Alleged Fuel Subsidy Scam – ‘Our Story’ -Sifax Oil & Gas

The management of Sifax Oil and Gas with wealthy nigerian, Mr Taiwo Afolabi reacts to statements and publications linking the company to the unravelling drama surrounding what is now tagged a ‘national shame’- the Fuel Subsidy probe in this statement, made available to societynowng.com.

Our attention has been drawn to publications in the media which contain very disturbing and embarrassing reports linking us to fuel subsidy fraud.

In view of the graveness of the allegation which is capable of inflicting serious damage to our business integrity and the hard-earned reputation of SIFAX, we are inclined to clarify our position and clear our name from this mess to the public.

We are particularly embarrassed and scandalised that our name still appears among indicted companies having made very clear and unambiguous presentations to the Aig-Imoukhuede led Presidential Committee on verification and reconciliation of Subsidy Payments about our company’s alleged involvement.

SIFAX began participating in the importation of Premium Motor Spirit (PMS) in the Fourth Quarter of 2010 (Q4, 2010) and we were involved in a total of 4 (Four) importations under the PPPRA scheme.

The only importation that has been a subject of controversy is our first importation (Q4, 2010) which was handled for us by MATRIX ENERGY LIMITED.

The remaining three importations we did on our own have no controversies whatsoever.

The facts of the controversial importation are as follows:

1. In Q4 2010, SIFAX was granted a Permit {A.4/4/291/C.47/II/448} dated the 8th of October 2010, by the Petroleum Products Pricing Regulatory Agency (PPPRA) to import 30,000MT (Thirty Thousand Metric Tons) of PMS.

2. Because it was our first attempt, we involved MATRIX who has been in the business of importation of PMS with the PPPRA for many years in order to avoid any mistake; SIFAX entered into a Business Alliance with MATRIX ENERGY LIMITED evidenced by a Memorandum of Understanding (M0U) dated 17th December, 2010 to handle the financing, importation/shipment, discharge and sales of 15,000MT (Fifteen Thousand Metric Tons) while SIFAX would ensure the domiciliation of the SDNs into an account designated by MATRIX ENERGY LIMITED.

3. The transaction was concluded and in accordance with the terms agreed upon, the SDNs for the subsidy payment was discounted into the MATRIX ENERGY LIMITED bank account domiciled with United Bank for Africa. As such, no subsidy payment was paid to SIFAX accounts in respect of the importation.

4. On the 29th of June 2012 and thereafter, it was reported in the media that the Mother Vessel utilized in the Q4, 2010 importation carried out by MATRIX ENERGY LIMITED was listed as decommissioned as at the time it was said to have brought in the product.

5. Thereafter, SIFAX was invited by the AIG-IMOUKHUEDE Committee in respect of the Q4 2010 transaction. At the hearing, SIFAX was represented by both its staff and a representative of MATRIX ENERGY LIMITED who jointly made our case known to the Committee.

6. MATRIX ENERGY LIMITED upon invitation by the same Committee admitted that the financing, importation, shipment, discharge and sales of the PMS in the Q4 2010 transaction by SIFAX were handled by them. Matrix also confirmed to the Committee that the subsidy payment was discounted into its account with UBA.

7. Our business collaboration with MATRIX ENERGY LIMITED is done in good faith, legal and acceptable business practice in the industry and it was devoid of any intention to defraud the government by SIFAX.

8. We wish to state that SIFAX GROUP with over 4,000 workforces, which has earned a reputation for credibility, integrity and honest business transactions over a period of more than 20 years, will not do anything to tarnish the hard-earned image of the company and the unblemished records and untainted integrity of our hard-working and honest CEO, Dr. (Barr.) Taiwo Afolabi.

9. SIFAX foray into oil and gas business is imbued with patriotism and an attempt to replicate our achievement in the maritime and aviation sectors in the oil and gas sector. Fuel importation was just a stepping stone into the oil and gas sector. Presently, work is in advance stage for the construction of a refinery and a tank farm by SIFAX to mark us out as a major player in the oil and gas sector.

10. Finally, we wish to assure the general public that SIFAX, priding itself in a tradition of integrity and transparency; is a responsible corporate organization and will continue to transact all of its business and dealings with the highest ethical standards in accordance with the laws and in conformity with best corporate practices.