The Nation Newspaper

Tag: Regulatory

  • ‘Regulatory stability grew telecoms sector’

    The Executive Vice Chairman of the Nigerian Communications Commission, Prof Umar Garba Danbatta, yesterday said the regulatory stability enhanced by President Muhammadu Buhari-led adminsitration has accelerated the growth of the telecoms sector.

    Danbatta, in a statement signed by the Director, Public Affairs of the Commission, Mr Nnamdi Nwokike, congratulated Buhari on his re-election and extolled his virtues, adding that the victory was a reward for his selfless service to the nation.

    He said the Commission has, in the last four years, received the support of the president, which helped not only in reasserting its regulatory independence, but also making it a global household name in the area of regulatory excellence, and operational efficiency.

    The country had surpassed its national broadband penetration target of 30 per cent, as 31.48 per cent penetration was attained at the end of December last year.

    The broadband penetration figure was 8.5 per cent when Buhari took over the mantle of leadership of the country and appointed Prof Danbatta as the Chief Executive Officer (CEO) of the NCC in August, 2015.

  • ‘How regulatory agencies are killing businesses’

    Mallinson Ukatu is the Managing Director/CEO, Mallinson and Partners. In this interview with Emmanuel Udodinma, he speaks on the challenges faced by the manufacturing sector, amongst others. Excerpts:

    The land use charge policy by the Lagos State government led to heated debates with businesses seeking a review. How does this policy affect you as a manufacturer?

    The law is not favourable for manufacturing industries. The argument here is that in some areas where the manufacturer has constructed road, provided water  and carried out maintenance on his factory, the individual is expected to receive returns on income tax for project done but does not get any returns. We have paid tenement rates to Lagos and Ogun state governments, but it was cancelled, on the grounds that the payment was for land use charge.

    Most times, the governments tax manufacturers based on the sizes of their property or the locations of their property. They don’t consider whether the manufacturers have made profits. They come with police officers to harass and intimidate manufacturers. They don’t consider how much you spend in running the facility, paying workers and staying in business.

    The situation is pathetic for us especially when you consider that much of the monies used in running the businesses are either loans from commercial banks and the Bank of Industry (BOI) which we have to repay with interest. The increase of the land use charge was aimed at generating more revenue for government. The continuous taxation without adequate provision of incentive is not in the best interest of manufacturers, especially when you consider that they are making frantic efforts to create jobs, drive growth and produce goods and services to serve the economy.

    The removal of the penalty regime provided additional relief to all property owners; other rates and reliefs, apart from the ones stated above would remain unchanged and would be implemented as stipulated by the law. Owners of property across all categories will now be allowed to make payments by instalments. This will help to reduce the burden of taxation on our citizens.

    These managers engage in taxing the people. On two occasions, they have sealed up my factory because there was no proper notice. We paid the tenement rate; they said it’s for local government council, while the land use charge is for the state government. Initially, tenement rate was what we were paying before it was changed to land use charge. In one year, we paid the tenement rate and the land use charge.

    How is double taxation affecting your production?

    Double taxation is a serious issue facing the sector. However, we are discussing with consultants to understand the dynamics involved. I feel personally that there should be proper enlightenment from government on how to harmonise on the issue of double taxation. Proper enlightenment requires that manufacturers understand what the taxes they pay are used for. It does not make sense for a manufacturer to continue paying taxes when he is recording losses.

    We have made it known to the government to step down the double taxation for manufacturers in order to allow more people to come into the business. Double taxation is chasing people out of business and it is not in the best interest of industrialisation. We are making efforts to reduce the importation of fake goods into the country by ensuring that we produce more goods for government and the economy.

    The challenge is that there is no encouragement from government to motivate new people who want to come into manufacturing business. 80 per cent of producers are not happy with the situation of this double taxation. For instance, for someone who resides in Lagos State and has a small business, also has a factory in Ogun State. The individual pays tax in Lagos and Ogun states. Is it supposed to be that way? There must be a good enlightenment from government on how to harmonise the issue of double taxation.

    You recently accused the Standard Organisation of Nigeria, (SON), the Nigeria Customs Service (NSC) and other regulatory bodies of becoming revenue generating bodies rather than regulatory bodies; what made you describe them that way?

    Raw material is very crucial for production. Due to the infrastructural inadequacy, the Nigerian economy is not able to produce the raw materials needed for industrial production. We are not pleased with certain payments made to these agencies because some of these payments are arbitrarily high. We pay so much to have a Form-M.

