Business News

AFTERMATH OF RELOCATION TO MM2:RUMBLINGS AT VIRGIN NIGERIA AS RESIGNATION AND RETRENCHMENT FEVER HITS AIRLINE

. ARIK AIR TAKES THE SHINE OFF DWINDLING CARRIER

.  EX -GOVERNOR MAY FLOAT NEW AIRLINE                           posted Monday Dec.22,2008 newsdiaryonline

Latest reports from sources at Virgin Nigeria indicate that at least two top officials have been  literally forced to resign .Just last week  several middle level staff were  sacked in what was  said to be the emerging consequence of the relocation of Virgin Nigeria from the International wing of Murtala Muhammed Airport to the famous MM2 run by Bi-courtney . It was learnt that the gale of retrenchment which is said to be the first phase of the action affected customer services agents , cabin crew and other middle level staff .Next year, the so –called rightsizing is expected to affect managers too. Also, the CEO ,Yemi Osindero and Larry Agose the director of corporate services have resigned .Our source said they were actually forced to resign by the prevailing nasty  situation in the company and the umbearable intrigues now unfolding.

The latest moves come on the heels of dwindling business of Virgin Nigeria.All international operations have been put on hold now.The routes affected by this suspension are south Africa and London.The operations on these international  routes are being put on hold `because of lack of products to service the routes`.

Newsdiaryonline learnt that hard times hit Virgin Nigeria shortly after it was compelled to relocate its domestic service to MM2.According to aviation experts, Virgin`s woes were compounded because the relocation order shattered its business plan.Virgin Nigeria`s business plan is said to be hinged on the hub system which the international wing of Murtala Muhammed  airport served very well as it was anchored on maximum aircraft utilization.But the split of its operations between domestic and international  has incurred additional overhead and the advantage of aircraft utilization is lost.All this has made revenue to take  a dip, an insider said.

Even more,the inter airline agreement signed between Virgin and other world carriers  as a result of Virgin Nigeria`s hub system collapsed like a pack of cards with the forced relocation of the airline to MM2.Now insiders say business is not quite good

``They can`t meet contractual obligations to several service providers..They can`t meet their financial obligations.They are facing bad times`` an insider revealed.

It is an open secret that Richard Branson of Virgin Atlantic has been considering the option of pulling out of the deal  with Nigeria.This development has attracted some Nigerian investors.Names like Jimoh Ibrahim  and Tony Elumelu ,managing director of UBA have been mentioned at various times among those interested in buying into Virgin Nigeria.Ibrahim`s foray into the airline did not quite get off the ground.That leaves the space for Elumelu and perhaps some dark horses.But there are speculations that Elumelu is not quite happy with the management of Virgin Nigeria as presently constituted.

Many Nigerian were disenchanted with Virgin Nigeria`s handling of its face -off with the Federal government.Interesting the  dwindling fortunes of Virgin Nigeria is believed to be  a direct consequence of that war which pitted it against Bicourtney and the Federal Government.

There were rumblings at the weekend that the middle level workers who are being retrenched now are just scapegoats made to suffer for the ineptitude of the airline`s top management .The management  led by MD Conrad Clifford is blamed for mishandling the relocation issue which has brought the airline to a sorry pass.Insiders also heaped blames on the corporate affairs department which gave emphaise to media war instead of encouraging the airline`s management to seek  a political solution to the relocation problem.

Newsdiaryonline learned that the airline`s choice of the legal and  media campaign-though quite plausible under normal circumstances- was somehow viewed by government as being confrontational.And government , anchoring its position on national security also won the sympathy of most Nigerians.What was unknown to Nigerians was that even within  Virgin Nigeria, there were workers who believed the political solution was better.It was learnt that the inept manner the management handled the affairs, forced  the airline`s head of government relations in Abuja to resign.The head of government relations is said to have a vast experience in aviataion industry, which saw him occupying a top post in one of the parastatals of the ministry before  he taking up  the Abuja job.But the lackluster attitude of Virgin Nigeria towards the opportunities for resolving the crisis was said to be so frustrating that the staff saddled with government relations resigned.Sources said Virgin`s ineptitude during the crisis included failure of topm management to attend meetings duly arranged with government.

The resignation of the airline`s head of government relations according to a source caused more damage to the  airline as some top members of government became angry that the antics of Virgin frustrated the chap out.Government`s anger was further bolstered by its perception that virgin was embarking on a campaign of calumny.At  some point Senator Ayogu Eze urged the former Aviation  Minister Hassan Hyet to prevail on Virgin to halt its campaigns against Nigeria.

It is the dwindling fortunes of the airline that made it to employ Captain Dapo Olumide as the new Chief Commercial officer a few days ago..He has the difficult task of repositioning Virgin Nigeria.Interestingly, feelers from within said he has got some warm reception from the staff who see his moves as those of ``someone set to make waves ``already.Whether he has the magic wand to truly reposition the airline and at least for the workers, halt the gale of retrenchment ,remains to be seen.

Virgin Nigeria`s woes seem compounded by it inability to compete now with what is believed to be the financial muscle of Arik Airlines.Arik is said to be acquiring more aircrafts that are set to make the airline more attractive.Arik is already taking the  shine off Virgin Nigeria, an industry operative said.

But if the feelers emerging from the aviation sector is anything to go by, even Arik too should brace up for tougher times.It was gathered that a new airline is coming.A former governor who is widely  believed to be behind one of the prominent brands in the sector is said to finally making moves to  prove to the world that he truly has nothing to do with the brand his name is associated with. Now he is believed to be shopping for aircrafts with a view to bringing  his own airline on stream anytime soon.Will it be a case of who is fooling who?                                

Bank PHB Acquires Spring Bank

New board emerges soon Thisday
12.19.2008

One of Nigeria’s fastest growing banks, Bank PHB Plc listed on the Nigerian Stock Exchange (NSE), yesterday announced the successful completion of its mandatory bid for the acquisition of over 3 billion shares of Spring Bank Plc.
The mandatory bid, declared unconditional by the Bank, following the fulfilment of all the conditions set out in the bid has given Bank PHB majority stakes in Spring Bank Plc, also listed on the NSE, confirming the success of Nigeria’s first major acquisition between two quoted companies on the NSE.
Bank PHB had on November 28, 2008 opened a N21 billion bid for more than three billion units of Spring Bank Plc in a bid to take its stake in the bank to more than 51 per cent to give it controlling stakes in Spring Bank Plc.
Bank PHB already had 33 per cent of the issued shares of Spring Bank which was acquired with the approval of Nigeria’s banking and capital market regulatory authorities.
Initial returns from receiving agents and Bank PHB branches collated so far shows the response of Spring Bank shareholders have been impressive giving Bank PHB the minimum 51 per cent stake it needs to take over the management of Spring Bank Plc. With the acquisition of majority stakes in Spring Bank Plc now complete, the expectation is that Bank PHB will move in with a new management at the expiration of the tenure of the current Central Bank of Nigeria (CBN) appointed Interim Management, by December 31, 2008.
The Group Managing Director/CEO of Bank PHB, Mr. Francis Atuche, who was elated at the outcome of the Mandatory bid stated that “notwithstanding the various court cases seeking to frustrate the Mandatory bid, I am stretching out a hand of friendship to all stakeholders of Spring Bank to ensure that the integration of Spring Bank and Bank PHB is effected seamlessly in the new year.”
The takeover and the injection of a new management by Bank PHB is expected to bring a new lease of life into Spring Bank Plc, once a top 10 bank at consolidation but currently in the low 20 ranking in the Nigerian banking industry.
Within the same period, Bank PHB has moved from the 17th bank in the country to rank among the top seven in assets, top five in deposits and top three in tier 1 capital in the Nigerian banking industry.
Also while Spring Bank Plc has not been able to offer any return to shareholders in the last three years, Bank PHB has been rated as having offered the best return to shareholders in the Nigerian banking industry within the period.
A comparative analysis in July 2008 by Moneywise Magazine, Nigeria’s leading personal finance paper, showed Bank PHB offered more than 977 per cent return to investors, the highest by any Nigerian bank, before the current market downturn.
Analysts at Renaissance Capital (Rencap), a leading emerging market institutional investor, in a detailed report, has hailed Bank PHB’s acquisition of Spring Bank Plc. Rencap stated that this is not only a good deal for Bank PHB and Spring Bank’s shareholders but also for customers, regulators, and employees.
Customers of both banks, according to the report, would benefit from the emergent institution’s expanded distribution network as “they will also have the additional comfort of banking with a much larger bank and extended product offerings”.
The Rencap report notes that “regulators will welcome the consolidation of Spring Bank into a larger and well respected financial institution. As a member of the Bank PHB Group, the Spring Bank franchise will finally be able to focus on serving its customers and play its part in the development of Nigeria’s banking universe.”
Bank PHB is rated as one of Nigeria’s fastest growing banks with an average growth rate that is three times the Nigerian banking industry average.
Bank PHB closed its 2008 financial year with gross earnings at N87 billion, 141 per cent higher than the gross earnings of N36 billion made in 2007.
This is almost twice the estimated banking industry growth rate of 76 per cent within the same period. Profit before tax at N26 billion was 153 per cent higher than the profit of N10 billion in the previous financial year against the estimated banking industry growth rate of 81 per cent. Profit after tax at N19 billion was also more than twice the N7 billion posted last year.
Bank PHB’s closing deposit base of N718 billion ranks it among the top five in deposits in the Nigerian banking industry with a growth rate of 133 per cent over a deposit base of N306 billion in 2007, showing a steady increase in confidence of the banking public in the bank.
The bank not only surpassed the industry growth rate in deposits of 86 per cent in the period under review, but now controls a healthy 6 per cent of Nigerian banking industry deposit market.
Bank PHB also closed with total assets and contingents of N1.15 trillion, 140 per cent more than N479 billion in June 2007.                                                                                                                                           

