The Nation Newspaper

Tag: Reps

  • N141b debt: Reps can’t use AMCON to settle scores, says Chike-Obi

    N141b debt: Reps can’t use AMCON to settle scores, says Chike-Obi

    •‘Settlement in order’

    THE Managing Director/Chief Executive Officer of Asset Management Company of Nigeria (AMCON), Mr. Mustafa Chike-Obi, has given the process leading to the transfer of N141 billion assets to the organisation by top businessman, Mr. Femi Otedola, a clean bill of health.

    The deal has come under attack from a section of the public and the House of Representatives which felt it was shrouded in secrecy.

    The Central Bank (CBN) had listed Otedola among 419 individuals, company directors/shareholders and 113 organisations barred from receiving loans from banks until they clear the amounts currently standing against their names.

    The decision, the CBN said, was aimed at “strengthening financial stability and entrenching a culture of financial discipline.”

    Speaking exclusively to The Nation on Sunday, Chike-Obi said the transfer of Otedola’s assets followed due process and was not influenced in any way as being suggested in some quarters.

    The House of Representatives had, in a statement last Monday by the Chairman of its Committee on Media and Public Affairs, Alhaji Zakary Mohammed, said it would demand details of the transaction between AMCON and Otedola because, as he put it, it was done with ‘confidentiality and secrecy’.

    But the AMCON boss denied the insinuation.

    He said: “We have been negotiating with him in the last six months. There is a process. We had to analyse his assets, value the assets, make proposals and counterproposals, go to the exco and to the board. We needed to go through all of that and we did that for six months.”

    The operation of the organisation, he said, is guided by Sections 63 and 14 of the AMCON Act.

    “Section 63 says: ‘AMCON may carry out all its functions without the approval or permission of any other authority.’ It is in the Act. So Zakary Mohammed is incorrect,” Chike-Obi emphasised.

    He added: “We have 12, 000 loans and we are resolving about five loans a day. If I had to seek the permission of the House of Assembly to restructure loans, then I cannot do my work.”

    Besides, he said the agency is short-staffed.

    “We don’t have enough staff to resolve even five loans a day. The whole of the staff put together are 360. If they had to review loans, then they would have no other work to do.

    “It is illegal because Section 63 of AMCON expressly tells us that we should not ask permission from any other authority and Section 14 says the same thing. So, I don’t know what Zakary Mohammed means.”

    Chike-Obi said the Committee Chairman probably read newspaper headlines and hurriedly jumped into conclusion.

    “Negotiations are conducted between two parties. That’s what we call bilateral negotiations. I don’t have to tell anybody I met Arik today or I met Arik yesterday or I’ll meet with Arik tomorrow. Does it make sense to you that I should negotiate with somebody and before we have even agreed in resolving the issues, I should go and announce to the world?”

    Miffed by insinuations that the transaction was shrouded in secrecy, he raised several posers.

    “Do you know who is on my board? You have Deputy Governor of the CBN, Managing Director of the Nigeria Deposit Insurance Corporation, Director General, Securities and Exchange Commission. You think that after they approve something, it’s secret? They are all representing everybody in the country. So, where is the secrecy there when we took it to the board? If you take something to a board like that how can it be secret?”

    He dismissed as an insult on the intelligence and integrity of the AMCON board members, the statement that the transaction was probably influenced one way or the other by them.

    He declared: “I’ve restructured over 500 loans, including Arik, Aero Contractors, MRS. These are big companies. Why did Zakary Mohammed not care about the 500 loans I have restructured?”

    “We restructured Arik’s debts a year and half ago. Nobody asked us about that. The other 500 loans we restructured nobody told us it was done in secrecy,” he noted.

    AMCON, he stressed, cannot be drawn into any political intrigues by any individual or group. “If he (Zakary Mohammed) wants to fight Femi Otedola, let him fight Femi Otedola. He cannot use me or AMCON. If Zakary Mohammed had said MD AMCON, we read in the papers that you have done this and that, can you come and share with us the process that led to the recovery of these assets? I would gladly oblige him. But he just saw the headlines and went ahead to form an opinion.”

     

     

  • Reps committee laments poor implementation of 2012 budget

    Reps committee laments poor implementation of 2012 budget

    The House of Representatives’ Committee on Science and Technology said it is displeased with what it considered the poor implementation of the 2012 budget.

    The Chairman of the committee, Mr. Abiodun Akinlade, expressed the displeasure when he led other members on an oversight function visit to the National Agency for Science and Engineering Infrastructure (NASENI) offices.