    In the area of SON CAP from overseas, we are paying 80 to 100 per cent higher. There are cases where they remind the manufacturers that they don’t pay at a particular period, and then their  containers are held for a particular period. These charges are excessive.

    The operations concerning imported raw materials are still analogue. When an individual has the Form M and has done the SON CAP and provided some information that he is a registered manufacturer, there is no concession given to him. During the goods examination by Nigeria Customs Service (NSC), manufacturers are not able to ascertain if the goods are 100 per cent genuine.

    There was an incident that happened when we imported the re-factory blocks. Re-factory block is what is used in heating level for furnace. Similarly, it is more of finished tiles. We argued that it was raw material not finished goods, but we ended up paying the duty that was not meant for it.

    People who are not in the business will end up classifying it as tiles and there is no regulatory body that will stand for you to say it is not tile material. The longer you leave those containers, the higher the demurrage you end up paying. We have a system that is not automated; they still carry out manual examinations on the containers to ascertain what they are carrying. This takes a lot of time and affects production. Some of the things declared are real things for manufacturers, whereas some are out there arguing that it is not true. Some of the things that are not done right are duty declaration and HIS code.

    There is always an argument about items imported. Therefore, there is need for the inclusion of the members of the Manufacturers Association of Nigeria (MAN) in anything related to manufacturing in the port. This would go a long way in addressing the issue of manual examination at the ports. If the National Agency for Food and Drug Administration and Control (NAFDAC) can be in the ports, sometimes to check the raw materials, the MAN can also be at the ports to check the raw materials and let these regulatory agencies know that it is a material for production.

  • Regulatory pangs stifle $251b 5G market

    Uncertain regulatory environments are stifling the growth of 5G networks in Middle East and Africa (MEA) region.

    The Global 5G Market Report by market intelligence firm Netscribes said the global 5G market will grow at an overall compound annual growth rate of 97 per cent and will be worth $251 billion by 2025.

    However, Netscribes says the MEA telecommunication industry faces numerous challenges in terms of an uncertain regulatory environment, low coverage of 2G, 3G and 4G technologies, and lack of spectrum.

    Reuters reports that 5G networks, now in the final testing stage, will rely on denser arrays of small antennas and the cloud to offer data speeds up to 50 or 100 times faster than current 4G networks and serve as critical infrastructure for a range of industries.

    It adds that deals to start building mass-market 5G networks are still largely a year away, but by 2025, 1.2 billion people are set to have access to 5G networks – a third of them in China, according to the global wireless trade group Global System for Mobile Communication Association (GSMA).

    Meanwhile, Netscout believes a clean and regulatory business environment, along with well-defined 5G standards, is essential to make the most of 5G services.

    Many countries in MEA, including Nigeria, have still not completed the digital switchover (DSO) process, and are therefore yet to allocate spectrum in the digital dividend band (700MHz) for mobile services, it adds.

    According to Netscribes, this band is key in bringing affordable 4G mobile broadband services. It points out that many countries are now at a disadvantage when it comes to supporting swiftly growing cellular broadband uptake and usage as well as advanced 4G, and in the future 5G services, it notes.

    It explains that some of the key challenges facing developing nations on the road to 5G adoption include inadequate spectrum, stiff competition and lack of infrastructure.

    In South Africa as well as Nigeria, the low-band, around 700MHz, is currently occupied by analogue television stations without a clear timeline for digital migration. This band is critical for rural area deployment as it can cover large areas.

    The mid-bands around 3.3MHz to 3.8MHz are partially allocated to other operators and used for radar services and satellite.

    In Nigeria, the National Broadcasting Commission (NBC) is driving the DSO while it is expected to work with the Nigerian Communications Commission (NCC) to provide a migration plan for this spectrum to ensure optimal allocation for 5G networks.

    Looking ahead, Netscibes says some markets in the MEA will be among the first countries to launch global 5G networks, with commercial deployments planned in the UAE in 2019 and Qatar in 2020.

    It points out that in regards to smartphone adoption, sub-Saharan Africa is still growing faster than any other region and will record a CAGR of 6.2 per cent over the next five years till 2020, compared to a global average of 4.2 per cent for the same period. By 2020, the penetration rate will rise to 50 per cent.

     

  • Regulatory pangs stifle $251b 5G market

    Uncertain regulatory environment is stifling the growth of 5G networks in Middle East and Africa (MEA).

