The Nation Newspaper

Tag: bank

  • Bank losses from Swiss currency to continue

    The $400 million of cumulative losses that Citigroup Inc. (C), Deutsche Bank AG and Barclays Plc (BARC) are said to have suffered from the Swiss central bank’s decision to end the cap on the franc may be followed by others in coming days.

    “The losses will be in the billions — they are still being tallied,” said Mark T. Williams, an executive-in-residence at Boston University specializing in risk management. “They will range from large banks, brokers, hedge funds, mutual funds to currency speculators. There will be ripple effects throughout the financial system.”

    Citigroup, the world’s biggest currencies dealer, lost more than $150 million at its trading desks, a person with knowledge of the matter said last week.

    Citigroup, the world’s biggest currencies dealer, lost more than $150 million at its trading desks, a person with knowledge of the matter said last week. Deutsche Bank lost $150 million and Barclays less than $100 million, people familiar with the events said, after the Swiss National Bank scrapped a three-year-old policy of capping its currency against the euro and the franc soared as much as 41 percent that day versus the euro. Spokesmen for the three banks declined to comment.

    Marko Dimitrijevic, the hedge fund manager who survived at least five emerging-market debt crises, is closing his largest hedge fund, which had about $830 million in assets at the end of the year, after losing virtually all its money on the SNB’s decision, a person familiar with the firm said last week.

    FXCM Inc., the largest U.S. retail foreign-exchange broker, got a $300 million cash infusion from Leucadia National Corp. after warning that client losses threatened its compliance with capital rules. FXCM, which handled $1.4 trillion of trades for individuals last quarter, said it was owed $225 million by customers.

    The SNB’s move “shocked people all over the world,” Timothy Massad, chairman of the U.S. Commodity Futures Trading Commission, said in an interview in Hong Kong. The regulator is “continuously” monitoring the situation, he said.

    Shorting the franc was a popular trade and most firms would leverage their positions some 20 times or more, said Williams, who consults for hedge funds. With such leverage a 5 percent move against the position wipes out all the value, yet the trades were seen as relatively low-risk by models used by financial institutions because volatility of the franc was reduced by the SNB’s cap, he said.

    Citigroup had reported an average total trading value-at-risk, a measure of how much the company could lose in trading in one day, of $105 million in the third quarter, of which $32 million was attributed to foreign-exchange risks.

     

  • Armed bandits attack bank in Abia

    A group of yet-to-be identified gunmen attacked one of the new generation banks in Arochukwu Local Government Area of Abia State, killing a Lagos-based businessman and carted away undisclosed cash from one of the bank’s Automated Teller Machines (ATM).

    Sources within Arochukwu where the incident happened told our reporter that the incident lasted for about three hours and after the efforts of the robbers to break into the bank’s vault, they turned to the ATMs where they succeeded in vandalizing one of them and carted away undisclosed cash.

    Another source said that a Lagos-based building contractor, Mr. Stephen Okereke, was killed because of the impact of the bullet wounds he sustained after the dreaded robbers shot sporadically at Tundra Sports Utility Vehicle (SUV) on sighting him within the area of their operation.

    According to the source, “the robbers operated from 1am to 3am unchallenged. The police who were alerted of the incident could not do anything. In fact, they (robbers) after robbing, drove pass the police and headed to the water where their speed boat was waiting for them before they made way to Cross River State.

    “The robbers, we learnt, launched nine dynamites and yet, they could not have access to the bank’s vault after breaking into the bank’s main building.

    When contacted, the Abia State Police Public Relations Officer (PPRO), Geoffrey Ogbonna confirmed the robbery incident and was quick to dispel insinuations that police could not do anything to foil the robbery incident, stressing that the robbers’ inability to break into the bank’s vault was because the police officers were courageous enough to confront the armed bandits.

    In a related development, The Nation gathered that a branch of the same bank was similarly attacked at Isuochi, Umunneochi Local Government Area where they made away with an undisclosed amount of money. Though information about the robbery incident as at the time of this report was still sketch, sources within the area confirmed the robbery incident.

  • Bank gets crime control panel

    Standard Chartered PLC (the Group) has formed a Board Financial Crime Risk Committee (BFCRC) to oversee its financial crime compliance programme.

    The committee is aimed at combating financial crime and improving conduct.

    In a report, the bank said the committee is responsible for oversight of the Group’s policies, procedures, systems, controls and assurance for anti-money laundering, sanctions compliance, and prevention of bribery, corruption and tax crime.