By Ijeoma Nwogwugwu and Crusoe Osagie with agency reports, 12.13.2008 Thisday

The Federal Government’s decision to open up the flood gates to the importation of bulk and bagged cement is taking its toll on local manufacturing, following the announcement by a Chinese firm, Sinoma International, that it has reached an agreement with the Dangote Group to suspend the latter’s $3.3 billion expansion programme in Nigeria.
News agency reports quote Sinoma in Shanghai, China, yesterday as stating that it had reached an agreement with the Dangote Group to suspend a cement project worth $1.45 billion and cut the size of another by nearly two-thirds -- both in Nigeria.
Confirming the development, the president of the Group, Alhaji Aliko Dangote said that his company took the decision to cut back on its expansion plans at three of its plants because of the colossal losses it would have incurred as a result of the importation regime being pursued by the Federal Government.
The government early in the year licensed several firms to import bulk and bagged cement in order to bring down the price of the commodity which was at a point selling at over N2,000 a bag. Since imports started flooding the country, prices have, however, fallen to between N1,400 and N1,500 per bag.
Sinoma had agreed to suspend one project involving six cement assembly lines, and cut the size of another project involving seven lines to $689.54 million equivalent from $1.85 billion, it said in a statement.
But the Chinese company said the adjustments would not have a big impact on its 2008 earnings as Dangote agreed to pay some compensation.
Sinoma, a subsidiary of China National Materials Company said in mid-November that Dangote would alter the Nigerian cement projects but gave no details at that time.
Throwing more light on decision to cut back on his expansion programme, Dangote said the compensation that would have to be paid by the Group to Sinoma was about $65 million, while the total amount in compensations to be paid to the European firms that formed the consortium, will amount to $200 million.
But Dangote was adamant that it will be a lot cheaper for his company to part with the $200 million to the consortium than lose some $4 billion that is certain to occur as a result of the importation scheme.
“It doesn’t make commercial sense anymore to manufacture cement locally, because any country that fails to protect local manufacturers through the policy of backward integration, will make it impossible for them to compete.
“We have looked at the cost to our business and have realized that under the prevailing environment, it will be better to cut down on investing in the country and simply import.
“It makes more sense to import because we no longer have to bear all sorts of costs associated with manufacturing. That way, we cut down on labour costs, energy and other costs,” he insisted.
Specifically, Dangote disclosed that the decision to cut down on the Group’s investment programme will affect lines three and four at the 5 million metric ton cement plant at Obajana.
“Remember that our plan was to double output at Obajana with the inclusion of two new cement lines. But we’ll no longer go ahead with that.”
Also, the Group’s president said that the planned 5.5 million metric ton-plant for Shagamu, Ogun State will be reduced by 50 percent.
However, since construction at the Ibese plant, also in Ogun State, had reached an advanced stage that will be completed. The Ibese factory is meant to have an installed capacity of 5.5 million metric tones.
Dangote maintained that it is unfortunate that his company has had to arrive at the decision to cut down on its investment plans in Nigeria, but he was left with no option.
“When the government is ready to provide electricity, water, roads, and other infrastructure, we’ll be more than willing to reconsider our strategy, but right now it is no longer worth our while to invest in a climate that fails to protect its manufacturing sector.”
Elaborating on the impact the importation of bulk and bagged cement is having on local manufacturers, Dangote said Ashaka Cement Plc, has seen it profits dwindle by 50 percent in one year because of the policy even though cement prices have been high.
However, THISDAY learnt that a downward review of the tariff regime for imported cement soon to be implemented by the Federal Government may have also contributed to Dangote’s decision to cut back on his expansion plans.
The development has also cut short plans by the company to generate about 100,000 jobs in the next two years through the expansion.
The reduced tariff structure now makes importation more attractive and profitable than local manufacturing, and may have forced the business mogul to reconsider his strategy to import rather than manufacture.
“If this new tariff sails through, then it would become impossible for local manufacturers of cement to make any further investment in actual indigenous manufacturing of the commodity. Every one would rather bring in most of their stock so as to operate profitably,” an industry source said.                                                        

National Honours Holder in N700m scam

A holder of Nigeria’s national honour, Dr. Albert Ikomi is now being interrogated by the Economic and Financial Crimes Commission, EFCC over advance fee fraud related matters. Ikomi who claimed to have been decorated with the national honour of Member of the Order of Federal Republic {MFR} by former president, Chief Olusegun Obasanjo in 2004, is entangled in a housing scheme scam.
The 1971 graduate of Ahmadu Bello University is alleged to have collected millions of naira from over 200 people; after he placed an advert in the dailies in 2004 describing himself as the managing director of Model Satellite Town Development Company, purporting to be developing a massive estate , Atan Idiroko Mega City as part of the proposed Lagos Mega City. He also claimed that he was executing the project on behalf of the federal government. He called on both investors and contractors interested to be part of the project to indicate their interest.
With this contractors and investors started scrambling for the registration forms. Ikomi, an Itsekiri who is now 64 years old, capitalized on this interest and started reeling out conditions that must be met by those who had indicated interest. For the contractors, he told them to form themselves into cooperatives, contribute and deposit money as evidence of commitment. Besides, he also enjoined them to look for a building technology that would ensure the delivery of the houses in 60 days.
To make the unsuspecting victims believe his cock and bull story, he started dropping the names of people in power such as Chief Obasanjo and Chief (Mrs.) Mobolaji Osomo, then Minister for Housing.
The contractors and other victims were very happy to hear from Dr. Ikomi that they were to build over one million houses nationwide. With this over 200 contractors and developers indicated their interest in the housing scheme, and they contributed money estimated at about N600 million.
After collecting the money, Ikomi became incommunicado. This prompted one of the victims, Mr. Darcy Nomba, the MD of Elanda Sea Limited who was number 114 on the list of those that paid, to petition the EFCC. In the petition, he alleged that he was defrauded to the tune of over N45 million, According to the victim, he met the suspect through a mutual friend at Abuja in 2004 and the suspect who was a federal director of works, told him that he had a project to build 16,000 units of housing at Ota known as Lagos / Ogun Model Satellite Towns and that he had got approval from the presidency.
The victim who is a building contractor said that the suspect, who incidentally hailed from his Local Government in Delta State, gave him award letter for 22 clusters of the housing project (a cluster is a set of three buildings). On each cluster he paid N1million each making N22million and the suspect termed it bill one. The suspect told the victim that after paying for bill one, bank guarantee to the tune of N3.7million per cluster would be given to the payer but this was not to be. After that, according to the victim, the suspect gave him an LPO to supply computers and other appliances worthy over N25million and promised to pay within 60 days. The victim went to obtain bank loan and supplied the items but the suspect didn’t keep to the agreement. Instead he started playing hide and seek at a stage he went into hiding until he was caught by the operatives of EFCC.
On interrogation he confessed to have collected the monies but insisted that the business was genuine but due to the sudden removal of Mrs. Osomo as the minister the business collapse. To buttress his point he mentioned some of the projects he claimed to have successfully carried out, including Abuja stadium, games village, Teedy hospital and Jakande National Housing Programme among other projects.
The suspect went further that in in 2004, the federal government gave him an assignment to build Abesan New Town and that he was about to perform the foundation ceremony when Osomo was removed. He explained further that a company known as Surgwell gave him undertaking to build one million houses all over the country but Oceanic Bank wanted a guarantee from the federal government but he refused, because they didn’t want to involve the federal government. He said further that ETB was interested but unfortunately when the loan was about to materialize, the owner of the bank, Mr. Mike Adenuga went into exile. Other investors such as Skye bank encountered problems in funding the project.
The suspect appealed to the victims to be patient because, according to him, the Chinese Government is interested in the project and that N600million had been earmarked as refund for contractors that are ready to withdraw from the scheme.
Meanwhile, the suspect is being investigated on a fresh case of obtaining over N100million from another victim.
Femi Babafemi
Head, Media & Publicity
7/12/2008                                                                                                                                    

