Tag: Settlement

  • Settlement banks to keep N15b T-Bills at CBN

    The Central Bank of Nigeria (CBN) has asked settlement banks to provide clearing collateral of not less than N15 billion worth of treasury bills for them to perform settlement roles.

    The directive was contained in the CBN’s Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2018/2019 released by the regulator.

    The CBN said it will continue to categorise banks into settlement and non-settlement banks for the purpose of clearing and settlement. It said settlement banks participate directly in the clearing houses and receive their net clearing position in their settlement account with the CBN while non-settlement banks receive their net clearing position through the settlement account of their settlement bank.

    “Any bank applying for direct participation as a settlement bank shall be required to possess the capacity to provide the required clearing collateral of N15 billion, subject to periodic review. It shall have the ability to offer agency facilities to other banks and to clear and settle on their behalf. It shall also have adequate branch network, in all the CBN locations,” the CBN said.

    “Banks that meet the specified criteria shall continue to be designated as “Settlement Banks.” Consequently, non-settlement banks, called “Clearing Banks” shall continue to carry out clearing operations through the settlement banks under agency arrangement. The terms of agency arrangements shall be mutually agreed between the Settlement Banks and the Clearing Banks,” the CBN said.

    The CBN said it would continue to adopt the risk-based supervision (RBS) approach in the supervision of institutions under its regulatory purview. “The objective of the RBS approach is to provide an effective process to assess the safety and soundness of banks and other financial institutions. This is achieved by evaluating their risk profile, financial condition, risk management practices and compliance with applicable laws and regulations,” it said.

    It enjoined banks to pursue profitability in their business models through efficient operations adding that they should charge competitive rather than excessive rates of interest in the course of their transactions. The lenders are also to disclose their prime and maximum lending rates as fixed spreads over the Monetary Policy Rate.

  • Diezani cash: EFCC rejects ex-minister’s settlement offer

    Diezani cash: EFCC rejects ex-minister’s settlement offer

    THE Economic and Financial Crimes Commission (EFCC) has rejected an offer for an out-of-court settlement by a former Minister of the Federal Capital Territory, Jumoke Akinjide, who was accused of money laundering.

    Akinjide was charged with former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke (who is said to be at large), a former Senator Ayo Adeseun and a People’s Democratic Party (PDP) stalwart, Chief Olarenwaju Otiti.

    They were accused of conspiring to directly take possession of N650 million, which they reasonably ought to have known forms part of the proceeds of an unlawful act and without going through a financial institution.

    Justice Muslim Hassan had adjourned to enable parties conclude the settlement talks after Akinjide’s lawyer Chief Bolaji Ayorinde (SAN) reported that the N650 million had been returned.

    Yesterday, EFCC’s lawyer Nnaemeka Omenwa, who stood in for Rotimi Oyedepo, said he was instructed to turn down the proposal.

    “I have instruction to reject the proposal as it’s not in line with the provisions of the Administration of Criminal Justice Act (ACJA). Based on that, we’re ready to go on with the trial, subject to your Lordship’s overriding convenience,” he said.

    But defence counsel Ayorinde and Michael Lana (for second defendant) accused Oyedepo of a breach of agreement.

    Ayorinde said the defendants made a proposal to the prosecution in line with Section 14 of the EFCC Act.

    “For the purposes of your Lordship’s record and because of the public interest that this case seems to unnecessarily attract, our proposal was made in accordance with established laws and there is no fixation on Section 270 of the ACJA.

    “We’re very confident that this case is a sham and we’ll defend it vigorously. It’s political and we’ll show that it’s unnecessary and a waste of time and resources of the court,” Ayorinde said.

    Lana accused EFCC of breaching an agreement reached by parties with regards to the settlement, saying it amounted to a “betrayal”.

    He said the defendants agreed to withdraw a civil suit against EFCC and Oyedepo after the prosecuting counsel indicated that the commission was open to an out of court settlement.

    “Their refusal to consider the terms of settlement is to say the least a betrayal of trust by a lawyer. A representation was made to us that we should withdraw a civil suit we filed. Oyedepo is the first defendant in the suit.

    “He made a proposal to us which we believed. On the day of the first arraignment in Ibadan, Oyedepo and Chief Ayorinde informed the court that they had agreed to settle. But the judge decided that the defendants should be arraigned while the talks continued.

    “We withdrew the suit and the money they requested was paid. That’s why we were surprised when we received a hearing notice. A lawyer’s words should be sacrosanct. That’s an abuse of office. Oyedepo was the initiator of the settlement. That’s like 419. We’re highly disappointed with Oyedepo,” Lana said.

    But, Omenwa denied that the case was politically motivated, adding that there was no proof to support the claims against Oyedepo.

    “The EFCC is not a political party. We’re an independent organisation and are not out to witch-hunt anybody.

    “There is no documentary evidence that they had any such agreement with Oyedepo that they should withdraw their suit. There’s no evidence before my Lord,” he said.

    In his ruling, Justice Hassan said since settlement talks had “broken down,” EFCC was at liberty to call its witness.

