Tag: Chukwuka Utazi

  • Sagay, others seek regulatory framework for virtual currency

    Senate Committee on Anti-Corruption Chairman Senator Chukwuka Utazi, Central Bank of Nigeria (CBN) Governor Godwin Emefiele and Presidential Advisory Committee Against Corruption (PACAC) Chairman Prof Itse Sagay (SAN) have called for a legal framework to regulate virtual currency.

    They made the call at a two-day seminar in Abuja with the theme: “Understanding the interface between cryptocurrency and money laundering”.

    The seminar, organised by PACAC, ends today.

    Senator Utazi said virtual platforms of value exchange, such as cryptocurrency, were becoming the new order.

    According to him, there is a murky, loosely regulated framework for the use of cryptocurrencies, which he said rely on cryptography that uses hidden codes to communicate.

    “Users can make transactions directly under pseudonyms, taking away power of control from banks and governments, and it is not controlled by a central authority.

    “This scenario creates a monstrosity of huge proportions for governments and regulatory authorities.

    “In an age where people hide ill-acquired assets and use same for illegal means to sponsor terrorism and all manner of threats to human existence, there should be legislative and regulatory frameworks that understand the dynamics of this genre of economic activity to place society a step ahead of its rapid evolution.

    “There is, therefore, a yawning need for tighter regulation.

    “The associated risks of virtual currencies mutate everyday and it is important that all stakeholders understand what these risks are, and what legislative, regulatory and criminal justice responses to them should be.”

    Emefiele, represented by a senior CBN official Mr K. N. Amugo, said information from coinmarketcap.com indicates that cryptocurrencies’ global market capitalisation currently stands at approximately $203billion as at October.

    He noted that the cryptocurrency market in Nigeria is currently unregulated.

    “Presently, there is no legal framework for the regulation of cryptocurrencies in Nigeria.

    ” Based on existing legislations, the usage of cryptocurrency in Nigeria is neither permitted nor prohibited,” he said.

    The CBN governor said the apex bank constituted an inter-agency committee on virtual currencies, comprising regulators and law enforcement agencies with a mandate to carry out studies on the subject.

    As well as building staff capacity and issuing cautionary public notices, Emefiele said the CBN issued a circular to banks and other financial institutions.

    He said it was on the need to ensure that existing customers who are virtual currency exchangers have effective anti-money laundering/combating the financing of terrorism (AML/CFT) controls that enable them comply with identification, verification and transactions monitoring requirements.

    Banks were also directed to render suspicious transaction reports to the Financial Intelligence Unit (NFIU), he added.

    Prof Sagay said while cryptocurrency yields benefits to those providing the service or trading with it, it was more like a “stateless phenomenon” that poses challenges.

    Read Also: Sagay: we’re running a failed judicial system

    “There is a dark side, which includes the use of cryptocurrency for criminal activities.

    “Due to the upswing in the use of virtual currencies by criminal groups, legislative and regulatory frameworks need to be adapted and updated in response to these new challenges, particularly to the fight against money laundering and terrorist financing.

    “Because of the encrypted nature of cryptocurrency, operators evade tax.

    “It is necessary that there should be some regulations provided in this sector in order to prevent it from being a new avenue for criminal activities and evasion of social responsibility,” he said.

    According to Prof Sagay, the almost invisible and decentralised nature of virtual currencies creates a potential for them to be used for money laundering activities.

    He said the immediate question that begs for answer includes how to regulate trading in virtual currencies and how to prevent them from being used as an avenue for crime.

    The keynote speaker, National Information Technology Development Agency (NITDA) Director-General Dr Isa Ibrahim, said cryptocurrency was one of over 700 applications of distributed ledger transactions, otherwise known as blockchain.

    He noted that Nigeria’s anti-money laundering legislations “were made in respect of local and foreign legal tenders,” adding that “the phenomenon of cryptocurrency was not envisaged.”

    “In essence, Nigeria has no current legal regime to prevent the use of cryptocurrency as a tool of money laundering.

    “The consequences of this exposure are grave, especially considering its implications on our anti-graft war,” he said.

    On how the crypocurrency works, NITDA Director-General, represented by a senior legal officer Olufemi Daniel, said it uses blockchain technology, which, like the internet, has a robust architecture and cannot be controlled by a single entity.

