SFU holds 10 persons, coys over N1.3bn subsidy fraud
Ten persons and some companies have been identified by the Special Fraud Unit (SFU) as being responsible for defrauding the Federal Government to the tune of N1.3 billion under the cover of fuel subsidy.
SFU spokesman ASP Ojeka Felix said in a statement in Lagos yesterday that the 10 persons and company representatives were arrested following a petition filed by the presidential committee on verification and reconciliation of fuel subsidy payments dated October 31, 2012.
The petition specifically requested for the unit’s assistance to investigate subsidy claims by Eurafric Oil and Coastal Services Ltd. The statement alleged that the request for investigation concerned six different fuel import transactions allegedly executed from 2010 to 2011 by Eurafric Oil and Coastal Services Ltd.
It added that the transactions valued at over N6 billion was allegedly received by Eurafric Oil and Coastal Services Ltd from the Federal Government as fuel subsidy payment. The statement said the managing director of Eurafric Oil and Coastal Services Ltd was arrested and had confessed to the crime. It stated that he was given permission by the Federal Government to import fuel between 2010 and 2011 under the subsidy scheme but instead of utilising the chance, he sold one of the slots to a company, Tubbs Marine Services Ltd. for N65 million. The company did not import any product based on the permit but arranged forged documents of Cornerstone Insurance Plc.
The statement alleged that the suspect arranged with the said insurer of the transaction with which he applied and received payment of N 1.3 billion as subsidy claims.
“It was further revealed that Eurafric Oil and Coastal Services Ltd. and Tubbs Marine Services fraudulently collected the subsidy claim via a joint account named Eurafric Oil and Coastal Services Ltd., in Sterling Bank Plc,” it added.