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Tag: The Senate

  • Senate okays $5.5 billion loan for FG

    Senate okays $5.5 billion loan for FG

    The Senate Tuesday approved the request of President Muhammadu Buhari to borrow the sum of $5.5 billion.

    The sum of $2.5 billion out of the $5.5 billion, according to the presidential request, will be used to fund the 2017 budget while the balance of $3 billion is meant to refinance domestic debts.

    Nigeria’s debt profile stood at N19.6 trillion as at June 30th, 2017 according to Debt Management Office (DMO) document.

    Before the unanimous approval of the loan, some Senators called for caution on the way and manner the Federal Government rushes to take foreign loans.

    The lawmakers particularly expressed fear that the ability of the country to repay the loans might be limited if the national currency depreciates further.

    Senator Yusuf Abubakar Yusuf, (Taraba central) who was one of those who voiced this fear said: “We must be very careful because this is dependent on what happens in our foreign reserves. If our foreign exchange rate goes to N500/USD1, we are going to have a very serious problem on generating enough foreign exchange to pay the foreign debts.”

    The approval of the loan followed the adoption of the report of the Committee on Local and Foreign Debts that vetted the request sought partly to finance the deficit in the 2017 budget.

    Chairman of the Committee, Senator Shehu Sani who presented the told the Senate that “the terms and conditions of the loan are favourable and do not pose any compromise to the integrity, independence and interest of Nigeria and its citizens.”

    He added, “The projects are essential for rapid economic and social development of Nigeria. And that the projects, when completed, will create jobs through a chain of economic activities.”

    The committee noted that the $3 billion for refinancing of the country’s domestic debts will not lead to an increase in the public debt portfolio.

    It said that the loan will reduce the cost of the debts while the projects are essential for rapid economic and social development of Nigeria.

    It said that the construction of the second runway in the Nnamdi Azikiwe International Airport will enhance the safety of air passengers, increase the use of the airport by international airlines, “thus increase the revenue base of the government.”

    It said that the rail projects when completed will reduce the use of roads, its attendant congestion and thus minimise the cost of road maintenance.

    The committee said that the Mambila Hydro Power Project which had long been abandoned when completed will add substantially to the National grid and improve power output of the country.

    The $3 billion refinancing loans, it said, will create a significant decrease in the cost of financing the nation’s debt stock while creating more borrowing space in the domestic market for the private sector to benefit from.

    The Committee recommendation: a.The committee to recommend for approval by the Senate the issuance of USD2.5billion to finance the following projects in 2017 Appropriation Act,

    1. Mambilla Hydropower Project, ii. construction of a second runway at the Nnamdi Azikiwe International Airport Abuja, iii. counterpart funding for rail projects iv. construction of the Bode-Bonny Road, with a bridge across the Opobo Channel.
    2. That the Senate for approve the USD3billion for refinancing of the nation’s domestic debt; c. That the Senate to emphasise effective oversight of the proposed projects.

    Deputy Senate President, Senator Ike Ekweremadu who presided commended senators for supporting approval of the loan.

    He said, “This Senate will continue to partner with the Federal Government in matters that concern the ordinary people of Nigeria.

    “The implementation of the 2017 budget is key because any Appropriation Act that is not implemented is worthless.

    “So, whatever needs to be done to ensure that the budget is implemented, will always have the support of this Senate.”

    “And since this is tied to the implementation of the 2017 budget, I believe that that had informed the support that this request is now generating.

    “We need to urge the Debt Management Office to ensure that our debt profile is monitored so that we will always ensure that it is within the acceptable limit.

    President Muhammadu Buhari had in his request  for the approval of the two external loans last month said that in order to implement the external borrowing approved by the National Assembly in the 2017 Appropriation Act, the Federal Government issued a $3OO million Diaspora Bond in the International Capital Market (ICM) in June 2017.

    He noted that “the balance of the 2017 external borrowing, in the sum $3.2 billion is planned to be partially sourced from issuance in the ICM of $2.5 billion through Eurobonds or a combination of Eurobonds and Diaspora Bonds, while $700 million is proposed to be raised from multilateral sources.

    “It should be noted that the intention is to issue the Eurobonds first, with the objective of raising all the funds through Eurobonds, and that Diaspora Bonds will only be issued where the full amount cannot be raised through Eurobonds.”

    He listed the projects as the Mambilla Hydropower Project; construction of a second runway at the Nnamdi Azikiwe International Airport; counterpart funding for rail projects and the construction of the Bode-Bonny Road, with a bridge across the Opobo Channel.”

    On the $3 billion for the re-financing of domestic debts, the president said: “In addition to the implementation of the external borrowing approved in the 2017 Appropriation Act, in order to reduce debt service levels and lengthen the tenor profile of the debt stock, the Federal Government seeks to substitute maturing domestic debt with less expensive long-term external debt.”