    It will also have oversight of the Group’s financial crime compliance programme, including the financial crime risk mitigation programme and its commitments under the 2012 and 2014 Orders.

    The BFCRC took off on January 1.

    The BFCRC, it said, builds and replaces the Board Regulatory Oversight Committee (BROC), which has been in place since the beginning of 2013.

    Chairman, Standard Chartered Plc, Sir John Peace, said: “Over the past two years we have dedicated an enormous amount of resources, investment, training and management attention to our financial crime compliance programmes. The formation of this committee, together with the substantial build out of our financial crime compliance function, demonstrates our commitment to strong conduct and compliance at all levels of the organisation.”

    Last year, Standard Chartered made some significant enhancements. The lender said it is committed to investing in compliance, conduct and remediation improvements.

    The investments include systems upgrades, policy development, process improvements, capability building in sanctions compliance and anti-money laundering controls, and combating bribery and corruption.

  • Alleged libel: Ex-minister sues bank for N100b

    Alleged libel: Ex-minister sues bank for N100b

    Former Water Resources Minister and former President of the Newspapers Proprietors Association of Nigeria (NPAN) Alhaji Ismaila Isa Funtua has sued one of his bankers, Unity Bank Plc, for allegedly defaming him.

    In the suit filed with his company, Bulet International Nigeria Limited, before the High Court of the Federal Capital Territory (FCT), Abuja, the plaintiffs accused the bank, among others, of publishing false information about them.

    They stated in a supporting affidavit that the bank in 2013, initiated a debt recovery proceeding against Bulet International before the FCT High Court.

    The suit was dismissed on February 24, 2014 for lack of reasonable cause of action.

    The plaintiffs said before the suit was dismissed, Unity Bank, acting through its lawyer, I. H. Yamah  allegedly wrote to Bulets’ tenants and clients , including the Federal Ministry of Finance, CBN, Australian and American embassies as well as the Ministry of Foreign Affairs, conveying an auction sale notice.

    The notice threatened to sell the property being occupied by the tenants.

    Unity Bank was said to have alleged in the letters that the plaintiffs owed it N6.856 billion and that the bank was in possession of perfected legal mortgage over the landed property occupied by the tenants.

    The bank allegedly warned them not to have any commitments to their landlord.

    The plaintiffs stated that the bank sued them again this year and that they have challenged the legality of the suit on the grounds that it failed to disclose reasonable cause of action.

    They added that ruling had been fixed for February 2015.

    The plaintiffs further stated that while parties awaiting the ruling fixed for February, the bank proceeded to publish public notices and articles in numerous newspapers as well as on its Internet outlets specifically addressed to the CBN, containing list of its alleged debtors. One of the plaintiffs, Bulet, was allegedly listed.

    According to the plaintiffs, the letters, newspaper reports and public notices by the bank meant that the plaintiffs are bankrupt and irresponsible and took bank credit with intent to defraud the bank.

    The plaintiffs said the letters and public notices were understood by the public that Unity Bank gave them N6.8 billion credit facilities and was in custody of perfected mortgage instruments, which exposed the plaintiffs’ tenants to auction sale of their home and offices.

    They denied that the bank granted them N6.8b loan, describing the allegation by the bank as baseless and an attempt to damage their reputation.

  • On NDIC and bank depositors

    Our attention has been drawn to the editorial published in The Nation, page 19 of Wednesday, December 3, titled: “Big Scandal”. The editorial which claimed that the N25 billion depositors’ funds recovered from 48 closed banks in the past 25 years is yet to be claimed by the bank customers is quite confounding. The relevant part quotes: “Whatever excuses it gives, NDIC has not done enough to return funds to depositors of failed banks, even after 25 years”. This statement is to say the least misleading.

    The mandate of the Nigeria Deposit Insurance Corporation (NDIC) includes Deposit Guarantee, Banking Supervision, Failure Resolution and Banking Liquidation. Over the past 25 years, the NDIC has continued to discharge its mandate in an efficient and effective manner to attain its public policy objectives of protecting depositors and contributing to financial system stability.