Tentative buyers return to bruised Nigerian stocks

Wed 12 Nov 2008, 15:35 GMT

By Oludare Mayowa posted on newsdiaryonline wednesday Nov.12, 2008
LAGOS (Reuters) - Buyers have cautiously returned to the Nigerian stock market in recent days, and trading volumes are on the increase, raising hopes that a recovery may be in sight after several months of steep declines.
Sub-Saharan Africa's second biggest equities index has fallen by nearly 50 percent from its peak in early March, with the decline accelerating after regulators removed a 1 percent limit on daily downward price movements two weeks ago.
But the sharp falls mean some company valuations in the world's eighth-biggest oil exporter look tempting again, particularly against a backdrop of solid economic growth forecasts and strong corporate earnings potential.
The index closed up just over 2 percent at 36,538 points on Wednesday, its fifth straight day of gains.
"In the last few trading sessions, bids have returned and volumes have started to rise. This support has provided us with the confidence to raise our equity market view to positive," Renaissance Capital said in a research note.
The bank said it was maintaining a December 2009 target of 60,000 points for the Nigerian index, a potential upside of 70 percent from current levels, and said it believed it could reach 40,000 points by the end of this year.
Its top stock picks included Access Bank, Diamond Bank, FCMB, GT Bank, UBA and Zenith among financials, consumer firms Dangote Sugar, Nigeria Breweries and Guinness Nigeria, and cement firm BCC.
DEAD CAT BOUNCE?
The Nigerian stock market has been one of the best performing frontier markets in the world in recent years, attracting the interest of hedge funds and private equity investors from Asia, Europe and the United States.
Many of those foreign investors have been taking money out of the Nigerian capital markets in recent months as the global credit crisis spoiled investors' appetite for risk, contributing to the equity market's steep decline.
"It's always tough to call the bottom because you never know the volume that buyers are able to take up," Fola Fagbule, a Lagos-based analyst at brokerage Afrinvest, told Reuters.
"Potentially it could be a dead-cat bounce, so it could go up some and then people will take opportunities to sell. But it is also a very good signal because it makes clear to everyone that there is buying interest in the market again."
One broker said Nigerian investors, who had bought aggressively into the market even as valuations looked over-priced late last year and then sold off in a panic this year, had been chastened by the roller-coaster ride.
"The market has hit the floor and has no other way to go. Equities are bottoming out. You won't be seeing aggressive growth or falling prices like it used to be," Eugene Ezenwa, head of Spring Capital brokerage in Lagos, told Reuters.
"Demand has taken over and the market is stabilising. Stockbrokers are happy again," he said.            

BANK FRAUD: MONEYGRAM SEEKS PARTNERSHIP WITH EFCC

Posted monday Nov.10,2008
MoneyGram International ,a global money transfer company along with its agent banks in Nigeria has assured the EFCC of its continued commitment to fighting fraud and other economic crimes.This was revealed in a statement by Femi Babafemi, spokesman of EFCC.
The assurance was given by Chris Botes, MoneyGram Regional Compliance Director during a visit with some bank executives to the Executive Chairman of the EFCC,Mrs Farida Waziri at her office in Abuja last weekend.
“ MoneyGram and its partner banks in Nigeria will continue to pro-actively fight fraud in Nigeria and in specific, guard against being used by trans-national fraud syndicates”, he promised. Botes also promised that his organisation would always utilize modern information technology which automatically screens and filters transactions to counter fraud and money laundering.
Botes in addition promised that MoneyGram with its partner banks in Nigeria would proactively identify fraud even as they handle transactions and customers with due skill, due care and due diligence. He assured of his organisation’s willingness to collaborate with EFCC, Nigeria Financial Intelligence Unit (NFIU) and other law enforcement agencies and regulators in implementing the anti- money laundering regime in the country.
Speaking earlier while receiving the visitors, Mrs. Waziri had called on MoneyGram and other money transfer companies to take into cognizance the fact that Nigeria was not yet developed technologically hence the need to put in place mechanism to check fraudulent activities involved in transferring money back and forth Nigeria.
She said that the issue of money laundering was critical and challenging to EFCC because economic and financial crimes were always perpetuated through money laundering and sometimes with the connivance of banks and money transfer companies. “There has been lots of complaints regarding frauds connected with money transfers and we will collaborate with you to end this menace. We intend to be proactive because fraudsters are themselves upgrading their knowledge and skills to beat law enforcement agencies.”, she said.
Waziri bemoaned the fact that those who suffer most from these fraudulent activities are some old and illiterate persons whose relations have send them money from overseas and who normally do not know what are expected of them to claim these monies.
She suggested building capacity of operatives to know the intricacies involved in money transfer, bridging current intelligence gap between operators and enforcement agencies and improving the current internal mechanism among others, as measures to be put in place to check money laundering and money transfer frauds.            

N20m fraud: Pastor bags 7 year jail term

 Posted Sunday Nov.9, 2008

The long arm of the law has caught up with Chibundu Achinihu  as he is to spend the next seven years in prison. Honourable Justice F. A. Andetuk of High Court 3 in Jalingo, Taraba State last Wednesday found Achinihu guilty of the offences for which he was arraigned by the Economic and Financial Crimes Commission.

The EFCC had on February 20, 2007 arraigned the accused person who claims to be a pastor on a one court charge of Advance Fee Fraud. The accused was said to have sometime between February and September 2004 in Jalingo committed the offence with the intention to defraud and obtained the sum of twenty million (N20,000,0000) naira  from one Pastor Pichson Isaac under the false pretence that he was operating a company that was capable of paying 25 per cent interest on the said amount at the end of 30 working days.  The accused had also promised that at the end of 90 days, he will pay back both the interest and principal, an agreement he failed to keep.

When the matter was first heard on May 25, 2007, the prosecution called 14 witnesses and tendered 22 exhibits including cars and documents to support its case while the defence had no witnesses. The honourable judge who heard the submission of the prosecution counsel and that of the defence delivered judgment on November 5 and found the accused person guilty of the charge and therefore sentenced him to seven years imprisonment. The trial judge also ordered that the accused pay back the N20 million to the victim just as he gave order that property of the accused be auctioned by the court and be supervised by the prosecutor in line with section 11(1)(2) of the Advance Fee Fraud and other Related Offences Act.