    President Buhari said that the Federal Government plans to source $3.0 billion through the issuance of Eurobonds as approved by the Federal Executive Council at its meeting of August 9, 2017.Listing what he believed could be the benefits of the loan, Buhari stated that the proposed re-financing of domestic debt through external debt would achieve more stability in the debt stock while also creating more borrowing space in the domestic market for the private sector.

    The President told the Senate that the fact that in the 2017 Appropriation Act, debt service at N1.663 trillion represents 32.73 per cent of the government’s total expenditure, which makes it important to take urgent steps to reduce debt service costs.

  • The Senate: More probes beckon

    The Senate: More probes beckon

    When the Senate Committee invited police chief Ibrahim Idris over the allegations by Senator Isah Misau, I knew a problem was in the offing. Idris rejected the summons and told the lawmakers that a case was in court on the matter. Honouring the summons, reasoned the Inspector–General, would be prejudicial.

    The senators, ever dutiful and diligent – isn’t that why they are revered as distinguished? – insisted that the probe must go on.

    Misau, by way of introduction, is the senator representing the good people of Bauchi Central. He hurled a truckload of allegations at the IG. Some of them bordered on financial misappropriation, mismanagement and misapplication – not stealing, please note. The police were left scampering for weapons to fight back. They did. Misau was slapped with an allegation of being a deserter. He defended himself desperately.

    All this while, the Senate did not lift a finger either for its own or for the IG, at least in protection of the office. Then, as if stung by a swarm of bees, the lawmakers sprang up to action when Misau accused the IG of some inappropriate behaviour that bordered on what the lawmaker described as the chief’s propensity for sexual peccadillos. He peppered it all with some salacious details, some of which are not fit for this space, this being a serious journal of repute and not some popular kiss-and-tell sensational publication.

    The committee threatened to issue a warrant for the IG’s arrest. Who will arrest the IG? Thankfully, the IG appeared before the committee yesterday. But he refused to answer questions, leaving observers to wonder what kind of questions would have been fired at him.

    Is it true you had a girlfriend who is now an officer and married to your good self? Did you actually put her in the family way as alleged? How did you do that? When? Where? Who are your witnesses? Was it with her consent or she was intimidated into it? Who are your witnesses?

    Can an officer fall in love while on duty? Are such acts common in the police? If so, how have you been checking the rank and file? Can a police chief’s private affair, including his bedroom deportment, affect his role as the chief crime fighter? Is a police chief expected to have a soft side in a country infested with vicious criminals, with jackals and hyenas in high places? Where is that tough-man image, the mere thought of which should keep criminals restless? Can an IG be seduced? How?

    Just before the IG elected to shun the committee, a senior lawyer, I am told, was getting set to storm the landmark hearing, which promised to be a watershed in the development of our criminal jurisprudence.

    Among the questions he planned to ask the distinguished senators are: why was there no probe when a senator was rumoured to have married an underage girl? Was the Senate’s image not tarnished by that act, with child rights activists describing the respected chamber as a den of pedophiles, drug pushers and robbers? Why the probe now that Misau has been charged with forgery, intent to harm the IG, peddling falsehood against the IG and lying, among several other practices?

    In other words, vigilantibus non dormientibus aequitas subvenit. That is to say, “Equity aids the vigilant, not those who slumber on their rights”.

    I advise the Senate to resist this attempt at circumventing its rights and duties. It is its responsibility to go ahead with the probe and, in fact, launch into several others that it has been threatening to undertake: The Maikanti Baru – Ibe Kachikwu kerfuffle; the Paris Club refund; the Nigeria Content Development Fund and many others.

    Consider the fact that suicide cases are rising. In Lagos, it is fast becoming fashionable for those who are disaffected with life to end it all by taking the final plunge – into the lagoon. Why are people taking their  lives?  Are the gods thirsty for blood? Is the economic situation that bad that some would like to see if it could be sunny on the other side? A Senate enquiry will, no doubt, provide answers to these questions. It should begin today.

    First, it was the State House Clinic. We were told by the President’s wife that it was a “mere consulting clinic”. No facilities. No drugs. Nothing. Now, we have heard of how some of our compatriots – 91 in all – have died of snake bite in Gombe and Plateau states because hospitals lack snake bite venom. Health Minister Prof Isaac Adewole says we haven’t run out of the essential drug to tackle the poison. So, what happened?

    I trust the Senate will launch a probe after a member must have raised a motion on “matter of urgent national importance.”

    The other day in Kabba, Kogi State, distinguished Senator Dino Melaye, a man not many will accuse of being saintly in disposition, of being urbane and placid, was pelted with stones and other missiles. We were told that hoodlums did it. Who are the so- called hoodlums? Whom were they working for? Were they masked? Why were no suspects arrested?