    According to him, the biggest application of blockchain is crytocurrency, which he described as a digital representation of value used as a medium of exchange, a unit of account or a store of value.

    “Blockchains are distributed, not centralised; open, not hidden; inclusive, not exclusive; immutable, not alterable, and secure.

    “Blockchain cannot be corrupted…with all its potential, blockchain can be a force for good in our world today.

    “The innovativeness of criminally minded person is incredible.

    “A desperate person seeking to ward off law enforcement agencies would see cryptocurrency as a veritable means of money transformation.

    “Cryptocurrency will challenge the very need for banks, stock markets and other government sanctioned intermediaries.

    “NITDA is at the forefront of ensuring that the right regulatory frameworks are in place to accentuate rather than stifle the cryptocurrency innovation that has swept the global financial landscape,” he said.

  • Senate to EFCC, Police: Vacate Ekweremadu’s residence

    The Senate on Tuesday resolved to ask operatives of the Economic and Financial Crimes Commission (EFCC) and police laying siege to the residence of Deputy Senate President, Senator Ike Ekweremadu, to vacate residence without further delay.

    The upper chamber said that the security operatives must allow Ekweremadu to enjoy his constitutional rights as a free citizen of the country.

    The resolution followed the adoption of a motion by Senator Chukwuka Utazi (Enugu North)

    Utazi told the Senate that the siege on Ekweremadu’s residence by security operatives was a violation of his right to move freely.

    He said, “This morning I left Enugu for Abuja to attend today’s sitting.

    “Half way into the airport, I received a distress call from the aides working with the Deputy Senate President that his residence and the entire street had been cordoned off and nobody can move out of the house.

    “As I am talking the people of Enugu State resident in Abuja have moved to Ekweremadu’s residence and they are there shouting in the rain for his release.

    “What offence has he committed that would warrant his wife and children to be denied freedom to go about their duties.

    “People are worried. We want to know what he has done.

    “Some people told me that they heard some people wanted to defect today and because of that they don’t want him to come to the sitting.

    “I also heard that they don’t want the senate president to come so that both presiding officers will not be here but thank God that the Senate President is in this place.”

    Utazi prayed the Senate to demand that Ekweremadu’s residence be immediately vacated.

    Senator Samuel Anyanwu (Imo East) who seconded the motion noted that the occupation of Ekweremadu’s residence was a threat to democracy.

    He said, “I was with Ekweremadu on Tuesday and there was no notice from the Police. I wonder why his house is under siege today.

    “If he is wanted they should invite him and he will respond.

    Read Also: Enugu community hails Ekweremadu’s representation

    “There will be tomorrow. No matter the intimidation my confidence in you and Ekweremadu is renewed and we must protect this institution.”

    Senator Emmanuel Bwacha (Taraba South)who also supported the motion said that the development was not only a threat on democracy but the unity of the country.

    He said, “It is with a heavy heart I rise to contribute to this. This is not only threat to democracy but the unity of the country and we need to thread with caution. What is happening has never happened.

    “When I heard of the siege I became afraid

    “We need prayers and we have to stand up as statesmen. “It is about the institution and the matter is beyond political party but the threat on democracy.

    “I advise that security operatives should know that they are meant to protect us and no country has used violence to settle matters.

    “We can pack our things and go and those trying to dent the image of the president should be careful.”

    Before the adoption of the motion Saraki noted that there was also a siege to his house at the early hours of Tuesday.

    The Senate President said that he was meant to report to the Police due to the invitation to answer to alleged involvement in a robbery case in Offa some months ago but he could not do so.

    Saraki said that there would not have been Senate plenary if he had gone to the Police, due to the fact that Ekweremadu was prevented from leaving his house.

    He said, “Ekweremadu cannot come out for no fault of his and by the plan I wouldn’t have been here as well.

    “It was the intervention of Almighty God that I am here today.

    “The deputy senate president called me that he was blocked from coming out. Even my convoy was blocked.”

    Chairman, South East Senate Caucus, Senator Enyinnaya Abaribe also cried out over the dawn siege on the residences of and Ekweremadu by the police and the DSS operatives.

