The Nation Newspaper

Tag: Senator Hope Uzodinma

  • Dud cheque: Court okays publication of summons against Sen Uzodinma

    …Fixes Oct 29 for his production

     

    A court in Abuja has ordered the publication of public summons against Senator Hope Uzodinma (representing Orlu Zone, Imo West) following the failure of security agents to produce him despite a pending arrest warrant issued against him.

    Justice Abdulwahab Mohammed of the Grade One Area Court, Kubwa, Abujan who gave the order in a ruling on Tuesday, relied on the provisions of sections 41 and 42 of the Administration of Criminal Act (ACJA) 2015.

    Read Also:IGP, others urged to execute arrest warrant on Uzodinma

    The order requires that public notices are issued and published either in a newspaper with wide circulation or paste in conspicuous places, indicating that the Senator was being wanted in court to answer to a criminal summons pending against him.

    Sections 41 and 42 of the ACJA state as follows:

    (41) Where a court has reason to believe, whether after evidence or not, that a suspect, against whom a warrant of arrest has been issued by itself or by any court or Justice of the Peace, has absconded or is concealing himself so that the warrant cannot be executed, the court may publish a public summons in writing requiring that person to appear at a specific place and a specific time not less than 30 publishing the public summons.

    1. (1) A public summons shall be published:

    (a) in a newspaper that enjoys wide circulation or circulated in any other medium as may be appropriate.

    (b) by affixing it to some conspicuous part of the house or premises or to some conspicuous place in the town or village, in which the person ordinarily resides; or

    (c) by affixing a copy to some conspicuous part of the High Court or Magistrate’s court building.

    (2) A statement in writing from the Judge of the High Court or a Magistrate to the effect that the public summons was duly published on a specified day , shall be conclusive evidence that requirements of this section have been complied with and that the public summons was published on such day.

    The court had, on September 18 this year, issued a warrant of arrest against Uzodinma following his failure to attend court to answer to a direct criminal complaint lodged against him by by Chima Akuzie and a firm, Chitex Ventures Ltd.

    In the complaint marked: CR/358/2018,with Uzodinma and his companies – Smiec Engineering and Chemical construction company‎ and Niger Global Engineering and Technical company Limited – listed as defendants, the complainants claimed that the Senator issued them a N200 million UBA dud cheque (bounced cheque).

    Akuzie said Uzodinma subcontracted to his company a shore-line protection contract in Koko, Delta State, which he (Uzodinma) got form the Niger Delta Development Commission (NDDC) and that the cheque was intended to pay for the execution of the project.

    The Tuesday’s ruling by Justice Muhammad was on an application by complainants’ lawyer, Oluwatosin Ojaomo, who noted that despite the arrest warrant issued by the court, and served on all security agencies in the country, the 1st defendant (Uzodinma) and his lawyer were absent in court.

    He recalled that the court issued an arrest warrant against the 1st defendant on the last date. He said the warrant was served on the Inspector General of Police and other security agencies in the country.

    Ojaomo added that the 1st defendant’s absence on Tuesday means that security agencies have been unable to arrest him because he was hiding.

    He urged the court to invoke the provisions of sections 41 and 42 of the ACJA to allow the publication of public summons against the 1st defendant so that anybody who comes across him can arrest him and produce him in court.

    Ojaomo added: “The implication of this is that the 1st defendant will now be regarded as a wanted person that could be arrested and brought to court by anybody and by any means.

    “This is because without his presence in court, the case cannot go on, because our law requires that a defendant must be present for trial to be conducted in a criminal case.”

    Ojaomo also placed before the court, a copy of the petition he wrote against Uzodinma and his lawyer, Eze Oguaju, accusing them of attempting to bribe Justice Yusuf Halilu of the High Court of the Federal Capital Territory (FCT), before who they had sought to stay proceedings in the court before the Area Court.

    The petition dated September 25, 2018 is addressed to the Chief Judge of the High Court of the FCT.

    Justice Mohammad has adjourned to October 29 for Uzodinma’s production in court.

  • Imo APC adopts indirect primary

    Some stakeholders in Imo State’s APC are stoutly opposed to the party’s adoption of direct primary option, a development that may play up during the governorship primaries, reports Okodili Ndidi, Owerri

    The Imo State chapter of the All Progressives Congress (APC) is working round the clock to avoid any form of internal crisis that may result from the primaries. To this extent, the leader of the party in the state, Governor Rochas Okorocha, and other stakeholders have been holding talks with the aspirants with the intention of pruning down the number ahead the primaries.