    The Global 5G Market Report by market intelligence firm Netscribes states that the global 5G market will grow at an overall compound annual growth rate of 97 per cent and will be worth $251 billion by 2025.

    However, Netscribes says the MEA telecommunication industry faces numerous challenges in terms of uncertain regulatory environment, low coverage of 2G, 3G and 4G technologies, and lack of spectrum.

    Reuters reports that 5G networks, now in the final testing stage, will rely on denser arrays of small antennas and the cloud to offer data speeds up to 50 or 100 times faster than current 4G networks and serve as critical infrastructure for a range of industries.

    It adds that deals to start building mass-market 5G networks are still largely a year away, but by 2025, 1.2 billion people are set to have access to 5G networks – a third of them in China, according to the global wireless trade group Global System for Mobile Communication Association (GSMA).

    Meanwhile, Netscout believes a clean and regulatory business environment, along with well-defined 5G standards, is essential to make the most of 5G services.

    Many countries in MEA, including Nigeria, have still not completed the digital switchover (DSO) process, and are therefore yet to allocate spectrum in the digital dividend band (700MHz) for mobile services, it adds.

    According to Netscribes, this band is key in bringing affordable 4G mobile broadband services. It points out that many countries are now at a disadvantage when it comes to supporting swiftly growing cellular broadband uptake and usage as well as advanced 4G, and in the future 5G services, it notes.

    It explains that some of the key challenges facing developing nations on the road to 5G adoption include inadequate spectrum, stiff competition and lack of infrastructure.

    In South Africa as well as Nigeria, the low-band, around 700MHz, is currently occupied by analogue television stations without a clear timeline for digital migration. This band is critical for rural area deployment as it can cover large areas.

    The mid-bands around 3.3MHz to 3.8MHz are partially allocated to other operators and used for radar services and satellite.

    In Nigeria, the National Broadcasting Commission (NBC) is driving the DSO while it is expected to work with the Nigerian Communications Commission (NCC) to provide a migration plan for this spectrum to ensure optimal allocation for 5G networks.

    Looking ahead, Netscibes says some markets in the MEA will be among the first countries to launch global 5G networks, with commercial deployments planned in the UAE in 2019 and Qatar in 2020.

    It points out that in regards to smartphone adoption, Sub-Saharan Africa is still growing faster than any other region and will record a CAGR of 6.2 per cent over the next five years till 2020, compared to a global average of 4.2 per cent for the same period. By 2020, the penetration rate will rise to 50 per cent.

    Total mobile revenues in Sub-Saharan Africa reached $40 billion in 2016, an increase of 3.9% from the previous year, says Netscribes.

    It says one of the key contributors to the rise has been the adoption of mobile money led by Safaricom, MTN and Econet, among others. As an instance, in 2015-2016, approximately 99 per cent of school fees in Ivory Coast were paid via mobile money transfer.

    However, the firm says the connected ecosystem revenue has witnessed a downward shift from the beginning of this decade, in value-added terms. It is expected to generate $142 billion by 2020 (8.6 per cent of GDP).

    In sub-Saharan Africa, it adds, while digital convergence is helping consumers, it is also creating regulatory challenges. Rapid innovation, regarding technology and business models, collectively with the growing significance of economies of scale and scope, is dimming the boundaries connecting once-distinct markets and regulatory regimes.

    The net result can be a complicated and dynamic digital ecosystem in which both consumers and businesses may face regulatory uncertainty.

    Subscriber growth will be majorly witnessed from Asia, accounting for more than half of new subscribers globally, it notes, adding that margins in developing countries will remain under pressure, reflecting growth and competitive challenges coupled with increased regulatory action and ongoing network investments to roll out 4G.

  • 7-Up seeks regulatory approval to delist shares from Exchange

    Seven-Up Bottling Company (7-Up) Plc has filed an application with the Nigerian Stock Exchange (NSE), seeking to delist its shares from the Exchange and end its 32 years as a publicly quoted company.

    A regulatory report at the Exchange indicated that 7-Up has already started the delisting reminiscent of the exit of its rival, Nigerian Bottling Company (NBC) from the Exchange.

    Despite strong protests from minority shareholders, the majority core investor of 7-Up-Affelka SA had last January 11 pushed through approval to acquire the outstanding 26.8 per cent shares held by the minority shareholders.

    At a court-ordered meeting in Lagos, shareholders approved the scheme of arrangement for the acquisition. With this, Affelka SA will increase its ownership of the Nigerian soft-drink company to 100 per cent by acquiring all the outstanding and issued shares, previously held by the minority shareholders.

