10 insurance firms face financial distress

1:35 PM Business, News No Comments

Minister of Finance, Okonjo-Iweala
| credits:

The National Insurance Commission has said that about 10 insurance companies are currently facing serious financial issues, which may lead to bankruptcy.

The situation, according to NAICOM, is already making the firms to operate below acceptable standards.

Commissioner for Insurance, Mr. Fola Daniel, said NAICOM had therefore placed the affected companies under close watch to prevent the problem from deteriorating.

He said, “Ten insurance companies are currently under regulatory watch, following observed deficiencies relating to solvency.”

Daniel stated this in a speech he delivered at the House of Representatives public hearing on the issuance sector in Abuja.

However, the speech obtained by our correspondent on Thursday, did not include names of the affected firms.

The commissioner also said that eight other insurance companies had been sanctioned for operational infractions, while 19 companies were penalised for breach of oil and gas insurance guidelines.

The commissioner also said that 38 companies were penalised for failing to submit copies of evidence of their reinsurance arrangements.

The commission also dealt with some companies for infractions relating to submission of audited accounts and financial statements.

Daniel said the guidelines for oil and gas insurance were issued by the commission following the enactment of the Nigeria Oil and Gas Industry Content Development Act 2010 and the commission’s inclusion on the board of the Nigerian Content Monitoring Board.

This, he explained, was to ensure compliance with the insurance aspects of the Local Content Act.

The commission, he added, had convened a workshop where insurance experts from international markets would speak to the local market.

He said, “While 100 per cent compliance may not be feasible given human nature, the compliance level has been reasonable. Nonetheless, the commission imposed sanctions where breaches were observed.”

To give effect to the provisions of the law, Daniel said the commission had issued several guidelines, some of which were operational guidelines for insurers and reinsurers; operational guidelines for intermediaries; code of good corporate governance; and anti-money laundering/combating the financing of terrorism regulations.

Others are guidelines for developing a risk management framework; claims management guidelines (draft); guidelines for oil and gas insurance business; guidelines for the divestment of banks from insurance institutions; and Nigeria insurance industry ICT policy guideline.

The commissioner also stressed the need for mandatory insurance cover for certain assets and liabilities in the country.

He said, “Financial prudence plus international conventions and best practices also make insurance the most cost effective risk transfer mechanism, an attractive tool of management of public finance.”

BY NIKE POPOOLA

Read More

Tejuosho: Court to rule on FBN, Access Bank suit Oct.

12:58 PM Business No Comments

A Federal High Court sitting in Lagos, will on October 11, 2012, rule on whether or not to set aside an ex-parte order appointing Oluwakemi Balogun, as receiver/ manager of the new Tejuosho Market complex on behalf of First Bank Plc.

The trial judge, Justice Okechukwu Okeke had earlier granted an interim order appointing First Bank as Receiver/Manager over the assets of Stormberg Engineering Company Limited sequel to a suit by the bank against the company and Engineer Dolapo Atinmo over an alleged indebtedness to the bank.

At the resumed hearing in the case, the judge after arguments by counsel to First Bank and Access Bank, which applied to the court to be heard as an interested party, adjourned to rule during the court’s vacation.

Counsel to Access Bank Plc, Mr Kunle Ogunba, SAN, had in an application, challenged the order made ex-parte on March 13, 2012 over the receivership of the new Tejuosho Market complex.

Access Bank had urged the court “to set aside, annul or vacate the order” on the ground that the plaintiff allegedly suppressed facts in obtaining the order.

Its counsel, in the application, asked the court to dismiss case or alternatively strike out the order in limine as the entire action as couched and presented was a grievous and an abuse of court process.

It argued that the action by plaintiff was hurriedly conceived and surreptitiously style in response to another suit it filed on the subject matter.

Access Bank, through its counsel, argued that the action was predicated on the ground that there was an existence of a prior Deed of All Assets Debenture ranking in respect of the assets of the first defendant, the appointment of a Receiver/ Manager pursuant to same, the subject matter, purport and implications of the existence of an action in suit N0: FHC/L/CS/1082/011.

He added that the ex-parte order made in the suit on May 13, 2012 was deliberately suppressed from the court and therefore constitutes an abuse of court process.

He added that, the plaintiff had made several attempts without success to be joined as a party in the previous suit as well as setting aside the ex-parte order in the suit by Access Bank (the interested party) against Stormberg Engineering Company Limited.

He argued that First Bank had also sought for leave to appeal and stay the execution of the ex-parte order granted to his client, Access Bank by the court dated September 26, 2011 before the Court of Appeal.

He also stated that the existence of the extant suit alongside the earlier action at the Federal He urged the court to dismiss the application for lack of merit while granting its prayers.