    These are the questions a probe will unravel. Over to the Senate.

    Many discerning observers of the polity are surprised that not even a tepid attempt has been made to institute a major probe into the seemingly vacuous allegation that the change that the Buhari administration  promised is yet to manifest. “We haven’t seen any change,” many have been crying. They are obviously those disillusioned fellows who won’t stop lamenting what to them were the good days of the Peoples Democratic Party (PDP) when oil sold at over $100 a barrel and we had so much to fritter away.  This has been the stand of government officials.

    But a doctor-turned-politician has thrown in the medical angle, suggesting  that those who claim not to have seen changes may have problems with their eyes. “Are we short of ophthalmologists?” he has been asking his aides.

    The Senate will do well to take up the challenge.  It should probe the strange thinking that propels some of our compatriots to ask, “where is the change?” Is the number of the blind growing? How many ophthalmologists do we have? Are they being owed salaries? Why will so many people be complaining of poor vision at the same time? Is there an epidemic or some strange eye condition?

    Despite its furious response to the allegation that its members draw jumbo salaries, the Senate has not been able to convince the public that it has not taken more than its legal dues from the treasury. In fact, a source close to a senator who is said to be in love with fast cars, movie stars and choice beverages, says the lawmaker often derides the purveyors of such rumours as nonentities.

    That is too mild.

    Senators should end this malicious allegation that won’t just go away once and for all by launching a grand probe that will lay the matter to rest – finally. All questions must be resolved, including the most troublesome of them all – how much exactly do senators earn?

     

     

    Eau de Akwa Ibom

    New perfume in town? Not quite. But some news – about good old, foxy tortoise of the folklorist era.

    Somewhere in Akwa Ibom, the poor animal is being hunted for a love potion, which in the local language is called kop nno mi (do as I say).

    Poor Dr Edem Eniang. The director of the Biodiversity Preservation Centre (BPC) has been having problems reining in those women who believe in the magical powers of this potion to arrest their men- body and soul.

    The University of Uyo teacher says the animal is endangered. He appeals to residents to help save the tortoise. I join him in this campaign.

    The fate of the tortoise in Akwa Ibom reminds one of those days of bloody politics in Oyo State.  One of the actors, Busari Adelakun – may his soul rest in peace – was well known for romanticising the powers of his juju. One of his fashion accessories was a small  live tortoise that he wore as a necklace, dangling from his neck. His opponents quaked at his appearance.

    The story is told of how he, as commissioner for Local Government carried out some reforms that were far-sighted but which the powers that-were resisted. He was unceremoniously moved to the Health ministry, but he did not like that. Adelakun (aka Eruobodo –the river dreads nothing) was said to have sworn that his successor would not stay long on the seat.

    When the new commissioner died suddenly, Adelakun was quoted as saying: “Kinkin ni mo fun. Mo ro pe okunrin ni, a se kii sokunrin (I gave him just a little. I thought he was a man… .”

    Ah, those good old days. Who will bring back some of the colour?

  • Senate summons Fashola over $1b power project funds

    Senate summons Fashola over $1b power project funds

    The Senate on Wednesday mandated its joint committee on Power and Public Accounts to invite the Minister of Power, Works and Housing, Mr. Babatunde Fashola, to give a detailed account of the public funds spent on the Fast Power Projects particularly Afam Fast Power Project.

    The upper chamber said that Fashola should also give evidence of feasibility study indicating the viability of the projects and requisite appropriation by the National Assembly as required by the Constitution.

    It said that the minister should also furnish the Senate with presidential approval for the projects

    It also asked the committee to investigate the Nigerian Sovereign Investment Authority ( NSIA), Nigerian Electricity Bulk Trading Company ( NBET) and others to establish the status of the balance of $350million from the $1 Eurobond issued by the Federal Government in 2013.

    The joint committee was given two week to report back to the Senate

    The resolution followed the adoption of a motion entitled “Monumental fraud in the power sector” sponsored Senator Dino Melaye (Kogi West).

    Melaye in his lead debate noted that sometime in July 2013, the Federal Government raised a total sum of $1Billion through a Eurobond issue.

    He said that he is aware that the sum of $350 million was taken by the Federal Government out of the proceeds of the July 2013 Eurobond issue and released to Nigeria Electricity Bulk Trading Company ( NBET) Plc as shareholder contribution to shore up its capitalization.

    He also said that he is further aware that NBET is a Federal Government owned public liability company that deals in electricity trading and management of associated liabilities.

    Melaye noted that the sum of $350 million released to NBET was to demonstrate NBET’s preparedness to assume its role as a government backed electricity bulk trader to provide market confidence in the privatized electricity market.

