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Igboamaeze
Oct 24, 2009, 08:22 PM
•60 ships wait to discharge cargo, accumulate demurrage •PPMC abandons Atlas Cove for private depots

By Yemi Adebowale, Thisday, 10.24.2009 (http://www.thisdayonline.com/nview.php?id=157895)


A clique within the Nigerian National Petroleum Corporation is feeding fat from the millions of litres of petroleum products imported daily into the country by its subsidiary, the Pipeline and Products Marketing Company, THISDAY has learnt.

Investigations revealed that the mafia, using PPMC, receives a commission of $500,000 (about N75 million) daily from international commodity traders, comprising Trafigura, Glencore and Vitol, that lift crude on behalf of the corporation and also import petroleum products for PPMC.
"Key officials of the NNPC and PPMC share the commissions paid by the commodity traders. Trafigura, Glencore and Vitol pay the commissions to sustain the importation contracts awarded by NNPC and/or PPMC," a source alleged yesterday.
However, it was gathered that oil majors such as Shell, Exxon-Mobil and ChevronTexaco which from time to time import products on behalf of PPMC, despite subtle threats, have refused to pay any form of commissions to the NNPC mafia.
Also in a desperate attempt to feed fat from the inefficient marketing and distribution structure, it was gathered that the PPMC has abandoned the usage of its own Atlas Cove (Lagos) and Mosimi (Sagamu) storage facilities, in preference for Yinka Folawiyo Oil and Capital Oil depots, both privately-owned storage facilities in Lagos at a great cost.
The irony is that the storage facilities at Moisimi and Atlas Cove more than double those of Capital Oil and Yinka Falowiyo depots combined.
"PPMC pays these private depot owners N3 per litre for storage. Owners of these private storage facilities in return pay the NNPC mafia N1 on every litre of petroleum products stored.
"We are talking of big money here because millions of litres of petroleum products are imported daily. The storage capacity of Capital Oil is 30,000MT while that of Yinka Folawiyo is 60,000MT.
"So, for example, if Capital Oil's entire facility is leased by the PPMC, N10,233,0000 will be paid for storage. The NNPC clique will then get N3,411,000 as kick back," the source alleged.
Another conduit through which NNPC/PPMC officials line their pockets, is the over-importation of petroleum products.
The source said NNPC took this action to muscle out other major oil marketers from the importation of fuel products and show that it can single-handedly manage the importation of products into the country.
As at last Wednesday, about 60 vessels laden with PPMC's petrol (premium motor spirit) had berthed in Nigerian territorial waters and were waiting to discharge in the third party storage facilities leased by PPMC.
However, since the facilities leased from Capital Oil and Yinka Folawiyo are too small, the ships are compelled to queue for days, and in the process accumulate huge demurrage.
On the average, they wait for about 28 days, before discharging, explained a source very conversant with the importation regime. He disclosed that PPMC pays $20,000 daily as demurrage on each of the vessels.
"The mafia at NNPC also makes good money from the demurrage charges. The official charge should not be more than $12,000 daily per vessel.
"However, port officials, working with the mafia and vessel owners send inflated invoice to the vessel owners. As a result, the difference of $8,000 makes its way to the NNPC mafia when money is paid," revealed the source.
Attempts by the NNPC to turn itself into a monopoly in the petroleum products importation business has been a source of concern for major and independent oil marketers, which in the past used to get allocations from the Petroleum Products Pricing Regulatory Agency.
Independent and major oil marketers opposed to NNPC's stance readily point to the persistent rise in the price of kerosene after its subsidiary PPMC became the sole importer of the product. Last night, kerosene was selling for as high as N115 per litre in most parts of Lagos.
Some of those opposed to NNPC's plan to become a monopoly have started sending petitions to key government officials.
One of such petitions written by a major oil marketer to the Minister of State in the petroleum ministry, Odein Ajumogobia, pleaded for an immediate halt to the current regime.
In the correspondence, the marketer stated that NNPC's plan to monopolise imports with its recent fourth quarter tender award and the refusal by the PPPRA to give marketers import letters for DPK (kerosene) may lead to severe product shortages before Christmas.
The oil marketing company continued: "NNPC's position is not in the best interest of the nation. They may import as many cargoes as they like, but they lack the requisite logistical infrastructure to guarantee uninterrupted supplies when compared to the major marketers.
"The resultant effect of this is an increase in the national demurrage exposure as there will be long queues of ships waiting to discharge.
"Furthermore, the plan to use third party storage facilities for the discharge and distribution of products will only worsen the situation as major marketers who have made massive investments at Apapa will not go and load from those depots."
Already there are indications that major oil marketers under their umbrella body, Major Oil Marketers Association of Nigeria, are preparing to make good their threat to stop fuel trucks from loading products discharged at third party facilities.
Their grouse stems from the fact that NNPC is doing everything to frustrate the competition and make itself the sole importer and distributor of products in the country, which is a throwback to what obtained in the 1990s and was not sustainable.

