Thursday, 17 September 2015

Policeman loses ear to a 27 year old man in Lagos

A 27-year-old man, Ibrahim Ayelangbe, has been remanded in prison custody by an Ikeja Chief Magistrate’s Court in Lagos, after pleading guilty to biting off a police officer’s ear. The police officer, Cpl. Ebere Nwogidi, was said to have been assaulted by the accused who allegedly tried to escape when he was caught trying to gain entrance into No. 21, Temple Road, Ikoyi area of Lagos. The Magistrate, Mrs Oluwadamilola Olanipekun, ordered the remand of the accused following his guilty plea when the charge was read to him. Ayelangbe (accused) whose address is not known is facing three-count charge bordering on unlawful entry and grievous assault. Police prosecutor, Insp. Benson Emuerhi, informed the court that the accused assaulted the said police officer on July 10, at 3:00am. According to the prosecutor, the accused was caught trying to gain entrance into No. 21, Temple Road, Ikoyi, Lagos, when he was accosted. He added: “Ayelangbe (accused) was caught while trying to jump a fence into a private residence at Ikoyi. The accused attempted to escape from Cpl. Omede Isaiah and one Ebere Nwogidi led to a scuffle. Ayelangbe then bit off the left ear of Nwogidi.” The prosecutor noted that the offences contravened Sections 172, 243 and 306 of the Criminal Law of Lagos State, 2011. Magistrate Olanipekun adjourned the case to October 2 for hearing and verdict.

Exposed: How Jonathan, Alison-Madueke, Tunde Ayeni, defrauded Nigeria billions in fraudulent oil contracts.