This statement was sent in by Femi Babafemi,head, media & publicity of the EFCC                        

Africa : Jet-setting to business as usual

Nov 6th 2008 | SOMEWHERE OVER AFRICA
From The Economist print edition

Afro-boosterism seen from on high

IT IS too easy to see Africa as little more than an amalgam of hut-burning janjaweed militias, emaciated children and “big men” in aviator shades. Africa’s civil wars, sham elections and political shenanigans certainly demand attention, so the remoter parts of Darfur, Ethiopia, the Niger Delta or Zimbabwe tend to be where Western reporters end up, often after dangerous journeys in elderly planes and bumpy jeeps. The view was different when your correspondent was whisked around six rather more salubrious countries in five days in a Gulfstream 5 executive jet carrying a clutch of managers and investors with Lonrho, a London-based company with a controversial history in Africa.
Up there, in the rarefied atmosphere of jet-set investor group-think, Africa’s wars and diseases can dissolve all too easily in a glass of Chablis too many, as executives talk frontier funds and business possibilities. Individual countries blur into little more than a succession of food-processing plants, PowerPoint presentations and container ports. Wednesday? It must be Mozambique. Or is it Congo? Hard at first to tell, as you glide through customs and passport control with barely a murmur from the usually finickety officials. This must be how big men travel. It is seductive.
Touring Africa with Lonrho carries a cachet of its own. It is one of the most recognisable brands in Africa, the legacy of the redoubtable Roland “Tiny” Rowland, who built the company up over more than three decades from its modest beginnings in Southern Rhodesia (now Zimbabwe) before being ousted in a boardroom coup in the mid-1990s. At its height, Lonrho had 680 companies across Africa, run from offices in Nairobi. Company legend has it that at one point its firms made up 40% of Zambia’s GDP—even the omnipresent Chinese cannot match that nowadays.
The swashbuckling Rowland died in 1998 and his empire was broken up. The mining bit—the most profitable—became Lonmin. Lonrho’s hotel portfolio was reduced to just one tatty hostelry, in Mozambique. Now, having taken over the rump company just three or so years ago, Rowland’s successors are trying to build it back up, in a style that Tiny would surely have approved of. One of its liveliest new businesses is an airline in east Africa, Fly 540.
Rowland reckoned that in post-colonial Africa politics was everything—as it often still is. He made sure he was best mates with virtually every political leader on the continent, however unsavoury or crooked. This earned him vilification in Britain: a prime minister, Edward Heath, catchily dubbed Lonrho “the unacceptable face of capitalism”. But in Africa it earned access to markets and government contracts. He was fêted by Africans because, unlike well-meaning aid agencies and foreign governments, Lonrho not only promised hotels, roads, ports and farms that would develop Africa, it actually built them.
Two decades on, the reincarnated Lonrho goes about business in some of the same jovial ways—but with a less spotty capitalist face. Instead of the charming Rowland, a boisterous Australian-born chairman, David Lenigas, with a girth as big as his ambitions, gladhands politicians wherever he goes. Many of the new businesses in Africa are joint ventures with governments or with people tied to the ruling parties. It is called reducing political risk. They are less likely to nationalise you if they already own you, argues Mr Lenigas. Another old Lonrho hand, brought back to run the hotels, argues that “Africa is all about relationships. Africa does not trust commerce—it’s all done on relationships. It’s the only way to succeed.” A lesson the Chinese have learned all too well.
Always find your man
So we break bread and nurture our relationships in countries like sticky Equatorial Guinea, these days perhaps best-known for imprisoning Simon Mann, a posh British mercenary who tried to oust the government four years ago in a coup. We spend about seven hours there, just long enough to visit a Lonrho port facility, talk to Western oilmen who are making the ruling family very rich indeed, and listen to a quick sales-pitch from one of President Obiang Nguema’s American-educated sons, the “go-to” man for investors. He tells us of his plans to turn the country into a sort of Switzerland of African tourism, with all that virgin rainforest to explore. Perhaps Mr Mann, as the country’s most famous resident, could feature on the tourist trail. Messy facts about the awfulness of the government are politely ignored. This is after all, one of Africa’s worst regimes, with an abysmal human-rights record and life expectancy under 50.
Other stop-off points are, like Equatorial Guinea, Africa’s hottest investment destinations of the moment: Luanda, capital of Angola; Maputo, capital of Mozambique; and Lubumbashi, Congo’s sprawling south-eastern mining city. These are the places that excite investors, where high returns are anticipated in countries often starting from scratch after years or even decades of civil war. Luanda, for instance, is now as much of a bottleneck as a gateway to Angola, as the world scrambles to pick up contracts from its burgeoning oil sector. The most impressive sight is not in town but from town, of scores of freighters and tankers waiting off-shore to enter the clogged harbour: it takes an average of 45 days to dock and three months to get a container out of the port.
Just another African business bubble, to be puffed up by the usual Western buccaneers? As financial turmoil hits the rich world, the investors in Lonrho spend a lot of time scrutinising their BlackBerries and calling out latest share and currency dives. Lonrho’s own share price tumbled from £49 ($97) in January to £6 on October 27th. But, remarkably, the company’s African interlocutors barely mention such things. Wall Street and the City of London seem a long way from Maputo, and the optimists hope that this very remoteness may turn out to Africa’s advantage.
Back on the jet, Lonrho’s chief executive says it is firms like his that will develop Africa, not aid money. Maybe. But Africa has a habit of confounding the empire-builders, as Tiny Rowland found out. As for your correspondent, he is now sweating in a tent in Sudan.                                                                                                    

Exclusive:SHOCKING DETAILS OF THE REPORT BY SENATE COMMITTEE ON THE CONTROVERSIAL  N19.5 BILLION AVIATION FUND

.COMMITEE URGES EFCC AND POLICE TO PROSECUTE  BORISADE, IYAYI AND AVSATEL

.. RECOMMENDS NOTHING AGAINST FANI KAYODE

 BY DANLAMI NMODU  Posted Tuesday Nov.4,2008

A report by  the Senate Committee that conducted an investigation into the N19.5 billion aviation intervention fund has been scooped by Newsdiaryonline.The report which was written in July 2008 is titled:``THE SENATE, FEDERAL REPUBLIC OF NIGERIA,REPORT OF THE COMMITTEE ON AVIATION Investigative Public Hearing into the sources and utilization of the N19.5 Billion Federal Government Intervention Fund for infrastructure in the aviation sector and N2billion Loan/Grant from Rivers state Government for PortHarcourt Airports.``

The report uncovered several untoward acts with respect to the N6.5billion Safe Tower Project.It may not be surprising that its shocking findings led it to recommend drastic measures against key officials of government.The report made eleven recommendations  which began with an indictment of Professor Babalola Borishade, the former Minister of Aviation,,Captain Roland Iyayi, former MD of NAMA and  the contractor that ,Avsatel  which executed the safe Tower project.

The report recommended among others that ``The senate should urge the EFCC and the Police to take necessary steps to recover the sum of N4.5billion being inflated cost of the safe Tower Project from the former Minister of Aviation, Prof.Babalola,the former Managing Director of NAMA Capt.Roland Iyayi and the Contractor ,Avsatel Nig.Ltd which executed the project and prosecute them accordingly``.The  Committee which has Senator Anyim Ude as chairman also recommended that ``the Federal Government should set up a contract review panel to  review all the contracts awarded  with the Intervention Fund with a view to recovering all monies on inflated contracts and prosecuting guilty ones while settling legitimate outstanding payments to ensure that all the contracts  properly awarded are completed within a prescribed period in the interest of air safety.

The recommendation listed No 4  has several subdivisions.It states inter alia that the Federal Government should specifically ensure ``That the N1.2billion for MMA runway extension is not released to M/S PW Nig.Ltd until due process and Federal Executive Council pproval is received for the proposed taxiway job.The Minister of state (Air ) should take steps to enure  a legal cancellation  of the extension part of the contract through an addendum to the contract or any other means as may be advised by the legal department of  both the Ministry and FAAN.``

It also recommended  that ``The  Federal Ministry Of Transportation should set up a committee to review all severance payments to former staff of FAAN with a view to ascertaining the status of individual beneficiaries , resolving duplications in payments and unmasking the beneficiaries suspected to be ghost workers who were paid a whooping(sic) sum of N7,773376.07``.It adds, ``That  the objective of the severance exercise  in FAAN  was defeated by subsequent recruitments leading to a bloated workforce  including  26GMs, 30DGMs and 94 AGMs attracting a monthly salary of about N700million.The situation should be revisited by the committee recommended in 5 above with  a view to proper rightsizing in the organization which is on the verge of collapse``

The investigative  committee came into being  after Anyim Ude,chairman  the senate committee on aviation  presented to the senate in plenary  the report of its investigation on the poor state of safety in our airports.One of its recommendations was a call for a mandate from the senate to carry out public hearing into the N19.5billion fund.The adoption of the recommendation gave rise to the investigative hearing by the senate committee on aviation.The comiittee members includeUde, chairman, Bala Mohammed, vice chairman, Grace Folashade Bent,Umaru Dahiru, Ikechukwu Obiorah, Gyang Dantong, Gbemisola Saraki, Kawu Dukku, Iyiola Omisore ,Nicholas Ugbane,Mujitaba Mohammed ,all members and Victor Aborishade as secretary.

