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Tag: Otedola’

  • Forte Oil pays N900m yearly rent to Otedola

    Forte Oil pays N900m yearly rent to Otedola

    Forte Oil Plc, formerly African Petroleum Plc, pays about N900 million per year as rent to its Chairman and business mogul, Femi Otedola for using its property at 13, Walter Carrington Crescent, Victoria Island, Lagos.

    On transforming from African Petroleum (AP) to Forte Oil, the company vacated its expansive head office at 54/56, Broad Street. Currently, the Broad Street property is still unoccupied and gradually decaying.

    A source told The Nation in confidence that the payment for the Victoria Island property started immediately the company vacated Broad Street, which was initially used as the Head Office of Zenon Petroleum & Gas Limited.

    The source said the relocation of Forte Oil to Victoria was also vehemently challenged by the board.

    The shareholders of former AP, at their Annual General Meeting (AGM) in Lagos on December 30, 2010, approved the change of name of the company to Forte Oil Plc. Justifying the need for the change, Otedola said: “The brand, AP Plc, is tired.”

    He said the change of name was part of the strategic plans by the company to make a fresh start and do away with the past, which had been enmeshed in controversies.

    Besides, the source noted that since the change to Forte Oil, the company has been going through one challenge or the other, including the sack of over 170 staff in 2011 after protests and several strike threats.

    However, the company said it paid the sacked workers over N6.3 billion as severance benefits.

    Following the arrangement to offset the N140,999,620,395.80 debt, some assets of Forte Oil were divested, it was learnt. Although members of the House of Representatives kicked against the debt settlement deal, saying the procedure was unacceptable, the arrangement is being sustained.

    AMCON controls the company’s Apapa Tank farm. It was gathered that the company’s lubricants’ stores have been sold. It’s chemical plant at Ladipo in Lagos has also been sold.

    It was also learnt that the Liquefied Petroleum Gas (LPG) plants have been leased to some individuals and firms, including Borkir International Limited, known for LPG processing and business.

    It was gathered that the company has placed the running of Forte Oil’s retail outlets, except those branded Forte Oil, but not owned by the company, under the management of a company called Patinet.

    When contacted on phone to comment on the issue Forte Oil spokesperson, Mrs. Nkiru Olumide, didn’t confirm or deny it.

    She said: “We should be looking at the future of the company.”

    She said the new management is doing marvellously well to reposition the company and create value for the shareholders and the economy and should be commended.

     

  • Otedola’s N141b settlement not inspired by CBN directive, says AMCON

    Otedola’s N141b settlement not inspired by CBN directive, says AMCON

    The settlement reached by the oil tycoon, Mr. Femi Otedola with the Asset Management Corporation of Nigeria (AMCON) on his N141 billion debt to banks had nothing to do with the Central Bank’s directive cutting off credit facilities to some categories of individuals and companies, AMCON Managing Director/Chief Executive, Mr. Mustafa Chike-Obi, has said.

    The CBN had directed the banks to desist from giving further loans to 139 companies and 419 directors indebted to them until they liquidate such debts.

    But soon after the directive came a report that Mr. Otedola had reached a settlement with AMCON on his debt by transferring his assets worth the amount to the corporation, prompting the House of Representatives to threaten to probe the deal.

    Speaking in an interview with The Nation on Sunday, Mr. Chike-Obi said the deal with Otedola was concluded before the CBN’s directive.

    He said it was just a coincidence that the transaction became public knowledge shortly after the apex bank’s announcement.

    The House of Representatives on Thursday set up a nine-member committee to investigate the alleged payment of N140 billion outstanding debts owed the AMCON by Zenon Petroleum and Gas Limited and Forte Oil Plc, owned Otedola.

    The committee which is headed by Femi Gbajabiamila, the Minority Leader of the House, has other members like Sani

    Kalgo, Uzor Azubuike, Idris Wase, Jerry Manwe, Pally Iriase, Evelyn Ojakavo and Muraina Ajibola.

    The committee is expected to report back to the House in four weeks.

    The resolution emanated from a motion moved by Bimbo Daramola (ACN-Ekiti), which was unanimously adopted without debate.

