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You are here:Home>>Strategic Research & Analysis>>Oando Fuel Subsidy Retraction
Wednesday, 04 July 2012 13:47

Oando Fuel Subsidy Retraction

Written by Tokunboh Akindele
Oando Fuel Subsidy Retraction oando

Oando’s Tokunboh Akindele on the below statement retracted on the alleged fuel subsidy payment to Oando PLC and its subsidiary, Oando Supply and Trading Ltd.


Dear All,


We refer to the newspaper publications in 'This Day' newspaper of Wednesday June 27, 2012 and Thursday June 28, 2012 relating to the alleged report by the Federal

Government Technical Committee on Payment of Fuel Subsidies, set up by the Hon.

Minister of Finance and Chaired by Mr. Aigboje Aig-Imoukhuede to verify the 2011

fuel subsidy payments to oil marketers of which Oando PLC and its subsidiary, Oando

Supply and Trading Ltd were included.


The terms of reference of the Technical Committee on Payment of Fuel Subsidies were stated as follows:


i. Authenticate the backlog of outstanding payments of subsidy payments to

marketers in 2011

ii.Verify the legitimacy of backlog of claims already submitted by marketers for 2011

iii. Review any other pertinent issues that may arise from the exercise


Considering the gravity of the mandate, the committee ought to have:


1.Taken adequate steps to ensure the veracity of their reports by listing

all its queries and inviting the market operators to defend themselves;


2.Provided copies of the draft report to members of the committee,

including the sector representatives MOMAN and IPMAN, to verify their findings

against the realities of downstream operations in Nigeria;


3.Acted with duty of care before releasing the report to the press.


Unfortunately, the committee did not take all reasonable steps in ensuring the

fulfillment of its mandate, giving rise to misinformation and confusion across the industry.


Accordingly, we state without equivocation that:


a.On the allegation of subsidies paid without auditor's signature on shore

tank receipt documents (10 transactions listed against Oando) - Upon arrival of

vessels, government agencies including PPPRA auditors and DPR, verify quantity on board as well as shore tank volumes prior to the commencement of receipt. As such it is virtually impossible for vessels to discharge without due sign offs by the authorities. We have documents duly witnessed by all government agencies including PPPRA, DPR and independent inspectors for all discharges including the stated transactions.


b.On the allegation of subsidies paid without evidence of Bill of Lading

documents (2 transactions listed against Oando) - Oando has never claimed subsidy

without evidence of Bill of Lading. Indeed, it is obvious that a company cannot

import without a Bill of Lading. All Bills of Lading and shipment documents are

available for inspection as we had earlier provided them to other authorities upon



c.On the allegation of subsidies paid without evidence of bank sales

proceeds (29 transactions listed against Oando) - We have evidence of all bank sales

proceeds and trucking reports regarding the said transactions and are prepared to make same available to the committee.


d. On the allegation of subsidies paid but transaction disclaimed by Banks

(1 transaction listed against Oando) - The letter from the bank confirming the said transaction is available for inspection.


We look forward to the opportunity to present these documents to the committee so that they can appropriately conclude their report.


Irrespective of the multiplicity of probes initiated by the various tiers of

government since the start of the year, Oando has always been ready, willing and

able to provide all relevant documents supporting claims made, both past and

present, against the Petroleum Subsidy Fund (PSF) and to demonstrate the culture of integrity that the company stands for.


Oando is a law abiding body and as a key industry stakeholder remains committed to supporting the Federal Government in ensuring petroleum products are made available nationwide.


Find below a link to the document on our website:


Please do not hesitate to contact me if you require any additional information.


Best regards


Tokunboh Akindele

Head, Investor Relations


Oando PLC

10th Floor

2, Ajose Adeogun Street

Victoria Island

Lagos, Nigeria


Tel: +234 (1) 2601290-9, Ext 6396

DL: +234 (1) 2702496

Fax: +234 (1) 2611366













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