“EFCC CRACKS DOWN ON REFINERY FRAUD: N5 BILLION, $10 MILLION RECOVERED”
GREATRIBUNETVNEWS–THE Economic and Financial Crimes Commission (EFCC) has made significant strides in its investigation into the refinery fraud, recovering over N5 billion and $10 million from contractors and government officials implicated in the scandal. The funds were allegedly siphoned off through fraudulent activities surrounding the turnaround maintenance of Nigeria’s refineries in Port Harcourt, Kaduna, and Warri.
Key Highlights:
– Recoveries and Prosecution: The EFCC has recovered substantial amounts from indicted contractors and government officials, with plans to prosecute former top officials of the Nigerian National Petroleum Company Limited (NNPCL).
– Further Recoveries: The anti-graft agency is working to recover an additional N10 billion and $13 million allegedly siphoned through contractors engaged in the maintenance.
– EFCC Chairman’s Direct Involvement: Chairman Ola Olukoyede has taken personal charge of the investigation, driven by his displeasure over the non-functional state of the refineries despite massive public spending.
Investigation Details:
– Contract Inflation and Over-Invoicing: The EFCC has uncovered large-scale fraud involving contract inflation, over-invoicing, and questionable payments, which contributed to the refineries’ malfunctioning.
– Probe of NNPCL Officials: Former and current NNPCL officials may face charges, with investigations already concluded on some officials involved in rehabilitation contracts .
Impact on Nigeria’s Oil Sector:
– Billions Spent, Little to Show: Nigeria’s four refineries have remained largely dormant despite billions of dollars spent on rehabilitation, forcing the country to rely heavily on imported petroleum products.
– EFCC’s Efforts to Recover Funds: The commission is working to recover funds allocated to the refineries, including $1.55 billion for Port Harcourt, $740.6 million for Kaduna, and $656.9 million for Warri
The source said, “Our investigation into the turnaround maintenance of the nation’s refineries in Warri, Kaduna and Port Harcourt, have yielded major discoveries of large- scale fraud.
“Investigators discovered fraudulent dealings through over-invoicing, contract inflation and questionable payments were largely responsible for the malfunctioning of the refineries.
“Specifically, investigations flagged former management teams of the three refineries who were arrested several times and grilled to uncover fraudulent dealings that have not made the refineries deliver optimal benefits to Nigerians.
“A total sum of $10m and N5bn have so far been recovered from suspects indicted in the fraud. The recoveries were made from some contractors and government officials involved in over-invoicing and inflated payments.”
The source added that some serving and retired members of the management of the NNPCL and the refineries might be charged soon.
“Investigations are already concluded on some officials of the NNPCL involved in the rehabilitation contracts and the commission is ready to file charges against them.
“Both former management and present management of the NNPCL and refineries may be charged,” the source said.
Another source noted that the commission was on track to recover additional sums.
“While we have recovered some money, another $13m and N10bn discovered to be siphoned through contractors engaged in the maintenance are due to be recovered,” the source disclosed.
The source also said the commission was probing fresh allegations of contract inflation worth about $40m, allegedly involving NNPCL officials and some contractors engaged to procure equipment for the rehabilitation projects.
“Investigation is still ongoing on allegations of contract inflation in the region of $40million involving some officials of NNPCL and some contractors engaged to procure equipment for rehabilitation works, “ the source said.
The EFCC’s Head of Media and Publicity, Dele Oyewale, could not be reached for comments as of press time as calls and text messages were not replied.
A senior official of the commission, who does not want to be named because he was not authorised to speak on the matter, however, confirmed the recovery.
(SOURCE: PUNCH EXCEPT THE HEADLINE AND INTRO
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