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Tag: sanction

  • NPA to sanction shipping lines for arbitrary charges

    The management of Nigerian Ports Authority (‘NPA), has vowed to sanction CMA CGM and any other international shipping line that may introduce arbitrary charges at ports.

    Importers and officials of NPA  who spoke with The Nation yesterday, condemned the $400 congestion surcharge the CMA CGM international shipping line slammed on every container coming to the two ports of Lagos.

    In an email sent to importers and clearing agents at the weekend, the shipping company announced that effective October l5, 2OI8, cargoes from any part of the world on (EMA CGM ships will attract extra “USU 400 / EUR 850 per 20′ Dry and Reefer and USD 400 / EUR 350 per 40′ Dry and Reefer”.

    The shipping line based its action on what it called disruption of its activities based on congestion in the two Lagos ports.

    In the mail sighted by The Nation, the company explained that: “port congestion at Lagos ports, Nigeria, is currently increasing our operational costs and generating severe service disruption for several weeks.”

    The mail added that: “CMA CGM will therefore implement the following Emergency Congestion Surcharge on Lagos import cargo, effective October 15th, 2018 (B/ L date) for FMC trades

    The company also indicates that the surcharge is payable on categories of cargoes including dry and break bulk.

    But the Acting General-Manager Corporate and Strategic Communications of ‘NPA, Mr Isa Suwaid said the new charges cannot stand following the authority’s checks, which revealed that some of the shipping companies have failed to fully comply with the directive to acquire and operate holding bays as they have either failed to utilise their holding bays at all or do not have adequate capacity to handle the volume of containers that they deal with.

    The NPA noted that some of the companies had also been found to import a larger number of containers than empty containers exported thereby making the country a dumping ground for empties.

    “These conducts have contributed to the persistent congestion around the Lagos Port Complex and the Tin Can Island Port, spreading to other parts of the Lagos metropolis where truck drivers with no immediate business at the ports now park their trucks.

    “As from tomorrow (today), the authority will review the level of compliance to its directives and determine further actions in addition to this, the NPA will henceforth embark on a regular compliance check of the operations of holding bays by shipping companies and terminal operators and defaulters will be sanctioned.

    Importers and clearing agents have also called on ‘NPA and the Shippers Council to save them from the Shylock shipping companies operating at the nation’s seaports.

  • CSO seeks sanction for politicians involved in violence

    A CIVIL society organisation, Election Monitor, has called for sanctions for political office holders and other highly placed individuals that may be involved in electoral violence during the Ekiti governorship election.

    Its National Coordinator, Abiodun Ajijola, made the call at the public presentation of the 2018 Ekiti Governorship Election Observation and Research Guide, in Abuja, the Federal Capital Territory (FCT).

    He called security agencies to announce sanctions for security operatives involved in election malpractices during the election.

    Ajijola said sanctioning security personnel involved in malpractice would serve as deterrent to politicians and others who may want to be involved in such conduct.

    He said: “There should be effective sanctions for political office holders and other highly placed individuals involved in Electoral violence. At least handing them over to the police for prosecution.

    “There is a need for INEC to appeal to the Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria to intervene by providing very clear consequences for security operatives who are partisan and work against the conduct of peaceful elections irrespective of political affiliations.

    “This is key because much of what has happened in the past where insecurity did not allow elections to be concluded is a show of force of different political actors who have influence over security in different ways.

     

     

     

     

     

     

     

     

     

  • APC members seek sanction against Banire

    The Lagos State chapter of the All Progressives Congress (APC) has urged the party’s National Working Committee (NWC) to enforce the suspension of its National Legal Adviser, Dr. Muiz Banire, for indiscipline.

    Addressing reporters yesterday at the Lagos APC secretariat during a protest by members of his local government to enforce disciplinary action against the party chieftain, APC’s Mushin Local Government Area Legal Adviser Femi Martin said Banire’s activities had become uncontrollable.

