Back to Home Posted by Jude Aririesike September 26, 2009 Ibori: Why Obasanjo, Ribadu are After Me The former governor of Delta State, James Ibori, who is facing a 127-count charge of corruption, money laundering and bribery, yesterday alleged that President Umaru Yar’Adua’s enemies, former President Olusegun Obasanjo and the former chairman of the Economic and Financial Crimes Commission, Nuhu Ribadu are behind his trials. Ibori in a rare chat with newsmen in Lagos, alleged that his refusal to assist Ribadu achieve his ambition of being appointed Inspector General of Police made Ribadu declare war against him. He also listed other reasons for his travails to include his initial opposition to the second term bid by Obasanjo, spearheading the campaign for resource control and payment of the 13 percent revenue derivation fund to the oil producing states and his staunch support for Yar’Adua’s presidency in 2007. He equally denied offering $15 million to Ribadu to let him (Ibori) off the EFCC hook, saying it was a figment of the imagination of the former EFCC boss. He said his relationship with Ribadu used to be rosy but deteriorated when he refused the former EFCC boss’ request to convince Yar’Adua to elevate him from the “rapidly acquired post of Assistant Inspector General of Police to IGP. “I can say without any fear of contradiction that I have and hope I still have a good relationship with the erstwhile chairman of the EFCC even though he now denies that he is a friend. “I am a Christian and will not deny him. Very many times, he tried to get me to assist him in one way or the other, including his desire to become the Inspector General of Police. “In his approach, he posited that in his estimation and knowledge of Nigerian politics, I was one of those who could help him achieve it.” The former governor said he could not contemplate how it would have been possible to catapult Ribadu to IGP, adding that for such a tall dream to be actualised hundreds of other well-trained and qualified officers would have been retired prematurely. Ibori alleged further that Ribadu also attempted to recruit him to work against the validation of the election of Yar’Adua. “In fact, he promised that if I did, he would not file charges against me and would not prosecute me. “I told him to give me time to reflect on it, but it would be stupid of me to have bought into his blackmail; so, I ignored him. “When he then realised that I was not succumbing to his cheap blackmail, he decided to go ahead with his plan to humiliate me,” Ibori alleged. Concerning Obasanjo, he traced the background of his travails thus: “In 1998, when I went round the nooks, crannies and creeks of Delta State, campaigning for the 1999 election, the practice of true federalism was my ideological anchor. “I promised Deltans that, if handed the mandate, I would use my office to advocate Nigeria’s return to the practice of fiscal federalism and resource control. I did not renege on this promise. “The 1999 constitution states explicitly that 13 percent shall be paid as derivation to constituent units for natural resources. “This payment to the oil-producing states should have started in May, 1999, but Obasanjo refused to implement it.” Ibori said in March 2000, he mobilized the governors and legislators of the South-south region to Asaba to press for its implementation. He said at the end of that summit, the governors issued a stern communiqué and that Obasanjo who was compelled to pay in April that year. Obasanjo deeply resented his outspokenness. “I entered his bad books for disagreeing with his policy of retaining a large chunk of the oil revenue at the centre. “Of course I continued my advocacy for resource control. Many will recall that I even took the advocacy to London during the Ibori Vanguard Lecture in London on 12 August, 2001,” he said. Ibori alleged further that around November 2002, 15 PDP governors including himself, had an ad-hoc meeting at his lodge in Abuja to decide whom the Governors’ Committee should nominate as the presidential nominee for the 2003 election. Ibori continued: “The committee decided almost unanimously to get a new candidate instead of Obasanjo as it was of the view that because of his military background, he was intolerant of dissent and had displayed very dictatorial and vindictive tendencies against those he perceived to be independent-minded and disloyal to him. “Immediately after the governor’s meeting, I led the delegation of governors to meet the then PDP chairman, Audu Ogbeh, at his residence around 2 a.m. “As the leader of the delegation, I spoke and communicated the views of the governors to the chairman, which was that the governors had decided not to support Obasanjo as PDP’s nominee for the 2003 general election.” He said Ogbe tried to persuade the governors but when he saw their resolve, he told them that he would inform Obasanjo. “I was later informed by Ogbeh that after we left his house, he put an urgent call to Obasanjo and informed him of our decision. “Two days before the party convention, the governors had a breakfast meeting with Obasanjo and I recall that at that meeting, the then Vice President, Atiku Abubakar, told Obasanjo in the presence of the governors that he was known to be very dictatorial, vindictive and unforgiving,” Ibori said Ibori said Obasanjo appealed to the governors to support him and assured both the governors and the party leadership that if he was allowed to continue for the second term, he would adopt a more democratic approach. “On the basis of the president’s promise given at that breakfast meeting, I led the move for the governors to support his presidential nomination for the second term. “However, not withstanding my support for Obasanjo’s nomination for a second term, the president after the nomination, acted very shabbily towards me. “When I met him soon after the convention, he told me that he had learned that I had put forward the view that he was unsellable, unmarketable and unelectable. “He then vowed that he was going to make sure that I was unsellable, unmarketable and unelectable,” Ibori alleged. Courtesy: Thisday Back to Home Older Posts: Posted by Jude Aririesike September 24, 2009 F.G Approves a New Medical Salary Structure for Doctors The Federal Government has announced a new Medical Salary Scale [MSS] for medical doctors in the employment of the federal ministry of health. In a press statement signed by the special assistant on communication to the federal ministry of health, Mr. Niyi Ojuolape, the new MSS comes against the background of negotiations between the Federal Government’s team and the Nigerian Medical Association on the salary structure and allowances of medical and dental practitioners, including specialist allowance, call duty and teaching allowances. The statement also indicates that dialogue is ongoing with other professionals within the health sector with a view wards to securing a similar package to address the welfare of health professionals employed by the federal government. Courtesy: Channels Television Back to Home Older Posts: Posted by Jude Aririesike September 14, 2009 Akingbola Reports Self to UK Police The former Group Chief Executive Officer (CEO) of Intercontinental Bank Plc, Mr. Erastus Akingbola, is not likely to return to the country until he is formally charged to court, but he has reported himself to UK authorities after being declared wanted in Nigeria. A statement issued on his behalf by his Media Assistant, Suleiman Adebajo, in Lagos, yesterday said: “Akingbola wishes to make clear – in light of escalating press speculation – that he is most emphatically not evading arrest by the law enforcement agencies in Nigeria or ‘on the run’.” Akingbola, who the statement addressed as the Group Chief Executive, and a Director of Intercontinental Bank Plc, President of the Chartered Institute of Bankers of Nigeria, Pro-Chancellor and Chairman of the Governing Council of Adekunle Ajasin University, Ondo State, Nigeria and the Second Vice-President of Nigeria Stock Exchange (NSE), said he is “not guilty of any wrongdoing but appears targeted for persecution and for character desmirchment”. The statement reads: “He is currently in the UK. Our client believes that the prime objective of detaining all those arrested is to prevent them from presenting their side of the story. “All persons should be presumed innocent until proved guilty by a court of law. As soon as it was alleged that he was evading arrest, Dr Akingbola notified the UK authorities of his whereabouts and provided full contact details through his legal representatives. Dr Akingbola strenuously denies all allegations of wrongdoing or improper conduct and has challenged the legal validity of his removal from office as Group Chief Executive of Intercontinental Bank Plc by way of judicial review which will come up at the Lagos Judicial Division of the Federal High Court on 14th September 2009. “The proceedings relating to the bail application by the four other bank Chief Executive Officers and other non executive directors of Intercontinental Bank