Details of the findings of the Committee are more shocking.The committee established that the total sum of the intervention fund was N21.5 after adding the N2billion released by the Peter Odili government in Rivers State.Out of this amount, N6.5billion was sourced through bank loan;the N2billion FAAN severance  benefits and FAAN intervention at four airports were sourced from FGN Natural Resources Account while N2 billion came  from Rivers State government for FAAN infrastructure at PortHarcourt Airport.

 The committee noted  among its findings ``That the N6.5billion Tower project was awarded  through selective tendering process(not advertised and not competed for).That the N6.5billion Tower project had no Bill of Quantities or a detailed listing of with specifications of items to be delivered by the contractor. That the company that operated as consultant did the survey, determined the scope of work and fixed the contract price was the same company that was awarded the contract.That the company is Avsatel Communications Ltd  G.E.S.M of Austria.`` The report which said the safe Tower project   contract of N6.5billion was awarded  during the tenure of Borihade also noted  ``that the highest   quotation received by the technical consultant to the Senate committee on aviation during the investigation for the same Towers from both Viasala and Frequenties, the same manufactures and other companies was N1.5billion at N100% mark-up``

According to the report, the disbursement of N2billion severance benefits  for disengaged staff of FAAN started during the tenure of Borisade  but it was completed by Femi Fani -Kayode..It was revealed that 23 names were duplicated amounting to N58,332,763.22. It was also revealed in the report that`` 5 staff were without files and are suspected to be ghost workers  who were paid N7,773,376.07``

The report also said  that N11.O billion which came from the Natural resources account  was used by FAAN for various infrastructural development.Out of N11.0 billion,  contracts  worth N5.3 billion were awarded  during he tenure of Femi Fani Kayode as minister of aviation.But the report seen by Newsdiaryonline did not recommend any action against Fani-Kayode.                                                                                                           

Nigerian Banks: Soludo, Iyamah, Ohuabunwa, Ayedun Disagree
By Marcel Mbamalu  The Guardian   Sunday, November 02, 2008              

Crisis In Capital Market Wont Affect Banks, Says Soludo

By Emma Eke                   THE GUARDIAN

UPROAR OVER `FAILING` BANKS  JUST AS EFCC URGES  BANK CHIEFS TO STOP AIDING MONEY LAUNDERING

Reports that many banks are not doing quite well raise panic and condemnation but the CBN says the situation is under control.Meanwhile EFCC urges bank chiefs to curb money laundering

Posted Wednesday October 29,2008

The suspicion has always been there.The majority feeling is that the banks have been less than honest about their true standing.Are the banks truly doing as well as they often claim? Not many can answer in the affirmative yet.At best what is being done now is some massive damage control.This strategy has become even more incumbent given the global financial crisis which has seen big banks and financial institutions quake in the aftermath of the financial crisis rocking the United States .

But the efforts to contain the spread of the crisis is becoming increasingly difficult.Media reports have been indicating that all may not be well with the banks in Nigeria.A daring report even claimed that only seven banks are okay.That claim generated a lot of ripples.A banker described it variously as erroneous ,dangerous and spurious.``It is just the  opinion of the man who spoke`` he said .Fine.

Officials of the Central Bank of Nigeria CBN did further damage control as they said those who made spurious claims did not have the facts to prove them.In fact the claim that Nigerian banks are unwell fly in the face of the position of Chukwuma Soludo the CBN governor who has repeatedly assured that in the aftermath of the banking consolidation, the fundamentals are sound now. But the subsequent reports that the NDIC takes a slightly different view of the situation in the banks may leave many wondering what exactly is going on.

Truth really is that the activities of the banks are not quite transparent.There have in fact been calls on the National Assembly to probe the activities of banks.Not much has been done in this regard.But some sharp practices including  money laundering are believed to be going on with the active connivance of the banking officials.That was the point made by the Chairman of the Economic and Financial Crimes Commission, EFCC, Mrs Farida Waziri as she  challenged Nigerian banks to live up to their responsibility by giving the anti-graft agency genuine information on money laundering activities going on in the sector.

She said in a statement by Femi Babafemi, head media and publicity of EFCC that  it is in the interest of the banks to cooperate with the Commission in this regard, stressing that the EFCC is now poised to beam its searchlight on the banking sector to safeguard the nation’s economy.

The EFCC boss gave this charge Tuesday ,October 28, 2008 when a high-powered delegation of the Chartered Institute of Bankers of Nigeria (CIBN) led by its President, Dr. Erastus  Akingbola paid her a courtesy visit in her office in Abuja.

Waziri while receiving the delegation noted that the visit was timely as the banking sector was crucial in the country’s economy and the realization of President Umaru Yar’Adua’s seven point agenda, as well as the vision 20- 2020.   She said that it was quite unfortunate that corruption especially money laundering was sometimes facilitated by the banks. “We should partner with you because each time there is an occurrence of money laundering there is always insider connection,” she said.

She said that though banks comply with the Nigeria Financial Intelligence Unit (NFIU) directives to report all financial transactions, the reports in most cases are incomplete adding that “the banks give you what they want rather than what you want.”  She urged the banks to put their houses in order and avoid being used as tools in the hands of those who are determined to ruin the country through money laundering.

Waziri congratulated Akingbola who is also the Group Chief Executive of Intercontinental Bank Plc over his recent election as the president of CIBN, and challenged him to bring to bear on the banking sector, his wealth of experience and integrity.

In his response, Akingbola promised to give all necessary assistance to the Commission in the fight against financial crimes. In his opinion, the banking institution can only get better if the war against money laundering and other financial crimes is going to be successful. “We are committed to enthroning good ethics in the banking sector  and we are determined to get rid of bad eggs in our midst”,he assured.

The CIBN boss revealed that in line with their policy of zero tolerance for corruption,the institute has set up a disciplinary committee which is ready to help the commission in its quest to end financial crimes.He praised the effort to the commission so far in the fight against financial crimes and money laundering.

Akingbola was accompanied during the visit by Mr. Joseph Jaiyeola, the first Vice President, Mr. Olusegun Ajibola, National Secretary, Dr. Uju Ogbunka and H.R.H Prof. Green O. Nwankwo, past president of the Institute among others.                                                                                                                                        

BANKER IN YAHOO-YAHOO MESS

Tobi Adebayo,a banker is arrested by the Economic and Financial CrimesCommission,EFCC for acting as an accomplice in an internet scam.Read the press release by  EFCC `s spokesman Femi Babafemi titled `Banker,undergraduates arrested in a $21,600 marriage scam`

Posted Friday October 24, 2008

A banker who works in the Western Union desk of one of the new generation banks, Mr. Tobi Adebayo has been arrested by EFCC over his role in a marriage scam involving two undergraduates of Olabisi Onabanjo University, Ago Iwoye and a Malaysian lady who was swindled of $21,600

The prime suspect, Mr. Oyewale Jide Akeem claimed that he met the victim, Ms Susan Choo on a dating site in the internet and they started chatting. Soon, the chatting blossomed into a love affair. The 18- year old undergraduate who had assumed the identity of a non-existent Mark Park Lofton, an American national resident in Nigeria, said the only condition that the lady gave for the consummation of their romance was that he must be a Christian which he readily met. And to convince his prey about his identity, he downloaded the picture of a tall American from the internet and sent it to the victim in Malaysia.

Choo who is a divorcee with two children was fascinated by the photograph of the white man she saw, and she started dreaming of an enduring relationship. Unknown to her that she was being conned; she stepped up her chatting with the ‘white lover’. The online romance was so hot to the extent that the victim contemplated coming to Nigeria so they could solemnize the relationship. She was so carried away that she promised to take her ‘fiancé’ to Pastor Temitope Joshua of Synagogue Church of All Nations because, as she claimed, the pastor was known to her. The suspect also promised to take his ‘fiancé’ to a fictitious Pastor Mathew Kalejaiye of non- existent Lifedon Christian Church Lagos.

