The full details of the $3 million bribery scandal involving
members of the House of Representatives Ad-hoc Committee on the Fuel Subsidy
probe were revealed yesterday, as one of the major actors in the scandal has
opened up on what transpired.
In an exclusive interview with “THISDAY”, chairman, Zenon
Petroleum & Gas Ltd, Mr. Femi Otedola, who hitherto was suspected of being
behind the $3 million bribery scandal, blew the lid on what transpired and how
chairman of the ad-hoc committee, Hon. Farouk Lawan, and the secretary of the
committee, Mr. Boniface Emenalo, had collected $620,000 from him in a sting
operation masterminded by the security agencies.
The amount was part payment for the $3 million, which he
alleged Lawan had demanded from him to exonerate Zenon Oil from the ad-hoc
committee’s report.
As the scandal unfolds, it was learnt that operatives of the
State Security Services have sent a video recording of the incident to the
Economic and Financial Crimes Commission for further scrutiny and action.
Otedola, who was opening up on the issue for the first time,
narrated how Lawan at the outset of the probe had approached him to get some
insight into the workings of the downstream oil and gas sector.
Otedola said he obliged him and ensured that his managing
directors of Forte Oil Plc and Zenon Oil appeared at the subsidy probe during
its public hearing after both companies had been invited by the committee.
During the probe, he said the committee was informed in no
uncertain terms that Zenon does not and has never made claims for subsidy
payments from the federal government, as the company was engaged solely in the
importation of diesel, a product that is not subsidised.
Zenon’s managing director, Mr. Kanmi Kareem Otaru, during
the probe had denied that the company had anything to do with the subsidy
regime. He told the committee, “For the avoidance of doubt Zenon never
participated or benefited from the subsidy scheme or Petroleum Support Fund
(PSF).”
According to him, going by the Act which established the PSF
scheme, “Zenon couldn’t participate in it because we don’t have a network of
PMS retail outlets which was one of the key criteria beneficiaries must meet
and as such we are not qualified to participate to draw from subsidy payments
on PMS. So we never collected as records will show.”
Irrespective of the clarification made at the hearing,
Otedola said Lawan still approached him a few days before the report was to be
tabled on April 18, 2012 before the House of Representatives, demanding money
so that Zenon’s name will be kept out of the report.
“When this happened, I was very angry and reminded him that
Zenon has never participated in the subsidy scheme and that it would be
criminal to rope in the company for something it did not do.
“But Lawan responded, stating that several other marketers
were playing ball and had offered the members of the committee large sums of
money to ensure that their companies’ names were not published in the report,”
he added.
Otedola, said initially he balked at Lawan’s attempt to
extort money from him and told the legislator that he would not pay up, as
Zenon had not committed any crime.
“Then a day before the report was to be submitted, Lawan
called again, informing me that Zenon’s name had been included in the report.
“I, of course, was very angry and asked him to desist from
his course of action, but Lawan insisted that I must pay up as other oil
marketers had done before me.”
Otedola said he could not believe his eyes the next day when
the report came out and Zenon’s name had been listed under the category of
companies that had bought foreign exchange from the Central Bank of Nigeria
(CBN) but had not imported petrol.
The amount ascribed to Zenon in the report was
$232,975,385.13. The report had recommended that Zenon and 14 other marketers
that had bought the foreign exchange be referred to the anti-corruption
agencies to determine what they used the monies for.
Otedola said at this point he again called Lawan demanding
that Zenon’s name be removed from the list, as there was no way his company
could have bought that volume of foreign exchange without importing products.
“I reminded him that the amount ascribed to Zenon was wrong
as what the company bought was over $400 million for importation of products
through the banks – Zenith, UBA and GTB – and that under Sanusi (CBN governor)
there was no way anyone could have bought that quantity of foreign exchange and
not imported the products having filled the Form M.
“Sanusi will simply clamp down on anyone who tries to pull
that kind of stunt,” he said.
In spite of this, Otedola said Lawan still demanded that the
members of the committee be given money in exchange for removing Zenon’s name
from the report before it is considered in plenary by the entire House.
Otedola said he then asked how much would be required to
make the committee happy, to which Lawan responded $3 million.
“I screamed at him, demanding to know why he was doing this
to me. All he said was other marketers were paying up to keep their names out
of the report so I should do likewise,” he said.
Otedola revealed that it was this point he decided to
involve the security agencies to catch Lawan and his committee with their hands
in the till.
According to him, “As a law-abiding citizen, I decided to
involve the security agencies and they advised me to play along, which prompted
me to offer to pay part of the money with the promise that I would pay the
balance when my company’s name had been removed from the report."
The security agencies, he disclosed, gave him serialised
dollar bills for the sting job and there are call logs, video and audio
recordings in the possession of the agencies to confirm all that had transpired
between himself and Lawan.
He said on April 21, the Saturday before the plenary, Lawan
came in person to his residence and collected $250,000 in cash, as the first
instalment, “then the next Monday night he came and collected another $250,000.
“On Tuesday, at 9am, just before the House commenced
seating, Boniface came and collected another $120,000.”
Otedola confirmed that during the sting, Lawan and Boniface
collected a total of $620,000 in three instalments as part of the $3 million
demanded from him.
He added that with the $620,000 that had been extorted by
Lawan and the committee, during the plenary, Zenon’s name was removed from the
list of companies that had bought foreign exchange but did not import products.
Otedola continued: “He (Lawan) now asked for the balance of
$2.5 million, but when I told him that I had no money now that the money was in
Lagos, he suggested that I should charter a plane to fly the money from Lagos
to Abuja.”
Otedola stressed that his decision to get the law
enforcement and security agencies involved stemmed from the fact that he had
not broken any law, maintaining that as a law-abiding citizen, he was saddened
by the fact that he was being blackmailed by of all people, members of the
legislature.
“If you have information that an armed robber is come to
raid your home, won’t you notify the police?
So, that was the purpose of the sting operation.
“Besides, my integrity is paramount to me. I started selling
petroleum products 14 years ago in drums and somebody who has never run a
petrol station is trying to blackmail and extort money from me.
“If others (marketers) have paid money, maybe they are guilty.
But I did not do anything wrong, so why should they extort money from me? As a
law-abiding citizen, I had to involve the security agencies. Indeed, I’m very
disappointed because I have worked hard to build my business.”
Insisting that he had nothing to hide or fear over what had
happened, Otedola maintained if he was in the wrong he would not have involved
the security agencies in the first instance.
In a reference to the strong denials made by Lawan since the
scandal became public, Otedola stated, “When he (Lawan) demanded the bribe, I
called the agencies. That is because I had nothing to hide. When the bribe was
paid, why did he not call and report it to the agencies if he had nothing to.”
Meanwhile, “YAWADEY” gathered that the videotape of the illicit
transaction had been sent to the EFCC to investigate the incident.
When contacted, the EFCC, however, said it had neither
received the videotape nor had it commenced investigations into the bribery
scandal.
EFCC Head of the Media Unit, Mr. Wilson Uwugiaren, said the
allegation had not been brought to the knowledge of the commission.
According to him, the only related matter currently being
handled by the EFCC was the report of the ad-hoc committee that the commission
was studying to establish the facts and track down anyone found culpable for
the alleged mismanagement of the PSF.