    Affelka SA had, on the eve of the court-ordered meeting, increased its bid price by 10.9 per cent to N125. It had earlier offered N112.70 per share for the 171.54 million ordinary shares of 50 kobo each held by the minority shareholders.

    In consideration for the transfer of the shares, a payment of N125 per scheme share will be made to each shareholder. This payment represents a 22.6 per cent premium on the last traded share price of Seven-Up on January 9, 2018 and a 27.6 per cent premium on the share price as at close of August 9, 2017 being the last business day prior to the date the initial proposal was received from Affelka.

    The NSE subsequently slammed a full suspension on the shares of the soft drink bottling company. Under full suspension, there will be neither trading nor price movement on the company’s shares.

    According to the Exchange, the suspension was for the purpose of determining the shareholders who will qualify to receive the scheme consideration under the Affelka SA’s buy out deal.

    Nigerian retail minority shareholders had decried the move by Affelka SA to buy out all minority shareholders and turn the 57 years old company into a wholly owned subsidiary.

    Minority shareholders said the move by Affelka was in bad taste and called on capital market regulators to block the bid.

    Founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the decision by Affelka, which owns about 73 per cent, was an affront to the Nigerian consumers and shareholders that had helped in building the soft drink company to its enviable position.

    Nwosu called for adequate regulatory framework that protects Nigerian investors and forestalls such move to deny Nigerians opportunity to be part of the national wealth creation.

    “I don’t think it is an appropriate thing to do, we have contributed all these years to build this company and now they want to take us out, from sharing in the wealth we created. It is a very serious issue,” Nwosu said.

    President, Association for the Advancement of Rights of Nigerian Shareholders (AARNS), Dr Faruk Umar, said Nigerian capital market regulators should protect minority shareholders’ interest in the transaction.

    He added that Nigerian minority shareholders should look beyond immediate and short-term capital gain to implication of such acquisition, which will turn the company into a fully-owned foreign company.

    Shareholder Activist and Co-Founder, Nigeria Shareholders Solidarity Association, Gbadebo Olatokunbo, said the Securities and Exchange Commission (SEC) should undertake a forensic audit of Seven-Up Bottling Company to unravel the reasons for the decline in the performance of the company in the past three years and the sudden interest of the foreign majority shareholder to acquire all the shares of the company.

    “Though the rule of the game at the capital market is “free entry and free exit”, but the rules insisted on equity on all dealings, therefore the Nigerian local investors are saying we want the forensic-audit of 7-UP since 2014, because we are yet to be convinced that the recent takeover notification of 7-UP is not fraudulent. Why the renewed interest of the majority shareholders in a sudden sick company? Why were they now interested in the takeover when the company isn’t growing? How are we sure that they weren’t the brains behind the unexpected bad results?,” Olatokunbo said.

  • UACN gets regulatory approval to raise N15.4b new equity capital

    Authorities at the Nigerian Stock Exchange (NSE) have approved application by Nigeria’s oldest surviving business, UAC of Nigeria (UACN) Plc, to raise about N15.4 billion in new equity funds.

    A regulatory document at the weekend indicated that the Quotation Committee of the Exchange, which oversees listing of shares, has approved the supplementary capital raising.

    UACN plans to raise N15.36 billion through a rights issue of 960.43 million ordinary shares of 50 kobo each at N16 per share. The new shares will be pre-allotted to existing shareholders on the basis of one new share for every two shares held as at the close of business on Thursday October 19, 2017.

    Shareholders of UACN had earlier approved the plan to raise new equity funds by selling new ordinary shares to existing shareholders.

    UACN will use the net proceeds of the new equity issue to bolster its working capital and support the recapitalisation and operations of its subsidiaries.

    In an explanatory statement on the proposed rights issue, the board of the conglomerate had stated that many subsidiaries within the group including three quoted companies- UACN Property Development Company, Livestock Feeds and Portland Paints and Products Nigeria, need working capital support to boost their operations and reduce dependence on costly bank loans.

    According to the board, it is important that the conglomerate is resourced to support the subsidiaries at the critical time.

    “In the prevailing environment of economic challenges and recession, there would also be opportunities for additional investment in current and adjacent categories that we play in,” the board stated.

