Court Orders Interim Forfeiture of N1.96bn Linked to Ontario Oil

Davidson Iriekpen

Justice Hadiza Shagari of a Federal High Court in Lagos has ordered the interim forfeiture ofN1.96 billion allegedly belonging to an oil company, Ontario Oil and Gas, over alleged fraudulent sale of refined petroleum.

The judge issued order, following an the ex- parte application filed by the Economic and Financial Crimes Commission (EFCC) seeking forteiture of the funds.

In its suit labelled FHC/L/ CS/1464/17, the commission joined as first and second respondents respectively, Ontario Oil and Gas Ltd, and Mrs. Ada UgoNgadi (Managing Director of Ontario).

An affidavit of urgency elicited by an investigating officer of the EFCC, Mr Abdukarim Acheneje in support of the ex parte motion, chronicles as follows:

“That the EFCC received a petition from one Joan Ganadanu against the second respondent, complaining of fraud, diversion and conversion of proceeds of sale of refined petroleum products valued atN1.96 billion.

“That the petition alleged that the first respondent is a customer to Union Bank plc, of stallion plaza branch, marina Lagos.

“That Union Bank granted a loan facility to the first respondent in the tune of 70 million dollars to import and/ or purchase locally refined petroleum products petroleum kerosene and diesel.

“That the loan was to be repaid from sale of the products and the second respondent guaranteed repayment of the said loan personally.

“That further investigations revealed that the respondent have lifted the product on the order financed by the bank for 10,000 metric tonnes of diesel, since July 2016.

“That the respondent have sold same, but have refused to lodge the proceeds in the company’s account, and pay back the facility to Union Bank.

“That the respondent have refused to authorise Union Bank to repossess the unloaded order of petroleum from the Petroleum Products Marketing Company.

“That the respondent have breached the terms of transactions between them and union bank.

“That investigations reveals that the respondents instead, diverted the funds to the account of Renoir Logistics Ltd, and intelligence further reveals that Ontario oil and Gas has an outstanding 15,000 metric tonnes of diesel and 5,000 metric tonnes of petroleum.

“That intelligence report gathered shows that the respondent are at the verge of dispensing with the said properties, and that the order of the court is urgently needed to attach the property mentioned in paragraph nine.

“That unless the application is urgently heard and determined, the respondent will tamper with the property sought to be attached,”

Issuing the order, justice Shagari held.

“Upon reading the affidavit in support of the ex parte originating summons, and after hearing Nkereuwem Anana, counsel for the applicant moved in terms of the application, It is hereby ordered as follows:

“That the property mentioned in paragraph nine of the affidavit viz, Renoir Logistics Ltd currently under investigation be interim attached/forfeited pending the determination of the investigation and possible prosecution of the case.

“That the said property attached/forfeited, ad-interim be managed and controlled by the EFCC.