Concerned About Fraud In Crude Oil Selling? Why, for Buyers, acquiring the two Percent Performance Bond by the seller is the Simplest & Surest Proof of a Genuine Seller
Credible analysis has established that, whereas just about each supposed crude seller who goes to a possible crude buyer to solicit enterprise, would nearly ALWAYS copiously resil heaven and earth that he, or the crude he professes to be promoting, is "absolutely trustworthy, reliable, genuine, authentic, and honest," just about each OBJECTIVE, CREDIBLE EVIDENCE accessible, then again, offers a altogether reverse and opposite REALITY - specifically, that the overwhelming majority of those supposed sellers and their provides (in deed, as a good deal like the extent of 99.999999%, in keeping with one report) are entirely faux, bogus, dishonest or not reliable.
MASTERFULLY FORGED & FALSE DOCUMENTS ARE AT THE HEART OF THE CRUDE/BUYING SELLING SCAM OPERATIONS
The major instrumentation by which these dishonest con artists and crude "sellers" function or commit their con recreation, is using skilfully solid or false paperwork. Such dishonest and faux "sellers" - or, not less than, the final word masterminds who originate and stand behind the scheme - are infamous for being grasp forgers and glorious copiers of each conceivable reliable refinery and government company paperwork associated to crude gross revenue or purchases. In deed, in keeping with consultants, so masterful at this recreation are these fraudsters, that the paperwork they supply to potential consumers are sometimes so strikingly credible and real-looking that they're endlessly plain hard, if not inconceivable, for nearly all still au fond the most expert of doc authentication consultants to right away distinguish from trueness and genuine ones.
As one report by the Fraud Watch International summed it up, "Victims [of such fraud] are often convinced of the genuineness of Advance Fee Fraud schemes by the counterfeit or false documents bearing apparently official Nigerian government letterhead, seals, likewise as false letters of credit, defrayal schedules and bank drafts."
The U.S. State Department's Bureau of International Narcotics and Law Enforcement Affairs, in a report titled "Nigeria Advanced Fee Fraud," describes the paperwork employed by the Nigerian Advanced Fee Fraud (AFF) or 419 perpetrators, as "official-looking letter paper with appropriate government seals, stamps, and signatures," whose high quality, it says, has "evolved over the years, from poorly written letters to more professional products prepared on word processors. Word processors also allow AFF criminals to generate more letters." It provides that the "AFF criminals admit university-educated professionals who are the best in the world for nonviolent spectacular crimes."
THE MAIN PROBLEM: INABILITY BY BUYERS TO VERIFY SELLERS' CLAIMS & DOCUMENTS
The level is that, mostly in consequence of the above actuality, for critical worldwide consumers of Nigerian crude, the one most important and most hard and dangerous drawback they confront inside the open market, is now normally the substantiation and affirmation of the seller's claims about having an genuine crude allocation and/or its present availpower, and the affirmation of the proofs and paperwork submitted by them in assist of these claims. For most consumers, endeavor that job is normally dreadful and considered as one matter fraught with huge dangers and uncertainties that ought to only be rib with the utmost warning, and the best care and deliberation.
BUYERS' "PREFERRED" PROOF & EVIDENCE OF CREDIBLE SELLER TODAY - a 2% PB
Because substantiation and affirmation of such paperwork from sellers are typically so hard and dicey, most such worldwide crude consumers search, attributable this fact, to purchase ONLY from sellers who can present them what they allow the most secure, most tangible, and most simply dependable form of proof and proof of credibility by a seller. And what is that this "preferred" proof and proof that the majority consumers would moderately have? It is just this - the supply by a seller of a 2% Performance Bond (PB) to the client.
THE USUAL VERIFICATION & CONFIRMATION APPROACHES
In a phrase, the standard proofs and proof of crude allocation and availpower supplied by sellers to potential consumers, is normally the supply to the Buyer of the cargo's PROOF OF PRODUCT or POP. In a C.I.F. or F.O.B deal, for instance, the standard method by which a supposed crude seller exhibits "proof" or proof to a possible buyer that the Seller has a real crude allocation or crude accessible to promote, is for the seller to supply the client the PROOF OF PRODUCT, and the client is requested to "verify and confirm" the genuineness of this on his personal, and, upon that, for the consumers to subject their Bank Guarantee or Letter of Credit (or different cost instrument) to cowl the acquisition value of the product at supply.