    In the area of Claims Settlement, the focus of the editorial, the NDIC has performed creditably. Out of the total deposits of ¦ 206.22 billion in the 48 deposit money banks (DMBs) at the dates of their closure in 1994, 1995, 1998, 2000, 2003 and 2006, the insured deposits stood at ¦ 12.19 billion of which a cumulative sum of N6.825 billion had been paid to 528,277 depositors of the DMBs as at September 30. Similarly, the corporation had reimbursed a cumulative sum of N2.756 billion during the same period to 80,059 insured depositors of 103 microfinance banks (MFBs) which were closed in 2010 and 83 in 2013.

    In the same vein, a cumulative sum of ¦ 100.33 billion was received as liquidation dividends by 250,497 depositors of the 48 closed DMBs as at September 30. The payment of the liquidation dividends to depositors with claims in excess of the insured sums in the closed DMBs and MFBs was from the proceeds realised on the sale of the closed banks’ physical assets and recoveries from debts owed to them.

    That is not all. The corporation had also paid cumulative liquidation dividend of N2.031 billion to 453 shareholders of Alpha Merchant Bank, Pan African Bank and Nigeria Merchant Bank as well as first liquidation dividend of ¦ 6,405,773.50 which was paid to seven depositors of Gulf Bank and ¦ 82,083,26223 to 23 shareholders of Rims Merchant Bank (in-liquidation) respectively as at September 2014. Similarly, 446 creditors of Cooperative and Commerce Bank (CCB) received the sum of ¦ 179,311,178.65 while 24 creditors of Premier Commercial Bank in-liquidation were paid ¦ 1,671,827.97 as dividend during the same period. It is also worth noting that the NDIC had declared a final dividend of 100 percent of total deposits to 14 closed banks, indicating that all the depositors of the banks had fully recovered their deposits.

    It is imperative to draw the attention of your newspaper to some of the daunting challenges the NDIC had faced in its liquidation activities during the last 25 years.

    At the time the banking licences of the 48 banks were revoked, the NDIC had to deploy some of its staff to the various bank head offices and their branches for up to one year to fast track the settlement of depositors’ claims. During that period, most of the depositors with large balances collected their money.

    Most of the balances outstanding in the deposit registers of the closed banks today are small balances and had been abandoned by the account owners prior to the liquidation of the banks. These types of accounts dominate the deposit balances that are unclaimed by depositors.

    It is also important to note that some of the closed banks did not maintain proper records of their customers’ addresses in the mandate cards and even where they were available, some of the depositors had relocated to unknown addresses. In addition, most of the customers at that time had no mobile phones or telephone lines as we have today. It was therefore very difficult to either contact or locate their current addresses.

    It is only in this jurisdiction that the banking licence of a bank will be revoked and the owners who failed to take appropriate steps to turn around their bank would proceed to court to stop the NDIC from fulfilling its obligation to depositors. The legal action instituted by the owners of Peak Merchant Bank Ltd, Fortune Bank Plc and Triumph Bank Ltd which are still pending in various courts are classical examples.

    In view of the fact that loans and advances usually constitute the largest portion of banks’ assets, it needs to be understood that the inability of the corporation to pay liquidation dividends to depositors with claims in excess of the insured sums and other eligible claimants has largely been impaired by all the factors indicated above.

    Notwithstanding the above mentioned daunting challenges confronting the NDIC in discharging depositors’ claims settlement, the corporation had taken concrete steps to address the situation, which include but are not limited to the following:

    First, when a bank is closed prior to commencement of initial payout, advertisements are placed in selected national dailies as well as commercial announcements and depositor protection awareness radio and television jingles in major local languages. Local announcements are also made in churches and mosques, requesting customers of the closed banks to go to appointed agent banks nearest to their bank branches and file their claims. Filing of claims is a simple process of providing evidence to show that the account belongs to you. That was the process employed for the 35 banks that were closed prior to bank consolidation in 2006.

    Secondly, the accounts of the depositors who could not file their claims during the initial payouts were passed on to agent banks nearest to the closed banks’ branches where the depositors maintained accounts to continue payment to them. That was to save costs and avoid risks by the depositors from travelling long distances to collect their hard earned money.

    Third, the situation was different for the depositors of the 13 banks closed after 2006 under the Purchase & Assumption (P&A) failure resolution option, as their deposit liabilities were transferred by NDIC to the banks that acquired their parent (i.e. closed) banks. Under that arrangement, a depositor had the option to collect his/her total money from the acquiring bank or continue to maintain an account with it. Many depositors chose to continue to enjoy banking services with the acquiring banks.

