The Nation Newspaper

Tag: defaulters

  • NIA to NAICOM: stop claims defaulters from new businesses

    To sanitise the insurance industry and rid it of underwriters who fail to pay genuine claims to insuring public, insurance companies’ umbrella body, Nigeria Insurers Association (NIA),  has called on the regulatory body, the National Insurance Commission (NAICOM) to stop the erring firms from doing new businesses.

    NIA Chairman, Eddie Efekoha, made the call at a press briefing to announce the association’s two-year plan to build a multi-million secretariat. The association has temporarily relocated to 264, Ikorodu Road, Obanikoro, Lagos in other to pull down the old secretariat.

    Efekoha, who is also Consolidated Insurance Plc (CHI) Managing Director,  said business owners and shareholders should take actions against companies that are not performing, stressing that it is not right for any underwriter to refuse to pay a genuine claim.

    He asked if a firm that is unable to pay claim should be partake in new businesses. He asked: “Who is to take the decision against such firm? Is it the NIA, the market or the regulator?”

    He argued that before a firm’s problem becomes compounded, somebody along the line has a duty to do something. He, however, noted that the Insurance Act has not been so friendly to the regulators and  has affected them in some areas where they needed to act.

    “The Insurance Act has not been so friendly to the regulators and has affected them in some areas where they need to act. Although the Act is undergoing some amendment, it has been a bit slow. We all know that the wheel of government grinds slowly, but it will surely grind. In the same vein, the problem we are having has nothing to do with the management of NAICOM but as a country.

    “I think that the issue of merger and acquisition cannot be decreed, but the regulator can say company A,  B and C, your capital is below minimum and if you don’t address it in maybe between one to  six months, we will take the next step. The first step is to say, you are not doing business anymore until you show evidence of resolving the problem. Then if it does not happen, you take further step. If you think it is the board that is contributing to it, you ask them to have a board change. If it is management, you ask them to change the management.

    “Although insurance company licences are not renewed on yearly basis, but they submit their account and reinsurances.There are rules for this business and when they are adhered to, there cannot be failure.

    “When a company raised N3 or N2 in 2007 and it is approved and reissued licence and that company today is having problems with its capital, among others, the question is what happened over the period. Did the regulator see their account and reinsurance? Were these reinsurances paid for? If they were paid for, why were the claims not paid? So if the direct underwriter fails, did reinsurance equally fail? So, it takes all hands to be on deck for us to resolve the problem. Management and owners of business must ensure that their companies are properly managed. It is not even the regulator because they don’t own the companies,” he explained.

     

  • Punish legal fees payment defaulters, don says

    Punish legal fees payment defaulters, don says

    The Federal Government should sanction any International Oil Company (IOC) that fails to spend 100 per cent of its legal fees in Nigeria, the Head of Department, Energy Law, University of Lagos, Dr Adedayo Ayoade, has said.

    He said this had become necessary to ensure compliance with the rules guiding the operation of the sector. Cases abound where firms don’t execute the judgments they receive abroad in Nigeria, he added.

    According to him, the constitution requires that when cases are executed in a place, judgment should also be delivered and executed in the same area.

    In an interview in Lagos, Ayoade urged the government to monitor  such firms and sanction them appropriately by using the Nigerian Content Act.

    He said the IOCs in Nigeria failed to comply with the law on spending 100 per cent of their legal fees in-country as contained in the Act.

    Adedayo said: “Many foreign oil conglomerates are not complying with the Local Content Act as regards spending all their legal fees in the country. To curb the excesses of firms, which flout the rules, the Federal Government should sanction firms that are culpable of the offence. By so doing, the government is putting the firms on their toes by preventing them from taking cases abroad.”

    He urged the Board to compel oil firms to domesticate their activities to strengthen local content policy. For instance, if company ‘A’ made $20million profit yearly in Nigeria, and company ‘B’ realises $50million profit in year, they should be able to plough part of their profits into the economy. ‘’What is the percentage of profits do the firms spend in the country? This is the more reason the government must compel foreign oil firms that are operate in the country to spend the money they set aside for legal issues in Nigeria and not abroad,’’ he added.