But the issue with this conventional proficiency, is that for many worldwide crude consumers, the typical Nigerian seller's POP (an array of paperwork that power embody the present loaded vessel paperwork, present Authority to Board (ATB) that was particularly issued to the preliminary buyer (consignee) of the crude in whose title the vessel was issued, Certificate of high quality, Certificate of origin, Cargo manifest, Vessel ullage report, Certificate of amount, Bill of cargo, the Bulk Allocation Details, the Seller's Authority to Sell (ATS) from the NNPC, and many others), is NOT dependable or promptly verifiable for genuineness. For instance, the POP, which is, in a phrase, the seller's important doc that is meant to show to the client that the seller truly has the product being offered, could be exhibiting that an owner of the oil allocation or commodity has possession of the product as of the particular time of the dealings, say, at a sure hour of the day as we speak. But but, there isn't any assure that the product won't have been offered to a different buyer simply hours, and even minutes, proper after that dealings, and that the commodity is decidedly nevertheless accessible on the market or supply to the client.
"Most buyers do not accept Nigerian sellers' proof of product (POP)," says Sam Nelson, an arch in crude shopping for and promoting strategies and the author of a primer on the topic. "As a result of this, they (the Buyers) want a tangible (Physical) proof of product. The buyer would request that the seller inspect the cargo and present a verifiable review report from authorized agencies like SGS, Q & Q or Robinson International before they (the Buyers) will charter a vessel for the dealings. This is because some so-called Nigerian sellers have false claim over products that ne'er existed and they would forge documents to present as POP. Nigerian market has to be followed very cautiously and all documentations thoroughly verified."
Nelson provides: "Please do not give any review money to the seller. Always pay the money directly to the review company after they have collected samples of the crude from the mother vessel for chemical analysis to confirm the quality and amount of the crude in the vessel. Also, insist that the ATB (Authority To Board) from the vessel for review originated from the captain of that vessel. Do not accept any documents as authentic if you did not verify it from the captain of the feeder vessel. Any documentation from a Nigeria seller must be verified for genuineness."
MOST DOCUMENTS OR PROOFS BY NIGERIAN SELLERS ARE VIEWED WITH SUSPICION
In deed, these days, the identical drawback of common incappower to definitively authenticate real crude allocation or availpower, now pervades even conditions the place "tangible, physical" POP review has purportedly been made. And some consumers discover that even this cautionary recommendation by Nelson, that the consumers ought to "insist that the ATB (Authority To Board) from the vessel for review originated from the captain of that vessel," would normally not fairly work any extra in lots of conditions as we speak.
In a TTO deal, for instance, the very fact of the consumers' representatives boarding the vessel to make an "review" or "confirmation" of the "loaded" vessel, is normally no extra a assure that the dealings is au fond real or reliable. Nigerian con males and 419ers who function inside the crude business, have been famous to work with dishonest vessel managers and captains or con males cloaked as workers of the Shell/JV terminal operators. And Vessels confirmed as "pregnant" (i.e., loaded) even by the client's representatives and his appointed SGS inspectors invited to return aboard the ship on a presumed ship "captain's" ATB doc, have been famous to be truly organized by faux ship operators and ship managers and "captains"; and in such instances the client will only be taking on a ship and cargo with FAKE Charter Party Agreement dead between the client and faux ship supervisor, with no AUTHENTIC ship owner's approval and no genuine transport paperwork. And as soon as the client's representatives aboard the vessel confirms that the vessel is "pregnant," the client pays for the cargo, takes over the vessel, and the con males shortly break up the cash and vanish. The buyer losings every little matter because the reliable vessel owner by no means authorized the captain to subject the CPA, and the important cargo transport paperwork used inside the dealings are all only faux.