Premium Times has uncovered one of the most fraudulent crude oil deals carried out by the administration of Goodluck Jonathan, which saw cronies of the president pocket billions of naira through a domestic crude oil transportation contract that violated Nigeria’s procurement and economic regulations.
Estimates by the popular online newspaper indicate that the contracts, which the Nigerian National Petroleum Corporation has now admitted were unnecessarily exorbitant and inappropriately awarded, cost Nigeria N509.3 billion. How much service the companies offered to pocket that amount remains unclear even to the state oil company, insiders say. The deal, later disguised as security contract and channeled through the NNPC, saw two companies belonging to Idahosa Okunbor and Tunde Ayeni illegally rack up billions of naira to purportedly transport crude oil from Escravos to Warri refinery, and Bonny Island to Port Harcourt refinery, by ship, since 2011.
The deal involved the transportation of five million barrels of crude oil, monthly, from drilling terminals to the refineries using ships, and circumventing direct linking pipelines, at the cost of N3,063.00 ($15.4 USD) per barrel of crude. The cost of this contract is several times higher than it takes to transport crude oil through the more efficient pipelines which PPMC, a subsidiary of the NNPC operates.
The cost of transporting a barrel of crude through the pipeline is as low as N5.97. Although, awarding the firms the job to transport crude oil by ships was a very expensive alternative, the administration pressed on, ignoring the fact that it increased the cost of transporting only a fraction of locally refined crude oil by several billions of naira monthly and was economically unjustifiable. While the contract lasted, the NNPC, at the same time, transported crude through a national pipeline that originated from Escravos and landed in Warri Refinery before proceeding to Kaduna Refinery.
The Escravos-Warri Refinery arm of the project was conceived in 2010, shortly after Goodluck Jonathan became president. The contract kicked off properly in January 2011 and NNPC insiders say it was explained to the few who knew about it back then as a way of circumventing vandalized pipelines to keep Nigeria’s refineries amply fed with crude oil. The contract was never advertised and no competitive bidding was done, a clear violation of Nigeria’s procurement law. Cheaper options were neglected. Two companies, PPP Fluid Mechanics and Ocean Marine Securities, OMS, were awarded the job by presidential and ministerial discretion.
The two companies initially got N1.1 billion monthly payment each by NNPC, for a three-month trial, documents sighted by PREMIUM TIMES show. PPP Fluid Mechanics got the contract after
offering to transport the crude using Very Large Crude Carriers – super tankers – used in transporting crude oil. OMS got the contract to provide security for the 22.2km (12 nautical miles) journey, despite every other waterways security arrangement that existed at the time, including the Nigerian navy which patrols the country’s waterways. “This brazen case of impropriety has, till date, been sustained by a tight web of secrecy,” one of our sources said. “I do not have details” of the contract, NNPC spokesman, Ohi Alegbe, told PREMIUM TIMES more than one month after receiving our inquiries, and weeks after he later announced the corporation was canceling the contract. Paying the cabal This contract was conceptualized and executed in a classical mafioso style. After the then Petroleum Minister, Deziani Alison-Madueke, in 2010, got the then President Jonathan to approve the deal, the NNPC secretly invited bids from international shipping contractors. PPP FM, managed by two Israelis at the time, was handpicked for the logistics part of the job. OMS, managed by Messrs. Okunbor and Ayeni, was invited to handle the security aspect.
There are no records of OMS ever bidding for the contract. Insiders, who spoke to PREMIUM TIMES, also claim OMS never bidded. They were selected by a board led by Mrs. Madueke, which also had NNPC Group Managing Director at the time, Austin Oniwon, and eight others, including Yinka Omorogbe, the legal adviser to the corporation. The contract was initially explained as a
three-month trial to circumvent crude theft from pipelines that were believed to be under serious threat from militants and oil thieves in the Niger Delta. It, however, lasted till August 2015, almost five years later. How it escaped public scrutiny for the period it lasted is what is likely to shock
many Nigerians. Contract documents indicating the contract was supposed to last only three months
were issued on December 2, 2010. Shipping began the following month – January 2011 – after PPP FM provided one mother vessel and three smaller shuttle vessels. Contract documents seen by PREMIUM TIMES showed the each arm of the contract for the trial period was to cost NNPC N1.1