Plc have also been adjourned to the same date. “All further comments on this matter will await the outcome of the legal suit in order not to prejudice the outcome of the suit.” According to one of his associates, Akingbola believes he is the main target of the sack of five bank chiefs by the Central Bank of Nigeria (CBN). Akingbola had travelled to the UK a few days before the sack, after holding a meeting with the staff and informing them of the impending CBN action. On August 14, the CBN had sacked the senior management teams of five banks -Afribank, Finbank, Intercontinental Bank, Oceanic International Bank and Union Bank – and injected N420 billion, saying lax governance had left them dangerously undercapitalised. Already, Akingbola has challenged the legal validity of his removal and the case comes up today at the Federal High Court in Lagos where his colleagues will also have their day between today and tomorrow. Akingbola and the incumbent Governor of the CBN, Mallam Sanusi Lamido Sanusi, had had some disagreements over de-marketing when the latter was the CEO of First Bank of Nigeria Plc. The former Intercontinental Bank boss had alleged that First Bank was de-marketing Intercontinental Bank and even placed an advertorial to that effect in some newspapers but did not mention First Bank or the name of its CEO. The advert referred to “one of the old generation banks whose CEO had an ambition to become the Governor of the CBN”. De-marketing is a term used to describe competitors trying to pull down one another. This development, according to the statement from Adebajo, explained why it was only Intercontinental Bank that had all its directors in detention. He said: “How do you explain the fact that directors whose loans are performing are being locked up today? Even those who don’t have one naira loan in the bank are being held in detention. “Is it not curious that in our democracy you can accuse people without one shred of document to support your allegations and immediately parade them as criminals?” He said Sanusi never hid his dislike and disdain for Intercontinental Bank Plc and the CEO while he was CEO of First Bank. This, he explained, was why he orchestrated a ferocious de-marketing campaign against Intercontinental as MD of First Bank. “In the past few days, the whereabouts of Akingbola have been a subject of speculations, and deliberate falsehood. It is clear that he is not in Nigeria contrary to what the false rumours that were circulated would want the public to believe,” he said. Adebajo said he had also read in the newspapers that Akingbola had been declared wanted by the Economic and Financial Crimes Commission (EFCC) over alleged misdeeds while in office as the Group CEO of Intercontinental Bank Plc. He said: “As at the time the news appeared, he (Akingbola) was already outside the country for medical care. He had told me and other close associates that he was eager to come back to the country to squarely pursue his case against his removal from office by the CBN. “Indeed, against his doctor's advice, he left London for Nigeria on Sunday, August 16, 2009 (two days after CBN's incursion into Intercontinental Bank) just to institute the legal action against CBN. “However, his condition deteriorated a day after his arrival following his traumatic experience from threats and harassments by security agents and other faceless individuals, thus prompting his immediate return to London for full medical care. “He has already indicated his intention to be back to the country as soon as his doctors certify him fit to contest the aggression by CBN against his person and the institution he has laboured to build from scratch for 20 years. He will then promptly report to EFCC as soon as he steps into Nigeria, as he has nothing to hide.” CBN’s spokesman, Abdullahi Muhammed, who described these allegations as personal, said he would not want to comment. “All these are personal things, which I do not want to comment on. But the facts of the matter are on the ground. Is it not true that those loans were given out? Was the process of investigation not undertaken? “If the Governor was against him (Akingbola), what of others that do not have anything personal against the Governor,” he asked. In Lagos, the Chief Judge of the Federal High Court, Justice Dan Abutu, will today decide whether to grant bail to some of the detained directors of the five banks who were sacked recently by the CBN. The directors were arraigned by the EFCC, on a total of 131 count charges bordering on fraud, concealment and granting loans without adequate collateral running into about N700 billion. They were alleged to gave committed the offences contrary to and punishable under Sections 20(b) (7), 28 (1,2, and 3), 24 and 50 of the Banks and Other Financial Institutions Act (BOFIA) Cap B3, Laws of the Federation, 2004; Section 422 of the Criminal Code Act, Cap C38 Laws of the Federation, 2004. They were also alleged to have contravened Sections 15 (1)(a) (b), 19 (4) of the Failed Bank (Recovery of Debts) and Financial Malpractices in Bank Act, Cap F2 Laws of the Federation of Nigeria, 2004 and punishable under section 16 (1) (a) of the same Act. Some of them, especially the CEOs and directors, were accused of failing to give true and fair view of the state of the affairs of the banks to CBN by incorrectly importing false amount of commercial papers under the Expanded Discount Window in the statement of assets and liabilities. Part of the charges filed against the directors of Intercontinental Banks include taking $10,000 as holiday allowance in contravention of the code of conduct for banks issued by CBN. Justice Abutu who had fixed September 14 and 15, 2009 respectively for ruling on the directors’ bail applications, had also ordered that they be kept in custody. Specifically, those to know their fate today are former managing director (MD) and CEO of Oceanic International Bank Plc, Mrs Cecilia Ibru, former MD and CEO of Union Bank Plc, Mr. Bartholomew Ebong; former MD and CEO of Afribank Plc, Mr Sebastian Adigwe and former MD and CEO of Finbank Plc, Mr Okey Nwosu. Others who will know their fate today are MD of Falcon Securities Limited, Mr Peter Ololo, and Messrs Henry Onyemem and Niyi Albert Opeodu who are directors of Union Bank and were arraigned with Ebong. The court will also tomorrow determine the fate of the former non-executive directors of Intercontinental Bank Plc, Messrs Raymond Obieri, Hyacinth U.F.Enuha, Ikechi O. Kalu; Christopher Adebayo Alabi; Samuel Adegbite; Alhaji Isyaku Umar; Bayo Dada and Dr Sanni Adams. At the last sitting of the court, counsel to the EFCC, Mr. Abubakar Mahmoud (SAN), had opposed the directors’ applications for bail, arguing that the offences for which they were being tried were very grave and border on economic sabotage and threats to the economic health of the nation. Besides, Mahmoud told the court that the EFCC had incontrovertible evidence to the effect that many of the suspects, if admitted to bail, would interfere with the trial by “influencing prosecution witnesses”. He also disclosed the preparedness of the commission for the speedy trial of the suspects, praying the court to discountenance claims being made by some defence counsels about the ill-health of one of the suspects. The EFCC lead counsel argued that the suspects were receiving adequate medical attention from the commission. “Since no claim had been made that the accused persons are not being offered adequate medical attention, it would not be right for the court to release them on bail on that condition,” he said. Courtesy: Thisday Back to Home Older Posts Posted by Jude Aririesike September 04, 2009 Bail: Court hears ex-bank chiefs’ applications today Bail applications for the former bank chiefs of five troubled banks will be formally heard today at the Federal High Court, Lagos. Fifteen ex-bank directors were dragged to court by the Economic and Financial Crimes Commission (EFCC) on charges which bordered on alleged mismanagement and granting of non-performing loans to the tune of over N400 billion. This was after the Central Bank of Nigeria (CBN) had removed the ex-bank chiefs from office on August 14. They included former Managing Directors of Finbank, Okey Nwosu, Sebastine Adigwe of Afribank, Bartholomew Ebong of Union Bank as well as Mrs. Cecilia Ibru of Oceanic Bank Plc. Also charged to court was chairman of Intercontinental Bank Plc, Dr. Raymond Obieri and six directors of the bank who include: Chief Samuel Adegbite, Alhaji Isyaku Umar, Mr. Hyacinth Enuha, Bayo Dada, Mr. Chris Alabi and Dr. Sani Adams. They were all arraigned on Monday at the Federal High Court along with Peter Ololo, former managing director of Falcon Securities Limited. After listening to the charges preferred against them by the prosecution, the ex-bank executives pleaded not guilty to the charges. Their lawyers, Wole Olanipekun (SAN), Professor Gabriel Olawoyin (SAN), Peter Jimoh-Lasisi (SAN) and Niyi Akintola (SAN) mad oral applications to the court for bail. The prosecuting counsel, Rotimi Jacobs, while