    He observed that the move by the Federal Government was intended to backstop NBET’S with new investors in the electricity market especially new generation companies and to provide assurance to them that NBET is a credit worthy off-taker of power with the requisite capitalization to meet its payment obligations to both greenfield and brownfields power generating companies.

    He further observed that as confidence building measure, $350 million was domiciled with the Nigerian Sovereign Investment Authority (NSIA) for reinvestment in low risk investment and structured in a manner that N BET can call for funds at short notice when required

    He said that the fund has been with NSlA since 2014 and has helped build market confidence especially among new investors in the electricity market who see NBET’s positive balance sheet as a form of security that their investments are safe and that NBET has the wherewithal to meet its payment obligations.

    He expressed alarm that “there is now a desperate attempt by the Federal Ministry of Power, Works and Housing to retrieve this fund ( $ 350 million) and divert same to fund the so called Fast Power Projects which the Ministry has already spent $35 million of public funds not appropriated by the National Assembly.”

    Melaye said that he is “further alarmed that since the introduction of the Fast Power Project by the Federal Ministry of Power, Works and Housing, a total sum of $35 million has been spent by the Ministry on Afam Power Project alone to pay $29 million to General Electric (GE) as cost for turbines and $6million in consultancy fees to other entities respectively, all without requisite feasibility study of the projects and appropriation by the National Assembly as required by the Constitution.”

    He observed that “a lot of questions are begging for answers as regards the $29 million paid to General Electric and the $6 million paid to other consultants as to: “Who were the Consultants and how were they procured?

    “Was there observance of due process in awarding the consultancy of $6 million and in paying General Electric $29 million for turbines?

    “Why is the transaction cloaked in secrecy?  “What is the true value of Afam Fast Power?

    “Why is the Ministry engaging in constructing new power plant while government has several idle plants that is seeking buyers for?

    “Why is the Ministry that is supposed to be making policies, dabbling into constructing new power plants that we have all agreed is better handled by the private sector?”

    Melaye expressed concerned that the Federal Ministry of Power , Works and Housing is “determined to persist in this brazen violation of the Constitution and extant laws on due process by insisting that the NSIA should release the $350 meant to NBET on the pretext of acting under a purported presidential approval.”

    He said that he is convinced that there is an urgent need to bring the Ministry to order regarding its planned diversion of the sum of $350 meant for NBET and further demand a detailed account of unappropriated public funds spent on the controversial fast power projects.

    Senator Gbenga Ashafa in his contribution said that for the Senate to do a thorough job, those mentioned in the motion should be given opportunity to say their own side of the story.

    He noted that some of the allegations raised in the motion were grave and should not be taken without hearing from those involved.

  • Senate raises the alarm over Nigeria students stranded abroad

    Senate raises the alarm over Nigeria students stranded abroad

    The Senate Wednesday raised the alarm over Nigerian scholarship students stranded outside the country due to non-payment of their school fees.

    The upper chamber expressed displeasure that Nigerian students on federal scholarship are left abroad to suffer.

    Senate Chief Whip, Senator Olusola Adeyeye, raised the alarm over the state of Nigerian students abroad.

    He said that urgent action should be taken to salvage the situation in the interest of the students as well as to redeem the image of the country.

    Adeyeye prayed the Senate to resolve to direct that all concerned agencies of the Federal Government involved in scholarship to meet with the Senate President, Abubakar Bukola Saraki, to rectify the situation.

    The Senate also directed that the Nigerian amnesty programme must make payments to the Nigerian students in Russia that have not received their payments for over four years.

    Saraki, was said to have at a meeting with Nigerian students in Russia, promised that action would be taken on non-payment of the scholarships of Nigerian students studying in Russia.

    In his comments, the Senate President: “This situation is very pathetic and it is also very serious and we must stand firm behind our students.

    “I had the opportunity to meet with my counterpart from Russia, where they categorically told us that they are able to provide more scholarships for Nigerian students.

    “Unfortunately, some that are given scholarships have not been paid in two years. Because of this, some are now roaming the streets doing other illegal activities. The minimum figure is about $500 per student, it is not acceptable.

    “We must address this. I promise you, next week, we will meet with the concerned MDAs and find a way to put this issue to an end for our students.”

    Senator Sam Egwu said that the problem of Nigerian students studying overseas started a long time.

    Egwu (Ebonyi north) recalled that when he was minister of education they had similar cases of non-payment of scholarship fees to Nigerian students abroad.

    He insisted that Nigeria must stop sending its students abroad to become beggers.

    He said that it is unfortunate that some of them have started doing terrible things to survive “but here we are spending billions while our students are suffering abroad.

    Senator Bassey Akpan said that the head of Federal Scholarship Board should be invited to explain what was going on and the way out.