    Directors of the conglomerate said they believed that the N15 billion rights issue would enable them to support the subsidiaries through these difficult times and provide the required flexibility to deepen the group’s position as opportunities for additional investments emerge in the chosen markets.

    At the meeting  on June 14, 2017 meeting, shareholders authorised the board to raise up to N15.4 billion by way of a rights issue, through the issuance of ordinary shares on such other terms and conditions as the directors may deem fit or determine.

  • NIOB seeks regulatory agencies unification

    NIOB seeks regulatory agencies unification

    • 2017 AGM/conference begins today

    The Nigerian Institute of Building (NIOB), Lagos State Chapter, has reiterated the need to unify regulatory agencies in the built environment to enhance better co-ordination among various government agencies.

    The regulators include the Lagos State Land Bureau; Lagos State Survey General Office, the state’s Ministry for Physical Planning and Urban Development, the Building Control Agency, the Physical Planning Permit Authority and the state’s Safety Commission.

    This position of the NIOB, among others, will form the fulcrum of the institute’s 2017 annual general meeting (AGM)/Conference which begins today place at the Academy Inn and Multi-Purpose Hall, Lateef Jakande Road, Agidingbi, Lagos, with the theme: Regulatory Authorities: Panacea for Building ProjecAt Delivery in Lagos State.The Conference, which ends tomorrow, will address issues pertaining to problems encountered by the developers, investors and other stakeholders in the state.

    According to the Conference Committee Chairman, Mr. Adelaja Adekanbi, the NIOB, Lagos Chapter, deemed it necessary to bring together the end users and government officials saddled with the responsibility of regulating the various activities in the built environment to educate, fine tune and discuss best mode of their operations.

    He further explained that the designated agencies are not giving adequate information on their mode of operations, thus, the cause for many abberations encountered by the major players in the industry.

    “Their performances in their respective capacities tend to not only be contradictory, but filled with duplicity and in some cases, causing confusion by which developers, investors and private project owners become wary of their activities,” Adekanmbi said.

    In similar vein, the NIOB Chairman for the state, Mrs. Adenike said while regretting that the incidences of building collapse in the metropolis have become not only an embarrassment to government, but also to the professionals in the sector, observed that the regulatory agencies most times cause conflict, deliberately or otherwise, which needs to be addressed; hence, the convergence of all relevant stakeholders in the industry at the conference.

    For the Honourary Secretary of the NIOB Lagos chapter, Mr. Alani Adegoke, some of the laws put in place by the authority appear to be contradictory, a situation that has been a source of concern to the investors. This, he said, is why it is necessary to ensure that these agencies come open to clarify their roles and functions in clear terms so that the public would know every requirement, stage by stage, in the processing of their building documents.

  • Multichoice: regulatory framework vital for digital migration

    Managing Director, MultiChoice Nigeria, Mr. John Ugbe, has said Nigeria needs  regulatory and legal framework as well as a buy-in from all stakeholders to make a successful transition from analogue switch off.

    Ugbe stated this in a keynote address delivered at the third   Digital Migration Summit, in Lagos. It was organised by Broadcasting Organisation of Nigeria (BON).

    While noting that the country is a late starter on the migration journey, Ugbe said it can learn from the experiences of countries that have achieved digital migration and avoid the mistakes from previous exercises.

    “Using the United Kingdom, Kenya and Rwanda as case studies, one common denominator is that they all opted to make Free-to-Air (FTA) cost-free in each country. Another key lesson learnt is that they all had adequate regulatory and legal framework in place and ensured that there was buy-in from all stakeholders. Everyone had a role to play – from making Set Top Boxes (STBs) affordable and partnering the private sector which brought in investment,” he said.

    Digitisation, he explained, will ensure better transmission quality and make more channels available.  As a result, there will be a need for compelling content.

    “It is crucial to make content as engaging as possible, otherwise we will lose our audience. Compelling content is expensive to achieve as it affects cost of equipment, production and distribution, to mention a few,” he added.

    Along with digital migration, he further explained, will come a more effective use of spectrum, with a move from one analogue channel per frequency to over 20.

    While noting that digital migration offers many benefits, Ugbe said it is also accompanied by challenges.

    “That there will be more channels also means that the already limited advertising revenue will shrink further. Additionally, segment boundaries will blur. The internet already enables anyone to create and distribute user generated content. There is tremendous diversification going on and this will continue in the foreseeable future,” he said.

    To get around the challenges, Ugbe called for light- touch regulations that will ensure lower costs for operators.