billion ($5.82 million USD) monthly. This is at the rate of N900 per barrel ($5.2 USD per barrel) split equally between shipping and security. But the cost of the deal quickly skyrocketed after the three-month trial period. Shortly after the project began, Messrs. Okunbor and Ayeni sought to own the entire project, and initiated a hostile takeover of PPP FM. Eight months later, they completed the
takeover and PPP FM’s founders, the Israelis, were kicked out.It is not clear how much the Israelis were paid to give up their company. It is also unclear whether they were merely used as fronts in the
beginning. The exit of the Israelis paved the way for one of the bloodiest financial hemorrhages
Nigeria suffered during the Jonathan administration, and was perhaps still suffering till July 2015 when NNPC called it off after becoming aware this newspaper was investigating the deal. With the Israelis out of the way, and believing the deal was now secret, the NNPC jacked up the cost of the deal to N1,496.10 ($7.52 USD) per barrel for transportation and the same amount for security. This increase raised the cost of the contract to N6.7 billion monthly. In August 2014, the former petroleum minister admitted to an oil and gas audience in the U.S. that NNPC was spending an average of $7.52 per barrel to transport crude oil locally to refineries by ship. She was silent on the security costs. But multiple sources confirmed to PREMIUM TIMES the security cost was just as much as the shipping. In four years, the NNPC shelled out at least N303 billion to the two companies owned by Messrs. Okunbor and Ayeni for the Escravos-Warri arm of the deal alone.
Thus, at the times the price of crude oil hovered around $50 per barrel, the NNPC paid these firms about a third of the cost of each barrel ($15.04) as shipment cost – in addition to all other cost of handling crude that existed before the contract. These sums were paid despite the oil corporation reporting that it kept pumping crude oil from Escravos to Warri refinery through the pipeline, concurrently with the shipping deal. Recently, during the opening of the renovated Port Harcourt Refinery, Mr. Okunbor confirmed to Thisday that his company did not even ship the total amount projected by the contract. But they got paid even while not shipping crude. “Currently, we lift 950,000 barrels to the Warri refinery twice a month,” Mr. Okunbor told Thisday. The projected
amount was 2.2 million barrels, apparently 300 thousand barrels higher than total actual shipment admitted by Mr. Okunbor and his partners. While the deal was expected to supply Warri Refinery with 105.6 million barrels of crude, NNPC records show that the refinery only received 61.2 million barrels, combined. At least half of what was expected by ship alone was not delivered. Warri Refinery Crude Oil Inflow. Data Source: NNPC The Port Harcourt Refinery Deal After running the Escravos-Warri Refinery deal successfully and secretly for two years, the NNPC opened the Bonny Island – Port Harcourt refinery route under the same covers. The Bonny Island – Port Harcourt
refinery route was to transport 2.8 million barrels of crude oil monthly at the same cost with the same contractors, PPP FM and OMS. Again, there were no competitive bidding before Mr. Ayeni and his partners were handed the contracts. With the Bonny – Port Harcourt Refinery route added to the portfolio, Messrs. Okunbor and Ayeni were charged with transporting five million barrels of crude oil to the two refineries, via ships, monthly. At that rate, NNPC was paying both companies N15.3 billion ($77 million USD) monthly on both fronts. Like in the Warri refinery’s case, Messrs.
Okunbor and Ayeni did not deliver the full amount of crude expected of the illegal contract.
“Currently, we lift… approximately 1.6 million barrels twice a month to the Port Harcourt refinery using our VLCC,” Mr. Okunbor told Thisday in July. Port Harcourt Refinery Crude Oil Inflow.
Data Source: NNPC Cocktail of illegalities These local crude oil transportation deals Messrs. Okunbor and Ayeni held until July were fraught with fraud, illegalities and irregularities, experts in the oil industry say. Those familiar with the deal said the NNPC board, in the first place, had no businesses approving the initial contract in December 2010 because the cost exceeded their
approval limit of N5 million, allowed by its laws, and $20 million US dollars allowed by Nigeria’s procurement laws. The decision to extend the contract beyond three months was the second major step in a cascade of fraudulent activities that defined the contract. In 2013, the NNPC attempted to regularize these illegal crude oil transportation contracts. In October that year, it published
an invitation to tender bids for the two crude oil transportation contracts in major Nigerian dailies.
Days later, just as many shipping companies were putting final touches to their bids, the corporation withdrew the call through another newspaper publication. The state oil company did not give any