    Abaribe who called on “Well-meaning Nigerians and the International community for interventions to save our democracy,” said the country is fast cascading to tyranny and fascism.

    He said, “This dangerous route is unprecedented in modern democracy. It is a sinister plot to throw the country back to the dark age of military dictatorship. Too bad for our unity as a country.”

    Abaribe warned that silence in this circumstance, could sound a death knell on the already challenged unity of Nigeria.

    He said, “This is the time to speak up against the directorship and tyranny of executive arm of government against the parliament.

    “The legislature is the universally acclaimed bastion and symbol of democracy, so attacking this hallowed institution signals the end to our chequered match to enduring democracy.”

    Also a statement entitled “EFCC, Police, lay siege to Ekweremadu’s residence…No going in or out” said that the Apo Legislative Quarters residence of the Deputy President of the Senate, Senator Ike Ekweremadu, is currently under the siege of men of the Nigeria Police Force and the operatives of the Economic and Financial Crimes Commission (EFCC).

    It said that “With the Senate President Bukola Saraki, expected to report to the Intelligence Response Team (IRT), Nigeria Police Force in Guzappe Abuja, this Tuesday morning, Senator Ekweremadu is expected to preside over plenary.

    “They took over the entire vicinity before 6am. There is no going in or coming out. Meanwhile, there was no prior invitation to the Senator by any of the security agencies or the EFCC.”

    The statement was signed by the Special Adviser (Media) to Deputy Senate President, Uche Anichukwu.

    Meanwhile, the Senate adjourned plenary till September 28, 2018 to enable senators proceeds on their annual vacation.

  • $496m jets fund: Buhari survives impeachment motion in Senate

    Urhoghide’s motion referred to Judiciary, Legal committee for advice

     PDP behind motion, says Ibrahim

     

    President Muhammadu Buhari on Thursday survived impeachment motion in the senate.

    The motion is not completely dead though.

    The upper chamber resolved to refer the motion to its Judiciary and Legal Matters Committee for advice and guide on whether to activate Section 143 of the Constitution which deals with procedures for impeachment of the President.

    Senate President, Abubakar Bukola Saraki saved the day when he prevailed on his colleagues to refer the contentious matter to the Judiciary and legal Matters Committee for guidance and direction on the way to go.

    Chairman, Senate Committee on Judiciary and Legal Matters, Senator David Umaru, was asked to submit his report next Wednesday.

    The controversial motion followed another motion by the Deputy Senate Leader, Bala Ibn Na’Allah about the need to include $496,374,470 (equivalent of N151,394,494,335.00) in the year 2018 Appropriation Bill.

    Na’Allah specifically prayed the Senate to consider he request of Mr. President C-in-C on the inclusion of USD 496,374,470 (equivalent of N151,394,494,335.00) only in the 2018 Appropriation Bill for the purchase of Super Tucano Aircraft from the United States Government.

    Saraki was about to refer the request to the Appropriation Committee for further legislative work when Senator Mathew Urhoghide (Edo South) intervened and raised a Point of Order.

    Immediately Urhoghide moved that the Senate should activate Section 143 of the Constitution, the chamber went dead.

    When the chamber came alive once again, there appeared to be sharp division among the senators which Saraki laboured to control.

    Urhoghide who referred to his aborted attempts to argue the matter on Wednesday said:

    “This matter on Thursday was raised by me to say that this request that was sought by M. President is procedurally wrong. What has been read by the leader this morning was that this matter has been referred to the appropriate committee for the inclusion of this amount of money that has already been spent.

    “This ought to have been the first request to this Senate. We must put it on record that this is a violation of procedure as stated in the 1999 constitution….

    “The objective of the expenditure is very well established but the procedure is wrong.

    “There are serious consequences for violation of our constitution. As a consequence, the only thing we can draw from this is that we call on you, Mr. President, 9Saraki) to invoke section 143 of the Constitution. Because, what it means is that this matter is not to be investigated. It is clear that this offence has been committed by Mr. President (Buhari).

    “I want this Senate to resolve that what the President (Buhari) did is procedurally wrong and a violation of our constitution. It must be condemned and of course, the consequences of section 143 of our constitution should be invoked. I so move M. President (Saraki).