Nigeria's official slack
And there's yet one more drawback concerned in attempting to authenticate Nigerian crude paperwork. The drawback of the official slack incidental to doing enterprise in Nigeria. One arch immensely arch in doing crude shopping for enterprise in Nigeria, put it this method to this author: "NNPC Crude Oil Marketing Department, Abuja, is the authoritative source to verify the Authority to Sell document. But you will spend an endless amount of time trying to verify it. As with most Nigerian establishments, people use personal connections to get such documents, but that does not mean that they can deliver."
WHAT BUYERS NOW VIEW AS THE BEST AND MOST "PREFERRED" PROOF OF AN AUTHENTIC CRUDE SELLER - A SELLER WHO CAN PROVIDE BUYER A 2% PERFORMANCE BOND
In brief, the purpose is that just about all conventional manners of substantiation and affirmation of crude possession and availpower have develop into severely contaminated and adulterate by con artists and faux operators to the purpose that many worldwide crude consumers regard these strategies as mostly unreliable, too hard to confirm, and fraught with indefensible dangers. And consequently, there has advanced amongst them what may as we speak be famous as a "preferred" proficiency for computation out an genuine and credible seller of crude in as we speak's market. Such a seller is just one who can meet one primary requirement - specifically, is prepared and in a position to present the client a 2% Performance Bond direct in a dealings.
What is a Performance Bond or PB?
This is, in a phrase, an coverage doc issued for the seller by seller's commercial enterprise institution or coverage firm guaranteeing that the issuer can pay a stipulated amount (a sum amounting, on this case, to 2% of the entire worth of the cargo being bought) to the client inside the occasion that the seller breaches (fails to carry out) the phrases and specifics of the contract signed by the seller with the client. (The Performance Bond may be posted inside the type of a Cash Bond). The commercial enterprise institution or coverage firm which points the PB acts because the responsible "surety" of the bond
If a seller contracts with a buyer to place up a 2% PB - and is ready to truly put up that bond together with his commercial enterprise institution or coverage firm - the seller is, in a phrase, guaranteeing the client that if he have been to fail to carry out his obligations below that contract, his commercial enterprise institution or coverage firm, of their roles because the "surety" of the bond, can pay the client a sum amounting to 2% of the worth of the crude being bought, regardless.
WHY BUYERS LOVE THE PERFORMANCE BOND GUARANTEE
Buyers love discovering sellers who can present them UPFRONT 2% Performance Bond, irresistibly viewing that because the "preferred" possibility as they allow that the most secure, most dependable, most tangible, and most assured and to the worst degree fraud-prone form of proof and proof of credibility by a seller. Most consultants contend that if a seller can supply a 2% PB deal - and, what's much more essential, is decidedly in a position to put up the PB as a result of he has the monetary system wherewithal to take action - it's nearly assured that the seller is not going to fail the client inside the precise execution of the deal, still will nearly sure enough carry out these obligations as shrunken with the client.
Sam Nelson, arch in crude shopping for and promoting strategies and the author of a primer on the topic, put it this manner: "A contract with any of these bonds in place will be succeederfully completed. A secure contract has a higher degree of succeeder than a non-secure contract. A secure contract is a bankable contract. The players have their money at stake and that is a good reason for them to perform."
And the Legal Dictionary explains it this manner: "The purpose of a bond is to provide an incentive for the fulfillment of an obligation. It also provides reassurance that the obligation will be consummated and that compensation is available if it is not consummated. Performance Bonds guarantee for the satisfactory completion of a project."
There are a number of particular bases why consumers and consultants really feel that means:
1. Being in a position to put up a PB is an indication of economic credibility and skill.
To be capable to finance an precise posting of a 2% PB (which can imply, for instance, on the present crude costs, 2% of, say, $200 million for a 2 million barrels cargo, one matter amounting to $Four million), a seller must have some substantial monetary system capacity and sources.
2. Financial Cost and Penalty Involved In Posting a PB, is a Powerful Disincentive Not to Perform.
Sam Nelson: "The players have their money at stake and that is a good reason for them to perform." In deed, most consumers, upon acquiring the two% PB issue from a seller, would promptly settle for that as adequate to POP and forgo having to assessment the POP.