    Read Also: Senate fumes over Paris Club refund to states

  • Maina: Senate seeks sack of Malami, Danbazau, others

    Maina: Senate seeks sack of Malami, Danbazau, others

    The Senate Tuesday mandated its joint committee on Public Service, Anti-Corruption, Interior and Judiciary to investigate the circumstances surrounding the controversial return of former Chairman, Presidential Task Force on Pension Reforms, Abdulrasheed Maina to the country.

    The committee is also to determine how Maina was reinstated into the civil service and handed enhanced promotion to the position of director.

    The upper chamber said that development became even curious especially when Maina is on the wanted list of the country for alleged fraudulent activities.

    The resolution followed the adoption of a motion of urgent national importance raised by Senator Isa Hamma Misau (Bauchi South)

    Misau said that the circumstances of Misau’s return and reinstatement into the civil service had become huge embarrassment to the country.

    Many of the senators who contributed to the debate asked the Senate to resolve to ask President Muhammadu Buhari to sack those linked to the development.

    The lawmakers singled out Attorney General and Minister of Justice, Mr. Abubakar Malami and the Interior Minister, Abdulrahmane Danzabau as two public officials that should be hammered by President Buhari for their alleged roles in the return and reinstatement of Maina.

    Misau said, “Right from day before, you will see the story of somebody who has been declared wanted by the Economic and Financial Crimes Commission (EFCC).  We read how the man who was declared wanted and was said to be abroad, came back to Nigeria miraculously.

    “Going by the newspaper publications, somebody wanted by the EFCC, left the country for so many years. He was dismissed from the service. He was out for a long time, but smuggled into the service. He left the country as an assistant director. Today, he is a director.

    “We even heard that he goes about with police escort. I wonder how a government that claims to be fighting corruption will be involved in a matter like this. This is a big embarrassment for this country. The people around the President are not helping matters. It appears that the President is the only one talking about corruption. Other people around him are protecting corrupt people.

    “The AGF was mentioned and other people were mentioned. We investigated this case in the 7th Assembly. I am calling on the Senate to investigate this case again.”

    Senate Chief Whip, Senator Olusola Adeyeye in his submission said:

    “I remember what happened then. It got to a point when the former President of the Senate, David Mark, told the former President Goodluck Jonathan to choose between Abdulrasheed Maina and loyalty to the country. It got so bad that Maina had over 30 police officers attached to him.

    “It got so bad that he was always on the front roll whenever the former President travelled. At some point, we thought that he was being protected. I remember one of us was blackmailed and called names. He was accused of taking billions as bribes. Today, that lawmaker was cleared and he is here.

    “Some principalities in power then ferried Maina to neighbouring countries. There is a procedure when it comes to promotion in the civil service. This is an insult on the part of civil servants who have worked so hard.

    “As a member of APC, it is a sad moment. We cannot say that we want to fight corruption and have this approach. Jesus Christ said it is difficult for a rich man to pass through the eyes of a needle.

    “This saddens me and I am sure it saddens all of us. I am glad that following the outrage from the public, the President acted swiftly. We read in the papers that the rules of the civil service were bypassed.

    “It appears there are people in this government who want the President to fail. Every patriot and member of APC in this house must stand out and ensure that the President does not fail.

    “Papers have reported that two Ministers were involved. Those Ministers must be brought to justice. The President must ensure that those Ministers are sacked. Corruption is not only about stealing money. Incompetence too is another form of corruption.

    “I hope that this Senate will not forget its past resolutions on Maina. On it, we still stand. He must be made to stand and face the law. He is not above the law. Steven Oronsaye was accused. He did not leave the country. He stayed back and cleared his name. Maina must do same.

    Senator Kabiru Marafa said:

    “I want to appreciate the person who brought this motion by exposing some dubious people in government. No family can boast of having 100 per cent good people. APC is not an exception. We cannot attribute everything to the President. He should be commended for rising to the occasion.

    “Reinstating Maina is a crime against Nigerians. We should approve a full blown investigation into what happened. We must not allow this thing to go unnoticed.

    Senator Atai Idoko on his part said:

    “We are looking at the symptoms; we are not looking at the cause. Maina is too small to go back to office. Somebody brought him back to the office. Maina is too small. He is not the issue. We should look at those who returned Maina.

    “As we were told, the person who approved this thing is the AGF. The simplest thing the President could do was to terminate the appointment of Maina. That is not the issue. The AGF brought him back. The AGF has a history of doing things like this. The President should tell us what he will do to the AGF.

    Senator Albert Bassey Akpan said:

    “The Senate must investigate and bring to book any person who wants to bring this country to disrepute. We will stand with the Senate to ensure that the right thing is done.

