The Managing Director of Capital Oil & Gas Industries Ltd, Mr Ifeanyi Ubah was on Tuesday arrested by the Police Special Fraud Unit, Ikoyi over the involvement of his companies in the fuel subsidy scam.
The Oil magnate was taken into custody at exactly 2.20pm this afternoon with his team of lawyers and as at the time of filing this report being interrogated.
His company Capital Oil and Gas was indicted by the Mr Aigboje Aig-Imoukhuede’s led 15-man Presidential Panel constituted by President Goodluck Jonathan to re-investigate the findings of the report of an earlier investigation panel set up by the Ministry of Finance on Fuel Subsidy payments valued at over N2 trillion.
Findings reveal that Mr Uba who is planning to take over from Peter Obi as the next Governor of Anambra State made a whooping N22.4 Billion from the subsidy scam.
It was reported that NNPC allocated to Uba’s Capital Oil 75% of kerosene supplies to distribute to the entire country at N50 pump price, but the cheapest of the product at the depot is N120 per litre & N135 at the filling stations while Capital Oil makes more than N70 on each litre of kerosene sold.
Sources hinted that Uba who made a payment plan of N2 Billion with AMCON reneged severally and started playing hide and seek anytime the Mustapha Chike Obi led agency approaches him to pay up his debts.
Capital Oil is one of the firms which received dodgy payments running into billions of naira from the Petroleum Products Pricing and Regulatory Agency (PPPRA) on kerosene, petrol and diesel subsidy.
Government paid a total sum of N3.655 trillion to beneficiaries of fuel subsidy between 2006 and 2011, while amount jumped to a whooping N1.426 trillion between January and August last year.
Investigations reveal that Uba, is one of the most notorious subsidy scammers, with several other collaborators. The EFCC has already been mandated to investigate all the subsidy beneficiaries, which include Oando, Integrated Oil and Gas, MRS, AA Rano. A-Z Petroleum, ASB, Arcon Oil, African Petroleum, Aminu resources, Con Oil, Avante Guard, Avido, Boffas and Brila Energy.
Others are D Jones Petroleum, Downstream Energy, Dosil Oil Inco Ray, Eternal, Folawiyo Energy, Frado International, First Deepwater, Heden Oil, Honeywell Petrol, AMP, Channel Oil, Fort Oil, Bovas, Obat Oil, Ipman Investment, Atio Oil, AMP, and Ernac Oil.