    Trial began immediately with Omenwa calling the first witness, a banker, Mrs. Kehinde Adeniyi, who said she is the head of Customer Relations at her bank’s Dugbe, Ibadan branch. She said she knew Akinjide and Adeseun.

    Asked to narrate her connection with them, she said: “On March 26, 2015, I received a call from our Head of Operations Mr. Martins Izuegbe that we should pay the sum of N650 million to Akinjide, Adeseun and Hon. Taiwo Yinka once they produce two means of identification and sign a receipt of payment.

    “They came, signed and the payment was made. The payment was in naira. They came with their Hillux van to pick up the cash in a box.”

    The receipt of payment was tendered in evidence.

    The witness said under cross examination by Ayorinde that she made three statements at the EFCC, which were also tendered in evidence.

    Mrs. Adeniyi said she merely carried out instructions and that she did not know the source of the funds.

    She added that she knew Mrs. Alison-Madueke and that she did not know how the money was used.

    Justice Hassan adjourned until March 8 and 9 for continuation of trial.

  • $11.489m: EFCC rejects Patience Jonathan’s settlement offer

    $11.489m: EFCC rejects Patience Jonathan’s settlement offer

    Former First Lady Patience Jonathan’s bid to settle out of court the brewing dispute over the strange payment of $11,489,069.03 into her domiciliary accounts has been rejected.

    The Economic and Financial Crimes Commission (EFCC) has  asked the ex-First Lady to come before a court by entering into a plea bargain in line with the laws of the land.

    The agency said it would only accept a plea bargain in which the court is carried along.

    Also, EFCC detectives have not been able to trace about 29 of the 31 individuals and companies which made the controversial deposits.

    The development has fuelled speculations that some of the depositors are “fictitious”.

    Some of the shops where the ex-First Lady visited are said to have offered to give details of how much was spent and the items bought.

    The EFCC believes that an out-of-court settlement suggests that there is a dispute between two parties.

    A source, who spoke in confidence, said: “We have considered the January 30, 2018 letter by Dame (Mrs.) Ibifaka Patience Jonathan; we are of the opinion that  her  offer of out-of-court settlement is strange and confounding as if there is a dispute between her and the EFCC.

    “We are certainly rejecting the offer from the ex-First Lady because the EFCC does not engage in such a deal.

    “But we prefer the ex-First Lady approaching a court for plea bargain in line with the relevant laws if she is ready to settle all issues. The terms of the plea bargain will be open to all parties before the court.

    “I think she should emulate other high profile suspects who went to the court for plea bargain. We are ready to apply the laws in the interest of justice for all. We won’t oppose plea bargain.”

    The source said the EFCC would soon make its position known to Mrs Jonathan counsel. “As an officer in the Temple of Justice, we know that the respected Senior Advocate of Nigeria(SAN) will guide the ex-First Lady accordingly,” he said.

  • Etisalat, lenders disagree over $1.2b loan settlement terms

    Etisalat, lenders disagree over $1.2b loan settlement terms

    Local lenders have opposed a proposal by Etisalat Nigeria to convert part of the $1.2 billion loan into naira. Rather, the lenders want its parent, Abu Dhabi telecoms group Etisalat, and its shareholders to recapitalise the telco, it was gathered yesterday.

    A source privy to the negotiations said the seven-year syndicated loan, on which the telco defaulted in payment schedule, has a dollar portion of $235 million which the carrier wants to convert into naira to overcome chronic foreign exchange (forex) crunch at the interbank market.

    “Etisalat is asking for us to convert the dollar component to naira but banks don’t want that option and have told them to talk to their parent to settle the loan,” Reuters quoted a banking source as saying. The source said the regulators, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which had waded into theimpasse and prevented a possible takeover of Etisalat Nigeria are favourably disposed to the  naira conversion idea.

    Vice President, Regulatory and Corporate Affairs at Etisalat, Ibrahim Dikko, said he would not be able to give update about the outcome of discuissions with the lenders. He promised to do that today.

    The UAE’s Etisalat own 45 per cent of Etisalat Nigeria, while Abu Dhabi’s Mubadala owns 40 per cent of the company.

    This meeting came about after the CBN and NCC agreed with local banks to prevent Etisalat Nigeria from going into receivership.

    Global crash in oil prices has seen the country grappling with forex shortage since oil is the country’s major forex earner. The economy slipped into a recession last year for the first time in 25-years.

    Most of the 13 lenders involved in the loan syndication had raised dollars abroad to participate, meaning that further naira weakness would see them receive fewer dollars.

    The currency had lost half of its value since the loan, which matures in 2020, was made. Interest is due monthly and the next principal payment is due in May, the source said.

    Etisalat, which generates 3.7 per cent of its revenues from the Nigerian business, has questioned the rationale of investing more in it and may sell its stake, sources say.

    Etisalat had written down the value of Etisalat Nigeria last year to $50 million due to naira weakness, Moody’s said in a note, adding that the default at the affiliate company did not affect the parent’s credit profile.