Igboamaeze
Oct 24, 2009, 08:33 PM
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I see some people filing out as usual to blame Yar'dua, Ibori, Farida and Aandoaka for this latest "revelation" not knowing that this has been going on right from the days of Obasanjo, Ribadu, Bayo Ojo/Kanu Agabi and Adedibu.

I've done the calcution and the total amount "chopped" by some petty thieves at NNPC from this one alone is a mere N219b, (Two Hundred and Nineteen billion Naira Only, no kobo). That is N75m x 365 days x 8 years (1999 to 2007). Since the law establishing EFCC specifically provided that big-time rogues in Abuja are exempted from prosecution, I can understand why Ribadu never bothered to look their way.

And if anyone thinks that this chicken change is a serious matter, I say wait till they tell you how ship loads of crude disappear courtesy of the untouchables at NNPC.

May God judge those who have made a carreer of deceiving our people...

Felix
Oct 24, 2009, 08:43 PM
People say Nigerians are "wonderfull scammers"., yet with everyday that passes, it has become apparent that the real scam is Nigeria.

emj
Oct 24, 2009, 08:49 PM
Also in a desperate attempt to feed fat from the inefficient marketing and distribution structure, it was gathered that the PPMC has abandoned the usage of its own Atlas Cove (Lagos) and Mosimi (Sagamu) storage facilities, in preference for Yinka Folawiyo Oil and Capital Oil depots, both privately-owned storage facilities in Lagos at a great cost.
The irony is that the storage facilities at Moisimi and Atlas Cove more than double those of Capital Oil and Yinka Falowiyo depots combined.
“PPMC pays these private depot owners N3 per litre for storage. Owners of these private storage facilities in return pay the NNPC mafia N1 on every litre of petroleum products stored.
“We are talking of big money here because millions of litres of petroleum products are imported daily. The storage capacity of Capital Oil is 30,000MT while that of Yinka Folawiyo is 60,000MT.
“So, for example, if Capital Oil’s entire facility is leased by the PPMC, N10,233,0000 will be paid for storage. The NNPC clique will then get N3,411,000 as kick back,” the source alleged.
Another conduit through which NNPC/PPMC officials line their pockets, is the over-importation of petroleum products.
The source said NNPC took this action to muscle out other major oil marketers from the importation of fuel products and show that it can single-handedly manage the importation of products into the country.
As at last Wednesday, about 60 vessels laden with PPMC’s petrol (premium motor spirit) had berthed in Nigerian territorial waters and were waiting to discharge in the third party storage facilities leased by PPMC.
However, since the facilities leased from Capital Oil and Yinka Folawiyo are too small, the ships are compelled to queue for days, and in the process accumulate huge demurrage.
On the average, they wait for about 28 days, before discharging, explained a source very conversant with the importation regime. He disclosed that PPMC pays $20,000 daily as demurrage on each of the vessels.
“The mafia at NNPC also makes good money from the demurrage charges. The official charge should not be more than $12,000 daily per vessel.
“However, port officials, working with the mafia and vessel owners send inflated invoice to the vessel owners. As a result, the difference of $8,000 makes its way to the NNPC mafia when money is paid,” revealed the source.

Hmmm, what a sorry/sad state of affairs......this is a very serious issue that should be dealt with by those with back bones.
You have a serious cult/mafia at work here....just like the generator mafias that wont allow us see an end to the energy problem.

I still remember how they set fire to that NNPC building at Ikoyi to cover up all the irregularities and fraud going on there.
One daily receives unsolicited calls from those ones to come and supply what will not make it to the store. I remembered sending one of my staffs on recon exercise in respect of this....what we uncovered will blow ur mind.

The seal of Corruption can be seen everywhere and is very ugly:p

Igboamaeze
Oct 25, 2009, 08:53 AM
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@Felix,

Please update your compendium with this record. So that when they accuse you or me of embezzling N10,000.00 (Ten Thousand Naira only) tomorrow, we can always refer to them.

There are choppers and there are sopas...

nijalaw
Oct 25, 2009, 07:46 PM
Amaeze as usual has to spoil this thread with Ribadu-septicemia.

Thisday brought out a rejoinder to this story & I quote below.


Our Error
In our lead story titled "How NNPC Clique Pockets N75m Daily from Fuel Imports" published yesterday October 24, we wrote that a clique within the corporation pockets N75 million ($500,000) daily in the form of commissions paid by commodity traders which import fuel products on behalf of PPMC Ltd. We have been reliably informed that the amount was grossly understated and that the commission of N75million($500,000) is paid for every shipment brought in. In other words for every cargo that berths in Nigerian territorial waters, a commission of N75million is paid by the traders which ends up in private pockets. The error is regretted.
Editor.

This is now mind boggling.

Igboamaeze
Oct 25, 2009, 08:27 PM
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Naija Lawyer, thank you for the update. In fact I was surprised that it was only N75m a day that the annointed looters at NNPC were chopping but I did not want to put words in Thisday's mouth. I'm sure that the boys at NNPC must have threatened Thisday with defamation for alleging that they chop only a paltry N75m daily whereas they were chopping N75m per vessel (a more handsome sum).

There are looters and there are annointed looters...