    Fourth, in its efforts to improve payout in respect of the other 35 banks in-liquidation, the corporation initiated “depositors’ tracing” which involved locating the customer’s last known address appearing in the failed bank’s record in order to reach them. Although this effort yielded reasonable results, most of the depositors could not be located at their last known addresses.

    Under Section 22 (4) of the amended NDIC Act, any depositor of a failed insured institution who fails to claim his/her insured deposit from the corporation within six years after the notice of payment to the depositors is published in two national dailies and electronic media houses, such depositors shall forfeit their claims to the corporation. However, the NDIC in the 2006 amendment of its Act sought and obtained powers for its Board to extend from time to time the period within which a depositor is required under the new Act to file claim for the payment of insured deposit in a failed bank.

    In order to enhance its ability in the payment of liquidation dividends to uninsured depositors, the corporation designed a number of measures to facilitate debt recovery.  Among these measures are appointment of debt recovery agents, pursue debt recovery through court processes, selling of some of the debts owed to the closed banks to Asset Management Corporation of Nigeria (AMCON) and obtaining the CBN’s approval to deny bad debtors to closed banks owing N250 million and above from accessing new facilities from any other bank operating in the country.

    In conclusion, the NDIC, as a transparent organisation with the primary mandate of protecting depositors’ interest, is continuously determined to ensure that depositors of failed banks are promptly reimbursed. The corporation also wishes to put it on record that it will not abdicate its primary mandate of depositor protection. Instead, it remains resolute in partnering with key stakeholders, including the press to continue to protect depositors’ interest and also contribute to financial system stability.

    • Birchi is Head, Communication & Public Affairs, NDIC

  • Fidelity Bank positions SMEs for growth

    Fidelity Bank positions SMEs for growth

    Fidelity Bank Plc has reiterated its commitment to Small and Medium Enterprises (SMEs). Its Managing Director/Chief Executive Officer, Nnamdi Okonkwo who spoke at the Annual SME Conference organised by the bank in Lagos, said there is social impact in banking SMEs.

    The bank chief said  banking SMEs also promotes sustainable business model for the operators and improved relationship banking. “I am not saying that there is anything wrong with banking the corporate. We are very strong in that, remember our history as a merchant bank. But if we don’t bank SMEs, how do we produce the Dangote of tomorrow?  What entrepreneurs need is entrepreneurial zeal, determination and vision. We need more potential Dangotes in this country,” he said.

    He said the bank has been recognised in various ways as the best SME bank. Okonkwo noted that the last three years, the bank has increased its focus on SMEs. He said the lender took the decision because of its economic impact.

    “We see this sector as a critical agent of economic development and transformation in Nigeria.  It is also in line with the federal government’s National Economic Development Programme (NEDP) that was launched by President Goodluck Jonathan earlier this year. No economy can ignore the SMEs,” he added.

    Managing Director, Swift Networks, Charles Anudu, said entrepreneurship is not the easiest way to make money, but is about making life convenient for people.

    He said entrepreneurs need to be patient, have will-power and committed to their goals for such objectives to be achieved.

  • Bank, customer bicker over alleged N750m debt

    Bank, customer bicker over alleged N750m debt

    First Bank of Nigeria Plc has urged the Federal High Court in Lagos to order its customer, Chidi Ajaegbu, to pay it  an alleged N750 million debt.

    The bank wants a refund of the N750million plus accrued interest; N40million damages for alleged breach of contract and N15million as legal cost.

    The dispute arose out of loan agreement in which the bank allegedly lent Ajaegbu $5million to purchase 203,500 Linked Units shares in MTN Nigeria Limited through private placement, said to have been consummated between the parties in 2008.

    Ajaegbu sued First Bank (the first defendant) and Stanbic IBTC Asset Management Limited, praying the court to stop them from selling the shares, among others.

    First Bank in a 77-paragraph statement of defence and counter-claim, contended that the claimant, in a letter dated January 23, 2008 sent to MTN Nigeria Limited and copied to it, irrevocably authorised MTN to place the shares on lien in the bank’s favour.

    Consequently, the loan in question, according to the bank, was secured with the Linked Units shares in MTN, in addition to the shares of CTC Global Ventures Limited and Rehoboth Assets Limited, two companies where the claimant has substantial and controlling interest.

    By the terms of contract, the first defendant averred that the expiration date for the repayment of the loan facility was January 31, 2011, but the claimant allegedly defaulted.