    The State Executive Committee (SEC) has adopted indirect primary as the mode to elect its candidates for the 2019 elections after extensive consultations.

    The decision was reached at an emergency State Executive Committee (SEC) meeting presided over by the state Chairman of the party, Mr. Daniel Nwafor.

    The motion for the adoption of the indirect primaries was moved by the APC Chairman of Nwangele Local Government Area, Mr. Jude Mbamara and seconded by Obinna Egu, member representing Ngor-Okpala Council Area in the state House of Assembly.

    Speaking further on the development, the APC state Chairman said it was the unanimous decision of members of the party.

    He said it reflects the minds of the larger population of members of the party, adding that the APC Constitution allows for both direct and indirect modes for election of candidates.

    According to him, “the NEC was specific that states should adopt any of the modes that best suite its peculiarities and the Imo State chapter, after holistic deliberations among members and stakeholders, has adopted the indirect mode”.

    But members of the Coalition Group, a pressure group within the Imo State chapter of the party, are kicking against the indirect primary and are instead calling for direct primaries’ model.

    Members of the group, including the Deputy Governor, Prince Eze Madumere, Senator Hope Uzodinma, Toe Ekechi, Hillary Eke, among others, noted that they will be shortchanged in the indirect primary mode.

    But Nwafor has assured of level playing ground for all aspirants.

    He said the priority of the party is to win all elective offices in the state, as well as deliver President Muhammadu Buhari.

  • IGP, others urged to execute arrest warrant on Uzodinma

    The Inspector General of Police (IGP), Ibrahim Idris, and heads of other security agencies have been urged to give effect to the arrest warrant issued against Senator Hope Uzodinma by an Abuja court.

    A judge of the Grade One Area Court, Kubwa, Federal Capital Territory (FCT), Abuja, Abduwahab Muhammad, issued the arrest warrant on Tuesday (September 18, 2018) following his (Uzodinma’s) failure to attend court to answer to a criminal complaint pending against.

    Read Also:Offa robbery: IGP directs service of summons on Saraki

    The judge, while issuing the arrest warrant, noted that Uzodinma has consistently failed to attend court to answer to criminal complaint, pending against him, despite evidence of being served with court summons.

    The judge, acting under Section 478 of the Administration of Criminal Justice Act (ACJA), entered a not guilty plea for Uzodinma’s companies – Smiec Engineering and Chemical construction company‎ and Niger Global Engineering and Technical Company Limited – named as defendants with the Senator in the complaint marked: CR/358/2018.

    The complaint was lodged against Uzodinma and his two companies by Chima Akuzie and his company, Chitex Ventures Ltd, who claimed that the Senator issued them a N200 million UBA dud cheque (bounced cheque).

    Akuzie said Uzodinma subcontracted to his company a shore-line protection contract in Koko, Delta State, which he (Uzodinma) got form the Niger Delta Development Commission (NDDC) and that the cheque was intended to pay for the execution of the project.

    The request for the IGP and others to help execute the arrest warrant is contained in a letter written on September 19 this year by lawyer to the complainants, Oluwatosin Ojaomo.

    The letter reads in part: “We are solicitors to Chitex Ventures Ltd and Chima Akuzie hereinafter referred to as our clients and on whose firm and express instruction we write this letter.

    “Our client being the complainant in case Number CR/358/358/20l8 which came up before the above-mentioned court was granted an application to compel the appearance of the first defendant in the matter, Senator Hope Uzodinma, currently serving as the Senator of the Federal Republic of Nigeria, representing Orlu Senatorial zone of Imo State by effecting his arrest so that he can he brought before the honourable court in respect of a criminal complainant against him, so that he can be dealt with by law.

    “We wish to formally request for the execution of warrant of arrest issued against the said Senator Hope Uzodinma by the Grade One Area Court, sitting at Kubwa, Arab Road in Federal Capital Territory, Abuja.