    On expatriate quota, Ayoade said the quota has been abused by foreign oil firms, an issue that prevents Nigerians from getting jobs in the oil and gas sector and other sectors that are considered as strategic to the economy.

    He urged the Ministry of Internal Affairs to implement laws that would check the abuse of expatriate quota, stressing that such a step would help to promote local skills. He said a review of the Act, which set up the Nigerian Content Development and Monitoring Board, was necessary to address the problems in the industry.

    According to him, the review would enable the Board to provide regular reports of their activities, monitor operators, and sanction the errant. He said the Board had not been able to publicise some of its programmes, stressing that public disclosures bring about transparency and growth in a company.

    Shell’s spokesman, Precious Okolobo, said Shell Petroleum Development Company (SPDC) has neither exceeded the expatriate quota, which the Federal Government has given foreign oil firms, nor spends its legal fees abroad.

    “SPDC and other Shell companies in Nigeria are promoting Local Content in their operations. The firms have won awards for promoting Local Content initiatives,” Okolobo added.

    The Chairman House of Representatives Committee on Local Content, Hon. Emmanuel Ekon, warned the IOCs, including Samsung Heavy Industries of South Korea against flouting Local Content Laws.

    During a visit to Lagos, the Committee said it was opposed to  where IOCs exceed the expatriate quota, among other rules in the Nigerian Content Act, adding that the legislature would take drastic measures against any firm that violates the rules. Adherence to the policy is important to encourage the growth of indigenous oil operators, he asaid.

    Lagos Oil and Gas Base (LADOL)Managing Director, Ms Army Jadesinmi, said the sector would grow, if the relevant agencies comply with the provisions of the Local Content Act, adding that such would lead to job creation. She said job creation would stimulate growth, noting that some operators had assisted in providing growth.

    Jadesinmi said LADOL has created jobs at its fabrication yards, and other technical areas, adding that oil and gas zones are veritable means of providing jobs. ‘’LADOL is working towards becoming an industrial hub in West Africa. The feat is achievable with the right operating environment,’’ she added.

  • FERMA gets ultimatum on contract defaulters

    FERMA gets ultimatum on contract defaulters

    The Presidency has given the Federal Roads Maintenance Agency (FERMA) a 14-day ultimatum to compile and forward names of contract defaulters to the Office of the Special Assistant to the President on Prosecution.

    It directed that the list outlining the names of the defaulting contractors should be forwarded to the Special Assistants’ office for further action.

    A letter addressed to the Office of the Acting Managing Director of FERMA by the Special Assistant to the President on Prosecution, said any contractor found wanting would be prosecuted.

    The letter, dated March 22, also said the process would enable the government obtain necessary information to make the Federal Government pay contractors that had executed their projects but had not been fully paid.

  • Lagos clamps down on tax defaulters

    Lagos clamps down on tax defaulters

    • 18 firms shut

    The Lagos State Internal Revenue Service (LIRS) has started a massive clampdown on corporate tax defaulters and evaders in Lagos.

    Last week, no fewer than 18 hotels and event centres were sealed off under the Hotel Occupancy and Restaurant Consumption Laws of Lagos State 2009.

    The affected hotels and restaurants were reportedly owing the government N91.2 million.

    LIRS Legal Services Director Mr. Seyi Alade warned during the state-wide tax enforcement that defaulting hotels, restaurants and event centres would face  the law if they failed to deduct and remit their taxes.

    According to him, failure to remit taxes due attracts very serious penalties that may lead to the sealing and the seizure of the goods and chattels of the affected entities.

    He said the LIRS gives a long time by issuing multiple notices to the taxpayers to inform and also remind them of their tax liabilities and only recalcitrant taxpayers are shut down as in the present case.

    He, therefore, urged all business entities operating in the state to ensure prompt remittance of their taxes to avoid the costly disruptions that could be visited on their businesses as a result of a distrain exercise.

