Subsidy Fraud: Akintola Williams Delloite Indicted As Court Admits Key Documents In Trial of Walter Wagbatsoma

The audit firm of Akintola Williams Delloite was today indicted for playing a role in a series of fuel subsidy scams.

Walter Wagbatsoma in cour

The firm’s indictment surfaced today during the continued trial of fuel importers, Walter Wagbatsoma and Adaoha Ugo-Ngadi as well as their company, Ontario Oil and Gas Limited. The accused are part of a clique of fuel importers accused of making fraudulent fuel subsidy claims to the tune of N1.9 billion.
Continuing his testimony today, Sheu Muhammed, an investigator with the Economic and Financial Crimes Commission (EFCC), stunned the court by accusing the government’s official auditing firm, Akintola Williams Delloite, of culpability in widespread subsidy scam. Mr. Mohammed began his testimony last week.
At today’s court session, the EFCC submitted two documents which demonstrated the audit firm’s unsavory role in the extensive scheme. It is conservatively estimated that numerous fuel marketers defrauded the Nigerian people of more than $6 billion through inflated subsidy claims.
Justice Lateefat Okunnu ruled to admit the documents despite strong objections by one of the defense lawyers, Wole Olanipekun. Mr. Olanipekun tried, but failed, to suppress the admittance of the documents on technical grounds.

The admitted documents are extracts from audit reports prepared by Akintola Williams Deloitte and recommending payments to oil marketing companies that participated in fuel importation for Batch M10, October 2010 and Batch S10, January 2011. A lawyer who observed the trial told us
that the documents establish the auditing firm’s culpability in the inflation of figures claimed by rogue oil marketers.
Mr. Mohammed’s testimony revealed that both Akintola Williams Delloite and the Petroleum Products Pricing Regulatory Agency (PPPRA) neither audited nor verified the fuel import claims made by marketers.
Mr. Mohammed disclosed that EFCC investigators determined that Ontario Oil and Gas Ltd received some N754 million in excess payments in two transactions. He blamed the inflated claims and payments on the complicity of various government agencies that failed to discharge their responsibility for verifying subsidy claims. He told the court that the PPPRA and Akintola Williams Delloite were key players in the fraud.
Mr. Mohammed told the court: “Our findings showed that Ontario Oil and Gas Ltd in the second quarter of 2010 discharged 12 million liters in the farm tank of  Integrated Oil Services Limited but claimed to have imported 19 million liters, but Akintola Deloitte recommended that it supplied 18 million liters for which about N900 million was paid.” He explained that Ontario Oil and Gas received an inflated payment of about N340 million from that transaction.
The witness added that the audit firm of Akintola Williams Delloite recommended payment for 19 million liters in a separate transaction where the oil marketer imported only 10 million liters of fuel.
“The PPPRA and the government-appointed auditor, Akintola Williams Deloitte, did not witness the discharge of the products,” the witness told the court. He revealed that Ontario Oil and Gas Ltd received N414million in overpayment in the second transaction. The total amount overpaid to the marketer in the two fraudulent deals totaled N754 million, the EFCC investigator stated.
Earlier, another prosecution witness had also underscored the role played by the PPPRA in the massive fuel subsidy fraud. The witness told the court that the agency had not verified the authenticity of the certificates submitted by the marketers to support their subsidy payment claims.
Mr. Fakuade Babafemi, an employee of the PPPRA, and Mr. Ezekiel Ejidele, the managing partner at Akintola Williams Delloite, are also accused in the suit filed by the EFCC.
Justice Lateefat Okunnu adjourned till Tuesday for continuation of testimony by prosecution witnesses.