Now conscious that he had the victim under his spell, Akeem began to release the tricks from his rich arsenal. He started by telling the woman that he would like to visit her in Malaysia before she arrives Nigeria for the marriage and that he would need money for ticket and other travel expenses. Choo swallowed the bait and agreed to send money through Western Union.

At this juncture the fraudster realized that he would need to recruit more people to perfect the scam. He got a ready accomplice in 18- year old Idowu Olukunle Joseph, his childhood friend who is also an undergraduate of Olabisi Onabanjo University. Idowu’s duty was to present his identity card to collect the money being sent by the sucker and take it to Akeem for a commission.

 When they realized that the ID card might give them away because of the frequency with which they visited the bank, they changed their strategy. The second suspect, Idowu stole his father’s driver’s license which they used to collect more money in the bank.

 But despite the ingenuity of the duo, it wouldn’t have been so easy to defraud the 35 -year old Malaysian but for the ignoble role played by the third suspect, Mr. Adebayo, who was in charge of the Western Union Money Transfer desk at the Egbeda branch of the bank. He threw banking ethics into dustbin and provided cover for the fraudsters for a fee and in the process, the trio successfully defrauded the victim of $21,600.

The cat was let out of the bag when the woman discovered that the photograph sent to her by the principal suspect was actually downloaded from the internet. Consequently, she petitioned EFCC and the operatives of the commission swung into action. In no time, the suspects were rounded up at Oshodi, a Lagos suburb. They have all made useful statements and would soon be arraigned in court.                                                                           

ACCESS BANK OPENS U.K SUBSIDIARY, GETS SOLUDO`S ENDORSEMENT

One of Nigeria’s leading banks,Access Bank Plc has opened its United Kingdom Office. The official opening was done on Tuesday,October 14, 2008 at its UK head office, No 1 Cornhill street, overlooking Bank of England. The ceremony was followed by a  reception later in the afternoon at the Kessington Palace, London. Earlier,the bank had been granted an operating license and authorization by the Financial Services  Authorities (FSA) to operate a full service banking subsidiary in the United Kingdom.

The U.K subsidiary is a full service bank, offering a range of products and world class services to both retail and whole clients. The UK office brings to seven Access Bank’s offshore subsidiaries since the commencement of its global expansion strategy  in 2006. Access Bank is fully operational in Nigeria, The Gambia, Sierra Leone, Zambia,
Rwanda, Congo Democratic Republic and Cote D’ Ivoire.

A statement by the bank says that :”By its entry into the OECD region, Access Bank intends to continue in its role as a catalyst for economic development and agent  for trade facilitation between Africa and the Europe.”

Access Bank is one of Nigeria and Africa’s fastest growing financial services groups having grown at a consistent triple digit growth over the last six years. The Bank was recently ranked amongst the world’s Top 1000 Banks, ranking no 359 in terms of capital. The Bank has shareholders funds in excess of $1.5billion and an asset base of over $ 10billion  as at March 31, 2008.

Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo on Wednesday endorsed the Access Bank subsidiary in the UK (The Access Bank UK Ltd) office in the United Kingdom , saying that the bank would go places given its pedigree and reputation in terms of the quality of its staff and exceptional services.
 
Soludo, who spoke at the formal opening ceremony of Access Bank office in the UK , requested the bank to replicate in the United Kingdom the outstanding performances it is known for in the domestic market. “The Financial Services Authority (FSA) does not just license any bank. The plus for Access Bank is the quality of the people in the bank and the services it renders. I believe that Access Bank will maintain the quality of the brand it has taken to the UK and some other countries within last one and half years.
 “You have started on a good footing and you will be a role model to other banks. Given the speed of acceleration of this bank within a short period of time, I have no doubt that this bank would go places. From a dream of young, dynamic and audacious people, that Access Bank has become number 11 bank in Africa is commendable. There are millions of dreams but only few like Access Bank see the light of day and blossom,” the Governor said.
 
He recalled that some months ago at one of the breakfast meetings with CEO of Banks in Lagos , when the Group Managing Director of Access Bank, Mr. Aigboje Aig - Imoukhuede, informed him of the bank’s strategy - “to establish branches in 20 countries within the next five years” he thought the management of the bank was setting audacious targets.  “The audacity of these young men has propelled them. The
 idea of having Nigerian banks overseas is right but the idea of having Access Bank in the UK is great.  “What took the two subsidiaries of the colonial masters  (First Bank of Nigeria Plc and Union Bank  of Nigeria Plc)  more than 100 years to achieve was achieved by four other banks ( Access Bank, Guaranty Trust Bank, Zenith Bank and
 Intercontinental Bank) in less than one and half years. This tells you that something has changed and it is the quality of the people” Soludo said.
Earlier, the CEO of The Access Bank UK , Mr. Jammie Simmonds, emphasized that the bank is for customers from all locations and origins - promising that customers will be served with the highest standards of professionalism and customer service. He also commended the courage of the Governor of the CBN, whose bold reforms formed the foundation for the expansion of Nigerian banks into the UK .Also speaking at the well attended event Aig – Imoukhuede described Prof. Soludo as the "Father of Modern NigerianBanking".
Specifically, he said Soludo provided “the visionary leadership that provided Nigerian banks with the capacity to gradually transform into global institutions.”                                                                                    

REPATRIATE NIGERIA`S FOREIGN RESERVES NOW! 

The full text of the statement by United Action for Democracy (UAD) on the GLOBAL FINANCIAL CRISIS released in Lagos, Wednesday, October 15, 2008
We called this press conference to state the positions of the United Action for Democracy (UAD) on the Global Financial Crisis, its implication for our country’s foreign reserves trapped in the Western imperialist banks; and to popularize the campaign for the repatriation of the foreign reserves for meaningful socialdevelopment.
1.Events in the last six weeks of the global crisis of capitalism manifesting in the bankruptcy and collapse of western imperialist banks and cartels have confirmed the correctness of our consistent campaigns against the neo-liberal economic policies adopted by successive regimes in our country. The economic agenda of the Nigerian State since the introduction of the Structural Adjustment Policy(SAP) in the 80s and its reform policies of Vision 2010, NEEDS 1 & 2, and Vision 2020 rest squarely on the neo-liberal paradigms authored by the IMF, World Bank and WTO. Thus, there must be genuine concerns and demand by patriotic Nigerians on thefate of Nigeria’s foreign reserves of $63 billion idling (or probably missing) in the distressed US economy.
2.The Nigerian State would soon be compelled in dictates to the IMF-World Bank’s “interim measures” to bail out the distressed banks, and thereby plunder the so-called foreign reserves, with some shares of it looted and laundered into the accounts of the Iboris, Odilis, Igbinedions, Yar’Adua’s rent collectors, etc. Nigerians may soon witness another rehearsal of Fela’s reminiscence of “oil money missing, missing; and enquiry don close”.
3.Few months before the bubble burst in the Western banks, the Nigerian Stock Exchange market has been collapsing because there were never real investments to back up the manipulated claims of the previous booms in the market. The effect is that investors’ money is trapped with heavy losses. But the likes of the Obasanjo’s Transcorp and other crashing cartels would be the beneficiaries of the reserves in the guise of bailing the distressed sectors out; while the Yar’Adua lame-duck presidency would pass the costs of the capitalist greed to the ordinary people innform of hike in the prices of petroleum products. Nigerians do not deserve to suffer, and its reserves should not be used to rescue those who have been swindlingthem through privatization and concessioning of public enterprises, and pseudo foreign investments.
THE POSITION OF THE IMPERIALIST IDEOLOGUES ON THE GLOBAL FINANCIAL CRISIS In an apparent disguise of the real magnitude of the crisis, leading capitalist and US economic ideologues such as Gary Becker (1992 Nobel winner in Economics and a professor of economics at the University of Chicago) have admitted even in their begging arguments that: “although it is the most severe financial crisis since the Great Depression of the 1930s, it is a far smaller crisis, especially in terms of the effects on output and employment. The United States had about 25% unemployment during most of the decade from 1931 until 1941, and sharp falls in GDP. Other countries experienced economic difficulties of a similar magnitude. So far, American GDP has not yet fallen, and unemployment has reached only a little over 6%. Both figures are likely to get quite a bit worse, but they will nowhere approach those of the 1930s. Defending the emergency measures adopted by the US Government, Becker stated that: “the main thrust of the new banking law allows the Treasury Secretary to purchase bank assets up to $700 billion in order to increase the liquidity of the banking system. These assets are of uncertain worth since there is essentially no market for many of them, and hence they have no market price. The government hopes to create this market partly through using auctions, where banks would offer their assets at particular prices, and the government would decide whether to buy them. Even in trying to conceal the failure of Global capitalism and its inevitable demise, Professor Becker shot himself in the foots by saying: “Although I admit to having greatly underestimated the severity of the current crisis, I am confident that sizable world economic growth will resume before very long under a mainly capitalist world economy”.
On 11th October 2008, The Independent of UK reported that the Washington’s hosted IMF Conference of world's finance ministers and central bankers has consented to a “bank rescue plans” geared towards: “an internationally coordinated cut in interest rates and a pledge of billions of dollars in assistance from the IMF for distressed economies”. The paper further exposed the capitalist frauds when it reported that:“The unparalleled turmoil in the world's financial markets has pushed America and the world's other leading economies to agree to a programme of part-nationalisation of their banks that would have been considered unthinkable a few months ago”. To underscore the magnitude of the crisis, The Independent stated: “the official action is designed to match the scale of the crisis. It has witnessed a destruction of wealth unprecedented in human history: some $25 trillion – that is $25 million-million – wiped from the value of the world's stock markets so far this year, and $4.6trn (£2.7trn) of that in the past week alone”.
Beyond the $700 billion bail out to its banks, the US Government is adopting other desperate measures. British Government talks of £500 billions. However, the revelation by The Independent that the “West's banks are so weak that they will not even lend to each other for a day” is instructive of why our country’s foreign reserves should be repatriated immediately. For instance, the Paris Club (we never borrow money from) knew when to drain Nigeria with the corrupt indulgence of Obasanjo-Okonjo Iweala in 2005 of over $12.4 billions in the pretence of foreign debt cancellation questionably owed to it. Nigerians must insist that this is the time to ask questions on the $63 billions; because in all the meetings of the imperialist looters of G7 and G20, Nigeria and other underdeveloped countries are never a part, decisions are taken and imposed on them.                                                                  