    LIRS Chairman Mr. Folarin Ogunsanwo urged Lagosians to comply with tax laws, saying the state will bring to bring to justice any defaulting individuals and corporate bodies as the capacity of LIRS was not in doubt.

    The affected hotels include Zaaz Hotel, Cottage Hotel 2, Pcadilly Suites, Starfire Hotel, Le Parisian,  D Yard entertainment, Florida International Motel, Suite 29, Taesuites, Nufcam Hotel, Peaceland, Larex Hotel, Cristabol Place, Posh Spice, Hotel De Jas, Bec Ind Cathering Company Soul Centre and Atlantic Product Limited.

  • Lagos registers 6, 083 private schools, warns defaulters

    Lagos registers 6, 083 private schools, warns defaulters

    About 6,083 private schools have been captured in the ongoing Private School registration in Lagos State.

    However, some well established schools are yet to be captured.

    The state government had began a fresh registration exercise for private schools across the six education districts on July 28 to create a central database of Private schools’ operators.

    Statistics from the exercise showed that of the schools captured in five of the six educational districts, a substantial number of the schools were still seeking government approval.

    Addressing journalists shortly after touring schools in District 1, Agege, Permanent Secretary of the Ministry, Mr. Adesina Odeyemi, lamented the low turnout of schools for the exercise before the deadline on Wednesday, saying “more school would have been captured if they had turned up earlier.”

    “After inspection, I discovered that the response had been very low since the exercise started. But with one day left, I discovered was that the turnout has started to improving.”

    Odeyemi disclosed that after the exercise about 11, 000 schools are expected to be capture in the exercise.

    A breakdown of the schools captured so far in the exercise showed that 1,587 private schools were registered in District I; 1,089 in District II; 676 in III; 431 in IV; 1038 in V; and 623 in District VI.

    Odeyemi however warned that, “At the end of this exercise, if any of the schools failed to register that implies the school owner deliberately wants to hide and does not want the government to monitor the activities in his school.  And the government will have no option than to shut the school because the registration is free.”

    He reiterated that the registration was for planning purpose, saying, “We want to have every detail of our pupils in order to monitor them for development purpose. The future of the state lies in the hands of these students. And because of this, ensuring that they get the best education is the responsibility of the state government.

    Earlier, the Director of Education Management Information System in Education District II, Mrs. Tayelolu Showemimo, had expressed concerns that that the “Big Schools” were not turning up to register.

    She noted that the district targeted about 2,000 schools considering number of schools springing up daily but only got 676.

     

  • Lagos to prosecute tax defaulters

    Lagos State Internal Revenue Service (LIRS) will, from tomorrow, prosecute tax evaders and offenders.

    A statement yesterday by its Executive Chairman, Mr. Olufolarin Ogunsanwo, lamented that while some taxpayers complied willingly by filing their returns, it is disheartening that many taxpayers were still not complying.

    It said: “The focus of the present administration in renewing infrastructure and general development of the state cannot be achieved by the attitude of those who deliberately refuse to discharge their civic responsibility.’’

    The statement said LIRS had, in the last three months, embarked on massive advocacy and enlightenment programmes.

    It added that the enlightenment programmes took people through a process of education on the laws of tax administration and the need and benefits of paying taxes regularly.

    “We have gone further to develop initiatives to ease the methodology of paying taxes in Lagos,” the statement said.

    It said the initiatives included simplification of tax payment processes, through the compression of “Tax Form A” from six pages to two, introduction of new payment platforms and e-submission of annual returns.

    The statement said these were focused on building convenience into the payment of taxes and subsequently promoting voluntary compliance.

    “We are going to the next phase, which is enforcement and prosecution that is taking full advantage of the tax laws to apprehend and prosecute tax defaulters.

    “We have a robust database that captures taxable individuals and firms in Lagos State as well as transactions for the purpose of audit, so there is no hiding place for tax evaders.”

    The statement called on taxable persons in the state to take advantage of the window on or before the March 31 deadline to ensure their tax returns were duly filed.

    It said the attorney general and commissioner for Justice would, through the Rapid Tax Prosecution Unit, begin the prosecution of tax defaulters.

