REVEALED: Bawa’s book details how fugitive forged documents, claimed N3.7bn in petrol subsidy fraud

Fresh details have emerged on how Oluwaseun Ogunbambo, a Nigerian businessman and managing director of Fargo Petroleum and Gas Ltd, forged several documents to claim N3.7 billion in a petrol subsidy fraud.

In his new book titled ‘The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud’, Abdulrasheed Bawa, the former chairman of the Economic and Financial Crimes Commission (EFCC), revealed inside details of Ogunbambo’s indictment and prosecution for defrauding the government under the Petroleum Support Fund (PSF) scheme.

Bawa served as the chairman of the anti-graft agency from February 2021 to June 2023.

In the book, he detailed how the petrol subsidy scheme was used to syphon public funds, drawing from his experience as a key investigator on the EFCC’s special team that probed the 2012 subsidy fraud.

Ogunbambo was declared wanted by the EFCC in 2013 for forging several documents to make N976.6 million subsidy claims. While he was on trial, he jumped bail and fled the country.

“Oluwaseun Olubukola Ogunbambo is perhaps the biggest fraudster in the petroleum subsidy fraud. This assertion is not necessary in terms of the amount of money that is fraudulently accumulated as many promoters of oil marketing companies made more money than Seun,” Bawa wrote in the book.

“Mr. Ogunbambo is a fraudster wanted in many countries for fraud. He was in the radar of the Republic of Ireland, United States of America (where he later served a prison term for fraud and identity theft), United Kingdom, and Nigeria.

“The EFCC was already investigating him for alleged fraud and identity theft since 2009 and has jumped bail.”

A WANTED MAN WITH MULTIPLE IDENTITIES

Bawa said Ogunbambo had used different identities over the years to evade arrest and prosecution.

Aside from Ogunbambo, he was also known as “Adekunbo Oladabo Shobowale Benson”.

Bawa said Ogunbambo was once accosted by security officials suspicious of him at the Dublin Airport in Ireland, and he was forced to forfeit €20,000 and £20,000 found in his bag and fled to Nigeria.

He was also jailed in the United States on October 2020 for falsifying identity information, which he did with multiple names, to apply for a US passport.

“Although Mr Ogunbambo presented a Nigerian passport, his nationality on the passport was Nigeria while his place of birth was London. On his British passport, his nationality was British and the place of birth was Ottawa,” Bawa said.

OGUNBAMBO ISSUED INVOICES FROM HIMSELF TO HIMSELF — AND CASHED OUT BILLIONS

According to the book, practically all documents Ogunbambo issued to the Petroleum Products Pricing Regulatory Agency (PPPRA) to claim subsidy payment were forged.

The document of the Ikoyi, Lagos property he used in obtaining a loan of N700 million and $4 million from a financial institution for alleged petrol import was also discovered to be forged.

In addition, investigative findings further showed that the vessels he claimed to have used in the importations were never at the location he claimed they were for the ship-to-ship transloading.

“In a total of five (5) transactions, Mr. Ogunbambo allegedly had obtained over N3.7 billion by false pretenses through his company, Fargo Petroleum and Gas Limited, and two other companies for whom he had executed PMS importation permits,” Bawa wrote.

“Fargo Petroleum and Gas Limited was registered on the 19th of July, 200162 with Mr. Ogunbambo owning more than 90% shares of the company. It was issued a permit by PPPRA to import 10,000MT of PMS for the Q3 of 2011 on 2nd August, 2011.

“In a letter addressed to the Executive Secretary, PPPRA on 7th January, 2011, Mr. Ogunbambo claimed a payment for the import of 13,627,084 litres of PMS under the PSF scheme as discharged in Masters Energy Storage. Attached to the letter was the booklet containing documents of evidence for the importation of the PMS as per the 38 checklist documents (see attached Appendix D1-D38).

“The investigation revealed a massive petroleum subsidy fraud. In the first instance, our findings revealed that Mr. Ogunbambo was the sole owner of the “international trading company” Seatac Petroleum Limited. He was also almost the sole owner of “Marketing Company” Fargo Petroleum and Gas Limited, a Nigerian oil marketing company.

“Seatac Petroleum Limited was registered as a British Virgin Island Private Limited Company on the 11th March, 201170 . It had Mr. Ogunbambo as the sole shareholder. Accounts in the name of Seatac Petroleum Limited were opened at the United Kingdom with FBN (UK) Limited.

“Seatac issued two pro forma invoices to Fargo Petroleum and Gas Limited for the supply of PMS, 5000MT each71. Thus, Mr. Ogunbambo issued the invoices from himself to himself, through two different entities, one on credit sales and the other one on direct sales.

“In addition to the findings above, the investigation confirmed forgeries of several documents in the transaction. That included certificate of quality, certificate of quantity, Cornerstone Insurance Plc’s certificate of marine insurance for the transaction, certificate of Origin and certificate of Cargo transfer.”

CONVICTED IN ABSENTIA

After Ogunbambo fled Nigeria during his trial, he was convicted in absentia.

Bawa wrote in the book that there was “overwhelming evidence” against Ogunbambo, his company Fargo Petroleum and Gas Limited, and one of his members of staff, Habila Theck.

“They were charged to court before Honourable Justice S. A. Onigbanjo of Lagos High Court, Ikeja Division in July, 2012. After nine (9) years of prosecution (with the EFFC presenting nine (9) witnesses of whom I was Prosecution Number1, Fargo Petroleum and Gas Limited was convicted on the 8th day of March, 2021. That was three (3) days after I took over as the Executive Chairman of the EFCC,” the book reads.

“The judgement was on the amended 10-count charge against Fargo Petroleum and Gas Limited and Mr. Theck. Mr. Ogunbambo, upon getting bail in 2013 after a series of battles in court, jumped the bail and ran out of the country but met his waterloo in another case in the United States of America. Meanwhile, he was technically convicted in absentia, waiting to serve ten (10) years prison term with hard labor at Kirikiri Maximum Correctional Center.

“While the prosecution was going on, First Bank of Nigeria Plc, a financier of the 5000mt of PMS as stated above, wrote a letter of complaint to the EFCC that the deed of assignment of a property located at 2 Olamijuyi Avenue, Parkview, Ikoyi, Lagos, Nigeria used by Mr. Ogunbambo in securing the loan of N700million and $4million, was confirmed at the point of perfection of deed of assignment to be a forged document.

“The bank further alleged that their enquiry revealed that Mr. Ogunbambo had also pledged the same property to obtain a loan from another Bank, Stanbic IBTC77. All the allegations were confirmed through the EFCC’s investigation to be true. In fact, First Bank of Nigeria Plc transferred a total sum of Five Million, Two Hundred and Eighty Thousand Dollars($5,280,000) to Mr. Ogunbambo’s Seatac Petroleum Limited in a London account as settlement of “purchase” of 5000MT of PMS by Mr. Ogunbambo’s Fargo Petroleum and Gas Limited.

“He is currently awaiting to be prosecuted for the alleged fraud of N430million and attempt to obtain additional N180million in which the EFCC has confirmed forgeries of several documents.”

Published by Cable Books, an imprint of Cable Media and Publishing Ltd, ‘The Shadow of Loot & Losses: Uncovering Nigeria’s Petroleum Subsidy Fraud’ is now available for purchase online via Roving Heights.
(The Cable)