    He said contrary to claims by the Ministry of Finance, only 35 per cent of the 2012 budget funds had so far been released.

    The legislator said this had therefore made it difficult for MDAs to execute their projects in the fiscal year.

    He said the figure was contrary to the 50 per cent claimed to have been released by the Ministry of Finance.

    “The ministries are being shortchanged, and their funds have not been released to them and this is October, less than two months to the end of the year, and the releases have been less than 35 per cent.

    “This is contrary to what the Ministry of Finance has been telling Nigerians, that the release has been over 50 per cent. That is very unfair,’’ the News Agency of Nigeria quoted Akinlade as saying during the visit.

    He said Nigeria has money, based on the findings of the House Committees on Finance and Appropriation.

    The committee chairman said the danger in not releasing the funds was that all sectors of the economy are affected when government as the highest spender in Nigeria refuses to spend money.

    He said the Ministry of Finance should be bold enough to tell Nigerians what the problem was.

     

  • 2013 Budget: Reps recommend $82 per barrel oil benchmark

    2013 Budget: Reps recommend $82 per barrel oil benchmark

    The House of Representatives has recommended that the oil benchmark for the 2013 budget be increased from $75 to $82 – a difference of $7 per barrel.

    The joint House committee on Finance, Legislative Budget and Research, National Planning and Economic Development and Loans, Aids and Debt in a report obtained by The Nation on Tuesday, recommended that “the oil benchmark of $75/barrel should be increased to $82/barrel.”

    The joint committee had carried out a review of the 2013-2015 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) of the Federal Government based on the mandate the House.

    One of the reasons the House gave for rejecting the proposed October 4 date for the presentation of the 2013 budget by President Goodluck Jonathan was that it was yet to study the MTEF and FSP submitted to the House by the Executive.

    According to the report, the increase in the benchmark “will lead to an increase in oil and Gas revenue from N7, 250.516 billion to N7, 963.436. The $7 increase in the benchmark will increase Federal Government share of revenue from N3, 561.02 billion to N4, 137.31 billion.”

    The report further recommends: “The revenue target of the Nigeria Customs Service should be increased from N914.366 billion to N1, 018.310 trillion, while the target for FIRS and Federal Government Independent Revenue (FGNIR) could be retained as proposed in the document.

    This increase will make Total Non-Oil revenue to rise from N3,298.46 billion to N3,523.82 billion.

    “The deficit portion of the budget should be reduced from N1, 307.19 trillion to N791.26 billion. Internal borrowing should be reduced from N727.19 billion to N381.25 billion, representing 52 per cent decrease. This is to enhance domestic access to credit by the private sector.

     

  • Reps condemns detention of female pilgrims in S’Arabia

    Reps condemns detention of female pilgrims in S’Arabia

    The House of Representatives on Tuesday decried the continued detention of 400 Nigerian female pilgrims by Saudi authorities in Jeddah.

    The house at its sitting on Tuesday mandated its Committee on Foreign Affairs to meet with the Federal Ministry of Foreign Affairs and report to the House on the situation on Thursday.

    The News Agency of Nigeria recalls that on September 23, the pilgrims were denied entry and detained at Jeddah airport for failure to come along with their spouses or close relations.

    The resolution of the house emanated from a motion moved by Abdulrahman Kawu , the Deputy Minority Leader, which was unanimously adopted.

    Leading the debate, Kawu expressed surprise that the affected pilgrims had obtained valid visas from the Saudi Embassy in Nigeria without such condition made known to them.

    He said the action of the Saudi authorities negated the long standing understanding between Nigeria and Saudi Arabia on Hajj.

    Nnenna Elendu-Ukeje, the Chairman, House Committee on Foreign Affairs said the action was first of its kind, adding that the ministry of foreign affairs was looking into the matter.

    In his contribution, Ado Doguwa said that three of his sisters were among those detained, adding that he was not comfortable with the assertion of the government that it was “on top of the situation.”

    He said the last call he made to one of the sisters revealed their pathetic condition, as according to him, she was sick and could not access any form of medication.

     

  • Reps order release of impounded vessels

    Reps order release of impounded vessels

    The House of Representatives Committee on Petroleum (Upstream) and the House Committee on Navy have directed the Navy and the Police to release the vessel, MT St. Vanessa, impounded on allegations of illegal bunkering.

    The chairman of the Committee on Petroleum (Upstream), Muraina Ajibola, announced the directive yesterday after a meeting of the two committees with representatives of the Navy, agents of the vessel and the Police.