    Etisalat owes GT Bank N42 billion, and Access Bank N40 billion. It also owed Fidelity Bank N17.5 billion, the bank’s investor relations team told Reuters.

    Etisalat  has 20 million subscribers, according to NCC;s figures, making it the country’s number four mobile operator with a 14 per cent market share. South Africa’s MTN has 47 per cent, Globacom 20 percent and Airtel – a subsidiary of India’s Bharti Airtel – 19 per cent.

  • N5b libel suit against Jonathan: Why MEND supports out-of-court settlement

    N5b libel suit against Jonathan: Why MEND supports out-of-court settlement

    Govement for Emancipation of Niger Delta (MEND) has explained its support for Chief Edwin Clark’s out-of-court settlement with the Okah brothers in a N5 billion libel suit against ex-President Goodluck Jonathan.

    MEND, yesterday, in a statement by its spokesperson, Jomo Gbomo, said the out-of-court settlement was in the interest of the Niger Delta, especially at this critical point when the crude oil and gas-rich region, its key actors and stakeholders must speak as one for peace and development.

    The militant group said: “MEND endorses mediatory and conciliatory moves by Chief Edwin Kiagbodo Clark to reconcile the Okah brothers -Henry and Charles – with ex-President Goodluck Jonathan on the threat of the brothers to file a N5 billion libel suit against the ex-President at the Federal High Court in Abuja.

    “Our endorsement is coming after Chief Clark held an exploratory meeting regarding amicable and peaceful resolution of the issue with the former President during the week in Abuja. Chief Clark also invited and met separately with counsel to the Okah brothers, Timipa Jenkins Okponipere, on September 1, 2016 in Abuja.

    “The meetings dwelt essentially on an out-of-court settlement of the N5 billion libel suit against the former President. The meetings also dwelt on efforts to find sustainable solutions to the Niger Delta crisis.

    “We are convinced that reconciliation between the Okah brothers and former President Goodluck Jonathan is

  • N1.4 tr fine: MTN proposes N300b settlement deal

    The Senate Committee on Communications yesterday took exception to the way and manner the out-of-court settlement arrangement between the Federal Government and MTN is being conducted regarding the N1.04 trillion fine imposed on MTN.

    The committee also frowned at the alleged shutting out of the Ministry of Communications Technology and the Nigeria Communications Commission (NCC) from the deal.

    The committee which conducted investigative hearing on the matter, expressed shock that an account in the name of “recovery account” was opened for the N50 billion fine paid by MTN as part of the settlement.

    Committee Chairman, Senator Gilbert Nnaji, noted that members of his committee were worried that a proposal initiated by the MTN for the reduction of the fine to N300 billion had been accepted by the Minister of Justice and Attorney General of the Federation, Abubakar Malami, without recourse to the Ministry of Justice and the NCC.

    The committee said it has emerged that an initial 25 per cent reduction of the initial N1.04 trillion fine to N780 billion was on the order of the President Muhammadu Buhari.

    The committee brandished a document which showed the proposal by MTN indicating to pay N300 billion made up of N150 billion instalmental payment.

    The document further indicated that the N50 billion already paid by MTN is part of the settlement deal.

    It said parties have agreed that the N50 billion paid in good faith and without prejudice by MTN Nigeria on the 24th of February, 2016, in order to commence settlement negotiations will form part of the monetary components of the settlement in five equal and annual instalments between the date of execution of this agreement and 31 December, 2020.

    It said MTN Nigeria shall pay a total of N100 billion by electronic funds transfer to the Federal Recovery Account of the Central Bank of Nigeria (CBN).

    The payment, it said, will commence by 31 December, this year and will be made by 31 December of each subsequent year”

    The proposal also stated that the MTN would buy N80 billion worth of Nigeria’s foreign bond.

    The proposal which the committee said it got from the office of the Attorney General of the Federation was admitted by MTN.

    Accountant-General of the Federation, Ahmed Idris, who defended himself on allegation of opening the recovery account, told the committee that he acted on the demand of the Attorney-General.

    Idris insisted that he was not aware of what money was going to be lodged into the account.

    A representative of the Attorney-General of the Federation, Mr, Dayo Akpata, who labored to convince the committee about the necessity of opening the account was rebuffed.

    The committee insisted that the Attorney-General must appear in person before it within two weeks to explain the action.

  • $180m Halliburton scandal: EFCC may opt for fresh trial

    $180m Halliburton scandal: EFCC may opt for fresh trial

    Agency to probe how ex-NSA Gusau, others brokered settlement

    Some of the suspects implicated in the $180million Halliburton bribery scandal are likely to be retried, following fresh evidence, it was learnt yesterday.

    Also yesterday, an Economic and Financial Crimes Commission (EFCC) source said it may review claims that a former National Security Adviser (NSA), Gen. Aliyu Gusau and a former Director-General of the Department of State Service (DSS), Col. Kayode Are, facilitated an out of court settlement with five companies on the scandal.

    A document submitted to the EFCC indicated  that the government opted for settlement agreement because of Julius Berger’s strategic roles in the nation’s economy.