    According to Chike-Obi, “This settlement with Femi Otedola had nothing to do with the CBN directive. We have been engaging with him for at least nine months. We had to value the assets and that takes time. But it is just unfortunate that people are insinuating that these settlements had something to do with the CBN announcement.

    “There are people who have now approached us because of the CBN directive and that process will take anywhere from three months to six months. I wish it was that easy to recover debts. He had court injunctions, we had to negotiate. So, it is a complicated matter.”

    He is happy that a lot of those on the debtors’ list have been making efforts for settlements.

     

  • Reps to probe Otedola’s AMCON payment

    Reps to probe Otedola’s AMCON payment

    …Set up panel

    The House of Representatives on Thursday set up an eight-member panel to investigate the payment of N140.9 billion to Asset Management Corporation of Nigeria by businessman Femi Otedola.

    Speaker Aminu Tambuwal named the members of the panel to investigate the transaction which took place during the end of legislative year recess of the House.

    The Minority Leader of the House, Femi Gbajabiamila,  heads the panel.

    Other members are Sani Kalgo, Idris Wase, Jerry Manwe, Pally Iriase, Muraina Ajibola, Evelyn Ojakovo and Uzo Azubuike.

    The House had criticized the N140.9 billion debt settlement deal between Otedola and AMCON, saying the transaction was suspect.

    The payment, which was credited to AMCON’s managing director, Mustafa Chike-Obi, was Otedola’s outstanding debt to the corporation.

    Obi confirmed that AMCON board approved the transfer of Otedola’s assets as well as undisclosed cash to the corporation as full payment and final settlement of his liabilities.

    The House, however, said the transaction was done with “confidentiality and secrecy” and that “the National Assembly would be interested in getting full details of the transaction.”

    According to the House, the procedure was unacceptable.

    “It is curious that AMCON, being a government establishment, which is under the purview of the National Assembly, could do that without the knowledge of the House,” Chairman, House Committee on Media and Public Affairs, Hon. Zakari Mohammed, had said.

    .

     

  • Otedola’s N141b payment for probe

    Otedola’s N141b payment for probe

    The House of Representatives yesterday said it is ready to verify the payment of N141billion debt to the Asset Management Company of Nigeria (AMCON) by top businessman, Mr. Femi Otedola.

    The Managing Director/ Chief Executive Officer of AMCON, Mr. Mustafa Chike-Obi, said the agency’s board met last Thursday and approved the transfer of Otedola’s assets and undisclosed amount to the company

    In a statement by the Chairman, House Committee on Media and Public Affairs, Alhaji Zakary Mohammed, the House said it will demand full details of the transaction between AMCON and Otedola.

    The statement said: “We have observed with interest the payment of N140.9billion, being outstanding debts of a businessman, Mr. Femi Otedola, to AMCON

    “This payment was credited to AMCON’s Managing Director, Mustafa Chike-Obi.

    “Obi confirmed that AMCON Board met last Thursday and approved the transfer of the businessman’s assets as well as undisclosed cash to AMCON as full payment and final settlement of Otedola’s liabilities.

    “The 7th House of Representatives will, on return from its one week oversight tour, constitute a committee to investigate the amount and the assets so transferred to AMCOM.

    “It is imperative to state that with the state of our economy, this transaction was done with ‘confidentiality and secrecy’.

    “It is curious that AMCON, being a government establishment which is under the purview of the National Assembly, could do that without the knowledge of the House.

    “To say the least, the procedure is not acceptable. The National Assembly would be interested in getting full details of the transaction.”

    Besides Otedola, there were indications last night that the House might probe repayment by debtors to AMCON.

    The Central Bank of Nigeria (CBN) has stopped banks from granting credit to 113 companies and 419 directors/shareholders, including those belonging to Otedola, Alhaji Sayyu Dantata, Sir Johnson Arumemi-Ikhide, former Power Minister, Prof Barth Nnaji, Mrs. Elizabeth Ebi and Dr Wale Babalakin.

    The decision was meant to strengthen financial stability and instill discipline in the banking sector

    The CBN said the decision was taken at as a result of the reluctance of the debtors to pay back their loans despite the purchase of the debts at an agreed price by AMCON.