3. The Normal Con Man or 419er Will Not Have the Disposition, the Reputation & Financial Wherewithal to Post a PB.
Robert Strickland of Strickland Associates, an arch New York provider in crude offers, says as follows: "If you are concerned with FRAUD! ONLY true Sellers that offer a 2%+ Performance Bond are genuine Sellers of Nigeria [crude]."
Sam Nelson, the crude offers arch and author: "These bonds are necessary to protect the interest of the parties involved for extra losings attributable fraud or complete negligence."
4. Being in a position to put up a PB is a stable indication to a buyer that the Seller has already been vetted.
Obtaining a PB is normally not a simple or machine-driven factor. Before a commercial enterprise institution or coverage firm would give a seller a bond, the seller shall have gone via a rigorous software package course of, and should have met a set of rigorous monetary system and character necessities and situations. Hence, when a buyer will get a seller who can, and does truly, put up a 2% PB, the client is kinda assured that he is received a honorable seller, and one very unlikely to be a fraudster or a 419er.
For simply an instance, one Syracuse, New York, coverage firm requires candidates for a Public Construction job PB to supply them the next objects, amongst others:
Surety Questionnaire Filled Out Completely
Copy of Contract/Award Letter or Solicitation Letter
Business Financial Statements (2 years audited business 12 months commercial enterprises) OR
Last Three years Company Income Tax Returns
Personal Financial Statements and Resumes on all homeowners of 10% or extra
Work in Progress Schedule (if relevant)
Insurance Confirmation
A. Workman's Compensation
B. Lipower Certificate
C. Key Man Policy
Supplier and Contractor Reference Letters
Schedule of Completed Jobs
Bank Reference Letter
Company and Personal Indemnification (GAI we provide)
Articles of Incorporation
Corporate Resolution
Job Cost Breakdown and/or bid specs
IN SUM
To most consumers of crude inside the worldwide open market, acquiring an UPFRONT 2% Performance Bond issue from a seller, is the irresistibly "preferred" proficiency for doing a gross revenue/buy deal. It is the choice they allow to be the most secure, most dependable, most tangible, and most assured and to the worst degree fraud-prone form of proof and proof of credibility by a seller.
For many causes and elements, a mess of that are distinct above, most consumers and consultants imagine that if a seller can supply a 2% PB deal - and, what's much more essential, is decidedly in a position to put up the PB as a result of he has the monetary system wherewithal to take action - it's nearly assured that the seller is not going to fail the client inside the precise execution of the deal, still will nearly sure enough carry out his personal obligations as shrunken with the client. Hence, in a deal of that sort the client has little or nomatter to fret about regarding a possible danger of fraud or rip-off. In consequence, consumers love discovering sellers who can present them - who can truly put up - a 2% PB, and allow that to be the most effective proof and assurance of acquiring a honorable seller, and one very unlikely to not carry out the contract, or to be a fraudster or a 419er
NOTE: As with many issues regarding many Nigerian crude seller, it is one factor for a seller to say to a buyer that he'll put up the PB, still fairly one other factor altogether for the seller to have the power to truly do it, or to truly do it!),.
FOR A FOLLOW UP
YOU WANT TO FOLLOW UP ON HOW YOU CAN ASSURE GETTING A NIGERIAN CRUDE OIL SELLER WITH A TRUE, UPFRONT 2% PERFORMANCE BOND? OR SELLER WITH OTHER KINDS OF SALES DEALS THAT ARE GENUINE, "SAFE" AND SCAM-FREE?
INSTRUCTION: You can accomplish that. You can promptly come up of the particular primary necessities you'd want to fulfill so as so that you can develop into habitually thought-about "established" as a really LEGITIMATE seller who actually genuinely has some crude to promote. USE THE AUTHOR'S FIVE BASIC OPTIONS PROGRAM.
Just ship an email and easily invite "the FIVE OPTIONS." CONTACT THE AUTHOR ON THIS ONLY BY EMAIL, PLEASE, at: anosikemo@yahoo.com OR anosike2@aol.com
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