    Senator Chukwuka Utazi (Enugu North) who seconded the motion said: “Mr. President, a time has come when this Senate has to rise up and do the job which the Constitution has stipulated that we have to do.

    “If we have a Chief Executive who doesn’t want to behave according to the Constitution, we follow the Constitution to handle such Chief Executive. There is no other name to call this than that this is an impeachment offence. It is an impeachable offence and we cannot allow that. We cannot stay here and this assembly will be taken for granted”.

    Senator Abu Ibrahim came forcefully to defend the presidential action. The Katsina South lawmaker said that the Senate should appreciate the fact that President Buhari acted in national interest.

    He described the impeachment motion as out of order especially as the President action was not for any pecuniary interest.

    Ibrahim said, “Mr. President took action based on national interest that is why he authorized this payment.

    “As far as I’m concerned, this is the first time that money drawn from excess crude account is brought to the National Assembly. Since they began to operate this account, I have never seen any expenditure that was brought here for approval.

    “$17.7 billion was withdrawn by Obasanjo from excess crude account to pay the Paris Club and fund two projects without National Assembly approval. Obasanjo left $943 billion in excess crude account but former President Goodluck Jonathan frittered away the money with no recourse to the National Assembly. The Excess Crude account increased from $5.16 billion in 2005 to over $20 billion in 2008 and decreased to less than $4 billion by Jonathan in 2010. It never came to National Assembly for approval.

    “$2 billion was used by previous PDP administration to fight Boko Haram in 2014. Governor Godswill Akpabio was the one who moved the motion at the

    National Economic Council to get the money. $5 billion was taken for power generation whhen they were sourcing for Niger Delta power holding the same process was not taken by Yar’ adua. It was later taken to the National Assembly and it was approved.

    “This is a PDP conspiracy. I will like PDP to tell us which of their governors have taken the money released from excess crude account to the state assembly for approval. If this is a PDP conspiracy to tarnish the image of Muhammadu Buhari, they will not be able to do it because we are coming out with figures.”

    Ibrahim prayed the Senate to consider the matter dispassionately without political colouration.

    He further said that “the payment was government to government without pecuniary interest whatsoever. It was for the security of this country which all of us support. The money should not have come to us in the first instance because the governors approved it. Only 53 per cent of the money should which goes to the Federal Government should come to us for approval because we do not legislate for states and local governments. The PDP has interest in it and wanted to be holier than thou in the way and manner they are going about it. But the same PDP has not sanctioned its governors who have not taken the excess crude account money to their state assembly for approval.”

    Senator Godswill Akpabio raised a Point of Order to cut Ibrahim short.

    Akpabio said that he cannot recall ever moving a motion to withdraw money from the excess crude account as alluded to by Ibrahim.

    He said that the Senate should discountenance the reference to him “because I did not even see Senator Abu Ibrahim in any of our meetings.”

    Ibrahim took the floor again to say that he was totally against the impeachment motion “because it is politically motivated.”

    He prayed the Senate to endeavour to work for the interest of the country.

    In his contribution, Senator Samuel Anyanwu, said that the admittance by the Presidency that the money had already been spent was a vindication of his motion that something was amiss in the purchase of the fighter Jets.

    The Imo East senator recalled that a former Senate President, Chuba Okadigbo was removed from office over alleged anticipatory approval.

    Anyanwu said that he is aware that those who say that truth targeted by the government “but we should continue to say the truth.”

    He insisted Section 143 of the Constitution should be followed to deal with the alleged infraction on the Constitution.

    Anyanwu said, “I wanted to invoke order 53 (6) of our standing rule which states that no senator shall input improper motives for any other senator. What Senator Abu Ibrahim was saying is out of context on the issue of PDP. It is wrong. I think he should withdraw that.

    “This is a motion brought to this Senate by a Senator of the Federal Republic of Nigeria as regards to infractions.

    “When I was born by my mother, we were twin. I was born a twin and my elder brother and I don’t know how I would be afraid of my elder brother. What I am saying is that, this is an institution. We should keep every friendship and look at the constitution which I swore to protect.

    “He was talking about PDP; I remember the late Okadigbo was removed from office based on anticipatory budgetary approval. What has been done today is a pure breach of the constitution and we must realize that. I believe as a responsible and responsive institution, we must put things straight. Someone has brought a motion and we are debating the motion, we have commenced it, it is beyond party affiliation but we have agreed that everything we do is based on the provisions of the constitution and our standing rules.