    “Base on a criminal complaint filed against Senator Hope Uzodinma and 2 others by Chitex Venture Ltd and one other, on the 3rd day of September 20l8 the honourable judge, exercising his judicial power under the provision of Section 83 of the Administration of Criminal Justice Act. 20l5 issued a criminal summons to the accused person to appear in court to respond to the allegations against him, but the said criminal summon was disobeyed which culminated in the issuance of a warrant of arrest to ensure the accused person appears in court for the purpose of arraignment.

    “In view of the above stated facts. we wish to formally request that you use your good office to ensure immediate execution of the warrant of arrest in compliance with the provision of Section 43 and 44 of the Administration of Criminal Justice Act, 20l5, we are confident that with the network of the police formations in Nigeria, the accused person will be arrested without any difficulty as the Nigeria police has the manpower to successfully execute this order.

    “We are also not unmindful of the directive of the court to all law enforcement agents in Nigeria to ensure the arrest and production of the accused person before the court.

    “Finally, we wish to intimate you that the matter has been adjourned till the 25th of September 2018 for the defendant to be produced before the court to take plea on the charge.”

     

  • Court orders arrest of Uzodinma over N200m dud cheque

    A court in Abuja has issued a bench warrant for the arrest of Senator Hope Uzodinma (representing Orlu Zone, Imo West) for allegedly issuing a N200million dud cheque (bounced cheque).

    Justice Abdulwahab Mohammed of the Grade 1 Area Court, Kubwa, Abuja, in a ruling yesterday, noted that Uzodinma has consistently failed to attend court to answer to a direct criminal complaint, pending against him, despite evidence of being served with court summons.

    The judge, acting under Section 478 of the Administration of Criminal Justice Act (ACJA), entered a not guilty plea for Uzodinma’s companies – Smiec Engineering and Chemical Construction Company? and Niger Global Engineering and Technical company Limited –  named as defendants with the Senator in the complaint marked: CR/358/2018.

    The ruling was on an oral application made by lawyer to the complainants, Oluwatosin Ojaomo, who noted that Uzodinma was absent in court despite being represented on the previous date by a lawyer, Eze Oguaju, and being aware of the proceedings slated for September 18.

    Ojaomo, who noted that Oguaju was also absent, asked the court to invoke Section 131 of the ACJA 2015 against the defendants by issuing a bench warrant to compel their appearance in court.

    The complaint was issued against Uzodinma and his two companies by Chima Akuzie, and his company, Chitex Ventures Ltd, who claimed that the Senator issued them a N200 million UBA dud cheque (bounced cheque).

    Akuzie said Uzodinma subcontracted to his company a shore-line protection contract in Koko, Delta State, which he (Uzodinma) got form the Niger Delta Development Commission (NDDC) and that the cheque was intended to pay for the execution of the project.

    In his ruling, Justice Mohammed noted that at the last date (September 11), the court rejected a similar application by the complainant to afford the defendants the opportunity to attend court by themselves.

    The judge noted that Oguaju also promised to ensure that his client attend court on the next date. He further noted that the court had warned that it would, suo motu (on its own) invoke Section 131 of the ACJA should Oguaju renege on his pledge to ensure that his client attend court.

    He adjourned to September 25 for arraignment.

  • Imo APC disowns Uzodinma

    …Senator cautioned on dropping Buhari’s name

     

    The leadership of the Imo State Chapter of the All Progressives Congress (APC) Monday said the Senator representing Imo West Senatorial zone, Senator Hope Uzodinma is not a member of the party.

    The State Chairman of the party, Mr. Daniel Nwafor, told journalists in a press conference at the party’s secretariat in Owerri, that the Senator, who runs a parallel APC office in the state, has not registered with the party both at his Ward and Local Government and is also not known by the State Executive Committee of the party.

    The party leadership also cautioned the Senator against dropping the names of President Muhammadu Buhari and the National Chairman of the party, Comrade Adams Oshiomole for selfish pursuits.

    Read Also:PDP leader joins APC in Akwa Ibom

    Nwafor stated that the Senator does not represent APC, adding that the party has just one authentic Executive that has been authenticated by various Court judgments.

    According to him, “In the last few days our party has been inundated with calls over the activities of some persons who are posing as members of the APC. Our party is particularly disturbed that this group of people whose nefarious activities as spearheaded by a Senator from this state, Senator Hope Uzodinma. Senator Uzodinma has been misleading the public about certain issues concerning our party. Sunday, our attention was drawn to a kangaroo meeting that was supposedly held by a faction of this party led by Senator Hope Uzodinma. We want to put it on record that Senator Uzodinma is not a member of the APC; his Omuma Ward Chairman has not informed the party that Senator Uzodinma has joined the party.