    The claimant contended that the alleged undue interest charges on the loan facility affected his obligation to service the loan as at when due and prayed the court to compel the first defendant to refund the alleged excess charges

    Countering the claim, the First Bank said the conversion of the loan facility from dollar to naira mutually agreed on by parties to minimise risk, necessitated charging of new interest regime.

    The claimant is seeking for an order of perpetual injunction restraining the defendants from disposing of his shares in Ashaka Cement, Diamond Bank, Eco Bank, Afri Bank and Stanbic IBTC Bank Plcs, allegedly used as collateral for the loan deal.

    He is also seeking a refund of N51.2million alleged to have been wrongly charged.

  • Getting Bank Verification Number right

    Getting Bank Verification Number right

    To protect customers and enhance confidence in the banking sector, the Central Bank of Nigeria (CBN), introduced the Bank Verification Number (BVN). The exercise, which involves capturing customers’ physiological attributes, such as, fingerprint, signature, among others, needs the collaboration of the National Identity Management Commission (NIMC) to succeed, writes COLLINS NWEZE.

    Security is key in banking. This prompted the Central Bank of Nigeria (CBN) to introduce the centralised biometric identification system known as Bank Verification Number (BVN).

    But the success of the project, launched in February, will largely depend on how stakeholders, especially, the National Identity Management Commission (NIMC) collaborate with the CBN.

    CBN’s Deputy Director, Banking Supervision, Kelvin Ibedu, said the BVN project will be enhanced if there is harmonious implementation strategy with the NIMC.

    He spoke at the second National Credit Reporting conference in Lagos, lamenting that   CBN is working at cross-purposes with NIMC will not solve the identity crisis facing the country.

    He said striking a convergence in what the CBN is doing with BVN and what NIMC is doing is key in achieving a sustainable identity management system for the country.

    He said: “The CBN cannot wait for NIMC to do the work alone, even as the apex bank alone cannot achieve the desired result. The challenge is how do we marry the two processes? At what point do we reconcile both parties? We need to align with the Identity Management as convergence remains key in achieving the desired result.”

    Ibedu said the BVN would help deepen the credit system because the benefit of having a unique identifier among all bank customers that registered cannot be over-emphasised.

    He said the CBN’s mandate directing DMBs to enroll 40 per cent of their customers on the BVN platform by December 31, and 70 per cent by March 30, next year still stands.

    He said the apex bank will monitor lenders to ensure compliance adding that the regulator will not be quick to fix deadline for the entire exercise.

     

    Banks step up campaign

    Findings have shown that banks have raised their communication and enlightenment programmes about the programme, advising their customers to comply.

    An emailed note by Diamond Bank to its customers read: “We are pleased to inform you that you can now register for your Bank Verification Number (BVN) at Diamond Bank as directed by the Central Bank of Nigeria (CBN). This involves the issuance of a series of numbers (BVN) that uniquely identifies each customer in the Nigerian banking industry.

    “The purpose of this exercise is to further improve financial service delivery by protecting you against identity theft, minimising your exposure to fraudulent transactions and increasing your accessibility to credit facilities and other financial services.”

    The lender listed branches where customers could be enrolled. Similar message also came from GTBank to its customers, explaining that BVN is an initiative of the CBN to give customers a unique number that could be verified across the banking industry.

     

    NIBSS’ position

    Managing Director, Nigeria Interbank Settlement System (NIBSS), Mr. Ade Shonubi, said to ensure an efficient implementation of the sceheme, a phased rollout approach was being adopted beginning in Lagos.

    He explained that biometric data capture machines had been deployed in about 1000 bank branches in Lagos while till date, over 16,000 BVNs had been issued. He added that 10,000 enrolment sets would be deployed across 5,000 bank branches nation-wide at full roll out.

    He said bank customers in Lagos were already enrolling to get their BVN. He said servers in banks’ headquarter have been configured, deployed and tested, with their workers trained to carry out the enrolment and verification of customers.

    Shonubi said BVN enables each individual to have an identification within the financial system and gives each customer maximum protection and security of transactions. There is no enrolment deadline for the public yet.

    He said: “In many advanced countries, biometric technologies have been used to analyse human characteristics as an enhanced form of authentication for real-time security processes. Biometrics refers to identifying an individual based on physiological or behavioral attributes – fingerprint, signature among others. The customers unique BVN is accepted as a means of identification across all banks.

