The Milking of African Petroleum by Femi Otedola
"Good Morning Ladies and gentlemen of the Press.
I have facts and data that show without any doubt that Mr Femi Otedola has been Milking African Petroleum for his private gains for the past two years. I wrote several memos and petitions about this as the Finance Director of AP to all the Directors AP, the DG of the Securities and Exchange Commission, The President of the Stock Exchange and the Police and we have received no response. My lawyer has also written a petition to the EFCC on this issue. I am now compelled to come to the public and state the facts, so that if anything should happen to me, everyone will know who is responsible and why. I am not a wealthy man with friends in high places, but I am a professional accountant and I refuse to be a part of falsehood. I am currently being persecuted because I refused to cook the books as requested by Femi Otedola, I also refused to allow Mr Otedola to continue to siphon money out of AP for the benefit of himself and his other companies. AP is quoted on the Nigerian Stock Exchange and the shareholders need to know what s going on!
Now, please let me fill you in with the facts.
Please bear with me that I may not be eloquent, but the facts speak for themselves.
In 2009, African Petroleum plc made a loss of about N15 Billion, this was due to the fact that the Chairman’s companies (Zenon Petroleum and Gas Company Limited, Platinum Fleet Limited and Fineshade Energy limited) started selling products to African Petroleum Plc at Higher prices than normal, at times higher than the retail pump price at gas station.
In September 2009, the Finance Director prepared a management account where the company made a loss of N9.7 Billion. The loss was not acceptable to the chairman who brought in others to produce an alternative account that showed a profit of N957 million. They also suggested that we warehouse N15Billion as un-reconciled inventories and to seek board approval to amortized it over five years. This was not acceptable to me as Finance Director because the causes of loss making were known.
Prior to this time, I have requested that the companies of the Executive Chairman refund the N15B owed or supply the products as this was the cause of the loss.
The Executive Chairman ensured that his companies supplied products to African Petroleum Plc without contract or agreed prices.
As a result of this and many other issues, the chairman was asked to step down as chief executive officer and he did.
The reasons for the losses recorded in 2009 are:
1. The executive Chairman forced African Petroleum Plc to take products from his companies at prices higher than the normal.
2. The Executive Chairman forced the company to pay for products in advance. The amount outstanding as at 31st December 2009 was N10B
3. The loss on Petroleum Products Price Regulatory Authority (PPPRA) rebate on imported products is N32 Billion because the purchase was from the Chairman instead of direct import that would have been more profitable.
4. The loss due to Chairman’s companies over loaded invoices is approximately N4 Billion.
5. African Petroleum paid rent of N1B for the use of the Zenon house in Victoria Island
6. Mixing up Zenon transactions with Africa petroleum PLC
a. The Chairman forced the company to use his Tank Farms for storage of African Petroleum’s products
b. As at 31st December 2009 the differences on premium motor spirit (PMS) was 28, 347,742 litres valued at 1.9billion. The Union in AP i.e. NUPENG and PENGASSAN have also demanded the removal of the chairman and the black listing of his companies as suppliers to AP.
As the Executive Director, Finance and IT of African Petroleum, I have queried various transactions and this has led to so many suspensions and various allegations without the right response from the authority concerned at this time we are trying to ensure that our values are restored, considering the fight against corruption.
I have made presentations to the board of African Petroleum PLC on these abuses; I have written memos to the Managing Directors and copied all directors of AP on these abuses.
On the 5th of July 2010, there was a scheduled board meeting of AP Plc; the chairman stormed the venue with 150 armed mobile police men. He entered the lift with too many security operatives thereby overloading the lift. Thereafter the lift got stuck and we got a report from CFAO and the maintenance engineer that clearly stated that there was no foul play.
Instead of following the instructions of the rescuers, Mr Otedola was busy banging his head on the lift door and pressing various buttons (we were told). He came out from the lift and he ordered the Managing Director, Mr. Tunde Falasinnu, the finance director, Mr. Clement Aviomoh and the company secretary Mrs. Elizabeth Idigwe out of the scheduled board room.
He rose from the board room in the evening about 7PM and sent a suspension letter to me and the company secretary; he made the MD to resign.
Article written by former Finance Director of AP.