Tuesday, December 11, 2012

FG seeks Swiss help in N1.8t fuel subsidy probe



FEDERAL Government is seeking Switzerland's help in the  investigation of a N1.8 trillion ($6.8-billion)  fuel subsidy scam, after some Swiss oil trading houses refused to cooperate.

The government opened an investigation in January into fraud in the administration of the subsidy scheme after an abortive attempt to remove it by President Goodluck Jonathan.

Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Lamorde, said a request was sent to Swiss authorities in October after some trading houses declined to provide documents.

"They are not forthcoming. And most of the information is not in their Nigerian offices," Lamorde said.

He declined to name the companies which did not cooperate. EFCC is trying to unpick a web of collusion between fuel importers and corrupt officials that has led to the government paying for nearly double the amount of fuel it receives.

Asked if trading houses were themselves complicit in the fraud, he said: "We just want information to confirm some of the things the marketers have said. Whether they sold such products to Nigerians or not."

The judicial authority for Geneva, home to many private trading houses, said Switzerland had requested additional information on the probe from Nigerian authorities.

"This case involves suspected subsidy fraud on imports of refined products by Nigerian companies. They acquired the oil from companies based in Geneva," a spokeswoman for the authority said in an emailed statement.

She added that Geneva-based trading houses were not directly implicated in the Nigerian investigation.

She did not name the companies involved in shipments.

Past suppliers have included many large Swiss-based private trading houses.

Swiss-based Nimex Petroleum was suspended earlier this year for failing to provide documents for shipments.
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