    “Also Senator Uzodinma has not declared on the floor of the Senate that he has joined the APC, THE Imo State Executive of our party is not aware that he is a member of this party. There has been a lot of statements credited to him inferring that the President Muhammadu Buhari and our Nation Chairman, Comrade Adams Oshiomole have empowered him to determine delegates and aspirants, as well as run this party.

    “We want to inform the National Executive Committee of our party that to the best of our knowledge, Senator Hope Uzodinma is not a member of APC. If there are waivers for him, we have not been communicated formerly”.

    Nwafor continued that, “before anyone in the Presidency or National Headquarters of our party, deals with Senator Hope Uzodinma, it is pertinent that the person as the question, who is Senator Hope Uzodinma, what are his antecedents. After you have determined these two important questions, who will now know how best to deal with him. APC as a party in this state has just one leader and that is Governor Rochas Okorocha and it is on record that when this party was tagged Boko Haram in this state, Governor Okorocha won elections with the party. There is also one state Chairman that has been affirmed by several Court judgments and that his Daniel Nwafor, my humble self”.

    Explaining the adoption of indirect primaries by the SEC as the mode for selecting the party’s candidate, Nwafor stated that it was in line with the directive of NEC reached at its last meeting.

    In his words, “at the NEC direct primary mode was adopted to choose the Presidential candidate, while states were asked to go and meet and choose their preferred mode among the direct, indirect and consensus modes and in line with that, the Imo SEC of our party met and adopted the indirect mode and we have also communicated same to the NEC as directed”.

  • N30tr revenue scam: Senate to hand over erring firms to EFCC

    N30tr revenue scam: Senate to hand over erring firms to EFCC

    Senate Wednesday said that arrangements have been concluded to hand over companies found culpable in its investigation of alleged N30 trillion revenue scam in the import and export value chain to Economic and Financial Crimes Commission (EFCC) for prosecution.

    Chairman of the Senate Joint Committee on Customs, Excise and Tariff and Marine Transport, Senator Hope Uzodinma, stated this in Abuja while briefing reporters on the activities of his committee.

    Uzodinma noted that companies to be handed over to the EFCC were “those discovered to have  manipulated the foreign exchange procedure and others involved in money laundering, round tripping and  abuse of foreign exchange manual.”

    He said the committee would pass all established evidence against the companies to the EFCC for immediate prosecution.

    Uzodinma said that companies with established cases of infractions of import, export value chain would be referred to the Nigeria Customs Service for blacklisting.

    He said, “We have also established another department for investigation, which is abuse of fiscal policies in the Federal Ministry of Finance.

    “Most of these companies that have applied and received approval as manufacturers of different products, assemblers of various products but import finished goods in the name of CKD will be charged for economic crime.

    “We are going to follow up the prosecution with all evidences available to us.

    “As we are about concluding our investigation on the 60 selected companies being currently investigated, it is very clear that so much collectable revenues are still hanging.

    “These are monies that government would have used to ease governance and provide necessary  infrastructure and amenities to the citizenry.

    “So, this committee will not sit back and allow the economy to crumble.  This is just 60 selected companies. We are visiting over 1000 companies.’’

    Uzodinma noted that the 60 companies in its first phase of investigation, the committee had been able to interact with 50 while 10 of the companies refused to appear.

    He insisted that the committee would ensure that the companies were fished out by the relevant security agencies to face justice.

    On the funds recovered so far, he said a significant amount of money had been returned by some companies.

    He said “Many of those companies have paid partially. I know that with the evidences we have against them we are confident that these companies are now aware that we caught them.

    “We cannot let go of what belongs to government.”

    He added that the committee took time to carry out preliminary investigation because it needed to establish the necessary benchmark.

    He said, “Now that we have all that and the modus operandi has been established we will put it on auto pilot and it will be faster.’’

  • Documents expose how “Port Cabal” sleaze Nigeria of over N30 Trillion.

    Documents expose how “Port Cabal” sleaze Nigeria of over N30 Trillion.

