“Farouk Lawan, Chairman Of Fuel Subsidy Committee Blackmailed Me To Pay 3 Million USD Bribe” – Femi Otedola

Farouk Lawan, the chairman of the House of Representative ad-hoc committee on fuel subsidy, yesterday debunked allegations that he demanded and received bribe from an oil company involved in the fuel subsidy scam. He said the allegations was an attempt to stop the implementation of the report of the just concluded investigation. Well, now the CEO of the oil company involved, Mr Femi Otedola of Zenon Oil, has come out to say he actually did give Lawan $620, 000, which was part payment of the $3million the Federal lawmaker had demanded from him to exonerate Zenon Oil. The full report when you continue…

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, THISDAY gathered that the videotape of the illicit transaction had been sent to the EFCC to investigate the incident.

Source: Thisday Newspapers

21 COMMENTS

  1. Otedola’s side of story look very interesteng.bthe yruth remains that wheitjer farouk collected bribe or not the law enforcement should stil loot into the house report on fuel subsidy,while farouk issue of bribe allegstion be look into.
    Nigerians are interested on d video clip

  2. Nigeria is a corrupt country. This is so becausethe institutions of good governance are either lacking or too weak. This has encouraged people in authority to take advantage of every opportunity to rape the country. Every probe is an opportunity. If it is Faruk it will someoneelse. It is true that a people get the kind of leader that they deserve. We are not serious as avpeople. These stories shall continue to reviberate again and again. Personnally i am fed up.

  3. I think Hon Faruk collected de bribe to save his life & oil subsidy prob to go well & Otedola gave de bribe to conceal his secret of duping de nation. I’m sure de oil subsidy report did not favoure Otedola. It’s a blackkkmail of Faruk.

  4. Nigerians are interested in this case EFCC should not sweep it under the carpet. So who do we now trust and believe is it the security agents, the lawmakers that call themselves Hons, Otedola himself who claimed to have evidences or the EFCC. as I am writing this comment I am weeping for Nigeria just when I Thoth there is a little hope that is when they come out and crashed everything.Who do we trust? God help us

  5. Mr President, sumtimes lets try & take the bull by the horns. Give these culprits the due punishment, prosecute these rogues, we don’t need further investigation on matters like this. Let it serve as a warning to others.Nigerians need sum actions. Meanwhile, the said videos & tapes be made available in the internet for the public to make justice. Thank you.

  6. Personally I have always admire farouk lawan nd saw him as an upright person so also I admire the hard work of femi º˚˚°º≈. Having said that this report is quiet saddening. Where are we heading in this country? Those who should uphold the LAW break them. For no reason should farouk have ny familiarity disgussion with otedola whose company he is to probe. Femi I like ur courage even if Zenon would have to go tru ny challenge @ least U̶̲̥̅̊ are upholding ur good name. I read inbEtween lines that U̶̲̥̅̊ didn’t want to give that bribe but for prooff the Security asked U̶̲̥̅̊ to. I strongly don’t believe U̶̲̥̅̊ have nything to hide. I pray that all those double facet criminal be brought to book. Let justice prevail over those killing nigeriam

  7. Personally I have always admire farouk lawan nd saw him as an upright person so also I admire the hard work of femi º˚˚°º≈. Having said that this report is quiet saddening. Where are we heading in this country? Those who should uphold the LAW break them. For no reason should farouk have ny familiarity discussion with otedola whose company he is to probe. Femi I like ur courage even if Zenon would have to go tru ny challenge @ least U̶̲̥̅̊ are upholding ur good name. I read inbEtween lines that U̶̲̥̅̊ didn’t want to give that bribe but for prooff the Security asked U̶̲̥̅̊ to. I strongly don’t believe U̶̲̥̅̊ have nything to hide. I pray that all those double facet criminal be brought to book. Let justice prevail over those killing nigeriam

  8. The big question is why EFCC’s interested in dis case more than the Subsidy prove itself? Which one came 1st? The other big question is who caught out that kind of money? Is it d stingy Otedola himself or had govnmt played ita big part in d saga to divert our attention from subsidy report? The silence of EFCC on subsidy prove n their sudden interest on dis tells u whose interest’s is at stake!

  9. Its high we the youth of this country rise up to the occasion, these corrupt individuals are bent on milking the nation dry. If we truly want change, we have to come together in unison and speak in one voice. I have started a youth movement with other credible like-minds young Nigerians,join us. Visit and register kickthemout2015.org let Take Back Nigeria together. Contact 07032274872 ,@ekwere007,BB 212258cd

  10. Since the begining of the subsidy regime probe, i tought
    as much that something like this will surely follow.
    And here we are. Faruk is not yet proven guilty, but in my own
    court of compitent jurisdiction he is allredy guilty. ELRUFAI VS MANTU, ADENIKE GRANJ VS IYABO
    OBASANJO, NDIDU ILUMELU VS NIPP HEAMAN HAMBE VS
    ORUNMA OTEH and NOW FARUK VS OTEDOLA. All in d name
    of fighting koropshun. Biri yayi kama da mutum.

  11. Corruption in Nigeria has gotten 2 d brim…even wif d so-called temerity, public officials now extort money 4rm money bags, big wigs in our soceity. Wat is hapnin…dnt u tink we need revolution in dis country mr editor? Starting 4 dose public offices. Dis z jst outragous.