Reps panel to probe N140.9bn

October 12, 2012 by John Ameh, Abuja  

 

The House of Representatives on Thursday set up an eight-member ad-hoc committee to investigate the alleged payment of N140.9bn debt by Zenon Petroleum and Gas Limited and Forte Oil Plc.
The firms are owned by oil businessman, Mr. Femi Otedola.
The House said the payment was made to the Asset Management Company of Nigeria in circumstances that were “shrouded in secrecy.”
A member of the House, Mr. Bimbo Daramola, who sponsored a motion on the transaction, alleged that Otedola’s firms and AMCON conducted the transaction under a “binding agreement” not known to Nigerians.
Part of Daramola’s motion, which lawmakers endorsed on Thursday, reads, “Aware that it was publicly reported that Zenon Petroleum and Gas Limited and Forte Oil Plc have paid up the outstanding debt of N140, 999, 620,395.80 owed the asset Management Corporation of Nigeria.
“Disturbed that the sudden final settlement of this exposure by these organisations is shrouded in secrecy and established under a binding confidentiality agreement.
“Convinced that the exposure of these organisations said to have been finally settled now is the highest with the consequences of systemic rift to the system.
“Further convinced that if the full extent and spectrum of transaction is not looked at, it may be a harbinger of a catastrophic disaster worse than the near collapse witnessed in the stock market where many Nigerians not only lost their investments but lives…”
The ad-hoc committee is headed by the Minority Leader, Mr. Femi Gbajabiamila.
The Central Bank of Nigeria had in a circular dated September 17, 2012, listed prominent Nigerians and their companies as debtors who owed banks in the country.
It also identified 113 companies and 419 directors/shareholders and advised the banks not to extend further credit facilities to the defaulters.
Other members are Chairman, House Committee on Petroleum Resources (Upstream), Mr. Ajibola Muraina; Mr. Jerry Manwe; Mr. Pally Iriase; Mr. Idris Wase; Mr. Uzor Azubuike; Mr. Sani Kalgo; and Mrs. Evelyn Ojakovo.
The committee has one month to lay a report on its findings before the House.
The Central Bank of Nigeria had in a circular dated September 17, 2012, listed prominent Nigerians and their companies as debtors who owed banks in the country.
It also identified 113 companies and 419 directors/shareholders and advised the banks not to extend further credit facilities to them.
Some of the names on the CBN list are Otedola, former Minister of Power, Prof. Bart Nnaji, Alhaji Sayyu Dantata of MRS Holdings Limited and Ifeanyi Uba, the Managing Director of Capital Oil and Gas Limited.
Among firms blacklisted are Aero Contractors Company, Tinapa Business and Resort and Geometrics Engineering Ltd.

SOURCE: The Punch - Nigeria's Most Widely Read Newspaper 12 October 2012.