    It was also gathered that the EFCC was prevailed upon to adopt plea bargain because the nation’s laws on the subject matter were weak.

    But the anti-graft agency has not foreclosed the trial of the suspects.

    A source said: “The EFCC is making significant progress in its ongoing investigation and at the end of the day, it may retry some of the suspects implicated in the scandal. Already, one of the suspects has a pending application before the Supreme Court.

    “There are other suspects who will also be arraigned, depending on the outcome of our investigation. All the key actors have written us to explain their roles.

    “We are probing the role of all past and present public officers involved in the deal.”

    In one of the documents made available to the EFCC, it was recommended that there is nothing wrong in prosecuting suspects afresh if there are new evidence.

    “On the issue of the Nigerians involved, we opted in the exercise of the prosecutorial discretion to charge them piecemeal and the lawyers commenced the prosecution. The proceedings were however not as fast as we expected because of lack of sufficient evidence and witnesses.

    “There is nothing stopping the EFCC from proceeding with these cases if they now have sufficient evidence and the requisite witnesses to prosecute instead of trying to impugn a transaction they initiated, participated and consummated. It should be noted that the EFCC vetted and co-signed all the Non-Prosecution Agreements.

    “Given the entirety of the circumstances and the facts at our disposal at the time the negotiations were conducted, we did our best to preserve the national interest.

    “Government is therefore invited to objectively review the transaction in order to arrive at an informed position and should not rely on the misconceived views and opinions of persons and agencies that have an interest to serve.”

    A document obtained by our correspondent yesterday confirmed the ongoing investigation by the EFCC that many public officers played some roles in the deal with the five companies.

    It alleged that Gen. Gusau and Col. Are facilitated out of court settlement with five companies on the $180million Halliburton bribery scandal.

    The document, which is being reviewed by the EFCC, states in part: “As soon as the criminal suits were filed, the then NSA, General Aliyu Gusau, called for an Out of Court Settlement in view of the strategic role that Julius Berger (one of the companies implicated in the bribery scandal) plays in our economy.

    “It was, therefore, agreed that a settlement meeting be held in his office and he nominated the Deputy NSA in the person of Kayode Are to chair the meeting.

    “At the meeting convened for that purpose, we took a critical look at the position of our laws and agreed that our laws on the subject matter were weak and reliance on the penal sanctions provided under the laws, only pittance by way of fines could be realized from the out of court settlement.

    “As a result, we opted to pursue the companies on the ground of ‘reputational damage’ occasioned the country by the alleged acts of bribery.

    “It was therefore resolved that the companies involved would be asked to pay fines for reputational damage to the country.

    “To serve as deterrence, it was agreed that companies involved would be made to disgorge 5 (five) times the amount that was transmitted through them and also pay the solicitors’ fees as was done in the Pfizer’s case involving the Federal Government.

    “That was how Julius Berger was made to pay $26million to the Federal Government of Nigeria exclusive of the solicitors’ fees, which was paid to them directly. This was with the knowledge and involvement of the EFCC nominated lawyer and Secretary.

    “This strategy became the threshold for negotiations with the rest of the companies at the instance of the EFCC themselves who came up with a lot of companies to negotiate and pay the FGN directly through the CBN and over $200 million were collected.”

    Also, insights were given on how the five lawyers, who fostered the plea bargain, were appointed.

    The document said in  2010, the then Chairman of the EFCC, Mrs Farida Waziri, got a “letter from some American lawyers to the effect that they wanted to sue Halliburton and other associated companies in respect of the LNG bribery scandal on the understanding that they would be entitled to 33 1/3 of whatever they recovered as professional fees.”

    The document said the government  felt “very uncomfortable with the approach and rather called for the files to  review the entire subject matter and fashion out an appropriate strategy that would best serve Nigeria’s over all interest.

    The document said after a review of the files on the subject, the government came to the considered view that the “best approach would be to assemble a team of Nigerian solicitors working together with the EFFC to commence criminal proceedings against the foreign companies involved, while reviewing on the basis of available evidence how best to deal with the Nigerian individuals involved.”

    To constitute a team to commence prosecution, the lawyers were nominated as follows: the President of the Nigerian Bar Association, Mr J.B. Daudu, SAN, Mr. E.C. Ukala, SAN, Mr. D.O. Dodo, SAN(the Office of the AGF) and the EFCC, nominated Mr. G.O. Obla, SAN and Mr. Emmanuel Akomoye, the then Secretary of the EFCC to participate in the trial and monitor the ensuing negotiations.

    “The then Executive Secretary of the National Human Rights Commission, Mr. Roland Ewubare, was also co-opted because of his extensive experience on the issue from the American perspective, having practised law in the United States of America for a long time.”

    An Abuja High Court on March 27, 2013 struck out the case against six Nigerian suspects arraigned over the Halliburton scandal.

    Those set free were a former Permanent Secretary,  Ibrahim Aliyu, Mohammed Gidado Bakari and four companies.