opposing the application, argued that the counsel must file written addresses to enable parties to put enough materials before the court. The presiding judge, Justice Abutu, while declining to admit the defendants into bail, ordered the defence counsel to make formal bail application. Subsequently, Justice Abutu ordered that Nwosu, Adigwe and Ololo be remanded in Ikoyi Prisons while Ibru, Ebong and the seven directors of Intercontinental Bank be remanded in EFCC custody. Consequently, hearing of bail applications was fixed for today. Courtesy: Daily Sun Back to Home Older Posts: Posted by Jude Aririesike September 03, 2009 House Tackles CBN over Banks’ Bailout The House of Representatives Committee on Banking and Currency yesterday moved to assert its position on the reforms sweeping across the banking sector. The committee, which met with the Governor of Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, challenged the authority of the apex bank to inject N420 billion into five banks without recourse to the National Assembly, saying it was an affront on its powers and control over public funds. But Sanusi countered the position of the legislators, insisting that his actions were in line with the CBN Act and within the regulatory framework of the Banks and Other Financial Institutions Act (BOFIA). He said the money injected into Oceanic International Bank, Intercontinental Bank, Afribank, FinBank and Union Bank is considered a loan (tier 2 capital) and not equity. It was a heated debate in which each party claimed it was right under the law and it was almost headed for a deadlock when a member of the committee moved that the discussion be held in camera. Journalists were asked to leave House Hearing Room 08 venue of the meeting to allow the lawmakers and the CBN team iron out their differences. The ensuing closed-door session lasted about two hours. On the one hand, the committee held on to the provision in Sections 80, 81 and 162 of the 1999 Constitution, which import is that all revenues and expenditure of the Federal Government must first undergo appropriation by the National Assembly. For instance, Section 80 (1) of the constitution states that, “All revenues or other monies raised or received by the Federation (not being revenues or other monies payable under this constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation.” Sub-section 2 states that, “No moneys shall be withdrawn from the Consolidation Revenue Fund of the Federation except to meet expenditure that is charged upon the fund by this constitution or where the issue of those moneys has been authorised by an Appropriation Act, Supplementary Appropriation Act or an Act passed in pursuance of section 81 of the constitution.” On the other hand, Sanusi relies on the CBN Act 2007, Section 42 (2), which provides as follows: “Notwithstanding the provisions of Sections 29 (1) (c) and Section 34 (d) of this Act, the Bank may grant loans and other accommodation facilities at such rate of interest and on such terms as the Bank may determine to any bank which may be having liquidity problems.” Chairman, House Committee on Banking and Currency, Hon. Ogbuefi Ozomgbachi (PDP Enugu), who began the debate on a combative mood, was reading from notes he scripted on Rockson Engineering writing pad, which was later photocopied by journalists. He said the committee was alarmed at the “very disturbing developments” in the banking sector over the last two weeks especially the sack of the managements of five banks and the injection of N420 billion into the banks. He accused Sanusi of breaching an earlier accord reached between the committee and CBN over the need to keep the lawmakers abreast of the outcome of the CBN audit of the banks in the spirit of full disclosures. He said that even though the apex bank had taken some far-reaching decisions without consultations with the lawmakers as earlier agreed, the committee had refrained from taking issues with the CBN Governor on the pages of newspapers. Ozomgbachi stated that the committee was not opposed to the current reforms to sanitise the banking sector, but insisted that the “clean up” must be done in a manner that would not only guarantee the safety of depositors’ funds but also ensure credibility of the process. “This committee supports any measure which you have taken or will take to sanitise the banking system in so far as these measures are taken in conformity with the relevant laws of Nigeria. But if media reports that you have printed and injected into the five banks whose managements you have sacked are true, this committee will with a sense of responsibility challenge your authority to do so. We do this because we have sworn to protect and defend the 1999 Constitution of the Federal Republic of Nigeria,” he said. Ozomgbachi who quoted copiously from Sections 80,81 and 162 of the 1999 Constitution challenged the CBN Governor to refer the committee to any section of the Constitution which grants the CBN any special exemption from the provisions of the Constitution on the stipulation that all revenues and expenditure of the Federal Government must first undergo appropriation by the National Assembly. According to him, the CBN Act cannot supersede the Constitution of the Federal Republic of Nigeria and any action taken in pursuant of the CBN Act that runs contrary to the provisions of the Constitution “is null and void, ineffective and of no effect whatsoever”. In return, the CBN Governor put up a stout defence and insisted that the five banks whose managements were sacked were in bad shape and needed to be rescued before their situation worsened. Sanusi, who linked the recent experiences of the Nigerian banking sector to the global financial and economic crises, acknowledged that the bank consolidation and recapitalisation of the banks in one breath boosted the capacity of the banks to grow their assets and in another breath over-exposed themselves to certain sectors of the economy, creating an asset quality problem. According to Sanusi, the asset quality and liquidity problems inherent in the banking sector particularly the five banks manifested into concerns about solvency as these banks became permanent borrowers on the CBN Expanded Discount Window (EDW) between October 2008 and July 2009 when that option was closed. “In addition, the five banks in particular were permanently net takers of funds in the interbank money market when the CBN opted to guarantee inter-bank takings. These features signaled possible insolvency problems, which prompted the CBN actions to reduce counterparty risk concerns and stimulate liquidity. “The funds injected into the five banks is considered a loan (tier 2 capital) and sufficient to enable them to continue normal business operations. The government has no intentions to nationalise the five banks or any other Nigerian bank for that matter,” Sanusi said. According to him, the injection of capital into the banks was a form of lending, which constitutes an indebtedness by the deposit money banks (the borrowers) to the CBN, adding that the loan is expected to be repaid from the proceeds of capitalisation or from other sources when the borrowing institutions eventually stabilises. The CBN Governor substantiated his position with relevant sections of the CBN Act and reeled out other options which the apex bank could take to save the banking sector within the ambit of the law. While the closed-door session lasted, Sanusi reportedly apologised to the lawmakers on the alleged breach of their earlier agreement to be kept abreast of events in the course of the reforms. He, however, insisted that his actions were backed by the relevant laws guiding the operations of the apex bank and its regulatory activities. Sanusi had also met with the House Speaker Dimeji Bankole and other principal officers of the House before meeting the Committee on Banking and Currency. Insider sources said he tendered a similar apology because of the accusation that he did not take the legislature into confidence before taking the actions on the banks. According to THISDAY source, Sanusi explained to the lawmakers that he notified the President of the Senate, Senator David Mark, before embarking on the sweeping reforms in the banks. This notification, Sanusi assumed, was enough for the legislature since Senator Mark was the head of the National Assembly. He was, however, reminded that the country operates a bicameral legislature and information passed to the Senate does not necessarily mean it will get to the House of Representatives. It was not clear whether the lawmakers also succumbed to the position of the CBN on the powers to inject the funds without seeking the consent of parliament but insider sources told THISDAY that both parties emerged from the closed-door session “reconciled and positive” on the contentious issues at stake. Some lawmakers, however, said the solution to this constitutional quagmire may be the amendment of the CBN Act to ensure that it does not continue to operate like a republic within the Federal Republic of Nigeria. Courtesy: Thisdayonline