    The Senate Thursday said that it is in possession of documents which exposed how “port cabal” sleaze Nigeria of over N30 trillion recently.

    Chairman Senate Joint Committee on Customs and Marine Transport investigative panel, Senator Hope Uzodinma, disclosed this Thursday.

    Uzodinma said that preliminary findings by his committee into activities of Customs, financial leakages and malpractices in the country’s port and revenue system have shown evidence of how “a group of unpatriotic persons brazenly constitute themselves into cabal to inflict infractions at the nation’s sea ports.”

    He lamented that the infractions have become a daily occurrence at the country’s sea ports.

    He accused commercial banks, shipping companies, terminal owners and operators of conniving with officials of Customs and Nigeria Port Authority (NPA) to defraud the country in trillions of Naira.

    He said that the infractions come in various forms beginning with abuse and violation of foreign exchange issued by Central Bank of Nigeria, incorrect classification and under valuation of vessels coming into the country.

    Last week the Senate investigative panel asked the Managing Director of Nigeria Port Authority, Hadiza Bala Unman to account for 282 missing vessels.

    The panel wants NPA and Customs to explain why it did not collect any charges on the vessels and who authorized the release of the vessels from the ports.

    Uzodinnma said all those involved in the transaction have four days to come clean or face prosecution.

    He said, “Senate, determined to end the villainous assault on the economy of the nation and has taken the bull by the horn and set to get to the bottom of this organized crime and come up with future proof and ways of eradicating this gruesome menace.”

    Uzodinma said in carrying out its investigation,  the panel shall be minded by the reality that those who want to bleed the nation to death without remorse must be dealt with without reprieve.

    He said those indicted in this crime will be made to face the full wrath of the law.

    The CBN has up to next Monday to verify claims of remittances by commercial banks.

    The panel is however disappointed at how Customs has over the years managed the Free Trade Zone, accusing it of allowing the free trade zone to be used for smuggling goods into the country.

    Declaring the probe open, Senate President Bukola Saraki who was represented by senate Minority Leader, Emmanuel Bwacha asked the panel to do a thorough job.

    He said Senate intends to use this oversight function to expose corruption and ensure that all the loopholes and leakages in the revenue systems are fully and comprehensively sealed.

    He said the Senate under his watch would not sit by and allow a sleaze of this magnitude to continue.

     

  • 282 vessels disappeared from NPA terminals in six years, says Senate

    282 vessels disappeared from NPA terminals in six years, says Senate

    The Senate Monday raised the alarm over the disappearance of over 282 vessels from the custody of the Nigerian Port Authority (NPA) within the last six years.

    Chairman, Senate Committee on Customs, Excise and Tariff, Senator Hope Uzodinma, raised the alarm at an investigative public hearing on smuggling in the country.

    Uzodinma said that the 282 vessels were missing from various terminals of the NPA.

    He noted that documents at the possession of the Senate clearly showed that the vessels disappeared between 2010 and 2016 without traces.

    He said, “We want the NPA to come and explain what happened to the 282 vessels that disappeared from the terminals. We have names of the releasing officers.”

    Uzodinma who described NPA as critical in the investigation, lamented that the body failed to send any representation to public hearing.

    On smuggling of goods into the country, he said that reports had detailed the huge harm done to the country’s economy by the activities of smugglers.

    He said, “Those that may imagine that this is an exaggeration should do well to refer to a recent report of the World Bank on smuggling in Nigeria.

    “The report was unequivocal in stating that an astonishing five billion dollars or N1.45 trillion worth of different goods are smuggled into Nigeria annually through Benin Republic alone.

    “Yet this is only 15 per cent of the total volume of smuggled goods through the Seme border.

    “The figure of goods smuggled through the sea ports is even more mind boggling.

    “The report has it that over $15billion or N4.35 trillion worth of goods are smuggled into the country each year through the sea ports. The story is the same for our international airports.

    “Put together, it means that goods worth over N7trilion are smuggled into the country each year.”

    He said that it was more frightening to note that the annual turnover in the hands of smugglers was more than the country’s annual budget.

    He said the World Bank report further showed that over 25 per cent of the total annual revenue collected by Customs was lost to smugglers each year.

    “If you go by the projected revenue of the service for this year, which is approximately N600 billion, it means the service will lose about N200 billion in revenue this year alone.’’

