News

December 5, 2011

Court grants order to probe govt

By Bartholomew Madukwe
A FEDERAL High Court sitting in Ikeja has granted permission to a civil society group, Socio-Economic Rights and Accountability Project, SERAP, to interrogate and compel the Federal Government to disclose the details and basis of spending on fuel subsidy in 2011.

The order granted by Justice S. Adah, followed the hearing of argument from SERAP’s counsel, Ahmaad Idrees, on the application for leave for an order of mandamus against the Petroleum Products Pricing Regulatory Agency, PPPRA, the Attorney General of the Federation and Minister of Justice, Mohammed Adoke, and the Minister of Petroleum Resources, Diezani Alison-Madueke.

The court also ordered that the motion on notice be served on the Defendants, and adjourned the case till December 13, 2011 for hearing of argument on why the government should not be compelled to disclose details and basis of its spending on fuel subsidy for 2011.

The suit followed a Freedom of Information request dated October 19, 2011 and made by Solicitor to SERAP, Femi Falana.

The motion ex-parte with suit number FHC/CS/L/221/2011, was brought pursuant to section 20 of the Freedom of Information Act, and Order 34 of the Federal High Court (Civil Procedure) Rules, 2009. It was signed by Adetokunbo Mumuni for Falana and Falana Chambers.

The organization is asking the court for the following orders:

*A DECLARATION that the abdication of statutory responsibility by the Petroleum Products Pricing Regulatory Agency allowing the Nigerian National Petroleum Corporation (NNPC) to operate without any control is unlawful

*A DECLARATION that the spending of over N900 billion on fuel ‘subsidy’ by the end of August 2011 without extra-budgetary allocation while only N250 billion was budgeted for 2011 amounts to a breach of the fundamental principles of transparency and accountability and cannot be justified under any circumstances whatsoever

*A DECLARATION that by virtue of the provisions of Section 4 (a) of the Freedom of Information Act 2011, the 1st Defendants/Respondents are under a binding legal obligation to provide the Plaintiff/Applicant with up-to-date information on government/public spending relating to fuel ‘subsidy’ in 2011, including:

*AN ORDER OF MANDAMUS directing and or compelling the Defendants/Respondents obligation to provide the Plaintiff/Applicant with up-to-date information on government/public spending relating to fuel ‘subsidy’ in 2011, including:

*The basis and expectations on which the calculation of N250 billion as fuel ‘subsidy’ was made

*Detailed information and justifications for the increase in the budget allocation for fuel ‘subsidy’ from N250 billion for 2011 to over N900 billion by August 2011 without supplementary appropriation authorising the expenditure

*Detailed information about the full list of importers of petroleum products in Nigeria

The organization argued that under the FOI, it has the right to request for or gain access to information which is in the custody or possession of any public official, agency or institution.

SERAP said: “The 1st Defendant/Respondent is a public institution, and as such has a binding legal obligation to provide the applicant with the information requested.

The information requested for relates to the details and basis of spending on fuel ‘subsidy’ in 2011; and this information does not come within the purview of the types of information exempted from disclosure by provisions of the FOI Act.

Up till the time of filing this action, the Defendants/Respondents have failed, neglected and refused to make available the information requested by the Applicant.

The Defendants/Respondents have no reason whatsoever to deny the Plaintiff/Applicant access to the information sought for.”

THE full list of beneficiaries of fuel subsidy:

1. OandO Nigerian Plc. – N228.506 billion – Managing Director, Wale Tinubu

2. MRS –N224.818 billion – Managing Director, Sayyu Dantata

3. Pinnacle Construction-N300 billion – Managing Director, Peter Mbah

4. Enak Oil & Gas – N19.684 billion

5. CONOIl N37.960 billion – Chairman, Mike Adenuga

6. Bovas & Co. Nig. Ltd. N5.685 billion – Managing Director, Bamidele .O. Samson

7. Obat N85 billion – F.E.O Akinruntan

8. Folawiyo Oil – N113.3 billion – Chairman, Yinka Folawiyo

9. IPMAN Investment Limited – N10.9billion

10. ACON – N24.1billion – Alhaji Aliko Gwadabe

11. Atio Oil – N64.4billion

12. AMP – N11.4billion

13. Honeywell, N12.2billion – Nino Ozara

14. Emac Oil – N19.2billion

15. D.Jones Oil – N14.8billion

16. Capital Oil, N22.4 billion – Ifeanyi P. Ubah

17. AZ Oil – N18.613billion

18. Eterna oil, N5.57 billion – Mahmud Bamanga Tukur

19. Dozil oil- N3.375 billion

20. Fort oil, N8.582 billion – Zira Malagadi

21.Integrated Oil and Gas, N30.777 billion – Capt. Ihenacho Emmanuel

22. African Petroleum, N104.58 billion

23. A. Rano, N1.14 billion

24. A.S.B, N3.16 billion

25 Arcon Plc, N24.116 billion 

26 Aminu Resources, N2.3 billion

27. Avante Guard, N1.14 billion

28. Avido, N3.64 billion;

29 Boffas and Company, N3.67 billion

30. Brilla Energy, N960.3 million.

31. DownStream Energy, N789.648 million

32. Inco Ray, N1.988 billion

33. ASCON Oil, N5.271 billion – GMD, Barr. Grace Enemoh

34. Channel Oil, N1.308 billion