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Posted by Jude Aririesike September 02, 2009

Senate Adopts 3-Tier Plan in Amending the 1999 Constitution The Senate on Tuesday, September 1 says it has adopted a three–tier plan in amending the 1999 constitution. Briefing journalist in Abuja, the nation's capital city, the Deputy Senate President, Ike Ekweremadu said that the process will be all inclusive but maintained that state creation and the Justice Mohammed Uwais report cannot form the basic reasons for the exercise. Senator Ekweremadu stated that the Senate Committee on Constitutional Review has already received over 50 memoranda from Nigerians on the constitutional amendment, according to him the contents of the documents show how concerned people of this nation are about the sustenance of democracy and good governance. On the widespread clamour by some Nigerians for the total adoption of the recommendation of the Justice Uwais report on electoral reforms, Senator Ike Ekweremadu said the report remains a document that will be considered by the committee along side other memoranda as the amendment exercise is not about Uwais report. And in what looked like a final nail in the coffin of state of creation, the Deputy Senate President, Ike Ekweremadu enumerated constitutional factors militating against the idea. He however gave the assurance that the constitutional amendment exercise is a serious one and that the National Assembly is not out to deceive Nigerians. Courtesy: Channels Television

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Posted by Jude Aririesike August 31, 2009

EFCC Gets Aondoakaa’s Nod to Prosecute Bank Chiefs All is set for the arraignment of the 16 bank chiefs and 68 loan defaulters at present in the Economic and Financial Crimes Commission (EFCC)’s custody, as Attorney-General of the Federation (AGF) Mike Aondoakaa (SAN) will before 10 am this morning approve the fiat required for the prosecution. There had been speculations that the bank chiefs were unduly detained without trial because Aondoakaa was holding back the approval, which is a constitutional provision since the EFCC would have to prosecute in the name of the AGF. A report quoting the commission’s sources had claimed that EFCC Chairman Farida Waziri had written Aondoakaa since Wednesday, August 26 for the fiat. But the AGF, who has been out of the country for about one week on official assignments to Brazil and the United Nations (UN), told THISDAY last night shortly after his arrival that his office got EFCC’s letter last Friday and that the letter was dated same Friday, August 28, 2009. Aondoakaa said: “My office received the letter dated Friday August 28, 2009 and we will treat with despatch and before 10 am this morning we will make the fiat available.” He said Friday was the last working day of the week and that there was nothing his office could do on that very day since he was out of the country. The AGF had led a Federal Government delegation to the UN to defend Nigeria’s bid to extend its continental shelf and to Brazil for the release of one of the country’s ship that was detained in that country. EFCC has, however, stepped up its investigation of the bank chiefs and debtors who plunged five banks in the country into a whooping N747 billion debt burden. Yesterday, the commission declared the Chairman of Abuja Chamber of Commerce and Industry, Mr. Dele Oye, and one Mrs. Nananshettu Bedell, said to be associates of former Chief Executive Officer of Oceanic International Bank, Mrs. Cecilia Ibru, wanted. They are wanted for offences bordering on conspiracy, aiding and abetting, and money laundering running into billions of naira. EFCC's Head of Media and Publicity Femi Babafemi said the suspects were declared wanted after all efforts to get them to honour the commission’s invitation failed. “The commission enjoins anyone with useful information that could lead to their arrest to contact any of its offices in Abuja, Lagos, Kano, Gombe, Port Harcourt and Enugu,” Babafemi added. Barring any last minute changes, the anti-graft agency may today or tomorrow arraign Managing Directors and CEOs of the five banks affected by the new reforms by the Central Bank of Nigeria (CBN) before a Federal High Court in Lagos. The bank chiefs to be arraigned include Ibru of Oceanic Bank International, Barth Ebong of Union Bank, Sebastian Adigwe of Afribank and Okey Nwosu of Finbank. Also likely to be arraigned with the sacked CEOs are some executive and non-executive directors of the banks and some CEOs of their subsidiaries. The last of the five sacked bank chiefs, Erastus Akingbola of Intercontinental Bank, has been declared wanted by the anti-graft agency, which has vowed to use the Interpol to extradite him. THISDAY reported at the weekend that EFCC had formally filed charges against the bank executives and was only awaiting any vacation judge that would sit today. Meanwhile, the anti-graft agency has reacted to a statement credited to the National Publicity Secretary of the Nigeria Bar Association (NBA), Murtala Abdulrasheed, that the recent statement by EFCC Chairman Waziri calling on members of the Nigerian Bench to be cautious in granting ex-parte applications by bank chiefs and debtors currently under investigation by the commission was an attempt to blackmail the judiciary. The commission said it could not understand how a harmless appeal to the Bench not to allow itself to be used as instrument to frustrate the investigation of bank executives and debtors would translate into blackmail and arm twisting. While holding that there was neither any undercurrent, express or implied, of blackmail in the statement that would justify NBA's position, Babafemi said even courts in the country in a litany of cases had deplored the unrestrained use of injunctions in all forms of proceedings as noted in the case of N.A.B. Kotoye Vs Central Bank of Nigeria & Seven Others (1989) 2 S.C (Part1) 1. He said it was difficult to fathom the linkage between EFCC boss’ statement and the trial of ex-governors for corruption, adding that Abdulrasheed’s claim that the NBA “does not begrudge Mrs. Waziri’s commission the right to re-awaken from its long slumber in matters not affecting evidently corrupt former governors in which it has been evidently complicit in their escape from the long arms of the law”, was not only unfair but equally untrue. Babafemi said in a time like the present situation what is expected of all including the NBA is to join hands with the commission in building a better Nigeria. He said: “NBA is a respected national institution and the commission values its support and collaboration in the anti-graft war. Such support may come in the form of criticisms but it is valuable when it is constructive. The allusion to the commission waking from its slumber is unwarranted and baseless. A commission that has secured about 70 convictions and made recoveries in excess of N50 billion in one year can’t be said to be asleep. “For the benefit of members of the NBA, the commission has never claimed to have a perfect legal team. No organization does. Without the prompting of anybody, Waziri during a recent visit to the NBA leadership in Lagos did make a formal request to the NBA for assistance in getting bright lawyers to bolster EFCC’s legal representation in court. What the commission is looking for are lawyers who are bright advocates committed to the mandate to rid our society of the menace of corruption.” Courtesy: Thisdayonline.

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Posted by Jude Aririesike August 28, 2009