    Illegal importation of goods into the country, he said, had equally affected local industries, leading to loss of jobs and closure of industries.

    He lamented that smuggling is fast proving to be the biggest industry in Nigeria and must be fought to a standstill.

    Uzodinma noted that there were other areas of leakages, arising from miss-invoicing by international traders, abuse of free trade zone policies and temporary import permit.

    He urged the stakeholders make useful submissions that would aid the committee in its investigation.

    He said, “I expect that those of you who have expert knowledge or privileged information on why this cankerworm has continued to pervade our economy should equally come forward with them.

    “No serious legislative arm of government will sit supine while smugglers are allowed to ravage the economy and deny the government huge sums of legitimate revenue.

    “This senate is determined to put an end to this smuggling malady and this investigation is designed to facilitate that,’’ he said.

  • Senate to confirm appointment of CG of Customs Service

    Senate to confirm appointment of CG of Customs Service

    The Senate has passed a bill that would make it mandatory for the President to seek confirmation of the appointment of the Comptroller General for the Customs Service.

    The bill also makes it mandatory for the President to appoint the Comptroller General from officers within the Customs Service. The present CG, Col. Hammed Ali was appointed from outside the service.

    Introduction of the new bill has caused a repeal of the existing Customs and Excise Management Act, Cap. C45, Laws of the Federation of Nigeria, 2004.

    It has scrapped the Customs Governing Board and replaced it with the Customs Service Commission.

    The upper legislative chamber argued that “The office of the Comptroller General of Customs is sufficiently sensitive to warrant scrutiny by the Senate and thus ensure that the best possible candidates occupy that position”.

    Senators also inserted a clause that makes it mandatory for the federal character law to reflect in the appointments of Deputy Comptrollers General, Assistant Comptrollers General.

    A provision in Clause 13 Subsection (2) makes it mandatory for the Customs Service Commission to determine the numbers and duties of Deputy Comptroller General and Assistant Comptroller General.

    The Commssion is to be headed by a chairman, who would be a retired career Comptroller General or Deputy Comptroller General, who would be appointed by the President an initial tenure of four years.

    The appointment of the chairman of the commission is also subject to confirmation by the Senate, and the tenure is renewable once.

    The bill, entitled, “A Bill for an Act to Repeal the Customs and Excise Management Act, to Establish the Nigeria Customs Service, Reform the Administration and Management of Customs and Excise in Nigeria, was passed following the adoption of the report of its Committee on Customs, Excise and Tariff.

    Section 13 of the Bill made it clear that only a serving officer in the Customs Service should be qualified to be appointed CG

    The section stated in parts, “The President shall appoint from the Customs Service, subject to the confirmation of the Senate, a Comptroller General who shall be responsible for the over all management of the Customs Service.

    According to the bill, the Commission would be responsible for managing policies of the Customs Service or matters pertaining to administration, assessment, collection and accounting for revenues, as may be directed by the Minister of Finance from time to time.

    It would also be responsible for managing all issues relating to employment, training, welfare, and discipline of officers of the Customs, with the approval of the appropriate authority of the Federal Government.

    The bill consolidated into a single reference document, the Customs Service legal authority, which is embodied in multiple enactments, with the view to bringing the Customs and Excise Management Act (CEMA) 1958, in line with modern day reality and international best practices.

    Chairman of the Senate Customs committee, Senator Hope Uzodinma explained that the service would also be financed from a seven percent cost of collection of import duty, excise and fees, special levies, revenues derived from assessment and collection of cost based user fees, and from budgetary provisions.

    Uzodinma said, “The new bill will substantially enhance revenue generation and facilitate trade through full implementation of modern customs procedures that will evolve consistent, transparent and predictable environment for international trade in line with internally accepted norms and practices”.

    The senator added that the bill would also ensure pre-shipment and post shipment inspection at point of origin and destination, to reduce the incidence of illegal importation of weapons and other lethal items.

    “It strengthens the full implementation of pre-shipment laws of the country through the provisions for screening as a prerequisite for clearing goods into the country, not only adds to the expedited clearing system, but empirically improves the security of the nation by minimising the unfettered access into the country of illicit goods, prohibited narcotics, proliferation of small arms and toxic cargoes”, Senator Uzodinma added.

