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Revisited: Petroleum Subsidy Scam, EFCC and Presidential Denial!

As at the time of writing, Mr. Farouk Lawan, the debonair, diminutive and dapper Boyish-looking member of the Nigerian House of Assembly, reputed to be highly savvy and conversant in rules and procedural trajectories of the House business, is still holding on tight to his chair in the Lower House, years after confessing to have received more than half a million dollar from the Nigerian SSS in a sting operation that went awry. It was a high stake maneuvering, designed and executed, though with doubtful intent, by the SSS and Chief Otedola, with a goal to inducing Mr. Farouk Lawan and his deputy, Mr. Emanalo Boniface, to alter the report of their investigations into the fraudulent dealings of some bogus petroleum marketers in favor of Chief Otedola. 

As the talk of removal of petroleum subsidy resonates, and about two years after the report of the Lawan Committee, the SSS, whose funds was recklessly dissipated in the botched job, is yet to recover a dime from the two congressmen. In similar vein, EFCC is yet to secure a conviction of any of the major players in the scandal.

The question that Nigerian have not asked or yet to ask, is: what informed the SSS involvement in the report, given the fact that the Committee was doing a legitimate investigation? Besides, we have it on record on this Blog that the Senate, in previous year, did publish the names of Petroleum Marketers who benefited from the Petroleum Subsidy Funds, without actually stating whether or not the beneficiaries supplied or imported Petroleum Products in accordance with the terms of the contract.

What the House of Representative or the Lawan Committee did or intended to do was more extensive and damning in every respect. And the Report later indicated so. In spite of everything, someone or some powerful Nigerians wanted a preemption of the report by any means necessary. SSS involvement was not to protect our national interest or the integrity of the House of Representative, but to punch holes in the report of the Committee, with a view to discrediting and rendering it useless. It didn't happen. 

Today, crude oil is back in the news, and the talk of removal of petroleum subsidy is ripe.

What I want Nigeria to remember is that, one, the more than half a million dollar furnished Mr. Farouk Lawan and his deputy by SSS has not been recovered.

Secondly, Mr. Lawan and his collaborators are still in the House. These gentlemen do not enjoy any immunity in the instant case. That they are still standing is an indictment on the part of the Executive on whose branch is the SSS, as well as the Attorney General, who, from all indications, didn't consider the bribery scandal egregious to warrant the attention of his office.

And three, that the most influential names among the bogus petroleum marketers are not in jail, and have not refunded the money they stole. Truth is, in more decent climes there would not have been any need for a trial, but an outright recovery or forfeiture proceeding. Because their culpability and guilt have been established beyond every known standard of reasonable doubt.

On the other hand, in the United States of America, where the Almighty Dollar is the means of exchange, their FBI could only expend about $90,000 to execute similar operation that their counterpart in Nigeria wasted about half a million Dollar to execute, without success. 

In addition, the FBI, working with the US Justice Department, tried and convicted Congress man, William Jefferson, who accepted the bribe for the purpose of inducing a Nigerian businessman to secure favorable terms in a telecom deal. Prior to the trial and conviction, FBI did recover $80,000 out of the money they gave to Mr. Jefferson for the sting operation.

At this juncture it is trite to conclude that the deficiency inherent in the prosecution and conviction of influential white collar criminals in our public sector is made worse by a President who is seemingly oblivious of the egregious state of the situation. 

Once at a public event, the President commended the EFCC for the trial of about 200 white collar criminals. He did not make any mention of the notorious petroleum marketers. He also, in a praising mood, took umbrage at EFCC for not publishing or celebrating their accomplishments. The success stories the President and who ever it was that briefed him before the public praise, are trial and conviction of Yahoo-Yahoo operatives and other petty thieves.

What the President may not have known at the time of that media briefing is that the children of the last two big guys of his own political party who, no doubt, are the kingpin of the one of a kind petroleum subsidy scam in the history of Nigerian oil subsidy, have not been tried or convicted. That is in spite of the overwhelming evidence of culpability established by Lawan's Committee as well as the proof beyond reasonable doubt findings of the Aigbojie's investigatory panel instituted by the President. 

Also, to say EFCC on its part is in denial is an understatement. Few months ago, while in audience with some delegates from the Netherlands Embassy at Abuja, the Chairman of EFCC, told his visitors that there is no body or institution out there exacting pressure on the agency on who to prosecute or let alone. He concluded by citing the trial of the children of the last two chairmen of PDP. What the EFCC boss failed to tell his guests is the percentage of the scammed funds he has recovered from the two scammers. He specifically stated: Trial, and not conviction or forfeiture or recovery.

I would like to conclude by saying that trial is not synonymous with conviction or forfeiture. And from all indications, the Presidency is in denial with respect to trial and conviction of fraudulent Nigerians by the law enforcement agencies. 

Therefore, any attempt to temper with petroleum subsidy or hike the price of petroleum products, without a show of concrete proof of recovery of the previously squandered funds by NNPC and its affiliate must be resisted and rejected by every Nigerian.  

I supported the removal of subsidy during the "occupy Nigeria" protest about two years ago, not necessarily because subsidy is economically stupid, but on the ground that, as applied or implemented in Nigeria, does not reflect in lower prices at gas pump. And Nigerians know the cause of that disconnect: those paid to supply never did supply. And that has been the culture. 

Prior to the involvement of the House Committee, and prior to inauguration of the "occupy Nigeria" protest, the President told Nigerians that there is a fraud in the subsidy regime, and that powerful forces are frustrating the happening of the intended benefits - lower prices of petroleum products. One would have thought that on the publication of the Lawan Committee and the indictment of the bogus petroleum marketers by the Aigbojie's panel, the President would have taken the initiative to direct the recovery or forfeiture process straight from his office. This is a unique case, and there is nothing abhorrent in the President being a judge in his own case on behalf of Nigerians. Oil is the main stay of the Nigerian economy, and petroleum subsidy is a crucial component of that arithmetic. Today, we know better. 

Also, the former Governor of Central Bank, Mallam Sanusi Lamido Sanusi, now the Emir of Kano, supported the removal on the ground that the subsidy only benefits wealthy and highly placed Nigerians. Though the Emir's position and few others correspond with mine, I did in fact, argued that Government should, for the meantime, step into the importation of the essential petroleum products, and reinvest the accruing profits into expansion and capacity building of domestic refineries. That is a bold step, if we must succeed in overcoming all the ills associated with our petroleum subsidy.