    Martin said the NWC must sanction him to prevent other erring party members from towing his line.

    The party chieftain said the APC must summon the courage to sanction members who violate the party’s rules and regulations.

    The protesters, who handed their petition to Lagos APC leadership, said: “The Lagos State chapter of the APC has been subjected to needless string of embarrassment for a member of the party; this climaxed with the suspension letter that was transmitted to the national secretariat of our great party. It was meant to curb the continuous embarrassment of the party in the media and social media platforms at his disposal.

    “We, therefore, demand the leadership of the party to act in furtherance of the suspension at the local level by completing the process to serve as deterrent to other dissidents. The recalcitrant member has further grown wings, committing worse atrocities.”

    Martin said Banire’s activities had reinforced the party’s earlier stance that APC’s values were being eroded by the conduct of some members who did not want to subject themselves to due process.

    According to him, the party’s NWC should correct the wrong impression that some members were above the law by ratifying Banire’s earlier suspension from his ward.

    Martin added: “The remaining days of the NWC of the party should be written in gold by completing the process of Muiz Banire’s suspension to lay the foundation for party discipline. Party discipline is, therefore, not an aberration but a standard practice everywhere democracy thrives on earth.

    “Right from time immemorial and even in the First and Second republics, where parties faced challenges, discipline were enforced in order not to weaken the party…”

    “The defunct National Party of Nigeria (NPN), Unity Party of Nigeria (UPN), Peoples Redemption Party (PRP) and National Advanced Party (NAP) had their internal wrangling, yet discipline was maintained to prevent erring members from misleading others.”

    Receiving the petition on behalf of the state chairman of the party, Mr. Tunde Balogun, the state’s Vice Chairman for Lagos West, Chief Funsho Ologunde, promised to deliver the petition to the party’s national leadership.

  • Sanction awaits owners of broken down waste vehicles

    The Lagos State Government will sanction owners of broken down waste compactors, which cause delay at dumpsites, Commissioner for Environment Babatunde Durusinmi-Etti has warned.

    In a statement at the weekend, he said such vehicles would be made to go through re-certification before being used at any dumpsite in the state.

    The commissioner, who issued the statement after a visit to Soulus Dumpsite, decried a situation where compactors broke down incessantly at dumpsites, causing delay and loss of man-hour.

    Such inefficiency, he said, was capable of bringing hardship to residents and jeopardising government’s efforts to achieve a cleaner and sustainable environment.

    He urged all waste collection operators to put their compactors in order.

    “Owners of dysfunctional compactors will no longer be allowed to dump refuse at dumpsites across Lagos State until they put their vehicles in order.

    “They will have to obtain government recertification, to avoid delay at dumpsites,” Durosinmi-Etti said.

     

     

  • N216b subsidy: Senate seeks sanction against NNPC officials

    The Senate yesterday resolved to demand sanction against officials of the Nigerian National Petroleum Corporation (NNPC) involved in illegal payment of fuel subsidy in 2017.

    The upper chamber said over N216.9 billion was frittered away by NNPC officials under the guise of payment for oil subsidy.

    It also asked the NNPC to halt forthwith illegal payments without appropriation.

    It mandated state-owned oil firm to make a formal request to the National Assembly for appropriation for the illegal payments.

    These are part of the recommendations of the Senate Public Accounts Committee in its report on the investigation into alleged illegal subsidy payments.

    The recommendations were adopted by the Senate in plenary yesterday.

    Chairman of the committee, Matthew Urhoghide, who presented the report, noted that the Federal Government spent N3.8 trillion on subsidy between 2010 and 2016.

    The Senate asked its Committee on Appropriation as well as Public Accounts to liaise with the Executive to submit the appropriation for subsidy to be included in the 2018 budget estimates.

    The Auditor General of the Federation, it said, should carry out a forensic audit of NNPC’s account over the last five years.