    Senator Tayo Alasoadura on his own cautioned:

    “The President has set up a committee to investigate the matter. We should not call names of people who have not been indicted. We should not duplicate. If the executive has set up a committee, we should not do the same thing. We must not set up committees every time.

    Senator Dino Melaye said:

    “The whole unfolding affair is pathetic. Should we continue in sin and ask grace to abound? The AGF time after time has abused his office. Maina did not get himself back. We should talk about the integrity of the AGF and his office. If the number one law officer is breaking the law, where is the hope?

    “The AGF started with the forgery case against Saraki and Ekweremadu. Something happened we have not noticed. Two public officers had issues and the AGF chose to support the Inspector-General of Police against Senator Isah Hamman Misau. Today, it is Senator Isah versus the Federal Government.

    “Tomorrow, if I commit any offence against the friend to the AGF, I will be arraigned. We should not encourage the setting up of investigative committees. The President is surrounded by worms who are bent on destroying the country.

    “There are so many committees that have been set up by the President and the resolutions of those reports may not be implemented until after rapture. Enough is enough. We cannot have this forever. This is wrong. The Senate needs to do something.

    “We must recommend to the President that the AGF has erred in discharging the affairs of his office. If we do not check it, the AGF will plunge us into trouble.

    Senate President, Abubakar Bukola Saraki asked the joint committee to do a thorough job.

    Chairmen and deputies of the four committees were appointed to form an adhoc committee to investigate the issue.

    Saraki concluded: “We are all very disturbed. I want the committee to work hard and bring this matter back to us. We need to investigate the breech in our security and how the anti-corruption war is going.”

  • Senate to probe Etisalat $1.2bn debt crisis

    Senate to probe Etisalat $1.2bn debt crisis

     The Senate Tuesday resolved to investigate the management and utilization of the $1.2 billion loan facility obtained by Etisalat (Nigeria) from 13 Nigerian banks.

    The upper chamber mandated its Committees on Banking, Communications, Capital Market and National Security and Intelligence to probe the deal.

    It also asked the joint Committee to make recommendations on ways the country’s Financial Governance Structure could be strengthened by legislations to prevent any future similar reoccurrence of such crisis.

    The Senate urged relevant financial intelligence agencies of the Federal Government to investigate the management of Etisalat (Nigeria) and hold the defaulting parties accountable for their actions.

    The resolutions followed the adoption a motion on “the need for Senate’s intervention in the recent ETISALAT (Nigeria) $1.2 billion debt crisis” sponsored by Senator Solomon Adeola (Lagos West)

    Adeola in his lead debate noted that Etisalat Nigeria, a Telecommunication Company operating in Nigeria has in recent times been in the public eye over it’s $1.2bn loan crisis.

    The lawmaker said that he is aware that the syndicated loan was acquired in 2013 as a medium-term, seven-year facility to fund expansion of the network from a consortium of 13 Banks in Nigeria.

    He said that Etisalat ownership comprises of three shareholders, the United Arab Emirates Sovereign Wealth Fund through Mubadala Development Comp Abu Dhabi (45 /u), Emirates Telecommunications Group Company (40%) and Myacinth (15%) through Emerging Markets Telecommunications Services.

    Adeola said that as of 2016, the company had started defaulting on its $1.2 billion loan obligations leading to a few bailouts from its Parent Company in Abu Dhabi.

    He noted that only about 42% of the loan has been repaid, remaining an outstanding debt of $696 million representing 58% of its Capital, which Etisalat has failed to service since 2016.

    He said that “since this year, the Banks have been moving to take over the Telecommunications Company in order to recover their funds.”  

    The Lagos West senator said that the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have intervened and raised issues of regulatory compliances in trying to prevent a takeover by the banks, but the intervention has failed to produce an agreement on the debt restructuring.

    He observed that all UAE shareholders of Etisalat Nigeria, including state-owned investment fund Mubadala, had exited the company coupled with the resignation of top key management officers of the Company the Chief Executive Officer Mr. Matthew Willsher, Chief Financial Officer Mr. Wole Obasunloye, Director and the 3rd Shareholder/PartnerMr. Hakeem Belo Osagie;

    Adeola regretted that although it should ordinarily not be the duty of the Senate of the Federal Republic of Nigeria to wade into individual debt crisis of private sector businesses; but the Senate is convinced that if this situation is not pr0perly handled, it will have negative implications for the Nigerian Business Environment and on Foreign Investments in Nigeria in general

    He also regretted that a loan of this magnitude has the capacity of setting off another Banking crisis in Nigeria, with Banks looking for bailout funds once again.

    Believes the Nigerian Business Environment must be protected and insulated from all forms of fraudulent dealings in order to advance the Government’s drive towards promotion of genuine investments in Nigeria;

    Regrets that about 4000 jobs are at stake as a result of these suspicious dealings;

    He noted that the decision of the core investors to pull out of Nigeria raises issues of suspicion, on the intent of a Company in obtaining a loan facility, defaulting and then pulling out of the country, hoping that their shares would be used to write off the debts.