reason for the withdrawal of the call for bids. But top NNPC sources told PREMIUM TIMES a directive demanding the withdrawal came from the presidency describing the project as a “security
contract”. Despite the only official explanation for the exorbitant contract being the drive to keep
the refineries amply supplied with crude oil in the face of ‘failing pipelines’, both the Warri and Port Harcourt refineries received crude oil volumes far less than the contract was expected to deliver. Between January 2011 and December 2014, the Warri Refinery received crude supplies
above two million barrels in six months only, NNPC crude distribution data shows. In at least three months of 2014, the Warri Refinery did not receive a drop of crude supply. The Warri refinery received an average of 1.2 million barrels of crude oil monthly in those four years. Port Harcourt refinery never received crude supply up to the full amount expected of the illegal contract while it lasted. In fact, NNPC data did not show any significant leap in supply after the transportation contract was initiated in 2013. Within the period, the Port Harcourt refinery did not receive a drop of crude oil in three months. It received an average of 536 thousand barrels of crude monthly, at least 2 million barrels less than the contract was expected to deliver. The NNPC data of crude received monthly by the refineries, obtained by PREMIUM TIMES, showed that in the last four years, the refineries rarely received crude oil close to the volumes awarded for shipment alone from both Messrs. Okunbor and Ayeni, not to talk of pipeline sources that fed the refineries. Satellite images obtained by PREMIUM TIMES showed that in some instances, no security boats escorted the ships deployed by PPP FM to transport the crude from production terminals to refinery jetties. Yet,
NNPC purportedly paid billions of naira for the security escorts. “Some of the vessels involved also sat anchored offshore the Niger Delta— presumably at a significant cost to the nation—for long periods when NNPC was not sending crude to the refineries at all,” a recent report by Natural Resources Governance Institute said. Besides being economically unjustifiable, many industry experts PREMIUM TIMES contacted for comment for this story were shocked by its details and ramifications. “What happened to the crude oil received by these contractors in the months the
refineries were down? Why did the refineries not receive full volumes of crude oil lifted by these contractors?” one expert asked. Follow the money Tunde Ayeni, one of the owners of the contracting firm in this deal is a long-standing ally of former governor of Bayelsa State, Depreiye Alamieyeseigha, and former President Goodluck Jonathan. Mr. Jonathan succeeded Mr. Alamieyeseigha as governor of oil-rich Bayelsa state after the latter was removed from office in 2005 following a money laundering scandal. Since his release from prison, Mr. Alamieyeseigha has remained active on the political scene. Mr. Ayeni, a lawyer, gained notoriety following the corruption trial that brought down Mr. Alamieyeseigha as Bayelsa governor. He was briefly arrested by the Economic and Financial Crimes Commission over the matter and later mentioned in court documents as admitting helping Mr. Alamieyeseigha to execute some deals. Mr. Ayeni was never convicted and has since then remained one of Nigeria’s most ambitious businessmen, investing heavily in almost all key sectors of the Nigerian economy – oil and gas, telecoms and power.
He’s currently the chairman of Skye Bank and was awarded Commander of the Order of Niger (CON) – a national recognition – by the Jonathan administration. In the build up to the 2015 general
elections, Mr. Ayeni chaired a fundraising dinner organised by Mr. Jonathan’s party, the Peoples Democratic Party, and made a shocking donation of N2 billion ostensibly to fund the president’s re-election. He explained that half of the donation was raised by himself and an anonymous partner while the other half was raised by himself and other anonymous friends. Mr. Ayeni, whose law firm, Legal Resources Alliance, doubles as the company secretary to PPP FM, turned away PREMIUM TIMES reporters, who visited to request his comments for this story, from his 38 Birao Street, Wuse II, Abuja office. The NNPC also declined to comment. After weeks of promises and excuses to respond to the website’s inquiry, the state oil company tried to preempt our investigation by
announcing it was calling off the illegal contracts. In the statement announcing the cancellation, the corporation admitted the contractors were inappropriately engaged and that the contract costs were exorbitant. It however did not say whether it planned to recover monies paid to the contractors
even while not transporting crude. The corporation’s spokesperson, Ohi Alegbe, declined to provide further details. He told PREMIUM TIMES the corporation had no details of the contracts beyond the announcement cancelling the deals.
Source: Premium Times

