The management of Ontario Oil and Gas limited has denied any fraudulent sale of refined petroleum products, as alleged by Union Bank Plc in an ex parte application filed by the Economic and Financial Crimes Commission (EFCC). The company spoke on Monday in the matter of a commercial transaction between her and the bank which dates back to 2014. Speaking through its counsel, Ben Udoh, Ontario acknowledged approaching Union Bank Plc for a facility to import and market petroleum products in 2014.
The bank in
conjunction with the anti-graft agency had on Monday obtained an order for the
interim forfeiture N1.96 billion said to belong to Ontario Oil and Gas, from
Justice Hadiza Shagari of the Federal High Court in Lagos. But Udoh contended, that “Indeed, we
approached Union Bank in 2014 for an $11 million facility. A letter of Credit
(LC ) was issued same year but was amended to $9.9 million in May 2015. The
said sum ($9.9) was paid to the supplier, Petrocam Trading Limited. “Contrary
to impressions created by Union Bank, there was no case of fraudulent diversion
and conversion of proceeds as alleged. We would like to confirm on good
authority that the products were duly imported and sold in the open market,” Mr
Udoh said.
He added, “Total
proceeds from the transaction was N1.9billion, and in line with our offer
letter and best practice, same amount was provided for. The management of Union
Bank was subsequently advised to bid for appropriate foreign exchange to
discharge the LC. “Unfortunately, Union
Bank, for reasons best known to them, failed to heed several exchanges for the
liquidation of the debt which Ontario diligently dealt with within the 60-day
expiration of the facility.” Speaking further, he regretted that “Union Bank
had unwittingly shot itself on the foot by its failure to register the Form M
with Central Bank of Nigeria (CBN), nearly 8 months after, which made it
difficult for them to successfully bid for forex to tidy up the transaction.
“Finally, we are
surprised that the ex parte order which targeted Ontario Oil and Gas Limited
was used to seize the assets of The Renoire Logistics which is an independent
entity with no similar directors or ownership. Union Bank failed to
transparently manage this transaction and should blame itself for allowing the
devaluation of the Naira to hurt its interests.
“We do not owe Union Bank. All proceeds arising from the transaction has
been fully redeemed. Any differential is as a result of devaluation of the
Naira. Ontario would do everything legal to vacate the ex parte application,”
Mr Udoh noted.
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