EFCC: N25.5 Billion Non-Performing Loans Recovered The Economic and Financial Crimes Com-mission (EFCC)’s ons-laught against troubled bank chiefs and debtors may have yielded bountifully. Yesterday, the commission announced that it had recovered N25.5 billion from loan defaulters. EFCC Chairman Farida Waziri told journalists in Lagos that the recovered sums were in fulfillment of her promise to go after debtors who had failed to take advantage of the seven-day ultimatum given them to pay their debts. She said the anti-graft body had continued with the arrest of loan defaulters and that by last night, 16 bank chiefs and 68 debtors were in EFCC’s custody, though she did not reveal their identities. The commission also announced that it had acceded to the order of a Lagos High Court that the two former Managing Directors of Afribank Nigeria Plc and Finbank Plc, Sabastine Adigwe and Okey Nwosu, who have been in the commission’s custody for over a week now, be released on bail. A Lagos High Court had on Tuesday granted an order that Nwosu and Adigwe, be released from detention on bail on reasonable terms. EFCC, however, set stringent bail conditions that have to be fulfilled before they can regain freedom. The conditions are that they-“deposit bank guarantee in the sum of N1 billion in favour of the commission and such bank guarantee should be procured from banks not involved in the current CBN/NDIC/EFCC investigations; the procurer of the said bank guarantee must provide tax clearance certificate of the preceding three years payable as at when due and in tandem with the amount of the guarantee; a surety in respect of each suspect/accused person; such surety must be a serving/current minister of the Federal Republic of Nigerian who will provide a landed property in Victoria Island or Ikoyi in Lagos or Maitama or Asokoro in Abuja whose title and value will be verified and found acceptable to the commission”. The EFCC boss said the two former bank MDs allegedly defaulted their banks through non-performing credits to the sum of N30 billion respectively. Three of the five bank chiefs sacked by the Central Bank of Nigeria (CBN) in the wake of the post consolidation banking reforms namely Union Bank’s Bartholomew Ebong, FinBank's Nwosu and Afribank’s Adigwe have been in EFCC custody for more than one week now. Their two other former colleagues, the Chief Executive Officer of Oceanic, Cecilia Ibru, and Intercontinental Bank Erastus Akingbola were declared wanted by EFCC for failing to honour the commission’s invitation. Ibru, however, surrendered herself to the commission on Wednesday and was interrogated and detained, though she had also secured a court order that her fundamental human rights should not be infringed upon. Akingbola, on the other hand, is yet to show up. EFCC, has, however, decided that notwithstanding that the order related to only two persons who had approached the courts, it shall extend same discretion of bail to all other suspects in custody in line with appropriate constitutional provisions. Waziri, however, stated that EFCC’s efforts were not targeted at genuine business people who had existing credit obligations to the affected banks and had dutifully complied with the terms of the facility. The EFCC boss stated further that the agency was not out to criminalize legitimate borrowing from banks and was mindful of the fact that banking thrives on robust credit administration system. “For the borrowers, we have been able to group them into two categories, namely, those who have legitimate business intentions and have continued to service their loans; and those whose loans did not follow due process and non-performing,” she said. Waziri declared that it was unfortunate that some of the bank chiefs in trouble at present abused their offices by granting unsecured loans in total disregard of banking rules and regulations to the second category of people. She explained that the huge amounts owed by the latter category had enormous effect on the national economy, adding that every nation must guard that very seriously. Waziri gave an example of an undisclosed businessman who secured a loan of N14billion from one of the banks to export crude and as soon as the crude was sold, instead of paying back the loan went to Dubai to buy choice properties. She said the commission was committed to the rule of law and would not do anything to the contrary. The total non-performing debt of the five troubled banks is put at N747 billion. A breakdown of the loan indicated that Oceanic had N278 billion, Intercontinental N210 billion, Afribank N141.8 billion, Union Bank N73.6 billion and Finbank N42.445 billion. Meanwhile, the atmosphere at the EFCC office was charged when the Group Managing Director of Global Fleet, Mr. Jimoh Ibrahim visited. The Global Fleet boss arrived EFCC premises at about 12:39 pm in a black Toyota Avalon Car with registration No. FG 274 C43, accompanied by Lagos lawyer, Mr. Femi Falana, carrying cartons of documents, which he claimed were payment of his supposed debt. He said: “We have paid Oceanic Bank International Plc the sum of N3.1bn and the rest M4.8 Billion will be paid later. We have to go through auditing as the bank has undertaken to reconcile their account and as soon as that is done, if there is any figure against us, it will be paid within 24 hours. “Oceanic alleged that we owed them N8bn; we have paid N3.1bn, remaining N4.8bn. We will reconcile the account and once that is done, they will get the cheque within 24 hours”. He distributed a letter by the management of the bank dated May 27, 2007 and jointly signed by the General Manager (Corporate Banking Group), Mrs. Abisola Okoakin and Mr. Robinson Ofomata, to show that the bank billed excesses charges to Global Fleet Group account totaling N1.9bn. The Managing Director of Dansa Group, Ahaji Sani Dangote, had earlier visited the office. EFCC Spokesman Femi Babafemi told THISDAY that Ibrahim and Dangote were part of the group of debtors that are servicing their debts and that they only came, were interrogated and allowed to go. Counsel to Nwosu and Adigwe, Mr. Wole Olanipekun (SAN), was also at the EFCC office. He told journalists that Waziri had promised to release his clients yesterday in line with the Lagos High Court’s order. Courtesy: Thisdaynewsonline

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Posted by Jude Aririesike August 27, 2009

Ibru Reports to EFCC, Detained

Former Managing Director and Chief Executive Officer of Oceanic International Bank Plc, Mrs Cecilia Ibru, yesterday finally submitted herself to the Economic and Financial Crimes Commission (EFCC) at the Lagos office of the commission after some days in hiding.

THISDAY, however, learnt last night that rather than release her, the anti-graft agency detained the former Oceanic CEO.
Ibru showed up at the EFCC office at about 2.50 pm in company with her lead counsel, Chief Adeniyi Akintola (SAN), and some other personal aides.
As soon as she got down from her black Prado SUV, she was ushered into the office of EFCC’s Director of Operations, Mr. Stephen Otitoju, for interrogation, which lasted about 38 minutes.

Later, Ibru was led to the EFCC office located on Okotie-Eboh Road in Ikoyi, Lagos for the continuation of the interrogation.
While she was being led back to her car, she was being escorted by two whitemen, a dark woman and man who kept on comforting her.

EFCC had last Sunday declared Ibru and former Managing Director of Intercontinental Bank Plc, Mr. Erastus Akingbola, wanted following their failure to honour the commission’s invitation over the huge debt profile of their banks.
The three other bank chiefs sacked along with them by the Central Bank of Nigeria (CBN) two weeks ago namely Union Bank’s Bartholomew Ebong, FinBank's Okey Nwosu and Afribank’s Sebastian Adigwe have been in EFCC’s custody for more than one week now.

The anti-graft agency said Ibru and Akingbola were wanted “in connection with fraudulent abuse of credit process, insider trading, capital market manipulation and money laundering running into billions of naira.”

Two days ago, a Lagos High Court sitting at the Tafawa Balewa Square presided over by Justice Bukola Adebiyi had restrained EFCC from infringing on Ibru’s fundamental human rights.
The same court also granted an order that the former Managing Director of FinBank Nigeria Plc, Nwosu, and his AfriBank Plc counterpart, Adigwe, be released from detention on bail.
Both Nwosu and Adigwe were still being detained by last night.

The total non-performing debt of the five troubled banks is put at N747 billion.
A breakdown of the loan indicated that Oceanic had N278 billion, Intercontinental N210 billion, Afribank N141.8 billion, Union Bank N73.6 billion and Finbank N42.445 billion.

Meanwhile, Chief Wole Olanipekun (SAN), counsel to Nwosu and Adigwe, has complained to the EFCC chairman Farida Waziri over the non-release of his clients, despite a subsisting court order.
Also yesterday and shortly before Ibru was taken away by EFCC operatives, CBN Governor Sanusi Lamido Sanusi was sighted at the EFCC office in Ikoyi.
Sanusi, who arrived at the commission at about 3.15pm, was immediately ushered into the office of the commission’s chairman.

Details of Sanusi’s meeting with the EFCC boss were not immediately clear, but EFCC Spokesman Femi Babafemi said the brief visit of Sanusi was to consult with Waziri over the ongoing operations of the agency in Lagos.
Speaking with newsmen on Ibru’s appearance, Babafemi described it as a good development, saying it would enable the agency to have access to some information leading to her granting some non-performing loans running into several billions of naira to some debtors of the bank.

Ibru’s lead counsel was sighted at the EFCC office apparently to serve the order of the court directing the anti-graft body not to violate his client’s fundamental human rights.
While speaking with newsmen, Akintola expressed the hope that the anti-graft body would respect the court ruling.