President’s bombshell: Ministers are noise makers –Buhari

President Muhammadu Buhari has said that civil servants and technocrats in Nigeria are more involved in the process of governance than ministers. Buhari who made the remark in an interview with French television station in France yesterday, said the ministers are only there to “make a lot of noises.”

The president defended his delay in composing his cabinet, insisting that the civil service provides the continuity. His words: “The civil service provides the continuity, the technocrat. And in any case, they are the people who do most of the work. The ministers are there, I think, to make a lot of noise, for the politicians to make a lot of noise. But the work is being done by the technocrats. They are there, they have to provide the continuity, dig into the records and then guide (those of us) who are just coming in. “They have been there, some of them for 15 years, some for 20 years. So I think this question of ministers is political.
People from different constituencies want to see their people directly in government, and see what they can get out of it.” Asked if the absence of a finance minister was affecting the Nigerian capital market and the economy, Buhari said: “It is what we know and which we learnt from the western system. The civil service provides the continuity, the technocrat.” Buhari however assured that he intends to stick with the decision to name his cabinet before the end of the month. “I said we will have one by the end of the month, and time flies. The end of the month is coming too quickly for my liking. Yea, I will stick to it. I will send the names to the National Assembly.”

FG sites integrated transport facility in Enugu

In a bid to further boost trade between Nigeria and landlocked countries, the Federal Government has concluded plans to site three key transport infrastructures in Enugu State as a strategy to decongesting the seaports, promote export and create more corridors for transit trade between Nigeria and her landlocked neighbouring countries of Niger and Chad.
The projects are Truck Transit Park (TTP), Inland Container Depot (ICD) and Transshipment Cargo Terminal at the Akanu Ibiam International Airport, Enugu. The Enugu state government last week, allocated 68 hectares of land at Obollo Afor town in Udenu Local Government Area of the state for the truck transit park.
These projects are expected to complement the Free Trade Zone (FTZ) already sited at the 9th mile area of the state, attracted by former governor of the state, Sullivan Chime. Speaking during a courtesy visit to the Governor of Enugu State, Hon. Ifeanyi Ugwuanyi, the Executive Secretary of Nigerian Shippers’ Council (NSC), Bar. Hassan Bello, observed that the projects when actualized
will reposition Enugu as a transhipment hub in West Africa sub-region, explaining that the visit of NSC management team to the state was to discuss how the TTP, ICD and transhipment air cargo terminal being promoted by the Council could meet some aspirations of the state government. The
projects are being undertaking under public private partnership (PPP) among the state, private investors and the Federal Government. Private investors According to Bello, TTP is a modern state of the art facility situated just off the Highways, designed to provide temporary rest location where truck drivers can conveniently park their vehicles in a healthy environment, get accommodation, fuel, food, drinks, rest rooms, showers and other basic suppliers like oil and spare-part as well as servicing of their vehicles. The parks are primarily intended for short-term safety breaks and also long-term parking services in high-use corridors. Explaining that the NSC as a regulatory agency for the projects, is facilitating the development of TTPs at eight locations across the country, with Obollo Afor inclusive, he noted that in line with the decisions of the 13th National Council on Transport (NCT) in November, 2013 in Lagos, state governments interested in the development of TTPs could either do so separately or in collaboration with Federal Government. Kogi State, he added, had allocated over 45 hectares of land for the establishment of a pilot TTP project at Ohono village, along the Abuja-Lokoja way, while the Kaduna State government is finalizing arrangement for the development of its TTP project at three locations across the state. He further explained, “The Federal Government policy direction is for the TTP projects to be private sector driven under a PPP
arrangement. Under this arrangement, the state government shall undertake the obligation of providing land as well as basic infrastructure, including access road, electricity and water supply. The private sector concessionaire shall provide investment, management and maintenance for the success of the projects.” Bello listed the benefits of a TTP as provision of reliable and convenient parking facilities for truck drivers; provision of cargo safety and reduction in cargo pilferage and loss on transit; improved Internally Generated Revenue (IGR) for the state; facilitate smooth
movement and timely delivery of transit cargoes to the landlocked neighbouring countries; creation of employment opportunities and related socio-economic services; among others.

Churches and other institutions closed down by El-Rufai in Kaduna

Kaduna State Governor, Malam Nasir El-Rufai has announced the immediate closure of two churches, a seminary school as well as hospital in Saminaka, Lere Local Government Area.
Gov. El-rufai

The governor gave the names of the affected worship places as Theological Seminary of Northern Nigeria, (TSNN) Saminaka, Shalom Comprehensive College, Saminaka, Assemblies of God Church, Nmbare, Saminaka and Assemblies of God Church (Jerusalem) Saminaka, AGC Evangelist Hospital, Saminaka.
The closure, according to a statement by El-Rufai’s Special Assistant on Media and Publicity, Samuel Aruwan, was as a result of leadership crisis in the affected churches. The governor said the measure, which was the outcome of the state security council meeting held on Tuesday, was to forestall possible breakdown of law and order in the area and the entire state.
The government, he said would not tolerate the use of religion and ethnicity to cause crisis in the state. He warned that he would prosecute anyone caught fomenting crisis in whatever form. He noted that as a result of the measures, those who might be affected by the closure would be admitted into government schools or hospitals, if they exercise the option. The Council, the governor noted, also directed that the status quo with regard to farmlands, houses and other assets of the church be
upheld pending resolution of the leadership crisis, which is a matter before the Supreme Court.

Suspected Fulani Herdsmen kill nine in Tiv Community

Nine persons were feared killed in Sarki-Kudu Village of Ibi Local Council of Taraba State following a reprisal attack said to have allegedly been carried out by Fulani herdsmen on the Tiv community. The incident, which took place on Tuesday, forced many people living in the area to
relocate to nearby Plateau State and some local councils within the state. Confirming the report, the council chairman, Illiya Mohammed, said no fewer than seven persons were killed in the attack.
Security chiefs in the state, according to him, have been informed “and the council is leaving no stone unturned to stop the crisis from escalating to nearby councils.” The crisis had compelled the commissioner of police to relocate his office to the area, which is observed to be one of the volatile
spots in the state. The Police Commissioner, who spoke with The Guardian through the Police Public Relations Officer (PPRO) in the state, Joseph Kwaji, also disclosed that the attack was a
reprisal. Unlike the council boss who said seven persons were killed in the upheaval, the PPRO confirmed nine deaths.
Besides, some persons were also said to have sustained varying degree of injuries and are presently undergoing medical treatment at various health centers in the area. An eyewitness, who spoke on telephone, said the people, especially the Tiv community in the area, were taken by surprise by the herdsmen who had been terrorizing the local council as well as the entire southern zone of the state. The eyewitness, who claimed to have narrowly escaped the attack, expressed dissatisfaction with the number of security operatives in the area, saying it was nothing to write home about.
Source: Guardian