The Department of State Services (DSS) has accused Ifeanyi Ubah, the owner of Capital Oil of economic sabotage, punishable by death. The DSS made this known on Tuesday, when hearing on an application challenging his continued detention commenced before Justice Yusuf Halilu of the Federal Capital Territory High Court sitting in Jabi, Abuja.
According to a counter-affidavit deposed by an operative of the Service, identified as Safwan Bello, the Secret Police alleged that the CEO of Capital Oil and Gas diverted N11bn worth of Petroleum Motor Spirit (PMS) belonging to the NNPC.
Ubah allegedly carried out the sabotage because the petroleum product was stored in his tank farm; an action the security agency claimed was capable of causing serious scarcity in the country, and could have plunged the country into economic crisis of unmanageable proportion.
The deposed affidavit reads in part “the respondent (Ubah) was arrested on reasonable suspicion of his involvement in the commission of crime. The respondent refused to return the PMS to NNPC after repeated demands. The PMS is worth over N11bn.
The action of the respondent is affecting the distribution of petroleum products to the populace”. The statement added that “the action of the respondent is sabotage of NNPC’s activities as it relates to distribution of petroleum products. If not for the urgent steps taken by the Federal Government, the action of the respondent would have plunged the country into widespread scarcity with its attendant effect on the economy”.
Nevertheless, Counsel to Ubah, Ifeoma Esom has accused the DSS of clandestinely obtaining a court order to detain the oil mogul, alleging that the DSS was also suppressing material facts in the matter. She maintained that there is no crime in the case at hand but mere breach of contract.
She stressed that conversion and diversion was a known practice the world over especially in the oil sector, so long as the operator is prepared to re-deliver the products (in terms of the current contract) within 7 days of demand by the products owner or to pay a penalty for non re-delivery.
The penalty to re-deliver is expressly stated by the Contract to be a mere breach of contract remediable by the payment of penalty to the owner. The penalty is comprised of the cost of delivery of the products to the Operator’s tank farm with interest at Nibor+1.
“There can therefore be no issue of crime in conversion or diversion of products under the contract (regardless of the ordinary connotations of those words).” The ruling on the matter would be given today by Justice Halilu.
