Subsidy fraud: Why I gave Lawan $ 500,000 bribe – Otedola

Founder of Zenon Oil, Femi Otedola, on Wednesday testified before a High Court sitting in Abuja why he gave Farouk Lawan, a former member of the House of Representatives, a bribe of $500,000 in 2012.

Otedola in response to some questions asked by the prosecution counsel, Adebgoyega Awomolo, said he was allegedly pressured by Lawan to part with a $3 million bribe while the latter was chairing a subcommittee investigating a multi-billion dollar fraud associated with government fuel subsidy during the administration of former president Goodluck Jonathan.

“After the early hours of 24th April 2012: (the time the money was paid) he left and removed the name of Zenon from the list of indicted companies,” Otedola said while explaining the events that prompted his alleged payment of $500,000 to Lawan in April 2012.

When asked by the prosecution counsel about the claim by Lawan that the witness forced him to take the money, Otedola denied it.

“He did demand. And if he did not demand, why will he collect and expect a balance of $2.5 million? He mentioned to me that the $3 million will be shared by himself and some other members of the House,” Otedola said.

The witness also denied an allegation by Lawan that he (Otedola) offered to pay the money so that his name would be removed from the list of indicted companies.

“I did not offer any $3 million, because I was one of the biggest players in the business. And I reported the matter initially when I found out about the scam. And he mentioned to me that several companies that were involved in the scam were paying. And I reported to the SSS.”

Otedola also denied a claim by Lawan that Zenon Oil and Gas was exonerated on the basis of documents later provided by the company.

“It was the money because during the course of the sitting of the subcommittee we had submitted all the documents.”

Otedola said his report to security operatives on the matter prompted investigations into the allegations by the police who invited him for questioning after which his statement was taken.

The defence was unable to cross-examine the witness after a lawyer from Mike Ozekhome’s chambers requested for an adjournment to enable his principal to attend the next trial and conduct the cross-examination.

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The judge, Angela Otaluka, adjourned the matter to January 28 for cross-examination.

Recall that Lawan was first arraigned in February 2013 along with another accused, Boniface Emenalo, for allegedly receiving $620,000 of the alleged bribe from Otedola and his company.

The case was then handled by Adebukola Banjoko also of the same FCT High Court.

Banjoko, however, stepped down from the matter in 2014, following allegations of bias brought against her by the defence.