    The bill also made provisions for the use of modern Information Technology (IT) platforms and systems, including electronic documents, signatures and electronic payments, as well as application of Risk Management and other IT related issues.

    It also provides for the publication of a tariff handbook, subject to approval of the National Assembly, with the view to curtailing arbitrary tariff reviews.

     

  • Senate probes banks over N30tr foreign exchange manipulation

    Senate probes banks over N30tr foreign exchange manipulation

    The Senate Wednesday launched investigation into alleged foreign exchange allocation manipulation involving over N30 trillion.
    Many banks operating in the country were fingered in the deal said to have been perpetrated between 2006 and 2017.
    The banks were specifically queried over alleged manipulation and connivance with importers to defraud the country of huge sums of money.
    The investigation followed Senate mandate to its Committee on Customs and Excise to probe and identify revenue leakages and malpractices in the import and export chain.
    Chairman of the committee, Senator Hope Uzodinma who invited chief executives of banks handed them bulky documents detailing the amount of foreign exchange they received on behalf their importer customers.
    Uzondinma gave the banks three weeks to furnish the committee with details of the utilization of the foreign exchange they bought on behalf of their customers.
    He noted that preliminary investigation by the committee showed malpractices ranging from unutilised Form M, abandoned Form M, partially utilised Form M, abandoned assessments of Custom duties and foreign exchange allocation manipulation.
    Uzodinma said, “You recall Senate that in plenary mandated this committee to investigate and identify areas of revenue leakages in the entire import and export circle.
    “The committee started investigation and took time to enter into the import and export value chain and identified supposedly areas of leakages and malpractices, ranging from unutilised Form M, abandoned Form M, partially utilised Form M, abandoned assessments of Custom Duties and foreign exchange allocation manipulation.
    “We have been able to also go into the database of the operating system in the Nigerian Customs Service. We identified Form M by Form M, import by import, vessel by vessel, liabilities of importers and commercial banks that are yet to be handled.
    “We are talking about monies in the regions of over N30trillion. We have been able to give all this information to the various banks who purchased foreign exchange on behalf of the importers to go home and come back to show us evidence of utilisation of the forex.
    Failure of the banks to give evidence of utilization they will be compelled to refund the foreign exchange they bought from Central Bank of Nigeria or inter-bank, purposely to be used for import.
    “What we are saying in essence is that the amount of foreign exchange government is giving out to commercial banks and importers for the purposes of importation are not being utilised as agreed.
    “This is making foreign exchange scarce in the market. In essence making the foreign exchange that government is giving to importers not to be tied to activities of importation.
    “So, we don’t see this as a healthy development because in the process, some Asian companies are now round-tripping, sending monies that they don’t deserve out of this country without due process.
    “I’m sure that by the time we conclude this investigation and action plan that we set out to implement, I can tell you that the exchange rate will come down drastically because only genuine importers will now enjoy government forex allocation.”
    On the banks involved, Uzodinma said that no bank is exempted.
    He said, “All the banks are involved; the banks that are dead and the ones living. The ones that are no more operating were acquired by some banks. So, the activities of those that are no longer in operation we have been able to tie them to those that acquired them as part of the liabilities. Of course, we will expect that most of the banks that acquired these banks must have carried due diligence on them.”

    On why banks alone were fingered in the deal, Uzodinma said that the Foreign Exchange Utilisation Manual prepared by the Central Bank as a regulation guiding import and export entrusted commercial banks quantum of responsibilities.
    He explained that banks purchase money on behalf of the importers.
    “So, once you are acting on behalf of somebody the offence or the inaction of that person is your own inaction. We are now calling the banks because they are supposed to be the gateway for us to enter into the stream.
    “So, by the time the banks who must have carried out Know Your Customer programme, they know the addresses, the places of these importers and they are the people that opened Form M for them.
    “They are the people that purchased foreign exchange for them. The regulation requires them to monitor to ensure that these importers pay the correct custom duties on the importation. Also, there is what we call Bills for Collection.  It is the responsibility of the banks to know, ascertain and confirm that the documents sent as Bill for Collection that will warrant the release of the forex to the exporter are genuine. It is contained in the manual,” he said.
    Uzodinma said that Minister of Finance, CBN governor, Minister of National Planning and Comptroller General of Customs have been invited to appear at the next sitting of the committee on the issue.