    The four companies are Urban Shelter Ltd, Intercellular Nigeria Ltd, Sherwood Petroleum Ltd and Tri-Star Investment Ltd.

    The six accused persons had  stood trial for allegedly  serving as conduits and receiving bribes in hard currency to facilitate natural gas contracts between 1994 and 2005.

    Justice Abubakar Sadiq Umar  said the prosecution had failed to diligently prosecute the case.

    Also, Bodunde Adeyanju,  former aide to ex-President Olusegun Obasanjo, was arraigned in 2010 alongside George Mark, Jeffrey Tesler(at large), Hans George Christ, Heinrich J. Stockhausen; Julius Berger Nigeria Plc and Bilfinger Berger GMBH.

    Mark, Tesler, Christ, Stockhausen; Julius Berger Nigeria Plc and Bilfinger Berger GMBH were alleged to have sometime between 2002 and 2003  conspired to make several cash payments in the sum of US$1million (five times) totalling in equivalent $5million to Bodunde .

    They were alleged to have committed an offence contrary to Section 16 of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act 2004) and punishable under Section 15(2) and (3) of the Money Laundering Act 1995(as saved by Section 23(2) of the Money Laundering Act, 2004).

    The EFCC is closing  in on more suspects in its ongoing probe of the whereabouts of the $200m (N66billion) penalty fines paid by five companies involved in the scandal.

    The anti-graft agency has asked the lawyers who handled the settlement to account for the fines and about $12million(N3.960billion) collected as “legal fees”.

    One of the lawyers, Mr.  Damian Dodo (SAN), in a letter to the EFCC Chairman, Mr. Ibrahim Magu admitted that the  legal team got $3.5million out of the $4.5million paid to it.

    He said the balance of  $1,000,000 was remitted to the Federal Ministry of Justice as “reimbursement cost to the Federal Government of Nigeria.

    The $180million bribery scandal involved the former Halliburton subsidiary, Kellogg Brown and Root (KBR), in respect of the Liquefied Natural Gas plant in Bonny.

    Albert J. Stanley admitted before a Houston court in the US on September 4, 2008 that he orchestrated more than $180million in bribe to senior government officials.

    Stanley alleged that the bribe was channeled through a UK lawyer, Tesler, in four installments of $60million; $32.5million; $51million and $23million.

    The bribe was allegedly facilitated between 1995 and 2005 in London.

    The countries where the bribe money was allegedly stashed by some top government officials and their accomplices are France, the United Kingdom, Switzerland, Portugal and Seychelles.

    Tesler, 63, was in February, 2012 sentenced to 21 months in prison in the US after pleading guilty in March last year to bribing Nigerian Government officials with $132 million between 1994 and 2004. He also forfeited $149 million to US authorities under the Foreign Corrupt Practices Act (FCPA).

    According to sources, Tesler played a fast one on Nigerian officials who were to benefit from the $180m by diverting $133, 073,750million to his account in Switzerland.

    He shared only about $22, 417, 000 and DRM 500,000 to some top government officials.

    Upon discovery of the $133, 073,750m in Tesler’s account, the Swiss government froze the account and during the trial of the accused person, the looted fund was transferred to the US.

    But the Federal Government, through the Office of the Attorney-General of the Federation, has initiated moves to recover the $133, 073,750m which was found in Tesler’s account.

  • Nigeria capital market targets two-day settlement cycle

    •Investors to get dividends in 24 hours

    The Nigerian capital market plans to leverage on its technological advancement and the enrollment of investors’ details and holdings in electronic custody to shorten its trading cycle from four days to two days, blazing the trails as the only African market with such a timely cycle.

    Nigerian stock market currently operates a T+3 settlement cycle, implying that the value of trade and custodial of ownership would only be perfected in four days. T+3 means trading day and additional three days. Nigeria currently has the best trading cycle in Africa, ahead of South Africa’s T+5 settlement cycle.

    A further reduction in trading and settlement cycle will translate into quicker turnover and improved liquidity for investors in the Nigerian stock market.

    Director General, Securities and Exchange Commission (SEC), Mr Mounir Gwarzo, said ongoing initiatives such as cash direct settlement, electronic dividend and full dematerialisation being implemented by the capital market stakeholders would enable the transition from T+3 to T+1.

    Besides, for the first time in the history of any capital market in Africa, investors in the Nigerian capital market are now to get dividend payment within 24 hours through the electronic dividend (e-dividend) payment system.

    Speaking at a town hall sensitisation meeting on e-dividend at Muson Centre, Onikan, Lagos, yesterday, Gwarzo said the proposed system will automatically allow dividends to be credited directly into shareholders’ accounts within 24 hours of payment by the company.

    “We have achieved something that is very unique, even South Africa they have T+5, where when you do transactions you cannot get payment until five days. But with this system, we are going to achieve T+1 settlement system. You sell shares by today, payment are effected within 24 hours which is going to be the first by any capital market in Africa. No market in Africa has experienced that before and we are determined to ensure that it is achieved,” Gwarzo said.