But a source within the commission said, why would EFCC release Ibru last night when some of her colleagues had been detained in the last one week.
Speaking further on EFCC’s operations in Lagos, Babafemi said no fewer than 24 bank debtors who were either arrested or surrendered themselves freely on their own volition were in the commission’s custody.

He also revealed that Chairman of Zenon Oil, Mr. Femi Otedola, and Chairman Ikeja Hotels, Mr. Goodie Ibru, and Director-General of the Nigerian Stock Exchange (NSE), Prof Ndi Okereke-Onyiuke, are expected to appear at the EFCC office today.
Babafemi disclosed that also expected at the EFCC office today are representatives of Isiaku Rabiu Airline (IRS) and Chanchangi Airline and one Air Vice-Marshall whose name he did not disclose.

Babafemi said the sum of N600 million was paid into the coffers of Union Bank of Nigeria Plc yesterday.
EFCC revealed that five separate teams of detectives had been sent out after some of the bank debtors, adding that each of the team has the mandate to effect arrest of at least 10 debtors per day.

According to the commission, there is no hiding place for any of the debtors and the best option for them is to pay up their debts or submit themselves to the anti graft body.
In a terse letter dated August 26 obtained by THISDAY, Olanipekun said: ''I write this letter on behalf of myself and Chief Anthony Idigbe (SAN) and as counsel to the above named gentlemen who have been detained by your commission since Tuesday, 16 August, 2009.

''On behalf of each of them, we filed an application before the Lagos High Court for the enforcement of his (sic) fundamental human rights. On Tuesday, 25 August, 2009, the Lagos High Court, presided over by Adebiyi J. granted each of them leave to enforce (his) fundamental human rights and, in addition, directed that your commission should admit both of them to bail on reasonable conditions. It should be noted that your commission had, inter alia, granted Mr. Okey Nwosu bail subject to his meeting some very stringent conditions and which said conditions he met.

However, your commission still refused to admit him to bail.
''As a respected colleague of ours, who also doubles as the Chairman of the EFCC, we have no doubt that you will always respect and excuse and execute the orders of our courts. Apart from the fact that your commission has been formally served with the enrolled papers in respect of the two gentlemen, we attach herewith copies of the said orders, with the belief that you will use your very good offices to direct their admission to bail on reasonable conditions, as per the orders of the courts. Accept the assurances of our highest regards''.

Courtesy: Thisdaynewsonline

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Posted by Jude Aririesike August 26, 2009

Court Orders Nwosu, Adigwe Released

A Lagos High Court sitting at the Tafawa Balewa Square yesterday ordered the Economic and Financial Crimes Commission (EFCC) to release sacked Managing Directors of Finbank and Afribank, Messrs Okey Nwosu and Sebastian Adigwe.
The duo have been in EFCC custody for about one week now.The court presided over by Justice Bukola Adebiyi also restrained the commission from infringing on the fundamental human rights of the removed Managing Director of Oceanic International Bank Plc, Mrs. Cecilia Ibru.

The orders came on the heels of an appeal by the EFCC Chairman, Mrs. FaridaWarizi, to the judiciary not to consider frivolous interlocutory applications from both the ex-bank executives and debtors at this critical time when her commission was doing all within its power to recover the huge debts of the affected banks.
The court made the orders in respect of separate ex-parte applications filed by the applicants and argued by their lawyers.

Chief Wole Olanipekun (SAN) stood in for Nwosu and Adigwe while Chief Niyi Akintola (SAN) argued on behalf of Ibru.
On Nwosu and Adigwe’s applications, the judge restrained the anti-graft agency from engaging in any act that could undermine or jeopardize their rights to freedom as enshrined in the 1999 constitution.
The court granted leave to the applicants to serve the respondent with all court processes in its Lagos office not later than seven days.
They are, however, to report back after service.

While arguing the application, Olanipekun contended that the applicants’ detention beyond the constitutionally stipulated period was a violation of their fundamental human rights.
He argued that despite the fact that his clients met the conditions of the administrative bail granted them by EFCC, the commission refused to release them.
Nwosu and Adigwe have equally filed a motion on notice challenging the legality of their arrest and detention.

They are praying the court to declare their arrest and detention as unlawful and a violation of Sections 34 and 35 of the constitution and Article four and five of the African Charter on Human and Peoples Rights (Ratification and Enforcement) Act.
The duo also urged the court to declare as unlawful and a breach of their rights, their detention and seizure of their international passports.

They also urged the court to declare that the “acts of the respondent founded on the highly publicized and injuring purported order of removal issued by the Central Bank of Nigeria on the basis of the conclusions/recommendations of a purported Special Examination report of the apex bank, which the applicants were never availed the opportunity to rebut and particularly the arrest and detention were unlawful, unconstitutional and a gross breach of the doctrine of fair hearing as enshrined in the constitution”.

The applicants are also praying for an order of injunction restraining the respondent from further detaining, harassing, molesting and subjecting them to any inhuman treatment or restricting their movement.
They urged the court to grant N50 million damages each against EFCC and order it to render public apologies to them for the violation of their fundamental human rights.
In respect of the application by Ibru, the court granted her leave to enforce her fundamental human rights as enshrined in the constitution.

Named as respondents in her application are the EFCC, Attorney-General of the Federation and Minister of Justice, Inspector General of Police, Director-General of the State Security Service, Governor of Central Bank of Nigeria and CBN.
Akintola had while arguing two applications contented that the threat to her client’s right to movement was a violation of the constitution.
She argued that she was denied the right to fair hearing before the August 14 directive of the CBN governor, relieving her of her position.

Justice Adebiyi ruled that “Leave of the court is granted for the accelerated hearing of the applications. Leave is also granted to the applicant (Ibru) to enforce her fundamental human rights against the respondents.”
The judge also directed that Ibru should serve the AGF, IG, and DG SSS through the AGF, while EFCC should be served directly with the court processes.
She further directed that the applicant should not be harassed, intimidated or embarrassed by the respondents, adding that the applicant should not be subjected to any inhuman or degrading treatment that would be inconsistent with section 34 of the 1999 Constitution.
Justice Adebiyi refused to restrain EFCC from arresting the applicant.

She held that her court could not interfere with the EFCC in its performance of its statutory duties, but that it should act within the provision of the constitution.
She said should the commission intend to investigate or arrest the applicant; it should do so within the confine of section 35 of the Constitution.
The court consequently adjourned the case till September 7 for hearing.

Briefing journalists in Lagos last night, Waziri said following the expiration of the seven-day ultimate given to individuals and corporate bodies that are indebted to the five banks to liquidate their debts, information available to the commission indicate that some of the debtors were holding secret meetings and strategising to escape arrest and prosecution while others were preparing to go to court to seek protection against arrest and prosecution.

While reterating that the country was going through a critical time in the banking sector, the EFCC chairman said what some of the individuals and organisations had done was economic sabotage which any reasonable person should not support.
She appealed to all stakeholders to co-operate with the commission in its effort to recover the loans beginning from today.
“We have compiled a comprehensive list of all the defaulters In fact, the reason we have not arraigned some of the bank executives in our custody is because we wanted to be sure about the defaulters so that we can arraign them as conspirators alongside the bank chiefs. Our operatives are fully mobilised to ensure that the exercise is successful,” she said.

Courtesy: Thisdaynewsonline

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Posted by Jude Aririesike August 25, 2009

V.P Inaugurates NITEL/MTEL Board

The Bureau for Public Enterprises and the National Council on Privatization has been directed to ensure that Nigerian Telecommunications Limited [NITEL] and Nigerian Mobile Telecommunications Limited [MTEL] be privatised in the next sixty days.

The Vice President, Dr. Goodluck Jonathan gave this directive today while inaugurating the newly constituted board of NITEL in his office in Abuja, the nation’s capital city.