    Other recommendations of the committee also adopted included the need for the Federal Government to pay oil marketers the outstanding subsidy arrears owed them prior to 2017 as well as giving local refineries maximum attention to enable them function in optimal capacity.

    Senator Urhoghide said: “The NNPC declared operating losses in 2018. Why can’t we have functional refineries in Nigeria for our produce? A lot of money has gone into turn-around maintenance of old refineries. Why can’t we just build new ones?

    Senator Victor Umeh noted that “we first have to tackle the corruption in this area so that Nigerians can benefit fully from it.”

    Senators George Akume, Chukwuka Utazi and Binta Masi Garba in their separate contributions expressed concern about the recommendations of the committee.

    They noted that there was no serious sanction for those who approved payment of the subsidy without recourse to the National Assembly.

    Senator Utazi specifically said: “The 2018 budget has no provision for subsidy. We cannot live a lie here. What is the role of the Minister of Finance and who does the Ministry of Petroleum Resources report to? This has to be addressed.”

    Senator Godswill Akpabio wondered NNPC’s operational costs that they can throw away N216 billion in a year without asking for a refund? The NNPC needs to be indicted.”

    The panel chairman who gave breakdown of the N3.8 trillion subsidy payment, said while the government spent N491 billion in 2010, it paid N245 billion in 2011 and N888 billion in 2012.

    Other payments, the panel said were N1.9 trillion in 2013 and 2014, N100 billion in 2015 while 2016 gulped N150 billion.

    It said: “In 2017, NNPC imported 9.8 billion litres of Premium Motor Spirit at the cost of $5,483,634,448.91 amounting to N1,672,508,506,917.55 at the exchange rate of N305. In the previous years, all importers including the Nigerian National Petroleum Corporation had collected subsidy for differentials.”

    The panel concluded: “It is therefore curious that NNPC will in year 2017, describe the differentials as ‘operating cost’ and a loss but will not demand for refund.”

    Senate President, Abubakar Bukola Saraki said it was obvious that the NNPC had constituted the body as law onto itself.

    Saraki added that the corporation had continued to engage in monumental illegality by taking the law into their hand.

    He said the law is clear that no money should be spent without appropriation.

    Saraki said: “As some of you know I spent a lot of time on the issue of subsidy in the seventh Assembly. The recommendation on illegal payment is what is creating the problem because they are requesting for appropriation for illegal payments. The appropriation we are asking for is appropriation for 2018. The issue of illegal payment, that is a different subject matter on its own which we can decide how we are going to address.

    “The important thing is that NNPC cannot continue going forward making those payments without appropriations because definitely there is subsidy going on now and it needs to be backed by law which has always been the case since 1999. There has been appropriation for fuel subsidy.

    “It stopped briefly, but now NNPC is using the absurd word ‘Operational Costs’ to justify this expenditure — and we all know this is not operational cost, this is fuel being imported. How that becomes operational cost is even an insult on the integrity of Nigerians.

    “I think we need to bring up the issue of legality. This is because, when the IMF sees these kinds of reports, it is an embarrassment to us as a country. There are two issues here, illegal payments that have been made is one.

    “Going forward, for 2018, we should put the figure that will capture the entire subsidy for 2018 so that when they do make these payments, they are no longer illegal payments as it will be backed by an appropriation. If we agree that they should pay outstanding arrears, then Government will put that as part of the subsidy.

    “We are coming to the end of the budget exercise and that is my concern. It is better we quickly rectify this for the 2018 budget and stop the deception to Nigerians and do the right thing. By doing the subsidy also it means private companies will participate and it will even be more efficient.

    “Now, the NNPC is the only importer of PMS and Government has never been an efficient agency anyway. Who knows, if private sector are importing, the subsidy might even come down.

    “Distinguished Colleagues if we agree, let us move to the recommendations and on the issue of sanctions we can talk about additional prayers. We were hoping that today, Thursday, the Appropriations Committee will submit their report.

    “They were planning to lay it sometime next week. If we can quickly get government to come with a figure and we know that item is in budget, that stops this illegal payment going forward.”