    According to the statement, tax evaders and offenders, upon prosecution, may be fined or imprisoned or made to face both as provided in the Personal Income Tax Act.

  • Benue commission threatens to arrest defaulters

    The Justice Elizabeth Kpojime Judicial Commission of Enquiry sitting in Makurdi, Benue State, has threatened to arrest any individual who fails to respond to its summon for appearance.

    It issued the threat during its sitting at the weekend.

    More revelations have emerged from the public hearings of the probe commission.

    The Chairman, Benue State Independent Electoral Commission (BSIEC), Prof. Philip Ahire, said over N700million was spent on the 2012 local government elections.

    He admitted that the schedule for last year’s council poll was not approved as expected, but N20 million was later released in January for the postponed elections.

    The commission directed the BSIEC chairman to return on October 15 to tender the financial transactions in the conduct of past elections and provide receipts and payment vouchers.

    The Permanent Secretary, Ministry of Industry, Trade and Investment, Mr. Tertsea Ikyaabo, said the N97.7million generated from the sale of shops at the Makurdi International Market was lodged in a Diamond Bank Makurdi account in the name of Benue Integrated Market Development Company Ltd (BEMICO), managed by Mr. Sam Tor.

    He said N83million was withdrawn two days to the expiration of the administration of former Governor Gabriel Suswam, leaving a balance of N14 million, stressing that no worker of the ministry was a signatory to the BEMICO account.

    According to him, on May 28, a company, Blessed Day International, withdrew N14 million, while Msughter Demekpe withdrew N20 million, and on May 29, Real World Integrated withdrew N29million and Robbing Minds – Solomon withdrew N19.8million, leaving a balance of only N14 million.

    Mr. Ikyaabo said the BEMICO account managed by Tor had two directors, who were signatory to its accounts, namely – Mr. Alex Adum, a former attorney-general and commissioner for justice and Mr. Austin Ode.

    He tendered other relevant documents as requested by the commission, alleging that the Suswam administration sold Benue shares in Benue Breweries Ltd, BBL and Agro Millers Makurdi.

    The Managing Director of Benue Investment and Property Company (BIPC), Mrs. Bridget Sheidu, tendered the relevant documents requested by the commission, including expenditure and retirement of N72million, which a worker of BIPC, Mr. Terese Apenkasev, withdrew for the furnishing of BIPC Guest House and Events Centre in North Bank, Makurdi. The documents were duly admitted in evidence.

    The BIPC MD also tendered the voucher and receipt of N80million, which the management of the company gave one of its workers, Mr. John Tyokegh; a document Mrs. Sheidu said was used in buying a generator for the state Guest House in Kaduna.

  • Akwa Ibom prosecutes 44 sanitation defaulters

    The Akwa Ibom State government at the weekend prosecuted 44 sanitation law offenders.

    During last Saturday’s sanitation, the 44 were caught flouting the state’s sanitation law.

    They were arrested by the monitoring team at various parts of Uyo, the state capital, and taken to the sanitation court.

    Some of them were accused of wandering or engaging in other things during the sanitation hours, from 7am to 10am.

    Rosemary Monday and Joy Daniel Essien, two of the defaulters, were accused of wandering and plating hair at a saloon during the sanitation hours.

    They pleaded guilty and promised to take the sanitation more seriously.

    The sanitation tribunal, presided over by Magistrate Mrs Winifred Umoh-Andy, sentenced them to two months imprisonment or payment of N2,000 fine each.

  • Lagos to clamp down on safety defaulters

    Lagos to clamp down on safety defaulters

    The Lagos State Government has stepped up its efforts to ensure residents imbibe safety culture in their homes and places of work. In the circumstances, therefore, the government will embark on massive awareness campaigns to residents of the grassroots in a bid to sensitise them on safety regulations of the state, which are aimed at securing lives and properties.

    The Director-General of the Lagos State Safety Board, Mrs Dominga Odebunmi, said event centres, entertainment outfits and night clubs that do not comply with safety measures of the state would be shut down. All corporate offices and event centres operating in Lagos, she said, have been notified to have multiple entry and exit doors in their facilities to ensure safety of their workers and customers.