    The lawmakers also ordered the police to immediately begin the withdrawal of the court case instituted against the owner of the vessel.

    The committees said it had investigated the issue and found that the vessel had not broken any law.

    The committees’ position is against a September 21 report by the Chief of Naval Staff,Vice Admiral Ola Saad Ibrahim.

    In the report, Vice Admiral Ibrahim said:“Past antecedents that vessels came into Nigerian waters to engage in diverse forms of illegal activities undetected and unchallenged. Some of these activities were human trafficking, illegal dealings in arms, drug trafficking, oil theft, illegal bunkering, poaching and piracy.

    “It is a result of such activities common in the West African coast, that the Maritime domain awareness facilities were installed. Consequently, the arrest of MT St. Vanessa would act as deterrent to other vessels engaged in illegalities or entering the country’s maritime domain without clear purposes.”

    He stated that “activities of the vessels offshore Lome and Salt Pond within Ghanian territorial waters, necessitated that further enquiries be made to ascertain if they were duly authorised by appropriate authorities in Togo and Ghana.

    “Consequently, Defence Intelligence Agency (DIA) has been requested to liaise on behalf of the Nigerian Navy and the outcome of this efforts is still being awaited. There is therefore, the need to carefully investigate the activities of MT St Vanessa within Nigerian waters to a logical conclusion.”

     

  • Orji to Reps: Don’t overheat polity with threat

    Orji to Reps: Don’t overheat polity with threat

    Abia State Governor Theodore Orji has urged House of Representatives members not to overheat the polity with their impeachment threat against President Goodluck Jonathan over budget implementation.

    He said it could worsen the tension created by rising insecurity, and called for a peaceful resolution of the issues.

    The governor, in a statement by his spokesman, Mr Ben Onyechere, said the “altercation” over budget implementation between the presidency and the National Assembly should be avoided.

    “It will exacerbate the current tension created by insecurity in parts of the northern states.

    “As such, we must be careful not to create unnecessary distractions from our focus, which is to provide and upgrade the living standards of our people while shunning measures that will increase political volatility,” he said.

    Orji said both arms of government must avoid any acts that could be detrimental to the common pursuit of the goal of providing democratic dividends to Nigerians.

    “The important thing now is to promote and protect the factors that project national unity because no one knows it all.”

    “The brewing impasse existing between the executive and legislature can be played down since it is not in the interest of the generality of the people we represent who are concerned with making ends meet at the moment.

    “Nothing can be better than peaceful resolution of misunderstanding particularly when it has to do with two essential arms of government such as executive and legislature.

    “It has become pertinent that we thread with care in order not to attract unnecessary attention from the international community as well as our local populace.”

     

  • Reps to change revenue law

    Reps to change revenue law

    The House of Representatives is set to enforce its power to review the revenue sharing formula. A bill for the amendment of Section 162 (2) scaled  second reading yesterday at the first plenary of the second session of the Seventh Assembly.

    The  “Bill for an Act to  alter the Constitution of the Federal Republic of Nigeria 1999 Section 162 (2) to provide for the Revenue Mobilisation, Allocation and Fiscal Commission  (RMFAC) to table directly before the National Assembly (NASS) the Commission’s proposals for revenue allocations” was unanimously adopted by the lawmakers.

    Its sponsor, the Chairman, Committee on Rules and Business, Albert Sam-Tsokwa (PDP, Taraba), said the current arrangement that allows for five-year review, among other provisions, has given too much room for interested party’s interference and bureaucratic tapery.

    According to him,  the option given to the Commission to present the proposal to the President before being forwarded to the National Assembly by the President was erroneous.

    The Chairman, Committee on Finance, John Enoh (PDP, Cross River), noted that it was unfortunate for the House not to have reviewed the revenue sharing formula since 1999, contrary to constitutional provision that stipulates five-year review by the leg

  • Reps insist Oteh must go

    Reps insist Oteh must go

    The House of Representatives yesterday took President Goodluck Jonathan head-on over the re-instatement of the Director General of the Security Exchange Commission, Ms. Arunma Oteh.

    Members insisted that the resolution of the House which requested the President to sacked the Director General should be honoured.

    The House also yesterday blacklisted the Director General saying none of its committees would have anything to do with her anymore.