    Additional recommendations adopted by the Senate included:1. The NNPC should stop the illegal payments without appropriation henceforth; 2. The NNPC through Mr. President, should make a formal request to the National Assembly for 2018; 3. There is need for the Federal Republic to pay all marketers their standing arrears of subsidy owed in 2017; 4. Local refineries should be given maximum attention to enable them function in full capacity; 5. The DG should carry out a full audit on the NNPC; and 6. Direct the committee to recommend appropriate sanctions for officers and personnel who have carried out this illegal payment.”

    Saraki said that “If the report from the Auditor General is not satisfactory, then we can talk about setting up an Ad-hoc Committee.

    “We also need to ensure that the Office of the Auditor General is properly funded in the 2018 budget so that they can carry about these jobs properly. Chairman Appropriations should follow up to ensure that the Government submits the budget for the fuel subsidy over the next few days so it can be submitted to us next week.

  • SEC mulls stiffer sanction for fund diversion

    Nigeria’s apex capital market regulator-Securities and Exchange Commission (SEC) yesterday indicated that it has started the process of amending its rules and regulations to impose additional monetary sanctions on companies and governments that divert or misapply funds raised from the capital market.

    Under the proposed amendment, any company or government that diverts or misapplies funds raised from the capital market will pay additional penalty equivalent to two per cent above the subsisting monetary policy rate (MPR). The MPR is currently at 14 per cent, implying a proposed penalty of 16 per cent at the current rate.

    In a circular issued yesterday, SEC noted that it had received reports on instances of misapplication of issue proceeds, referring to the practice by some issuers to use funds raised for a specific purpose for another purpose without recourse to the Commission for a variation of the use of the net proceeds.

    “To curtail such diversion and misapplication of issue proceeds, it became necessary to propose a stiffer penalty,” SEC stated.

    Also, the Commission is considering amending its rules on publication of interim financial statement to provide exception to companies listed on the Alternative Securities Market (ASeM) of the Nigerian Stock Exchange (NSE) from mandatory publication of their reports in a newspaper.

    Under the existing rules, all public companies are required to publish their “signed” quarterly balance sheet, income statement and cash flow statements in at least one national daily newspaper. However, the accounting policies, notes and other relevant information shall be posted on the company’s website which address shall be disclosed in the newspaper publication.

    The amendment will exclude companies on ASeM from the requirement to publish in a national daily. The amendment provides that “public companies listed on the AseM may publish their “signed” quarterly balance sheet, income statement and cash flow statements, accounting policies, notes and other relevant information on the company’s website only”.

    According to SEC, the proposed rule will reduce the cost of publication for small companies listed on the AseM.

    The Commission also plans to amend the rule on shelf registration. “A shelf Prospectus shall be effective for a period of three years from the date of its issue and shall be subject to renewal as may be approved by the Commission. Provided, that the Shelf Prospectus of supranational agencies shall be effective for an indefinite period until determined by the Commission,” the proposed amendment stated.

    Also, in the case of a shelf prospectus which is effective for an indefinite period, information in the shelf prospectus shall be updated prior to the issuance of any tranche or series, the shelf prospectus shall be updated by the filing of an addendum to the shelf prospectus with the Commission while the addendum may include an information statement and any other relevant information and shall be incorporated by reference in any tranche or series to be issued.

    SEC explained that the shelf life of a shelf programme by Supranational Agencies was made effective and valid indefinitely by a 2013 Rule amendment, to allow supranational agencies unfettered and quick access to the capital market in view of the fact that their status made for little change in their material information.

    However a 2015 amendment which sought to extend the shelf life of the shelf programmes of other issuers from two years to three years –in line with international best practice, inadvertently substituted the word ‘Supranational Agencies’ with ‘Sub-nationals’.