  • World Bank advocates single regulatory authority for free zones

    World Bank advocates single regulatory authority for free zones

    The World Bank has called for a single regulatory authority for the operations of free zones in Nigeria.

    The advice was given at the Public Hearing organised by the House of Representatives Committee on Commerce in respect of a proposed amendment to Oil and Gas Export Free Zone Authority (OGEFZA) Act.

    In his presentation, Craig Raymond Giesze, Senior Operations Officer, Trade & Competitiveness Global Practice, World Bank Group stated that the institution had always advised countries seeking to attract investments into their economies through their free zones “to adopt the single regulatory authority regime for a number of reasons based on knowledge garnered over the years of what foreign investors look out for in an economy”.

    He said: “Beyond the fact  that a single regulatory authority is global best practice, the benefits include the fact that it reduces administrative costs; the approach creates investor confidence in an economy; investors abhor a confusing regulatory environment and consider such environment as too risky but prefer consistency in regulation because a single regulatory authority offers long-term stability that guarantees safety of investments. In that regard, the World Bank perspective would be that Nigeria should seriously consider the adoption of a single regulatory authority regime for its free zones”.

    Chairman of the House Committee on Commerce,  Sylvester Ogbaga, said the key objective of the public hearing was for invited stakeholders to make input that would assist the Committee in its legislative assignment of amending the proposed OGEFZA Act based on global best practice in order to increase the contribution of the free zones scheme to the national GDP.

    The Managing Directors of OGEFZA and NEPZA stated that the supervising ministry of both agencies had stated that it would need time to review and harmonise their respective submissions. Further, they requested a postponement of the public hearing pending the review of the ministry and the submission of their memoranda.

    General Counsel, Snake Island Integrated  Free Zone (SIIFZ) Adewale Dosunmu advised the Committee to ensure fairness, equity and justice in the course of executing its assignment by ensuring that stakeholders are given an opportunity of publicly knowing and reacting to the submissions of Nigerian Export Processing Zones Authority (NEPZA) and Oil and Gas Export Free Zone Authority (OGEFZA) through a second public hearing by the Committee especially after harmonization of the positions of the two contending agencies by their supervising ministry the Federal Ministry of Industry, Trade and Investment.

    Dosusmu pointed out to the Committee that four presidential and ministerial review committees set up by three previous administrations over the last two decades had recommended the merging of OGEFZA with NEPZA as best practice. This would remove confusion as to who regulates what and would bolster investor confidence in Nigeria. In addition, it would reduce the cost of governance by eliminating double expenses for two agencies who would ultimately be performing the same function.

    Furthermore, he informed the Committee that a proper examination of the existing OGEFZA Act for which the amendment was being sought would reveal that the intentions of the framers of the OGEFZA Act and that of then Head of State, General Sani Abacha, was specifically to restrict OGEFZA operations to only Ikpokiri and Onne Zones. He contended that the activities of OGEFZA over the years had not been in compliance with the provisions of the extant Act and proposed amendment in its current form would ratify years of unlawful activities.

  • Lagos revokes hotel’s wastewater discharge regulatory certification

    Lagos revokes hotel’s wastewater discharge regulatory certification

    Lagos State Water Regulatory Commission (LSWRC) has revoked the water/wastewater discharge regulatory certification of Radisson Blu Hotel on Ozumba Mbadiwe Road, Victoria Island, Lagos. In a statement yesterday, LSWRC accused the hotel   of contravening wastewater discharge regulation.

    LSWRCExecutive Secretary Ahmed Kabiru, said the revocation of the certification was necessary because the hotel compromised sewage treatment and disposal law of the state.

    He said: “By the revocation order, the hotel cannot discharge any wastewater into the environment henceforth. A situation where any facility will discharge untreated effluent into the environment is unacceptable. All properties in this category must have proper water and wastewater treatment facilities suitable for their capacity and must also obtain necessary licenses and certification from the commission to ensure they are functioning properly. ‘Dummy facilities’ will no longer be condoned.

    “The management of the hotel has been instructed to immediately suspend all actions that would lead to further discharge of untreated and unsatisfactory wastewater into the public drains/water body with immediate effect pending re-certification and clearance by the Commission.”

    He requested for the development and upgrading of all water and waste water facilities in the hotel under the agency’s supervision.

    The facility, he said, would remain sealed under until the government is satisfied with the hotel’s compliance with the law.

    He restated the government’s commitment to the protection of the state’s water bodies against hazard and environmental nuisance.