mr. Udoh
also alleged that Union Bank had unwittingly shot itself on the foot by its
failure to ”register the Form M with Central Bank of Nigeria, CBN, nearly 8
months after, which made it difficult for them to successfully bid for forex to
tidy up the transaction.”
“Finally, we
are surprised that the ex parte order which targeted Ontario Oil and Gas
Limited was used to seize the assets of The Renoire Logistics which is an
independent entity with no similar directors or ownership. Union Bank failed to
transparently manage this transaction and should blame itself for allowing the
devaluation of the Naira to hurt its interests,” he said.
“We do not
owe Union Bank. All proceeds arising from the transaction has been fully
redeemed. Any differential is as a result of devaluation of the Naira. Ontario
would do everything legal to vacate the ex parte application.”
Ontario is
however not new to fraud and shady dealings.
In January,
a judge of the Lagos High Court, Lateefa Okunnu, convicted the company and its
promoters, Walter Wagbatsoma and Adaoha Ugo-Nnadi, on an eight-count charge of
fuel subsidy fraud.
The judge
said the prosecution had proved that Mr. Wagbatsoma, Mrs. Ugo-Nnadi, and
Ontario Oil and Gas of collected hundreds of millions of naira falsely as
subsidy payments.
WALTER WAGBATSOMA 1
Mr.
Wagbatsoma is the chairman of the company while Mrs. Ugo-Nnadi is the managing
director.
The judge
also said the prosecution gave evidence that the convicts discharged “a much
lesser quantity” of petrol in their transaction with the government and
presented a forged shore tank certificate.
The judge
later said she had no doubt that the company forged the shore tank certificate,
used for the subsidy payment and subsequently sentenced both Mr. Wagbatsoma and
Mrs. Ugo-Nnadi to 10 years in prison.
She also
ordered restitution for Ontario Oil and Gas, and asked the company to refund
N754 million being the amount it defrauded the Nigerian government.
Also in
March, the NNPC stated that the company was yet to make a formal commitment to
settle all its outstanding debts under the crude oil swap contract that existed
between 2012 and 2014, adding that the company was broke.
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