    “It is necessary to urgently correct this error to avoid perpetuating an irregularity since the regular changes in the material information of sub-nationals should make it imperative that their shelf programme have a fixed life as material information of Sub-nationals quickly becomes stale or of no effect,” SEC stated.

  • Falana seeks sanction against indicted officials in Maina’s recall

    Falana seeks sanction against indicted officials in Maina’s recall

    Lagos lawyer Femi Falana (SAN) has advised President Muhammadu Buhari to take action against officials involved in the controversial recall of former Chairman of the Presidential Task Force on Pension Reforms Abdulrasheed Maina.

    In a statement issued yesterday titled: “President Buhari should act with dispatch on Mainagate”, the rights activist said “time is certainly not on the side of President Buhari”.

    Although the Federal Government has promised not to sweep the Mainagate under the carpet, Falana contended that the handling of the scandal generated by Maina’s recall has eroded the credibility of the anti-corruption crusade of the Buhari administration.

    He said: “Therefore, the sanctions, which the Federal Government will mete out to all the officials who conspired to expose the administration and the nation to such avoidable shame will make or mar the fight against corruption and impunity, which is the cornerstone of the domestic and foreign policy thrust of the administration.”

    Falana’s advice was sequel to a statement credited to Maina’s family, accusing Buhari administration of official betrayal.

    He noted that at a news conference in Kaduna two weeks ago, the spokesman for the Abdulrasheed Maina’s family, Mr. Aliyu Maina, had stated that “Abdulrasheed was in fact invited by this administration and he was promised security to come and clean up the mess and generate more revenue to the government by blocking leakages. He has been working with the DSS for quite some time and he was given necessary security. So, one wonders why all the agencies and various individuals responsible for his return are now denying”.

    But Falana contended that those who recalled Maina, “deliberately set out to subvert the anti-corruption policy of the Buhari administration”.

    He argued that through such demonstration of impunity, the officials involved have exposed the country to ridicule before the comity of nations.

    “In view of the revelation of the family, which has not been denied, it is crystal clear that the highly placed officials of the Federal Government, who brought Mr. Abdulrasheed Maina back to the country, gave him a clean bill of health, provided him with “necessary security”, reinstated him, promoted him and paid his arrears of salaries and allowances totalling N22 million deliberately set out to subvert the anti-corruption policy of the Buhari administration,” the senior lawyer said.

    Falana described the payment of N22 million to Maina as “the height of insensitivity to pay arrears of salaries to a fugitive at a time when hundreds of thousands of workers and pensioners are owed arrears of their legitimate emoluments”.

    The senior advocate queried: “Having found Maina and exonerated him, why was Interpol not informed that he was no longer wanted to stand trial for his role in the unprecedented pension fraud?

    “Since Mr. Maina’s ‘necessary security’ provided by the State Security Service has not been withdrawn, why is the Federal Government requesting the Interpol to declare him wanted again? Will Interpol believe that a man, who was provided with ‘necessary security’ cannot be found by the Federal Government? Why is the Economic and Financial Crimes Commission asking Nigerians to assist in searching for the fugitive?”

  • OGFTA: Govt to sanction erring operators

    OGFTA: Govt to sanction erring operators

    The Federal Government will sanction any operator who contravenes the rules guiding the operation of the Oil and Gas Free Trade Zones (OGFTA) across the country, its Managing Director, Dr. Umana Okon Umana, has said.

    The operators are mainly those that bring oil and gas equipment into the country.

    Umana said this became necessary in view of the corrupt practices in many of the zones.

    He said the government frowned at a situation whereby operators brought goods into the zones without following the rules guiding shipment.

    He said the pre-release facility through which operators effect the release of their cargoes ahead of payment of required fees has been abused in recent times, stressing that the government would not condone such acts.

    Umana said  henceforth, the government would stop erring operators from effecting the release of their cargoes ahead of payment of the required fees in subsequent shipments as provided for in section (5) of the MoU signed between OGFTA and its clients.