    He outlined that all these initiatives are aimed at encouraging retail investors to participate actively in the Nigerian stock market as part of a long-term 10-year master plan for the development of Nigerian capital market.

    According to him, one of the strategies of deepening the market by the Commission is to target the retail domestic investors by implementing key confidence-building initiatives that would encourage the retail investors to invest in Nigerian market.

    “It is only the domestic investor that, no matter the condition of the market, will stay with us. What we have been experiencing in the market is the dominance of the foreign investor where anytime they want to move out of the market they get out and anything they want to come in they do so. Seeing what happens in the market, we decided that the best thing it to get the retail investor and our approach is not to go to them and be telling them to come back. Our approach is to identify the issues why they are not in the market and deal with such issues,” Gwarzo said.

    He outlined that once the e-dividend platform is fully operational the issue of stale warrant will be of the past, the issue of travelling from one place to another to deposit the warrant will be a thing of the past; the issue of change of address will also be eliminated, the issue of unclaimed dividend, which is in excess of N80 billion, will also be a thing of the past.

  • From settlement to obtainment

    When it comes to self expression, Nigerians are a colourful and creative lot. No other nation on earth, imagined or willed into existence by sheer colonial hubris, can match the Nigerian capacity for an inventive and colourful appraisal of the political pathologies that hobble the nation. It has been said of the Congo that there are at least a thousand words to describe corruption. But Nigeria trumps them all, if not in quantity but in the sheer brilliance and wit with which they come up with metaphors for their own affliction.

    Before our very eyes, Nigeria has become the cancer ward of corruption. Political, economic and spiritual predators abound. In The Cancer Ward, Alexandr Solzhenitzyn, the great Russian writer, notes that no greater calamity can befall a doctor than for him to suffer an affliction in his own area of specialization. With individuals so it is with nation. Oil wealth has ruined Nigeria.

    Anybody interested in how manna from nature can destroy an entire nation must study how the black gold originally procured from Oloibiri has impaled the Nigerian project. Gold from the Inca civilization destroyed Spain and hobbled its prospects as a world power for five centuries. When the Iberian nation finally roused from the nightmare of unearned riches, the world had moved on.

    Anybody interested in studying the modern Nigerian disaster must first spare a thought for a scientific survey of the evolution of the language of corruption in Nigeria, as distinct from the corruption of language. This is a challenge to our intrepid scholars, if they are not already overwhelmed by the struggle for sustenance, or the struggle for obtainance, as the case may be. As the phenomenon of corruption develops its own masks, Nigerians have also become quite agile in decoding its amoebic possibilities.

    In the aborted The Third Republic, the prevailing lingo of corruption was settlement. To be settled was to be economically pacified. Go and settle with them suddenly became go and settle them. To be thus settled means you had forsworn all rights to further obtainment. Around the airports and other commercial nerve centres, just settle us became the war-cry. Suddenly and with great linguistic mischief and felicity, this ordinary folk nuance forced its way into royal military parlance. Nigeria would never be the same again.

    It was at this point that the late Admiral of the Fleet (and the fleecing), Augustus Akabueze Aikhomu, introduced a new linguistic conundrum to existing perplexities. With great verve and veracity, the late admiral sought to distinguish between misapplication of funds and misappropriation of funds. Settlement is not and cannot be deemed to be stealing. Please note that the culprit in question was a certain Maina and the scoundrel in question is manna from oil.

    In the Fourth Republic, Goodluck Jonathan introduced a worthy dimension to the conundrum when he famously noted that stealing is not corruption. It was a short epistemic leap to the reality that obtaining is not stealing. It has turned out a radical game changer for omnibus larceny and a free for all bazaar of impudence and impunity.

    From that point on, the most sensitive office in the land, the Office of the National Security Adviser, became a humungous cash-dispensing machine; a huge economic almshouse. By the time they finished with us, the national exchequer itself has virtually disappeared with the nation fiscally broke and her back broken. Yet there is a weird logic to it all. In the parlance of state larceny and elite degeneration, obtaining is the mother of all settlements and the father of all misapplications of funds. Jonathan should be praised for the elegant simplification of a complex equation.

    But all this will also pass, and that is if the nation itself does not pass into the oblivion of the terminally diseased. Pity the nation without institutional memory. How many people remember that in the First Republic, there was an even a more colourful word for the misappropriation? It was known as gazumping. Traceable to the inimitable K O Mbadiwe in its lexical misappropriation, gazumping occurs when a seller accepts a higher offer for a property than that to which he had orally committed himself. It is another name for a legal swindle.

    Now, see how far we have journeyed. In the First Republic, corruption had to wear a mask. Nowadays, it doesn’t.  The masquerade without a mask, is the master of the masquerade with a mask, according to a character from the Bulletin of the Living Dead. Meanwhile, the nation roils on the death bed of oil while gasping for breath from the foul and suffocating stench of its own diseased innards.