    He said that he is aware of allegations that the loans have been diverted to other uses not related to the business for which the huge loan was obtained, as there was no evidence of what the Company did with the loans,

    Senate President, Abubakar Bukola Saraki, said that the Senate must do what it could to protect jobs in the country and work to ensure that the right thing is always done.

  • Senate endorses swearing-in president, vice at NASS

    Senate endorses swearing-in president, vice at NASS

    The Senate Thursday passed a Bill for an Act to provide for the inauguration of the President and the Vice-President at the National Assembly Complex.

    The passage of the Bill followed the adoption of the report of the Senate Committee on Special Duties which scrutinized the legislation.

    The Bill was sponsored by Deputy Senate President, Senator Ike Ekweremadu.

    Chairman of the Committee, Senator Abdulaziz Nyako who presented the report noted that the Senate had on Thursday, December 8, 2016, deliberated on the general principles of the Bill.

    “The Bill seeks to provide for the inauguration or swearing in of the President and the Vice-President to be carried out within the confines of the Parliament as it is done in the United States and other democracies of the world.

    “This is in recognition of the fact the legislature is the assemblage of the representatives of the entire country and as such, it will not be out of place for such important national event to take place in the National assembly.”

    Ekweremadu who presided said that inauguration of the President and his vice at the National Assembly Complex is a standard practice in most presidential systems.

    “That is the standard. Because the National Assembly is the symbol of democracy and here is the temple of democracy. It makes every sense that presidents will take oath office within the confines of the highest legislative body in the land under the supervision of the peoples’ representatives.”

  • Senate criminalises secret recruitment

    Senate criminalises secret recruitment

    The Senate Wednesday took steps to stamp out secret and backdoor recruitment of staff into ministries, department and agencies of the Federal Government.

    The upper chamber insisted that recruitment process in MDAs must be streamlined to reflect the principles of Federal Character.

    It is proposing two year jail term or payment of N300, 000 for any person found guilty of engaging in recruitment without advertisement.

    This followed the consideration and passage for second reading a Bill for an Act for regular publication of existing vacant positions in Federal Government offices to ensure transparency and equal opportunities to all Nigerians in the recruitment of new personnel.

    The Bill entitled: “Existing Vacancies in the Federal Civil Service (Publication) Bill” is said to be in line with the determination of the 8th Senate to create an enabling environment through legislation that would not only generate but ensure that all qualified job seekers are given access to take advantage of employment opportunities in the country.

    It would be recalled that the Senate on Monday, held a roundtable on youth unemployment in the country during which representatives of Ministries, Department and Agencies (MDAs) of government as well as civil society organizations (CSO) identified root causes of unemployment in the country and proffered a way forward.

    The sponsor of the Bill, Senator Biodun Olujimi, in her lead debate said the Bill seeks to mandate the Federal Civil Service Commission (FCSC) to compile and publish a complete list of all vacant positions in the Federal Civil Service and its parastatals once every quarter.

    The lawmaker representing Ekiti South Senatorial District, said the Bill when passed into law would make it an offense to fill any vacant position in any Ministry, Parastatals, Corporation and Government department unless it is in accordance with the provisions of the Act under consideration.

    She said, “It is common knowledge today that employment in Government parastatals in most cases is not based on merit as god-fatherism, favouritism, nepotism and ethnicity have taken the front burner,” Olujimi lamented.

    She noted that “Millions of Nigerian men and women are denied equal opportunities in recruitment today, as most vacancies are not advertised publicly.”

    Olujimi insisted that the failure to publish existing vacancies by government agencies has given rise to corruption and fallen standards of education due largely to the fact that educational qualifications are no longer criteria for employment.

    “Similarly, the unemployed seek short cuts to gain employment because of the lack of trust in the system,” she stated. “Nigerians engage in all sorts of vices to get their relatives, friends and loved ones into vacant positions and this has been accepted as the general norm. This is unacceptable and should not be allowed to continue.”

    Other senators in their contributions bemoaned the rampant incidence of secret recruitment into the Federal Civil Service in the guise of ‘replacement’ and said that the Bill would help restore transparency and equity in federal employments.

    Senate President, Abubakar Bukola Saraki, in his contribution stated that the Bill when passed into law would give millions of Nigerians a sense of belonging in matters of state.

    “For the unity of this country, everybody must know that they have a sense of belonging,” Saraki said

    The Bill was subsequently referred by Saraki to the Senate Committee on Establishment and Public Service to report back in four weeks.