    According to him, OGFTA is the body directed by the Federal Government, to regulate activities in the free trade zones, in line with the best possible standards, stressing that the body has vowed not to circumspect the rules.

    In a circular issued to free zones investors after the meeting of the management of OGFTA at Onne Zone, Port Harcourt, Rivers State, and contained in the OGFTA journal, Umana said reports from the Nigeria Customs Service (NCS) have indicted many of the operators in recent times.

    He said the operators were indicted by the Customs for failing to redeem their bonds, adding that the issue is a violation of the condition that is precedent to the pre-release facility as contained in section 1(b) of the Memorandum of Understanding between OGFZA and its clients.

    He said the MoU stated that all Customs formalities including payment of duty are being ignored by operators.

    Umana assured that in upholding the laws and rules of engagement in the free zones, OGFZA would work in line with the global best practices to ensure that the Federal Government was not shortchanged in terms of revenue.

  • PPPRA vows to sanction profiteers

    PPPRA vows to sanction profiteers

    The Petroleum Products Pricing Regulatory Agency (PPPRA) will sanction  marketers who exploit motorists and other consumers, its Acting Executive Secretary, Mr Victor Shidok, has said.

    Shidok, told reporters in Abuja that the agency would not allow long queues at filling stations beacuse of speculations that pump prices may be raised.

    The agency, he said, would ensure effective monitoring of products’ distribution and compliance with pricing template.

    He warned that Nigerians should not be disturbed by speculations on deregulation since the agency would deal with dubious marketers.

    The PPPRA chief lamented the loss of lives resulting from scarcity due to diversion, adulteration and storage of fuel at homes.

    According to him, since the  PPPRA was established 16 years ago, Nigeria has not witnessed the perennial scarcity of petroleum products apart from occasional hiccups from supply challenges. In  distribution, PPPRA has been able to establish stability in the downstream sector, he added.

    Shidok assured Nigerians that what the sector deregulated, they would  buy, particularly petrol, below the pump price adding:  “We can say that we have not fully deregulated, but I am bold to say that we have achieved 75 per cent of downstream deregulation,  making it possible to buy fuel without long queues at filling stations.”

    He noted that countries with deregulated regimes had mechanism to protect consumers from exploitation.

    In a fully deregulated regime,  the PPPRA, he said, would  ensure the effective distribution of petroleum products.

    Shidok explained that in a fully deregulated regime, the agency’s role would be restricted to commercial activities while the Department of Petroleum Resources (DPR) will continue to function as the technical regulator of  downstream activities.

    He explained that PPPRA would not embark on production of biofuel, but  would ensure an integrated approach to production.

    The roles of PPPRA in coordinating biofuels activities through provision of incentives and encouragement will enable Nigeria to replicate Brazil’s achievement in biofuels production. “Our roles via encouraging production by investors will boost production of liquid fuels and eliminate smuggling across the border. This again will boost Nigeria’s foreign exchange earnings,” he said.

  • Senate may sanction parastatals over audit report

    Senate may sanction parastatals over audit report

    The Senate may sanction some Federal Government parastatals and agencies for failing to submit their audited accounts to the Office of the Auditor-General for the Federation.

    Findings by the Senate Committee on Public Accounts showed that some of the parastatals and agencies have not submitted their audited accounts since they were established.

    Section 85(3)(b) of Nigeria Constitution prescribes yearly submission of audited accounts and reports by every establishment under the federal government.

    The Chairman Senate Committee on Public Accounts, Senator Andy Uba, presenting a report of his committee at the Senate on yesterday, called on the affected parastatals to submit their audited report by March.

    He warned that the Senate might not treat the budgetary allocation of any of the parastatals that failed to comply.

    The committee directed the Office of the Auditor General to constantly update and reconcile the accounts of the parastatals to ensure compliance.

    The committee also directed the Auditor General Office to liaise with the Bureau of Public Enterprise (BPE) and the office of the Secretary to the Government of the Federation for clarification on the status of privatised or merged/scrapped parastatals.