    Odebunmi said the board would come down hard on any business outfit that flouts the safety measures, stressing that the enforcement of the Lagos Safety Law was not to stifle commercial activities but to prevent needless loss of lives as a result of human negligence.

    The D-G spoke during the monthly Lagos Safety Walk organised by Safety Advocacy and Empowerment Foundation (SAEF), a non-governmental organisation (NGO), with the theme: Keep Fit, Live Healthy.

    Odebunmi said: “The recent government clampdown on a few hotels, night clubs and event centres is making owners of many business outfits to know that there are no more excuses. They are aware that, henceforth, Lagos State government will not tolerate any firm or outfit that brings the public to their own vicinity without ensuring their safety.

    “This starts by making sure that there is no single entry-and-exit door to a place. There must be, at least, two to four entries and exits, depending on the size of the outfit.”

    The D-G said there was need to always carry out safety risk assessment at every organisation that could host large number of people at the same time, noting that such a task would keep the business and the people safe.

    She also cautioned people on the wrong use of safety colours, which she said could lead to confusion when there is an emergency. She advised managements of public and private organisations to ensure that use of safety colours conformed to international standards.

    While praising the Lagos State government for supporting the activation of the board since its inception, Odebunmi called on the Federal Government to sign into law the National Safety Bill passed by the 7th National Assembly.

    She said: “We are proud that the Federal Government pushed the National Assembly to pass the National Safety Bill before the last general elections. But, we are pleading with President Muhammadu Buhari to sign the bill into law. Given that the President is a man that puts his pen where his word is, we are optimistic that, before the end of the year, he would sign the bill into law.”

    The SAEF Executive Director, Mr Jamiu Badmos, said the monthly road exercise was informed by the need to make people live longer. He said the work-out was to check the growing cases of death from diabetes and high blood pressure among workers, noting that the NGO has the belief that periodic aerobics could prevent needless loss of lives.

    “A lot of people have various health challenges, including diabetes, excess fat and high blood pressure. We believe that exercise plays a key role in correcting all these diseases common among the people. This is why we introduced the safety walk in Nigeria, starting from Lagos to other parts of the country. At the end of the day, we can live longer like our forefathers,” he said. The Principal Consultant, Zub Chord Technical Venture, Mr Shamsideen Kadiri, said the event also had the objective to increase safety awareness at the grassroots, observing that the NGO would not relent in educating every citizen about isolating hazards in their communities.

    He said the NGO would continue to partner with the board, National Emergency Management Agency (NEMA) and other emergency response bodies to ensure the country is rid of preventable accidents in homes and at work places.

    Former Health, Safety and Environment (HSE) Manager at Exxon Mobil, Mr Kofi Sego, said the NGO would ensure that people imbibe safety culture, adding that the signing of National Safety Bill into law would increase enforcement and prevent loss of lives and property to needless accidents.

    Some workers, who participated in the nine-kilometre walk included staff of various public and private organisations.

  • Stanbic IBTC to publish list of loan defaulters

    Stanbic IBTC to publish list of loan defaulters

    Stanbic IBTC said yesterday it will publish the list of loan defaulters in line with a new directive by the Central Bank of Nigeria (CBN).

    Stanbic IBTC would be among the first banks to publish such a list after the regulator ordered lenders in April to crack down on non-performing loans to forestall a repeat of a 2009 industry bailout that cost the government $4 billion.

    The new plan requires banks to give bad debtors three months to square their accounts, following which they would be named in the media and barred from taking part in currency and government debt markets in Africa’s biggest economy.

    Stanbic said in a statement that in addition to publishing a list of defaulters by the end of August, it would also use legal and other means to recover non-performing loans.

    While issuing its order, the central bank did not give an estimate of the level of non-performing loans held by banks. In 2009, the central bank rescued several banks that had lent mainly to the oil and gas sector just before crude prices collapsed, triggering a near-collapse of eight commercial banks.