Not So, Reuters

Fri, Jul 26, 2013

By publisher

3 MIN READ

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THE Petroleum Products Pricing Regulatory Agency, PPPRA, has dismissed reports that indicted marketers who were listed among the 40 companies that got allocations for the importation of petrol into the country for the third quarter of this year. Reginald Stanley, executive secretary, PPPRA, described the report as “misleading and grossly wrong.”

He explained that no company indicted for the subsidy fraud as reported by Reuters was included in the latest list of importers. “No company that was indicted in the subsidy claims report can import petroleum products under the new dispensation. In fact, even if we were foolish enough to include any of them, they will get stuck because the ministry of finance will not pay them. The finance ministry is resolute in cleaning up the subsidy mess and has not even finished paying off the genuine claims. So, it will be a big risk for any company indicted to go on importing fuel when it has not yet been cleared, and no businessman will want to tie down his money indefinitely,” he said.

The report by Reuters had claimed that companies previously named in a multi-billion dollar subsidy fraud investigation had been listed among fuel suppliers for the third quarter. “The list showed that four companies that failed to cooperate with parliament’s probe were named as suppliers. These were Nepal, Fresh Synergy, Ibafon and Techno, which the parliamentary report showed collectively claimed subsidies of nearly $60m,” the report had said. The report also mentioned Masters, Matrix and MRS, but explained that Matrix had provided documents showing it had since been exonerated by the Nigerian authorities.

Stanley clarified that all of the companies mentioned by Reuters were cleared in the subsidy report. “Masters has been cleared by the Special Fraud Unit, Nepal’s issue with the Economic and Financial Crimes Commission is closed. In fact, the company now has a depot at Ogara, the PPPPRA team inspected it and the depot was duly certified by the Department of Petroleum Resources, having met all the necessary requirements for depot operations. MRS was never indicted. So, all the companies that have been cleared by the SFU and EFCC that meet the requirements to participate in the Petroleum Subsidy Fund, which include being a registered Nigerian company, ownership of a certified and registered depot and a host of other requirements are free to participate in importation.”

What ASBON Wants

THE Association of Small Business Owners, ASBON, has advised the federal government to reduce its seven-point agenda and focus on power generation and road construction to grow the economy. Femi Egbesola, president, ASBON, said ASBON members were worried over the epileptic power supply and the poor state of most roads in the country.

He urged the three tiers of government to pay attention to these problems because they affect business’ operations. ASBON members in the hinterland, which included farmers and other artisans, he said, were finding it difficult to bring their products to the cities because of bad roads. He urged the Bank of Industry and other financial institutions to give ASBON members soft loans to boost their businesses

Egbesola decried a situation where his members were finding it difficult to register their products with the National Agency for Food Drug Administration and Control, NAFDAC, because of certain problems. Although the official amount they have to pay before obtaining their certificate from NAFDAC is less than N60,000, the group alleged that they end up paying over N250,000 because of verification and bureaucracy.

Compiled by Anayo Ezugwu