We are not indebted to Union Bank, says Ontario Oil

Ontario Oil and Gas Limited has denied being indebted to Union Bank Plc to the tune of $70 million.

In a petition submitted to the Economic and Financial Crimes Commission (EFCC), it was alleged that the company, said to be a customer of the branch of the bank at Stallion Plaza, Marina, Lagos, obtained the loan purchase locally refined petroleum products.

But in a statement by Ben Udoh, its lawyer, Ontario acknowledged that it approached Union Bank for a facility, the oil company said the loan had been defrayed.

“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,” the statement read.

“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.

“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.”

“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.

“We do not owe Union Bank. All proceeds arising from the transaction has been fully redeemed. Any differential is as a result of the devaluation of the Naira. Ontario would do everything legal to vacate the ex parte application.”