    “The BVN became exigent following the increasing incidents of compromise on conventional security systems like password and Personal Identification Number (PIN) of bank customers which has led to loss of funds. There is therefore, a high demand for greater security for access to sensitive or personal information in the banking system.”

     

    Enrolment

    Shonubi said the enrolment process is simple and easy. According to him, bank customers are expected to walk into any branch of their bank, fill and submit the BVN Enrolment Form and also do data capturing (such as fingerprint, facial image and others).

    He said an acknowledgment slip with the transaction identity is issued to the customer. Within 24 hours, the system confirms the application, the BVN is generated, and SMS is sent to the customer.

    He said a customer could only enroll once, while his BVN will be linked to all his bank accounts across the country. “The BVN solution is to ensure accountability, protect bank customers’ account from unauthorised access, reduce exposure to fraud, check identity theft, enhance credit advancement to Bank customers, and also encourage financial inclusion,” he said.

    He said the initiative would address issues such as identity theft and ensure that  bank accounts are protected from unauthorised access, thus reducing exposure to fraud. It will also promote a safe and sound financial system in the country, especially as it will keep records of suspected fraudulent individuals in the banking system.

    NIBSS said: “It will make life and banking operations easy for bank customers as BVN is accepted as a means of identification across all banks in Nigeria. This will improve speed of service and reduce queues in banking halls.

    “At the point of enrolment, individuals would be required to submit an acceptable means of identification, and update their information at the bank branch physically. “Customers of banks will be required to enroll within a fixed period after which they shall no longer be able to operate their bank accounts.”

     

    Benefits to customers

    Biometric Project Manager at NIBSS, Oluseyi Adenmosun, said the sceheme gives a unique identity that could be verified across the banking industry making it easier for customers’ bank accounts to be protected from unauthorised access.

    The manager added that the purpose of the project is to use biometric information as a means of first identifying and verifying all individuals that have account (s) in any Nigerian bank and consequently, as a means of authenticating customer’s identity at point of transactions.

    Adenmosun said the BVN would also provide a uniform industrially accepted unique identity for customers and authenticate transactions without the use of cards using only biometric features and PIN.

     

    Enrolment requirements

    A statement from NIBSS explained that a unique ID number shall be issued to every bank customer at enrolment and linked to every account that the customer has in all Nigerian banks. Individuals are required to submit an acceptable means of identification for enrolment.

    Also, customers are required to enroll within a fixed period after which they shall no longer be able to operate their bank accounts.

    “The customer’s all 10 fingers and facial image are captured making it possible for individuals performing banking transactions like applying for loans to identify themselves using their biometric features which will be matched against information in the central database at NIBSS,” it said.

    Also, update of customer information is done at their bank branches physically while lenders are prompted during account opening and credit check if a customer has been blacklisted by any lender. The BVN and unique features of an individual shall be used in conjunction with a PIN on a point of transaction.

    Adenmosun said though there was no perfect system, the essence of technology and safety measures was to frustrate fraudsters. He said the scheme would make it extremely difficult for the fraud perpetrators to succeed.

    “It will not eliminate fraud, but it will cut it to the barest minimum. The biometrics cannot be easily stolen because it is based on once. Once the system captures it, (it is stored and cannot be compromised) because it is based on fingerprints,” he said.

    Adenmosun said though the chip and pin technology was deployed in Automated Teller Machines (ATMs) and Point of Sale (PoS), they could be compromised, but the BVN makes that extremely difficult. He explained that for corporate accounts, the account signatories BVNs would be captured.

    “In corporate accounts, it is only the signatory to the accounts that are captured, not directors of the company. The directors are not functional users of the accounts, and will not be captured.

    “The whole idea of fraud mitigation is to provide special anti-fraud system for banks. It is going to handshake with the BVN project, so that every suspicious account is flagged off. So, we expect that every functional account will have a BVN, and if an account that is used for fraud does not have a corresponding BVN, then the concerned bank will face the full wrath of the law. That means the bank is allowing an account without BVN to run. That’s how we can track owners of fraudulent accounts.

    “If you don’t have a BVN and the anti-fraud system throws up your account as a suspect, then that bank is also aiding and abetting you. Because the truth of it is that we can only mitigate, we can’t stop fraud  people will try. And when they try, the account they are trying with, has already been enrolled in the BVN, we will know. And those kinds of accounts would have been stored in what we call a watch list,” he added.