    “The matter has been canvassed and I think we should all contribute on the matter. Yes, when you say the truth, you become a target but you don’t fear to become a target by saying the truth, the truth must be said. What do we do in the case of this issue on the breach of constitution? I think it is important that we look at the issue. I raised this motion and the prayer of this motion and it’s for the appropriation committee to look into the matter. Now, there is infraction what do we do? We have no other thing to do than to follow the constitution which my colleague has spotted section 143 of the constitution.”

    Deputy Leader, Bala Ibn Na’Allah proposed that the matter should be referred to the Judiciary and Legal Committee to consider and guide the Senate appropriately.

    The Kebbi south senator noted that in view of the controversy surrounding the matter the advice of the Judiciary and Legal Committee would be handy.

    N’Allah said, “I am in a bit of difficulty to understand the purpose of this motion in view of the fact that while the constitution raised certain responsibility for the President, it equally gave the National Assembly to do certain responsibilities. If you have my permission, I would like to read section 83(1-2)

    1. (1) of the Constitution says The National Assembly may by law make provisions for the establishment of a Contingencies Fund for the Federation and for authorising the President, if satisfied that there has arisen an urgent and unforeseen need for expenditure for which no other provision exists, to make advances from the Fund to meet the need.

    (2) Where any advance is made in accordance with the provisions of this section, a Supplementary Estimate shall be presented and a Supplementary Appropriation Bill shall be introduced as soon as possible for the purpose of replacing the amount so advanced.

    “I am aware that in the last budget, there was provision for supplementary provisions but in view of the controversy that this has generated, I would advise that we have a committee on Judiciary and legal matters. Issues of this nature can be referred to that committee. Let them look at it properly and advise the Senate on the way forward. Let us not try to put it as if it is partisan issue. The people who raised the matter, yes, politically they have raised their right to present the matter at the National Assembly on the concern. The advice can suffice to that the Senate can be properly guided on this matter.”

    Saraki agreed with Na’Allah and said, “The contribution from the leader addresses two issues. We must take note of that. The concerns we have, according to Sen. Shehu Sani said and all of us agree is that there is security concern in our country. I think also we all agree that from what has been presented to us; definitely there is a breach of constitution.

    “The question concerned is, what are the circumstances surrounding the breach of the constitution? Whether those circumstances justified the breach of constitution. This issue has some of you realize, I am sure you all remember that it was August last year, we were on recess when I got the message from the US ambassador that the senate committee at the congress of the United States wanted to visit us because they got a request from President Trump to approve the payment of Tucanos but they needed approval. Their congress wanted to come to Nigeria to speak with their counterparts and we all had to come back from our vacation and I led the team with the House of Representatives members and members here and we met the members of congress on this issue.

    “So definitely we were aware that time for this issue. Between September and February, with all due respect, there was ample time for the executive to have carried us along on this issue. So their argument for and against, I think this arguments are valid and I don’t want us to bring it down to partisanship issues.

    “These are not partisan issues. The suggestion of the leader that let us sends it to judiciary to advice if the constitution has been breached, the circumstances surrounding the breach of the constitution and the justification. What do we do going forward in trying to even appropriate because the funds have already been spent, do we go under what the leader has come under or we start the whole process of appropriating. I don’t think this exercise is worth it itself because we endorsed it to the US congress. It was after we agreed in September that the US government now went back to give approval to the executive to pay to their own government so they can go ahead and sell this equipment to Nigeria. If we all agree, I will put it to vote and refer the matter to the judiciary and give them a short period of time, that by Wednesday next week, they submit it.”

    Urhoghide said “In as much as we don’t want to make this issue very contentious, I want to submit Mr. President that what the leader of the senate advised based on his argument, the section he read does not apply.

    Saraki stood his ground and said, “I am not referring it to the judiciary and legal Matters committee because of section 83. He has come up with his own interpretation. I am saying that the only best committee here that can advise us on whether an infraction has taken place or not and how do we move forward to address it normally. By Wednesday, they can bring the report back to us.