    The House requested the President “to implement the resolution of the House of Representatives on the near collapse of the Capital Market particularly aspects of the resolution requesting the removal of Ms Arunmah Oteh as the Director General of Security and Exchange Commission for being unqualified by law to serve as Director General of security and Exchange Commission, as contained in Sections 3(2)(a) and section 38(I)(b) 2 and 3, and section 315 of the Investments and Securities Act (ISA), 2007.”

    The Green Chamber also resolved “that the House of Representatives or Any of its committees shall henceforth cease to accord any recognition or deal with Ms Arunmah Oteh as Director General of Security and Exchange Commission.”

    Lawmakers gave the House Committee on Legislative Compliance 14 days to report the level of compliance of the Executive with the resolution.

    The resolution was sequel to the adoption of a motion by a member, Ossai Nicholas Ossai titled: “Need for the President to enforce the resolution of the House of Representatives on the Investigation into the near collapse of the Capital Market.”

  • Obajana Road: Kogi groups to bar Senator, Reps from coming home

    The agitation for the reconstruction of the dilapidated Obajana-Kabba-Egbe Road took a dramatic dimension yesterday as some youths in Okunland, Kogi West Senatorial District, in separate statements  resolved to constitute themselves into a militancy movement that would restrict members of the National Assembly from the zone from coming home “if the Federal Government fails to act before December.”

    Those affected, according to the groups, are Senator Smart Adeyemi, representing Kogi West District, Tajudeen Yusuf, representing Kabba-Bunu-Ijumu Federal Constituency and Sunday Karimi, representing Yagba West, Yagba East and Mopamuro Federal Constituency.

    In a joint statement, Yagba Change Agent Group (YACAG), Okun Youth Initiative (OYI), Association for Better Okun Youth (ABOY) and Okun Summit, said a movement of socio-political, cultural, women, professional bodies and students’ union organisations, after a meeting, had communicated their intention to the affected National Assembly members.

     

  • N5, 000 banknote: Senators, Reps plan showdown with Sanusi

    N5, 000 banknote: Senators, Reps plan showdown with Sanusi

    A  show down is looming between the National Assembly and the Governor of the Central Bank (CBN), Mallam Sanusi Lamido Sanusi over his insistence to introduce the N5000 banknote.
    The two chambers are due to resume from their annual recess on Tuesday with members determined to stop the introduction of the new banknote.
    Influential members of the Senate and the House of Representatives are said to have been meeting to strategise on their move following the pronouncements of the CBN governor to forge ahead with the plan and his description of critics of the banknote as bad economists.
    It was gathered that the NASS members are likely to first approach President Goodluck Jonathan to prevail on Mallam Sanusi to have a rethink on the policy.
     The lawmakers, one source said, are angry that in spite of the opposition to the new note, the CBN is pressing ahead with its proposal to introduce the larger bill and convert the N20, N10 and N5 bills into coins as from 2013.
    According to findings, the Senators and Reps met in Abuja last Wednesday and Thursday and resolved that their position on the matter has been strengthened by a recent survey conducted by the National Bureau of Statistics (NBS).
    The survey confirmed that 75.1 per cent of Nigerians are opposed to the currency restructuring. Only 16.1 per cent of the populace are in strong support of the CBN policy while 4.04 and 4.62 per cent are partially in support and against the currency restructuring policy respectively.
    The anti-N5000 banknote federal lawmakers resolved to make the new note a major issue upon resumption from recess.
    A source at the meetings said: “We have met and concluded that since the new note is unpopular, we will ask the CBN to stop the minting of the new currency.
    “We won’t be part of any policy that will lead to inflation because the consequences will be too much for the economy. In a country, where people live on less than $2 in a day, it is not ideal at all.
    “Definitely, we will overrule the CBN on this policy which is a contradiction of the cashless policy of the government.”
     A principal officer of the House said: “Some of us have been meeting because the NBS survey has shown that it is not a popular policy. The economy is better run based on the interest of the citizenry.
    “Why will a good government go against the popular wish of all Nigerians? We want to lay the card on the table on why the new note policy is ill-timed.”
    A Senator from the South-East said: “Most of us prefer mass employment to minting of new notes. There is no point having a higher note without empowering Nigerians to spend it.
    “The cost of producing the new note and coins, whether locally or abroad, can provide many jobs. This is a question of opportunity cost.”
    On his part, a high-ranking Senator added: “Some of us are trying to prevail on the leadership of the National Assembly to hold dialogue with President Goodluck Jonathan to reverse the policy because it will hurt the economy.
    “We want to try as much as possible to avoid a fresh row with the Executive. But if the President does not listen, we will pitch our tent with the masses.”