  • Leadership crisis: Battle-weary NLC seeks out-of-court settlement

    There is a glimmer of hope that the leadership crisis rocking the Nigerian Labour Congress (NLC) will soon end. TOBA AGBOOLA writes that besides the judicial intervention being sought at the National Industrial Court (NIC), the two camps battling for the leadership have indicated interest to embrace a peaceful resolution. 

    Crisis-weary Nigerian Labour Congress (NLC) factions may soon close ranks. Embroiled in what many call “an avoidable rift”, the workers’ umbrella union has, in the past four months, operated at cross-purposes under factional leaderships.

    The division in 23 of the 36 affiliated unions in the organised labour was triggered   by sundry issues, including alleged corruption and electoral malpractices.

    The botched election of March 12 that threw up Ayuba Wabba and Joe Ajaero as factional presidents left the local chapters of the NLC in many states confused as to who the authentic leader is, thereby exposing the body to manipulation by external forces.

    The state branches, which are the basic building blocks of trade unions, have been in disarray since the election.

    But, there seems to be light at the end of the tunnel. National Industrial Court (NIC) President Babatunde Adejumo has advised the two factions to embrace peaceful reconciliation of their dispute.

    Justice Adejumo’s counsel came on the heels of a legal suit, which came up for hearing before his court in Ikoyi, Lagos, between the two factions.

    The suit stemmed from the 11th National Delegates Conference of the NLC in Abuja on March 12.

    Loyalists of both camps, in their hundreds, stormed the court as early as 7am, jostling for space in the court room and within the premises.

    Chief Gani Adetola Kaseem (SAN), Mrs. Aisha Aremu-Ogunlade and Ahmed Adetola  Kaseem, among other lawyers, are in the legal team  of the Wabba-led faction. Lawyers from the Enobong Etteh’s & Nnamonso Ekanem’s Chambers are holding brief for the Ajaero-led faction.

    After listening to Wabba’s counsel, Justice Adejumo, in an admonition, urged the various unions to embrace mutual reconciliation rather than traversing court rooms   for an intervention that would further widen the gulf among workers. He advocated an amicable and out-of-court settlement of the crisis.

    The NIC president noted that the ordinary union members and the nation at large hold the labour movement in high esteem, given its historic role in the nation’s history.

    He urged the lawyers representing the factions to join hands in resolving the lingering dispute, reminding them that a divided NLC would not bring anything good for its members.

    Stressing the importance of labour in the development of a nation, Justice Adejumo said workers constitute the “engine-room of the economy”, adding that a united NLC is better off than a divided one.

    Justice Adejumo described Issa Aremu, one of the 11 defendants served with originating sermons, as a tested and respected labour leader, who can use his wealth of experience to resolve the crisis.

    He said: “With the likes of Comrade Issa Aremu and others who are respected labour leaders in Nigeria, reconciliation should not be ignored.”

    The judge, however, warned that the court has the powers of conciliation in matters such as NLC’s internal dispute. These powers, he said, are contained in Section 20 of the NIC Act.

    According to him, it is an implied duty of the court, which may warrant it to appoint a Trustee for the NLC, urging the counsels to explore opportunities for reconciliation on a ‘no loser, no vanquish’ basis.

    Before adjourning the case to October 8, Justice Adejumo stated that he gave the advice without prejudice to the case before his court.

    Reacting to the development, the National President of the National Union Textile Garment and Tailoring Workers of Nigeria (NUTGTWN), Oladele Hunsu, commended the NIC President for his counsel for amicable reconciliation against litigation.

    “We also acknowledge the spirited effort by the highly-respected labour veterans to reconcile both factions following the discredited 11th Delegates’ Conference and Special Delegates’ Conference of NLC respectively”, he said.

    Noting that his union, where  Aremu serves as the general secretary, supported the reconciliation option, he called on other labour leaders to take advantage of the admonition of the NIC President to unite and resolve all outstanding issues in order to forge a common front to defend the workers in the face of the harsh economic situation.

    The Wabba led-camp had returned to the NIC, seeking among others, a declaration that the Special Delegates’ Conference of NLC, where Ajaero and others emerged officers of the Congress, was not organised by the   NLC in line with the Constitution of the Congress in 2011 and should therefore be declared illegal, null and void, and of no effect whatsoever.

    But, in the spirit of the out-of-court settlement, initiated by veteran unionists, led by the founding NLC President, Alhaji Hassan Sunmonu, the belief of concerned members is that the period of the adjournment will be used by the factions to find an enduring and a win-win solution to the problem.

     

    Blackmailing and impersonation

    Events in the past may have further widened the gulf between the two factions. Despite the fact that the Ajaero-led group has expressed its disposition to reconciliation, the other faction under Wabba, has on several occasions accused the group of impersonation.

    Wabba, in a recent statement, said the NLC headquarters took exception to the issuance of statements  by the Ajaero faction on behalf of the Congress.

    His words: “The attention of the Congress has been drawn to the serial impersonation by Comrades Joe Ajaero and Issa Aremu since they both lost their bids to be President and Deputy President of the NLC at the rescheduled March 14, 2015 elections of Congress.”