     

  • Senate receives report to grant Nigerian Financial Intelligence

    Senate receives report to grant Nigerian Financial Intelligence

    The Senate on Tuesday in Abuja received the Conference Committee report on a bill to establish the Nigerian Financial Intelligence Unit (NFIU) as an independent entity.

    Receiving the report, submitted by Sen. Chukwuka Utazi, Chairman, Senate Committee on Financial Crimes and Anti-Corruption, Deputy President of the Senate Ike Ekweremadu said there was need to expedite action on it.

    Ekweremadu commended Senate and the House of Representatives Committees on Financial Crimes and Anti-Corruption for the report which would ensure Nigeria is not expelled from the EGMONT Group.

    The EGMONT Group is a network of 152-member countries that share information relating to criminal intelligence and financial information.

    The group had threatened to expel Nigeria permanently by March 11 if the Nigerian government failed to grant the unit the autonomy required to become its member.

    Ekweremadu said the senate would consider the report on Wednesday.

    “It is a very important bill and I am happy that you have come into agreement with the House of Representatives.

    “It is important that we consider the report tomorrow so that Nigeria will be out of the suspension and be counted among the comity of nations in the EGMONT Group,’’ he added.

    Read Also: ‘Foreigners must not take digital switch over from Nigerians’

    Our reporters,  reports that Nigeria is currently serving a suspension from the EGMONT group which has accused the EFCC of sharing confidential information to media.

    The Senate and House of Representatives had differed over the passage of the bill establishing the NFIU as an independent entity.

    Utazi had raised a point of order, accusing the House of non-cooperation.

    He warned that failure to pass the bill ahead of the next Egmont Group meeting would cause a major economic crisis for Nigeria.

    In a reaction, his counterpart, Rep. Kayode Oladele, denied the allegation, saying that he never derailed the process.

    Oladele said “on the contrary, Utazi shoved off all efforts for us to meet’’.The lawmakers eventually met on Monday evening and came up with the report.

    NAN

     

  • South East leaders reiterate commitment to united Nigeria

    South East leaders reiterate commitment to united Nigeria

    South East leaders and stakeholders have reiterated their commitment to a united Nigeria where peace, fairness and equality of opportunities are paramount to citizens irrespective of ethnicity or political affiliation.

    The leaders also threw their weight behind the call for full restructuring of the country on the platform of fairness and equity.

    The Chairman of the South East Governors’ Forum, Gov. Dave Umahi announced in the early hours of Sunday in Enugu while addressing newsmen on the outcome of an interactive forum of stakeholders.

    Umahi, who is the governor of Ebonyi, said that leaders from the zone condemn all manner of hate speeches from any segment of the country.

    He said that they were in consultation with leaders from other parts of the country with a view to engaging the Federal Government in a meaningful dialogue.

    He said that the region was in full support of the 2014 National Conference report and urged the Federal Government to set up structures for implementing same within a reasonable time.

    “We are also in full support of the clamour for the restructure of the country and call on the Federal Government to start a dialogue with Nigerians on the modalities for achieving it,” he said.

    The governor said that the governors’ forum and South East National Assembly caucus would constitute the official organ that would speak for the people of the area.

    Umahi appealed to the Federal Government to take steps that would ensure safety of the people of the area wherever they lived in the country “just as we have guaranteed the safety of those in our domain”.

    The News Agency of Nigeria (NAN) reports that the governor of Enugu State, Chief Ifeanyi Ugwuanyi had in an address of welcome charged the people of the area to forge a common front.

    Ugwuanyi said that moment like that called for love among the people.

    The governor said that nothing would please residents of the state than to remember that Enugu was the venue where the people of the zone gathered to resolve their differences.

    NAN further reports that the meeting which held at the Nike Lake Resort had all governors of the zone in attendance.

    Former Senate Presidents Chief Ken Nnamani and Chief Adolph Wabara as well as the Deputy Senate President, Chief Ike Ekweremadu was also in attendance.

    Other prominent leaders in attendance included, Sen. Enyinnaya Abaribe, Sen. Gil Nnaji, Sen. Chukwuka Utazi and several members of the House of Representatives from the zone.

    Members of the clergy, traditional rulers and the leadership of Ohaneze Ndigbo was also represented.