Dr. Jonathan said: “We should avoid the pitfalls of the past and ensure that the privatization is carried out in a transparent manner to achieve the purpose for which the organization was set up.”

He said that the new board should look into the problems that led to the collapse of the former agreement with Transnational Corporation of Nigeria Plc [TRANSCORP] as well as avoid going into new investments for the moment.

Courtesy: Channels Television

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Posted by Jude Aririesike August 20, 2009

CBN releases list of banks' huge debtors

Late last night, the Central Bank of Nigeria (CBN) made good the promise by its Governor, Sanusi Lamido Sanusi to publish the list of those who are indebted to the five banks, whose management were last Friday dissolved by the CBN.

Topping the list of the mega bad debtors is Ascot Offshore Nigeria Limited, which has N44.67 billion loan burden with Intercontinental Bank Plc. Its directors were named as Joey Chuma Obue, Samuel Aikhionbare, Henry Imasekha and Emmanuel Nwachukwu.

Also, Rockson Engineering Limited, with Mr. J.I.A Arumemi-Ikhide, owner of Arik Air and Mrs. Mary E. Arumemi-Ikhide as directors, is owing the same bank N36.99 billion.

Notore Chemical Industries Limited being operated by Onajite Okoloko was listed as owing Oceanic Bank N32.39 billion, secured from Oceanic Bank, while the troubled Transnational Corporation Plc has N30.86 billion to pay Union Bank, with Dr. Ndi Okereke-Onyiuke listed as its director.

Falcon Securities Limited, with Peter Ololo, Simbabe Joseph and Emmanuel Ugbo as directors, is owing Afribank N29.5 billion. The company is again owing Oceanic Bank N22.26 billion. Also, Rahamaniyya Global Resources Limited, owned by Abdul Rahaman Musa Bashir has a non-performing loan of N28.59 billion with Oceanic Bank.

Mid-Western Oil and Gas Company Plc, owned by Onijite Okoloko and Adams Okonen has N23.86 billion to pay Oceanic Bank.

Surprisingly, Mr. Aigboje Aig-Imoukhuede and Mr. Herbert Wigwe, managing director and deputy managing director of Access Bank Plc, respectively, are owing Intercontinental Bank N16.25 billion, through their company - United Alliance Company of Nigeria Plc.

Other top bad debtors listed by CBN include Mr. Femi Otedola, N12.8 billion (Intercontinental Bank) through his company, African Petroleum Plc and another N6.2 billion is owed Union Bank through his Zenon Oil; Mr. Oba Otudeko, immediate past president of Nigerian Stock Exchange, (NSE), N1.6 billion (Oceanic Bank) through Honeywell Group; and Mr. Jimoh Ibrahim, N14.78 billion (Oceanic Bank), through Global Fleet Industries Limited.

Forbe's rated richest man in Nigeria and NSE president, Alhaji Aliko Dangote also has a non-performing loan of N2.5 billion to clear with Oceanic Bank, secured through Dangote Industries Limited.

Prince Fredrick Akinruntan, owner of Obat Oil and Petroleum Company was also listed to be owing Oceanic Bank N4.47 billion.

On the whole, over N746.19 billion non-performing loans were recorded against the mega debtors in the five banks.

With N278.20 billion, Oceanic Bank recorded the highest volume of the non-performing loans, followed by Intercontinental Bank with N210.9 billion.

Afribank is being owed N141.86 billion; Union Bank N73.58 billion; and Finbank N42.45 billion.

CBN, in the advertorial, described the debtors as the largest and vowed to continue publishing the list of the defaulters on an on-going basis.

The apex bank said: "Following the recent regulatory action of the Central Bank of Nigeria on the five banks, it has become necessary to use this medium to request the following defaulting customers of the affected banks to pay without further delay, their indebtedness, failing which the banks will take appropriate legal actions to ensure repayment.

Courtesy: Guardian

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Posted by Jude Aririesike August 19, 2009

CBN Releases Names of Non-performing Debtors

In what is considered an effort to diffuse the blame on the liquidity challenge in the banking sector, the Central Bank of Nigeria (CBN) yesterday released the names of debtors – mostly shareholders/directors – who secured loans totalling N747 billion from the five banks whose executives were sacked last Friday.

A breakdown of the loans, which are classified as non-performing, is as follows: Oceanic Bank Plc, N278.204 billion or 37 per cent; Intercontinental Bank Plc, N210 .903 billion or 28 per cent; Afribank Nigeria Plc, N141.856 billion or 19 per cent; Union Bank of Nigeria Plc, N73.582 billion or 9.8 per cent; and FinBank Plc, N42.445 billion or 5.6 per cent.

The two biggest debtors to Intercontinental Bank are Ascot Offshore Nigeria Limited through which Henry Imasekha along with three others secured N44.67 billion and Rockson Engineering Limited through which Engineer J.1. Arumemi-Ikhide and his wife secured N36.989 billion.
Oceanic Bank on the other hand, has Notore Chemical Industries Limited, which borrowed N32.392 billion and Rahamaniyya Global Resources through which Abdul Rahaman Musa Bashir got N28.598 billion.

The two principal debtors to Union Bank are Transnational Corp Plc, in which the Director-General of the Nigeria Stock Exchange (NSE), Dr. Ndi Okereke-Onyiuke is a director/major shareholder, which borrowed N30.863 billion on behalf of the company and MTS First Wireless Limited through which Chief Lulu Briggs secured N9.849 billion.
Afribank has Kolvey Company Limited, which borrowed N16.5 billion and Rehoboth Assets Limited through which five of the Ajaegbu families got N28.598 billion.
The two key debtors to FinBank are Aquitane Oil and Gas which borrowed N3.656 billion and Falcon Securities through which it’s Managing Director, Peter Ololo, who is currently cooling off with the Economic and Financial Crimes Commission (EFCC) in Abuja secured N3.49 billion.

Meanwhile, the banking watchdog has said it would guarantee all foreign loans and correspondent banking lines to the five banks bailed out last Friday in a N420 billion rescue package.
In a statement, the CBN said it would soon organise a road show in London to explain its actions to investors and correspondent banks.
The banking watchdog explained that its action was aimed at strengthening the financial condition of the affected banks and to ensure the protection of depositors and creditors funds.

It also reiterated its commitments to ensuring the stability of the banking industry, stressing that it “will therefore not allow any bank to fail”.
In another development, inter-bank lending rate, which largely determines interest rate or cost of borrowing in the domestic economy, crashed last Monday.
Market operators attributed the crash to the N420 billion bailout package injected into the five undercapitalised banks last Friday by the banking watchdog.

THISDAY gathered that some of these banks – anticipating that they may not need the funds immediately – decided to play at the inter-bank market to earn some income.
Further investigations revealed that several billions of naira from the July Federation Account - that was posted to some banks yesterday, also had a dampening effect on the inter-bank market - where banks borrow funds from one another to meet their immediate needs.

THISDAY checks at the inter-bank money market yesterday indicated that banks lent to one another at a highly reduced rate with over night funds, which traded at 18 per cent per annum last Monday morning, falling to 9 per cent yesterday.
Ditto for call money, which dropped to 9 per cent after trading at 19 per cent.
Seven-day funds was 13 per cent compared to the earlier prevailing rate of 6.67 per cent; 30-day at 6 per cent compared to 22 per cent, while Open Buy Back (OBB) funds, which depended on the CBN’s Monetary Policy Rate, fell to 6 per cent from 8 per cent.
Inter-bank lending had tightened despite the fact that the banking watchdog reviewed some of its lending guidelines few weeks ago in a bid to boost liquidity and moderate interest rates in the economy.