    Wabba explained what informed his reaction, citing a statement credited to Aremu, in which he called on the National Assembly to, in line with the economic realities, further reduce its N120 billion vote.

    He stated: “While we had restrained the National Secretariat from publishing a disclaimer in the hope that common sense and sanity would eventually prevail on our comrades to stop this delusion, it has become clear to us and the entire labour movement that Comrades Ajaero and Aremu are determined to continue in their enterprise of impersonation as president and deputy president of the NLC.

    “It is for this reason that Comrade Aremu had continued to issue statements in which he continually purport himself to be the deputy president of Congress and on behalf of our revered organisation.

    “One of such statements, and which was given wide publicity in at least four national dailies, contended that the alleged decision of the National Assembly to voluntarily cut its budget from N150 billion to N120 billion was “too token and not far-reaching enough.”

    Wabba stressed that though they (Ajaero and Aremu) can issue statements or speak on behalf of their respective unions, being affiliates of the NLC, they have no right to issue statements or speak for the NLC.

    He said: “As general secretaries of their respective unions, that are affiliates of the NLC, we cannot stop Comrade Aremu of the National Union of Textile, Garment and Tailoring Workers of Nigeria and Ajaero of the National Union of Electricity Employees, or any officer of an industrial union, from speaking on any national issues they feel strongly about.

    “However, no affiliate, industrial union, or their officers, enjoy the liberty to issue statements in the name of the NLC, unless such an affiliate is expressly mandated to do so.”

    He said all instances since Ajaero and Aremu lost their bids to be elected as president and deputy president are clear cases of impersonation.

    “We had course to recently alert our international allies – Organisation of African Trade Union Unity (OATUU), International Trade Union Confederation-Africa (ITUC-Africa) and International Labour Organisation (ILO), among other labour bodies – to discountenance with any correspondence from Comrades Joe Ajaero and Issa Aremu if it is purported to be on behalf of the NLC.

    “While Comrades Ajaero and Aremu pretend to be advocates of democracy, they have both become clear embarrassments, to themselves and unfortunately to the entire labour movement, since they lost the elections to become national officers of Congress.

    “They have failed to show even an iota of democratic civility by approaching law courts if not satisfied with the process that produced the new leadership of the NLC on March 14, 2015. Instead, they have since then been engaging in what are clear cases of obfuscation, blackmail and impersonation.”

    According to Wabba, the NLC will soon engage the leadership of the National Assembly on the budget.

    “For the avoidance of doubt, on the issue of the budget of the National Assembly, on which Comrade Aremu was reported to have issued a statement, we have since met with the National Assembly and we will similarly engage Mr. President on a range of national and labour-related issues, whenever we have an audience with him”, Wabba said.

    In a swift reaction, Aremu lashed out on Wabba, whom he accused of wasting workers’ funds on litigation, pointing out that he should have taken debtor-governors to court over the non-payment of salaries, if only to demonstrate his love for the  NLC.

    According to him, Wabba should dissipate his energies and resources in tackling issues on workers’ welfare welfare and national development, instead of taking the Ajaero’s faction to court.

    He said: “Governors who owe workers several months of salaries should have been taken to court of public opinion and international organisations instead of taking us to the NIC.

    “The court in its wisdom knows we are not impersonating; that we are the authentic representatives of the Congress and that we have more to talk about the ministerial appointments, the National Assembly and other issues of national importance.

    “We (labour leaders) have been together before, and by the grace of God, the issue will be settled since a reconciliation process has started.”

    He said the strength of the organised labour cannot be in fighting one another but in fighting a common enemy, adding that a united NLC will critically move the economy of the country forward.

    The NUTGTW scribe noted that labour veterans in the Sumonu-led committee have begun reconciliation moves to ensure that both parties work together as one organisation.

    He added that the man-hour lost to litigation will not add to the growth of the economy, warning that division could be counter-productive.

    Aremu, however, insisted that the on-going reconciliation must be based on the core values of the labour movement.

    “A united NLC will be better positioned to critically address the nation’s challenges. Trade union must use the power of labour to fight for Nigerians”, he stressed.

    The National President of the Nigerian Union of Road Transport Workers (NURTW), who doubles as the Deputy President of the Ayuba-led camp, Alhaji Najim Yasin, also confirmed the on-going reconciliatory move.

    “We believe that we should all come together and speak with one voice in the general interest of all Nigerian workers”, he said.

    He expressed the hope that the reconciliation move will go a long way in ending the crisis, which he admitted, has polarised the body.

    Yasin commended the workers and labour leaders for their understanding, assuring them that the NLC will come out of the crisis stronger.

     

    Oshiomhole, ex-NLC leaders, factions meet over crisis

    Efforts at resolving the protracted crisis in the NLC continued in Abuja as Edo State Governor Adams Oshiomhole and other fromer labour leaders, including  Sumonu, met with factional leaders.

    The meeting, which was earlier scheduled for Benin City, the Edo State capital, was moved to the Federal Capital City (FCT).

    Expectedly, Wabba and Ajaero, led their factions to the meeting  with the committee of veterans.