EFCC ARRAIGNS 2 FEMALE STOCK FRAUDSTERS

A press  release  by Femi Babafemi, head, media and publicity of  EFCC

Posted Monday October 13, 2008

Two female suspects, Miss Perpetual Onome Erhaiemen and Miss Olubunmi Temitope Ibitomi were today arraigned separately before Lagos High Courts, by EFCC over offences bordering on stock fraud. Erhaiemen, 32, was arraigned before Justice Olubunmi Oyewole for allegedly forging Central Security Clearing System {CSCS} statements and presenting same genuine, to people she had fraudulently collected money from to buy shares.

The accused who is a graduate of the University of Benin and a sales executive with Vision Trust, a Benin City, Edo State- based stock broking firm, was alleged to have collected the sum of N11.8million from numerous clients of the company on the pretext that she was going to help them in buying shares in a number of companies. But instead, she diverted the money into her private account and gave the clients fake receipts. To cover her tracks, whenever any of the clients asked about their stock account status, she would print fake CSCS statement for them. But the cat was let out of the bag when one of the clients went to the website of CSCS and couldn’t find her name. She decided to contact the company where it was discovered that the accused had been collecting money in the name of the firm without remitting same to its account,

Consequently, the case was reported to EFCC. In her statement, she admitted collecting money from people but said that she paid the money into her personal account because she wanted to deduct her commission  upfront. She offered to refund the money. But when the Edo born lady took her plea this morning, she pleaded not guilty to the 25- count charges leveled against her.  Justice Oyewole consequently remanded her in Kirikiri prisons till October 24 when the trial will commence.

In a related development, Ibitomi was arraigned before Justice Morenike Obadina of Ikeja High Court on a 43 count charge of forgery and stealing. The University of Ilorin graduate was alleged to have defrauded some people to the tune of over N8million on the pretext that she wanted to help them buy shares. Instead of remitting the money into the account of Forthright Securities and Investments Limited where she was a sales executive, she converted the money to personal use. And like Erhaiemen, she also forged her company receipt and CSCS statement in order to convince her victims. In her statement at EFCC, she owned up to the crime, but pleaded not guilty before the Court , she has been remanded in EFCC custody till October 29 when her case will come up for further hearing.                                                                                                                                      

Nigeria preparing for global slowdown

By Matthew Green in Lagos/FT.COM

Published: October 8 2008 10:15 | Last updated: October 8 2008 10:15

While foreign investors have stampeded out of Russia and Brazil as the credit crisis deepens, Nigeria has re-mained largely immune to the kind of short-term volatility roiling more established emerging market peers.

But analysts warn that the turmoil on Wall Street could pose longer-term risks to prospects for a recovery in sub-Saharan Africa’s second biggest stock ex-change if it fuels a global slowdown that saps prices for Nigeria’s oil exports, which provide the bulk of export earnings and government revenue.

Nigeria enjoyed one of the strongest performances of any emerging market last year on the back of surging demand for banking stocks following a successful consolidation exercise. Flush with cash, banks such as United Bank for Africa, First Bank and Access Bank used the funds to expand across the continent.

But growing global concerns over bank valuations helped trigger a steep correction in Lagos – where banks make up about two-thirds of the total market capitalisation of $85bn (€62bn, £48bn). The NSE All Share Index has lost 31.44 per cent since March 5, according to Afri-Finance, the advisory firm.

Although foreign investors have played a role in influencing sentiment in Nigeria, last year they accounted for only about 12 per cent of the value of transactions, limiting their potential to cause havoc with a hasty retreat. Nigerian banks are, however, concerned that the credit crunch will make it harder to secure credit lines in the US and Europe for trade finance, a bread and butter business for banks in an economy which imports about $30bn of goods a year.

Some Lagos-based analysts mention Fortis, the troubled Belgo-Dutch group, as among the correspondents for several Nigerian institutions. “That is where the major impact is: our credit lines. No bank is lending anymore,” said Tayo Aderinokun, chief executive of Guaranty Trust Bank. “I think we are still doing quite well because we are fairly well diversified both in Europe and America, but smaller banks or maybe less strong banks will be having it pretty tight now.”

By far the biggest worry is how banks will manage their losses in the local market. Much of last year’s stellar gains were driven by banks lending money for share purchases which have now turned sour. The central bank said last week it would let banks reschedule capital market-related exposure until the end of 2009, suggesting some have been pleading for a reprieve. The government limited the maximum daily downward stock price movement to one percent in August, but investors say the measure has only undermined confidence further. Some hope Nigeria’s government – sitting on top of $63bn of foreign exchange reserves – will back some form of market-making mechanism to restore local liquidity, regardless of what happens on Wall Street.                               

SOLUDO LOBBIES TO SAVE HIS JOB

Are you surprised that the much- speculated sacking of Chukwuma Soludo governor ,Central Bank of Nigeria , CBN has not materialized  yet ? This is  an exclusive insight into  why   

Posted Sunday October 5, 2008

BY DANLAMI NMODU

Chukwuma Soludo, governor of  the  Central Bank of Nigeria seems adept at weathering a storm.A few months ago, it appeared like his days at the helm of affairs at the apex bank were over.Even  Daily Trust newspaper once quoted him as saying  his days were numberedn .Tales about his looming exit were fueled by the change in government from former president Olusegun Obasanjo to President Umaru Musa Yar`Adua and the series of changes that have followed afterward.

Contrary to that strong speculation about his exit Soludo has  however been sitting pretty and has even grown evidently more confident as he struts across  lecture circuits from the north  to south .Newsdiaryonline has learnt that Soludo`s confidence may have been boosted by the strength of his lobby to save his job .``The man lobbied seriously `` were the words of one of the CBN chief`s  allies.