The measures, which are geared towards injecting liquidity into the market, allow free use of Federal Government bonds as instruments for repo transactions with the CBN for tenors not exceeding 90 days.
The CBN also removed the restrictions it placed on the use of funds obtained from any of its lending windows for placement at the inter-bank market.
In the financial parlance, repo (Repurchase Agreement) is the sale of securities for immediate payment and the commitment by seller to buy the securities at a later date under an agreed term, while discount window is the outlet through which the CBN grants standing facilities and outright advances to the deposit money banks and discount houses.

Courtesy: Thisdayonline

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Posted by Jude Aririesike August 17, 2009

Emergence of new militant group threatens FG’s amnesty

THERE was fresh threat to the amnesty programme of the federal government for militants in the Niger-Delta weekend, as a new militant group, the Urhobo Revolutionary Army (URA), comprising mainly members of the Movement for the Emancipation of the Niger-Delta (MEND) emerged to fight the interest of the oil-rich Urhobo ethnic nationality in Delta State.

Delta State Governor, Dr. Emmanuel Uduaghan, was understood to have already intervened in the matter, with a member of the Delta Waterways and Security Committee (DWSC) trying to reach out to the militants to quell the uprising.

In a statement on Sunday in Warri, the militant group said “with the blowing- up of the Otorogun Gas Plant, we, the Urhobo Revolutionary Army, announce the Urhobo struggle”, demanding control of all economic interests in Urhobo nation.

According to the URA, “we shall no longer accept the present docility and non-existent involvement of the Urhobo nation in the Niger-Delta struggle and therefore, we align fully with Henry Okah’s Movement for the Emancipation of the Niger-Delta (MEND), Alhaji Mujahid Dokubo-Asari’s Niger-Delta People Volunteer Force (NPDVF), Chief Government Ekpemupolo, alias Tompolo and other freedom fighting forces in the region, which are unshakable in the struggle.

“We condemn with seriousness the sell-out and sit-on-the fence attitude of some Urhobo leaders, like Deacon Gamaliel Onosede, Senator Felix Ibru, Chief James Ibori, His Royal Majesty, Benjamin Okumagba, Chief Ighoyota Amori, Chief Tom Amioku and Chief Omene Sobotie.

“They and their allies are sitting on the fence, pursuing personal and selfish interests against the Urhobo collective interest. We totally reject the undermining of Urhobo nation, this shall not be tolerated, and we vehemently reject the level of economic advancement and political development of Urhobo youth.

Penultimate week, armed youths blew up a gas pipeline that conveys compressed gas to the Utorogun oil fields, operated by the Shell Petroleum Development Company (SPDC) and the Nigeria Gas Company (NGC), with dynamites and other explosives.

It was reliably gathered that the militants who left a flag and documents, listing their demands after the attack ,were demanding N150 million from the Shell Petroleum Development Company (SPDC) for their members that were either killed or injured during a face-off with soldiers when they attacked the gas facility earlier in the year.

A source said the militant group demanded the payment of N10 million for each of six killed members, N6 million each for those injured, development of Ughievwen kingdom and security jobs for them before peace would reign in the area.

Vanguard learnt that the group wrote to the SPDC alerting it of its intention to blow up the gas pipeline if its demands were not met.

The SPDC activated its security machinery and mobilized soldiers but the boys did not come on that day.

Though leaders of the militant group were talking to a community leader on phone on their demands, they caught the soldiers and the company unawares when they struck a fortnight ago, and even when efforts were being stepped up to get them to surrender their arms, they struck again a few days later.

“Currently, the group poses a serious threat to the amnesty programme of the federal government and Governor Emmanuel Uduaghan is doing everything to stop them. The governor is not around now, but his people are discussing with the boys.

“Once he is back, I am sure he would find a way of meeting with their leader to personally listen to their demands and know how to tackle them”, the source said.

A group, which claimed to be Ughievwen Youth Body Fighters, reportedly had earlier claimed responsibility for the attack on the pipeline and they left banner, flier and leaflets.

In one of the documents signed by one Idi-Amin and Ogigi as leaders, the group said they would carry out more attacks until their demands were met.

Vanguard learnt that a vigilante group had been formed at the instance of a community leader in the area to check the activities of the new militant group.

“A new gas gathering plant is to be established in our area soon, we also know that the SPDC is expanding the Otorogun gas plant, new jobs will come for our people and these things cannot be done if there is no peace in the area, so we are appealing to the boys to give peace a chance. They too will benefit from the jobs,” a member of the vigilante group stated.

Courtesy: Vanguard

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Posted by Jude Aririesike 13-8-2009

Security Operatives Comb Abuja as Clinton Arrives Today

Security operatives from Washington, D.C. have combed the length and breath of Abuja especially the areas surrounding the Nnamdi Azikiwe International Airport, for the visit of former first lady and United States Secretary of State, Hillary Clinton.
Clinton will arrive in Nigeria today in the last lap of her seven-nation tour of the African continent. She is expected in Abuja by 8:35 pm Nigerian time from the Democratic Republic of Congo (DRC).

Foreign ministry sources told THISDAY that arrangements are in top gear to receive Mrs. Clinton who visited Nigeria with her husband during his time as President of the US.
She will be meeting President Umaru Musa Yar’adua, foreign minister, Ojo Maduekwe, members of National Assembly and some civil society groups. The meeting with the civil society would likely take the shape of interactive town hall meetings.

Chairman House Committee on Diaspora, Hon Abike Dabiri-Erewa confirmed to THISDAY yesterday that her committee would be part of the meeting since there are many Nigerians living in the US.
During the visit, the Mrs. Clinton is expected to hold discussion with President Yar' Adua on a number of issues affecting both countries.

Tomorrow, the Secretary of State is expected to be hosted at a breakfast meeting by Maduekwe at the minister's residence.
The town hall meeting has been scheduled to take place at the Yar'Adua's Centre on Thursday to be attended by only select civil society groups.
An insight into what her discussion with Nigerian leaders and civil society groups would focus on were given by Princeton N. Lyman, an adjunct senior fellow for Africa at the US Council on Foreign Relations.

According to the scholar, among all the nations visited and to be toured by Mrs. Clinton in Africa, Nigeria is in considerable difficulty.
He acknowledged that those who follow Nigeria are more worried than they have ever been.
“There is a weak government right now. In the last election, President Umaru Yar'Adua was elected. It was a very bad election. You've had three successive elections in Nigeria and each was worse than the previous.”he said.

According to him, corruption would worry Mrs. Clinton coupled with the fact that Yar’Adua’s ill health makes him not to be very strong.
He also mentioned that one of the problems in Nigeria is the Niger Delta where the oil is produced.
“There is a long history of environmental devastation, discrimination, poverty, etc. This is an area that feeds the whole country's wealth but they are probably some of the poorest people in the country.” he said adding that the militia that claims to be fighting for justice engage in bunkering which is to steal large amounts of oil and “through corrupt officials in the military in the area, you get that oil out and buy ever more sophisticated arms.”

Amongst other teething problems he said the visiting envoy should harp on is the fact that in the north, an extreme radical group that was a rather marginal one a few years ago launched attacks in three cities.
“The underlying problem, which is as worrisome as anything else, is that Nigeria has failed over the years to develop its own infrastructure. For example, they produce now 6,000 megawatts of power; South Africa produces 40,000.”

He noted that the power deficiency had led to closure of domestic industries.
He lamented that the Nigerian government is not listening.
“What the secretary will find is that under this government, Nigeria is not projecting itself as it did under the previous president.” he concluded.

Courtesy: Thisdayonline.

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