    He said that for every enrollment, the system will have a watch list where suspected reported accounts, relative to BVN, will be stored. “For every enrolment, the system will check the watch list and enquire if such BVN on a watch list. If it is, it will alert the account officer,” he said.

    He said the technology makes it easier for banks to know which account holder is on the watch list and take extra precautions in handling transactions emanating from such accounts.

    NIBSS provides the infrastructure for automated processing, settlement of payments and fund transfer instructions between banks, discount houses and card companies across the country. The firm is owned by licensed banks in Nigeria, and the CBN. Discount houses operating in Nigeria also hold substantial shares.

  • World Bank pledges loan for basic education in Osun

    World Bank pledges loan for basic education in Osun

    The World Bank is to support the Osun State government with an interest-free loan to enhance basic education delivery.

    Dr Tunde Adekola, a representative of the bank, who visited the Deputy Governor and Commissioner for Education, Mrs Titi Laoye-Tomori, said the bank would support basic education by providing financial intervention to the government to train and re-orientate teachers, and provide Information Comunication Technology (ICT) and instructional materials  for schools – like it did in Ekiti and Lagos states.

    Though Adekola did not disclose the amount involved, he said the Osun State government would get a moratorium of between 10 and 50 years to repay the loan.

    Adekola said the problem confronting basic education in the country was that of accessibility and how to keep children in schools. He added that basic education must be free and compulsory for every child in order for them to learn to read and write.

    Responding, Mrs. Laoye-Tomori said the collaboration with the World Bank would facilitate the noble objective of the government at both basic and post basic sectors. She described basic education as a critical stage in the educational development of Nigeria.

    She disclosed that the Osun Elementary School Feeding and Health Programme (O’MEALS) were designed to prepare pupils in elementary schools for mental and physical alertness so they can compete favourably anywhere in the world.

    Mrs. Laoye-Tomori also informed Adekola of plans to teach basic school pupils in Yoruba Language to enhance understanding and assimilation.

    In his welcome address, the Chairman, Osun State Universal Basic Education Board (SUBEB), Prince Felix Awofisayo, praised the the global bank’s management for their contributions to basic education in the country, and also their interests to complement the efforts of the state government in the provision of functional and qualitative education.

     

  • Braithwaite: ‘Bank’s property violates environmental law’

    Braithwaite: ‘Bank’s property violates environmental law’

    An expert witness in the case  instituted by elder statesman, Dr. Tunji Braithwaite against Standard Chartered Bank has claimed that the bank’s 14-storey building violates environmental law.

    Giving evidence before Justice Doris Okuwobi, Urban and Regional Planning Associate Professor, Tunji Adejumo said his submission was based on an Environmental Impact Assessment (EIA) conducted on the building situated in Victoria Island.

    “A simulation of what the building would look like when completed showed that it would have negative environmental impact in its immediate surroundings, including the Braithwaite’s residence.

    “The EIA did not follow the Federal Government of Nigeria’s EIA procedure, especially Section 4(b) of the Nigeria EIA Decree 86 of May 1992,” the court heard.

    Adejumo told the court that the EIA showed that the building, with a projected 120 capacity car park will constitute health hazard to the residents in the claimant’s (Braithwaite) premises.

    He said the car park will on daily ýbasis constitute noise and air pollution to the claimant as well as compound vehicular traffic in the neighbourhood.

    While using visual illustration, Adejumo said the carbon monoxide from the cars and the three power generating plants sited in the building would lead to emission of gases hazardous to human health.

    He told the court that the required quantity of sun expected to shine on the claimant’s resident would be inhibited, adding that the structure has no protective membrane against birds and human beings.

    He argued that the dangerous gases, which will certainly mix up with South Western winds, from the simulation performed by his firm, will affect the claimant’s residence negatively.

    According to the witness, the construction of the project did not follow best EIA practices as residents and other stakeholders were not consulted by the bank.

    During cross examination, Adejumo claimed that the EIA document being shown by the bank did not follow the regulations set by the federal government, adding that it is below standard.

    “The body responsible for approval of building permit in Lagos State is the Lagos State Ministry of Physical Planning, on the instruction and proper vetting of submitted Environmental Impact Assessment to the ministry of Environment or their agency called Lagos State Environmental Protection Agency (LASEPA) to look at the submitted EIA”, he explained.

    But defense lawyer, Adeniyi Adegbomire argued that the case ought not to have been entertained by the court.