  • N30tn revenue probe: Senate may issue arrest warrant on Glo CEO, others

    N30tn revenue probe: Senate may issue arrest warrant on Glo CEO, others

    The Senate Wednesday threatened to issue warrant of arrest on Chief Executive Officer of Glo Mobile and other firms  that fail to honour  its invitation on alleged complicity in N30 trillion revenue probe.

    The CEOs of British American Tobacco Company, CCEC Nigeria Ltd, Dana Group, African Wire and Allied Ltd, Admiral Overseas Nigeria Ltd and Aarti Steel Nigeria Ltd. were equally issued the warning.

    Others are Gagsel International, Fries Land Capina, Etco Nigeria Ltd, Encounter Ltd, Edic Chemicals &Allied Distributors Ltd, Don Climax Group, De United Foods

    The Chairman of the Senate Joint Committee on Customs, Excise and Tariff and Marine Transport, Sen. Hope Uzodinma, gave the warning at an investigative meeting with some of the firms on Wednesday in Abuja.

    He said the refusal the firms to honour the invitation was a disrespect for the institution of the National Assembly and would not be tolerated.

    Uzodinma said that of the 30 firms invited for the investigative hearing between Tuesday and Wednesday, only 14 appeared before the committee.

    He said that the CEOs are expected to cut short whatever engagement they have to honour the invitation in view of the magnitude of the investigation.

    Uzodinma said, `It is only in Nigeria that the Senate will invite an entity for an interactive session, particularly in a case that bothers on investigation, financial mismanagement, infractions and the company will be complacent.

    `The companies will not be willing to come or sometimes send junior officers.

    “I have directed and we are working with security agencies, that any company that is invited and has something to explain and refuses to appear, we will issue a warrant for such persons to be arrested.

    “We are giving them the final opportunity to appear and if they fail, we will issue a warrant.

    “In this investigation we are working with the Nigeria Police Force.

    “This is because we are using their facilities to process some of our data so that the information we will present to the public will be information with high integrity that will not be questioned by anybody.

    “We have directed that they must come tomorrow, Thursday unfailingly.’’

    Uzodinma told the firms that were present at the meeting that they would be given documents arising from the investigation carried out by the committee to study and comply.

    The documents, he said, specified the various forms of infractions carried out by each of the firms involved in the import and export value chain.

    He said, `We have put everything in different categories and for category one it is unutilised Form M. You applied for Form M and approval and allocation were given.

    “But rather than import with the allocation, God knows what happened because you did not do that.

    “Then pre-arrival assessment report that was issued. You abandoned them yet you took your goods.  We do not know how you took the goods away and the money is still open in the data base.

    “Then Single Goods Declarations (SGDs) which you people did by yourself then abandoned and yet collected your goods.

    “These are all indicated in the documents we have handed over to you.

    “So, if there are such legitimate approvals, we want to see a copy otherwise we will assume that they were not cancelled in which case we will be expecting you to make payment.

    “Then classification.  We have cases where a pre-arrival assessment is carried out and a particular item is classified under a particular HS (Tariff Handbook) Code.

    “When you now go to SGD if it is a classification of 35 per cent you see that you declared five per cent instead of the 35 per cent that was issued to you.

    “So, we have worked out the difference unless there is evidence that what you shipped were no longer what came to Nigeria which we doubt.

    “Then wrong classification is another category.  That one deals directly with those bringing vehicles with reverse gear and you declare them as CKD.

    “For instance Dag Motorcycle Industries Ltd, when you bring in tricycle which has reverse gear, there are cases where they are classified wrongly.

    “All these  must be submitted by Monday so that by Wednesday we will be able to deal with definite figures on what amount of money that should be expecting to receive as unutilised Forex allocation,’’ he said.

    The lawmaker expressed concern that most approved Form Ms were not given to genuine users, leading to increasing exchange rate.

    He said the committee would ensure that Forex was given to genuine importers to strengthen the Naira against foreign currencies as well as improve employment opportunities among other benefits.

    He noted that the committee was extending its investigation to the operation of Trade Free Zone Agreement.

    “Most of you who have been importing in the name of trade free zone. Under that policy you know you have to do 30 per cent value addition.

    “But we have identified all the trade free zones that imported finished goods and those goods did not even get to the trade free zones.

    “The goods ended up in the various ware houses in Apapa and when they make the money, because there is no documentation they have surplus Naira.

    “With the surplus Naira, they in turn  buy dollar at any rate and in the process kill our  local manufacturers who really want dollar to be able to do their businesses,” he said.

    The Joint Committee on Customs, Excise and Tariff and Marine Transport had been mandated to carry out a holistic investigation into alleged N30 trillion revenue leakages in Forex and the entire import and export value chain between 2006 and 2017.

    The committee has so far met with all indicted commercial banks as well as government agencies and is currently meeting with the companies alleged to be involved in the corruption in the system.