The Economic and Financial Crimes Commission (EFCC) has re-arraigned Abubakar Peters, the Chief Executive Officer of Nadabo Energy, at the Lagos State High Court in Ikeja on charges of defrauding the federal government of N1.4 billion through alleged oil subsidy fraud.
In a statement released by EFCC spokesperson Dele Oyewale on Tuesday, it was revealed that Mr. Peters appeared in front of Judge Ismail Ijelu for the trial.
According to the statement, the case against him and his company had previously been handled by another judge, C.A. Balogun, before it was reassigned to the current judge following Balogun's retirement.
The defendants are up against 27 counts of using falsified documents to unearth N1.5 billion (N1,464,961,978.24) from the federal government under the oil subsidy program.
One of the counts alleges that on or around April 3, 2012, in Lagos, Nadabo Energy Limited and Mr. Peters fraudulently obtained N978,401,732.09 from the federal government under false pretenses.
The EFCC contended that the duo falsely represented the sum as subsidy payments for 19,488,992 litres of petrol allegedly imported from Ashland SA in Geneva, Switzerland. The commission asserted, however, that only 6,505,140.04 litres were genuinely imported through the MT Evridiki and MT St. Vanessa vessels.
Moreover, the EFCC accused the defendants of fabricating a document labeled Certificate of Marine Insurance No. 0047851, ostensibly issued by Staco Insurance Plc, to facilitate the illicit acquisition of funds from the Petroleum Support Fund (PSF).
Abubakar Peters and his company entered a plea of "not guilty" to all charges during the arraignment.
Following their not guilty plea, prosecution attorney S.K. Atteh requested that a trial date be set and argued for Mr. Peters to be remanded in custody. In contrast, defense counsel E.O. Isiramen opposed this request, citing that Mr. Peters has been on bail since December 19, 2012, and has complied with all conditions.
Judge Ijelu ruled that the defendant should retain his existing bail conditions and instructed that the sureties present themselves on the next adjournment date to reaffirm their commitments. The case is set to continue on May 19, 20, and 21 for trial proceedings to commence.
Background
As documented in past reports, this case arises from ongoing allegations of financial impropriety related to Nigeria's fuel subsidy scheme, an area under heavy scrutiny for suspected mismanagement and irregularities. Mr. Peters was first arraigned on December 10, 2012, on similar charges of fuel subsidy fraud.
The EFCC claim asserts that Nadabo Energy Limited unlawfully acquired approximately N1.46 billion from the Federal Government by presenting exaggerated subsidy claims for the importation of Premium Motor Spirit (PMS).
The prosecution alleges the company falsely claimed the importation of about 19.4 million litres of petrol facilitated via organized shipping, involving both mother and daughter vessels. However, investigations conducted by the EFCC revealed that only about 6.5 million litres were legitimately imported, resulting in significant discrepancies between claimed and actual import volumes.
Testimonies presented during the trial by EFCC investigators and witnesses, including former EFCC Chairman Abdulrasheed Bawa, indicated inconsistency in documentation and financial records acquired from various regulatory bodies, banks, and inspection agencies supporting the prosecution's position.
Evidence shown in court signified that subsidy payments were processed based on inflated import numbers. Data from regulatory agencies and independent inspectors was said to contradict submissions made by the company. Allegations surfaced challenging the validity of the supporting documents provided by the defendants.
Representatives from Staco Insurance Plc confirmed that the Marine Insurance Certificate brought forward as evidence did not originate from their records, igniting suspicions of forgery.
While the defense maintained a plea of not guilty, they also raised procedural objections against the prosecution throughout multiple stages, citing delays in acquiring certified records necessary for cross-examination.
The prosecution, however, countered that all required documents were duly provided and asserted that such pretexts were meant to stall the trial process.
Several procedural stages have been navigated throughout the trial, including interlocutory appeals. In February 2018, the Lagos Court of Appeal dismissed an appeal lodged by the defendant, affirming the lower court's proceeding of the trial.
At one point, the defendant's attorney Emefo Etudo sought to withdraw from the case, asserting that the defendant was perceived to be jeopardizing the trial and evading justice. He also stated in an affidavit that he initially advised his client to return the illicit funds upon realizing his actions against the federal government. The attorney expressed fears that should his client continue on bail, he posed a risk to national security and might abscond.
The prosecution did not object to Mr. Etudo's withdrawal request. Judge Balogun granted the attorney leave to withdraw based on the serious allegations made against his client. Consequently, the court ordered the defendant to be held in custody at that juncture in the proceedings. Eventually, the defendant was granted bail, which he has maintained since December 2012.
The court has continuously affirmed the bail conditions, requiring sureties to confirm their commitments and ensuring the defendant’s consistent attendance in court.
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