Maduka, has vowed to ensure that he collects back all the money due to him that
Managing Director, Capital Oil and Gas Industries Limited, Mr. Ifeanyi Ubah,
has allegedly fraudulently appropriated through a failed business transaction
between the duo. Maduka, in a statement Sunday from the Coscharis Group,
which he owns, detailed his encounter with Ubah, saying he had entered into
partnership with Ubah in response to his request for ehe entrepreneur to assist
the oil dealer grow his business.
He also denied the allegation Ubah made last week that he and
Managing Director/Chief Executive Officer of Access Bank Plc, Mr. Aigboje
Aig-Imoukhuede, who chaired the Presidential Committee on Verification and
Reconciliation of Fuel Subsidy Payments, were plotting to take over Capital
transaction between him and Ubah was set during the celebration of his
(Maduka’s) 50th birthday when the oil marketer, in the company of others,
sought him out to assist with his business, explaining that he had been
victimised by competitors and the banks.
with him, Maduka felt the urge to assist the young man because he felt no one
could be as bad as he (Ubah) was being portrayed and after all Ubah is his
kinsman from Nnewi,” the statement said.
chairman, Maduka, was given against dealing with Ubah to include his failure to
remit sales proceeds to the Nigerian National Petroleum Corporation (NNPC)
after selling petroleum products stored in his tank farm; failure to remit
sales proceeds to Mrs. Uju Ifejika, who had a through-put-arrangement with
Ubah, after he had sold the petroleum product in his care; alleged refusal to
settle his indebtedness to several banks; and his exposure to Asset Management
Corporation of Nigeria (AMCON), which has taken over his bank debts.
reputation, no bank was ready to grant him credit and he had sought his
assistance to help him access credit for his oil business.
venture business agreement with Capital Oil (Ifeanyi Ubah) for the importation
and sale of Premium Motor Spirit (PMS).
Maduka would provide the funding for the importation while Capital Oil would be
responsible for the logistics, for the importation as well as handle the sale
“Capital Oil’s role was therefore to provide its Petroleum Import Permits from
the Petroleum Products Pricing Regulatory Agency (PPPRA) and The Department of
Petroleum Resources (DPR) which are required to import PMS into Nigeria.
“Capital Oil would also source the products, open Letters of Credits to the
supplier who must deliver the product to Capital Oil storage tank in Nigeria,
arrange for the sale of the product in Nigeria, and pay the proceeds and
subsidy element into the joint venture account to repay the loan obtained by
Dr. Maduka,” the statement added.
reformed character despite his track record of allegedly defrauding several
persons, as shortly after the business transaction was sealed, he revealed his
true character, the group said.
According to the statement, based on the agreement, Capital Oil covenanted that
Coscharis Motors would be entitled to immediate possession of the products
while the oil company would lease the tanks in which the products would be sold
to Coscharis, as part of measures to ensure that Coscharis had proper storage
for the products that Capital Oil had pre-sold to it, based on the agreement.
Capital Oil would domicile proceeds of subsidy collected by way of Sovereign
Debt Notes for the products imported, which together with proceeds of the sale
of the products would be used to repay the bank’s credit facility,” Coscharis
approached to finance the deal refused to have anything to do with Capital Oil,
Maduka approached Access Bank for a facility to fund the importation of petrol.
The bank, the company added, consented and later raised the facility granted to
Coscharis Motors to $164 million to accommodate additional requests by Ubah and
Capital Oil for additional importation, leading to the opening of 10 Letters of
Credits (L/Cs) that were established and fully negotiated.
products were partially received for six out of the 10 Letters of Credit while
products for the remaining four Letters of Credit established for the
importation of 130,000 metric tonnes of petrol were not delivered at all,” it
The statement said even for the six L/Cs for which shipment was made, not all
the products were delivered to the tank farm as expected by Capital Oil while
there was no delivery of products for the remaining four L/Cs.
It said when the petrol that was expected to be discharged into Capital Oil’s
tank farm at Ibafon, Lagos, did not arrive as scheduled and the company could
not satisfactorily explain the delay, Maduka knew that Capital Oil in collusion
with shippers had diverted the product.
fact that under Letters of Credit, the products covered by the Bills of Lading
were supposed to have been delivered within three weeks from the date of the
Bills of Lading (on or before January, 2012) but till today, the products have
not been seen,” the statement said.
“Capital Oil’s diversion of these products in collusion with the shippers has
made the repayment of the facility scheduled to come from the sales proceeds
Bank Plc stands at about N21 billion while interest accrues. Also, Capital Oil
has refused to release the 56,568,587.11 litres of PMS in the designated tank
for this transaction under the management of our warehousing agent in its tank
farm for disposal to facilitate the payment of our financial obligation to
Access Bank,” Coscharis added.
The perceived fraud, Coscharis explained, compelled Maduka to petition the
Special Fraud Unit (SFU) of the Nigerian Police Force (NPF), which invited the
duo to give statements and was followed by interrogations.
owed by Ubah, adding: “Ifeanyi Ubah may have defrauded the Federal
Government and other individuals and gone free but given the fact that I earned
every kobo through my sweat, I will collect my money to the very last kobo.
magnitude off the hook will send wrong signal to the international community
about the sincerity of the government’s prosecution of the anti-corruption
campaign. I vow to pursue this matter to the end.”
The company’s chairman observed that the alleged fraud perpetuated by Ubah was
similar to the destruction of Banco Noroeste, the Brazilian bank that was
defrauded to the tune of $242 million by Mr. Emmanuel Nwude, Mrs. Amaka
Anajemba and other accomplices in a space of three years.
“I and my family will fight with everything to ensure that Ubah repays all the
money he owes me. God is my witness,” he said.