It has been  learnt that Soludo`s lobby team include  men who have the ears of the president Umaru Musa Yar`Adua.A source said some of those Soludo lobbied to save his job include one  Inuwa Baba who is in the protocol office in the presidency .He also worked  under former president Olusegun Obasanjo whose regime appointed Soludo as governor of  CBN.Baba is believed to have worked closely with late  Shehu Musa YarAdua , elder brother of President Umaru YarAdua .Baba is believed to be Soludo`s  bossom friend and he may have come in handy in the lobby to save him from Yar`Adua`s long knife, at least for now.

It  was also learnt that the CBN governor has been lobbying James Ibori, the former governor of Delta state to put in some words before the president.Ibori`s influence within the YarAdua presidency is no longer in doubt. Though he is being prosecuted by the Economic And Financial Crimes Commission,EFCC  for alleged looting of delta state treasury, he has remained a constant visitor to president YarAdua.It is even believed that he was instrumental to the sack of Nuhu Ribadu as chairman of the EFCC.A former commissioner in Ibori`s government is now one of YarAdua key official staff in the presidency.So it may not be any surprise that Soludo is intensifying his lobby through the former  Delta state governor.

There are others believed to have been intervening to avert Soludo`s sack.A source named Governor peter Obi and other. According to the source`` the governor of his (Soludo`s) state, Peter Obi has also been useful in the lobby. There are also words making the round that one of the prominent emirs in the north has been lobbying for him but  I don`t really know how deeply the emir is involved``

While the lobby to save his job intensified, Soludo himself has taken some steps that close watchers of his travails say exemplify a well- crafted  attempt to appeal to all parts of the country especially the north .It is believed that some northerner quarrel with Soludo`s prescriptions for Nigeria`s economy during Obasanjo`s reign especially the recapitalization  which required banks to have N25 billion capital base.The fact that no ``northern `` bank was able to keep its identify is  being  used against Soludo. To survive  what some northerners call the  “Soludo onslaught”, banks in the north went into forced marriages thus losing their identities .The ailing Bank of the North  had to lose its identity  as it joined a marriage  of strange bedfellows  to survive .

Obviously, handlers of Soludo`s image makeover  have been conscious  of the damage this perception may have done to him.This may have explained why he has been giving lectures in the north about the parlous state of the northern economy, In all he is now coming across as a  guru who cares about the north as well.At one of such lectures in Kaduna, Soludo said poverty is a northen phenomenon .That lecture  few months ago drew some critical acclaim for its forthrightness .Hear the comment of a northerner about Soludo`s lectures about the north:``You know during Obasanjo`s regime he(Soludo) seemed to have no business with the north.Now the tide has changed so he is trying to swim with the tide by appeasing the northen public.`` .

Newsdiaryonline also learned that Muhammed Alhaji Yakubu,  the former gubernatorial candidate of the People`s Salvation Party in Kogi State  was the man who facilitated Soludo`s lecture in Kaduna.Alhaji-Yakubu  who  is one of the emerging northern Turks is currently   the Youth leader of the Northern Union . How far that lecture in Kaduna  will help Soludo  remains to be seen, because Tanimu Yakubu who is Yar`Adua`s chief economic adviser has been reported in the media as eyeing Soludo`s job.And  .Tanimu, as he is fondly called is really very close to the president. Even more, his influence in the presidency is believed to be growing  as newsdiaryonline  reported earlier..

The best Soludo appears to be doing these days in public - while his underground lobby trudges on- is to key  into the unfolding debate on the financial crisis in the United States as its aftermath ripples across the globe.The  latest public lecture by the governor of the apex bank  was  at the Thisday Town Hall meeting in Abuja. He  used the occasion last Friday to issue a timely warning for all the stakeholders in Nigeria`s economy to join forces to avert the spread of the financial crisis rocking the world now .Said Soludo in Abuja"Here in Nigeria, we need a coordinated action as stakeholders and regulators. We must come together and provide the needed fillip to protect our financial system from the crisis ravaging the rest of the globe.''

Signs of trouble for the CBN chief began early in the days of the Yar`Adua regime as  the new president appointed Dr Shamsudeen Usman who was Soludo`s deputy at the CBN as the minister of Finance. That was presumed to be a warning signal that the governor of the apex bank should expect some stormy times ahead .And  to say the least, unlike the rollercoaster ride Soludo had with Obasanjo`s regime , the CBN chief has had to battle against  unexpected challenges .Initially, he ran into trouble for allegedly announcing the redenomination of the Naira which the presidency later reversed .At that point it became apparent that rough times had in deed began for Soludo. Not  long afterwards, reports began to emerge about the some questionable investment of Nigeria`s funds in Africa  Finance Corporation, AFC.A presidential probe was instituted and it has recently submitted its reports. The report of that panel is believed to have indicted Soludo.And many expect the hammer of tha president to fall.So far nothing has happened perhaps owing to the protracted lobby.But another watcher believes that aside from Soludo`s lobby, the  Soludo question  may have been overtaken by more urgent matters which may have inadvertently conspired to save him ; or so it seems at least for now.                                                                                     

ANTI-CORRUPTION WAR

- Accountant -General`s arrest  worsens Governor Agagu`s woes

- More governors under close watch

Posted Friday September 26, 2008

The arrest on Thursday of  Mrs  Folake  Ogunnika , accountant -general of Ondo state ,south west Nigeria may just be  a tip of the iceberg. Newsdiaryonline learnt that fresh hints have  been indicating that some state governors are returning to the  old ways of alleged looting of treasury.

 Mrs  Ogunnika was arrested by officials of the Economic and Financial Crimes Commission EFCC after receiving a petition that she allegedly released N1 billion to political office holders as loans that were not secured. No details have bee released yet  about the real identities of the beneficiaries of the loan  .

But Femi Babafemi , spokesman of EFCC reported confirmed the arrest which  came on the heels of a petition   that the accountant- general`s office has become a conduit for issued unsecured loans amounting to N1billion to poltical appointees.That may just be a diplomatic way of saying the state government has been settling political appointees through the office of the accountant general.

Much earlier three officials of the state had been invited for questioning by the Independent and Corrupt Practices and Other Related Offences Commission  ,ICPC. They include Tayo Alasoadura, commissioner ,finance and planning ,Abiodun Akinde, the permanent secretary of he ministry and Dr Deji Akinwalere who is the permanent, office of the deputy governor.The  invitation by the ICPC was consequent upon  allegations that N12.5 billion out of the funds meant for local governments in the state had been diverted.

Efforts by newsdiaryonlne to speak with an official of the state on  Friday morning failed to yield any result  as he politely pledged to call back in twenty minutes. He didn`t  . But The Punch quoted Eddy Olafeso the state`s commissioner for information as having dismissed Ogunnika`s arrest as `` routine check``He added that ``The administration of Dr Olusegun Agagu is known for its  transparency, accountability and probity .The latest ploy of  the opposition to derail this administration has failed and we are  marching forward in our effort to develop this state``

Truth is that Governor Segun Agagu has been politically embattled and these arrests simply deepen his political troubles.As a sitting governor he enjoys immunity from arrest. But his  election was recently annulled by the election petitions tribunal which declared Olusegun Mimiko  of the Labour Party as the winner of the last gubernatorial polls in Ondo State.If the probe of those arrested establishes any case again him, it may be a sign post of problems in the future. Many former governor are now facing trial due to allegedly corrupt practices while in office.Whether Agagu wins or loses his appeal against the election tribunal`s ruling these cases of corrupt practices by top officials of the state may haunt him if investigations link him with any offence.

The new allegations of alleged corrupt practices in the state compound the difficult political situation   the governor is facing. A high ranking official in the state recently told newsdiaryonline that the election tribunal`s ruling has put the Agagu in a bind .He believes that  but for ``the PDP abracadabra, Agagu cannot win 20% of the votes cast in the state in any free and fair election in the state.`` That is why some of his top officials may be worried about the unfolding developments in the state.

It has also been learnt some alleged corrupt practices are being reported in  other states in the Nigeria .More intelligence reports are being gathered newsdiaryonline  learnt. In one particular state in the north, the governor is accused of embarking on white elephant projects; contracts awarded by the state government are said to be inflated.  Even worse according to the hints already emerging, contracts  above N5million are allegedly awarded to the governors companies.``We are watching , let`s give him enough rope to hang himself`` a source said