Standup9ja: Ifeanyi Ubah debunks claims of owing NNPC N11
billion
The Chairman of
Capital Oil, Mr Ifeanyi Ubah, on Thursday disputed claims that he was owing
Nigerian National Petroleum Corporation (NNPC) N11 billion.
Ubah made the
disclosure at the on-going public hearing organised by the House of
Representatives Committee on Petroleum Downstream.
The committee is
investigating the alleged disappearance of 82 million metric litres of petrol
belonging to NNPC that was stored at Capital Oil tank farm in Lagos.
Ubah said that
instead the national oil corporation was owing him N16 billion.
According to him,
NNPC blew the entire incident out of proportion.
He added that claims
and counter claims by both parties were subject of litigation and investigation
by anti-graft agencies.
“The contract which
is what we operate with NNPC puts us in a position of a stock manager which is
somewhat the vessel akin to an oil bank.
“This allows for
coming in and loading out of products so long as we ensure that all parties
having products in our storage ultimately receive their total stock.
`
”The NNPC in the past
has also borrowed products from us to keep their supply and distribution chain
running.
“NNPC claimed that we
owe N11 billion but failed to reveal that they owe us N16 billion with a key
portion of the debt spanning over two years,” Ubah said.
He added that his
company had not denied that it had in stock products belonging to NNPC but
accused the national oil company of failing to conduct a reconciliation with
Capital Oil before rushing into making allegations.
Uba said the contract
his firm had with NNPC did not contain any clause for the payment for products
in its tank farm in cash in the event that NNPC needed its products.
“But it provides for
a two-week notice for Capital Oil to be informed to replace the volume of products
to meet any shortfall.
“We duly paid for
product from NNPC and were issued loading permit.
“However, NNPC
diverted the vessel that was supposed to deliver the product and has till date
refused to deliver same, thereby causing a break in the chain of product flow
that would have plugged any gap.
“The unprofessional
way in which the issue was handed led to a run on our company operations
thereby destabilising our business and causing us to shut down our operations.
“The circumstances
have caused us billions of naira in losses and serious dislocations for our
workers,’’ Ubah said.
He further said that
on many occasions Capital Oil had loaned millions of litres of petroleum
products from its storage to the NNPC group without alerting or alarming the
public.
“We have always kept
the confidentiality of our relationship sacrosanct.
“It is in the light
of these indisputable circumstances that we were shocked at and disappointed
with the actions of the NNPC in throwing the issue to the public.’’
He also condemned
NNPC for calling in law enforcement agencies without fully exploring available
dispute resolution mechanism available within the purview of their contractual
relationship.
“However, we have
submitted these issues to the jurisdiction of the courts and the relevant law
enforcement agencies,’’ Ubah said.
He bemoaned the
sacking of the former Managing Director of NNPC Retail over the alleged
diversion incident, insisting that the sack was done in bad faith.
Earlier, the acting
Managing Director, NNPC Retail, Mr Danjuma Dansule, said that the total
shortfall of petroleum products allegedly diverted by Capital Oil was 82
million metric litres.
Dansule said that
this amounted to N11.144 billion out of which two billion naira part payment
had been made as at April.
He, however, said
that negotiations were on-going as to the actual value of the alleged diverted
product and the interest to be paid by Capital Oil.
He also said that
Capital Oil was owing NNPC another N359 million under the Kerosene Direct
Scheme.
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