N2.7bn Subsidy Scam: EFCC Goes After Unregistered Firm

Operatives of the Economic and Financial Crimes Commission (EFCC) have launched a massive investigation into how an unregistered firm, Pinnacle Contractors Limited, received a whopping N2.76 billion of the oil subsidy funds without supplying even a litre of fuel.

The commission is also probing how the firm, which was not registered with the Corporate Affairs Commission (CAC), made the list of beneficiaries of the subsidy scheme.

A source at the commission confided in LEADERSHIP SUNDAY that investigation into the alleged scam had reached an advanced stage, saying that the agency would soon take necessary action against those behind the firm and the fraud.

He said: “Of course, the allegation against the firm is a serious one and we are in the process of unravelling the masterminds of the scam. We are aware that there is involvement of certain officials in government circle, oil industry and regulatory agencies, because there is no way such a huge amount would be paid without evidence of service.

“There is no way the issue can be swept under the carpet and I can assure you that the agency is already moving against those involved in the matter. You will recall that we are prosecuting some of the indicted firms in court while arrangement is being put in place to arraign more indicted oil firms and marketers.”

When asked about the identities of those behind the firm and their level of involvement, the source replied that the disclosure would affect the course of investigation, adding that the issue would soon be made public.

The Presidential Committee on Verification and Reconciliation of Fuel Subsidy Payments led by the chief executive officer of Access Bank Plc, Mr. Aig Imhoukuede, had identified Pinnacle and 25 firms as having committed infractions and recommended sanctions accordingly.

Some of the companies were said to have claimed payments for consignments brought in by supposed ships while investigations revealed that the ships were either non-existent or were somewhere else in the world.

Pinnacle Contractors is number 22 on the list of the 25 oil marketers recommended for criminal investigation by the Imhuokuede-led committee. According to the committee, Pinnacle was accused of obtaining N2.76 billion subsidy payments for which mother vessels were not found in locations claimed and no longer operational at the time of transhipment.

But searches at the CAC indicated that only Pinnacle Company Nigeria Limited with registration number RC. 8740 was registered; there was no trace of Pinnacle Contractors.

It was gathered from officials of the CAC that Pinnacle Contractors Limited could not have been registered since Pinnacle Company Nigeria Limited had already been registered on the CAC website. The searches revealed that Pinnacle Company Nigeria Limited was registered on September 18, 1981, with registration number RC. 8740 while its registered office is given as 12, Iwehen Street, Benin City, Edo State.

The directors were given as Samuel Okhorutomwen Uwadie and Samuel Omorodion Uwadie. According to the data at the CAC, the company is registered as importers, exporters, manufacturers’ representatives as well as sellers and distributors of general goods.