In its response, First Bank argued that suit N0: FHC/L/CS/1082/2011 filed by Access Bank had been concluded, as parties in the said suit executed terms of settlement, which was adopted and made judgment of the court.

The bank argued that the ex-parte order obtained on September 26, 2011 by the interested party (Access bank Plc) in the said suit lapsed after an adoption and pronouncement of the terms of settlement, which was executed by parties as judgment of the court on January 20, 2012.

The bank confirmed that it applied to be joined as a party in the suit to set aside the order but same was refused and struck out, which made them to seek a leave of the appellate.

By Abdulwahab Abdulah

Read More

FG plans 24-hr registration for businesses

11:54 AM Business 1 Comment

The Federal Government will as part of its plans to open up the Nigerian business space for more investments, ensure that serious investors who intend to register their businesses in the country do so within 24 hours, says the Minister of Trade and Investment, Dr. Olusegun Aganga.

Aganga spoke recently at the ground breaking ceremony to flag off construction of Procter&Gamble’s multi-billion state-of-art baby care manufacturing plant in Ogun State.

Aganga, who represented President GoodLuck Jonathan at the event, said it was part of federal government’s initiative of industrialising the nation, and making her the hub of investment in Africa.

He affirmed that its plan to grant 10 year automatic Visa to intending foreign investors on entry to Nigeria was still subsisting.

He said, “The government now have industrialisation plan. We have also established competitiveness committee to help us in this regard. We have embarked on national tax reform which has culminated in national tax policy and we will also make it easy for businesses to be registered in 24 hours. For serious investors, we will also have Visa application processing in 24 hours.”

He stated that key sectors of the economy, especially where the country has competitive advantage have successfully been opened up for participation by interested individuals, saying that the government is investing heavily in education, health, and other areas.

He said the federal government would concentrate on using available resources to develop the country instead of encouraging exportation of manpower through continuing exportation of raw materials.

By NKIRUKA NNOROM

Read More

Benin’s new football chief takes office

11:18 AM Sports No Comments

COTONOU (AFP) – The new chairman of Benin’s Football Federation, Victorien Attolou, formally took office on Friday following a court victory over his predecessor, although world governing body FIFA have yet to approve the new regime.

Attolou accused former chairman Moucharafou Anjorin of financial misconduct, and the dispute led 12 of the 15 members of the federation’s board to declare Attolou the new boss, but FIFA said a new chairman could only be chosen through a formal vote.

Anjorin’s supporters refused to back the new chairman and a legal battle ensued, with an appeals court ruling in Attolou’s favour on July 12.

“The new chairman of the federation assumed office today,” the federation’s lawyer Issiaka Moustapha told AFP.

But FIFA continues to insist on a full vote before recognising Attolou’s victory.

In a letter published widely in local media following the court ruling, FIFA threatened to suspend Benin from competition if they did not comply with their regulations.

Read More

Sack Oteh, prosecute Sanusi, Reps tell Jonathan

10:00 AM News, Politics No Comments

The House of Representatives on Thursday asked the Federal Government to remove from office the Director-General of the Securities and Exchange Commission, Ms Arunma Oteh.

The lawmakers said this in their adoption of report of the House ad hoc committee which probed the near-collapse of the capital market.

The report was debated and adopted on Thursday, barely 24 hours after the Federal Government recalled Oteh from the suspension slammed on her on June 12 by the Board of the SEC which indicted her for mishandling the Project 50 of the commission.

The report, which aslo faulted Oteh’s appointment as DG on grounds of qualification, said that she lacked the competence to manage human and material resources.

Oteh was also found to have lied on oath before the panel on the ownership of nationalised banks as well as “regulatory failure in some of the recent mergers, acquisitions and approvals of transactions by SEC.”

The report in fact recommended her removal and prosecution.

But the government in a letter recalling her said Oteh was not indicted of fraud.

Some of the legislators had on Wednesday accused President Goodluck Jonathan of “shielding corruption” with the recall of Oteh while she was being investigated. They alleged that the action of the government was to pre-empt the House decision.

Spokesman for the House, Zakari Mohammed, had also said that the lawmakers would take a decision on the SEC DG, notwithstanding the government’s action.

Workers of SEC had also on Wednesday protested the recall of Oteh, arguing that her recall would erode confidence in the capital market.

But the Presidency said on Thursday that the government’s decision to bring back Oteh was independent of the House decision and that due process was followed in her recall.

Jonathan’s spokesman, Reuben Abati, told one of our correspondents in Abuja that the accusation that his boss was shielding corruption with the recall of Oteh lacked merit.

Abati said, “If you look at the content of that letter issued by the office of the Secretary to Government of the Federation, government indicated that under her (Oteh’s) watch, there were a number of lapses in terms of how procedures were managed. The letter strongly advises her to pay more attention to the management of procedures.

“Due process has therefore been followed; fair hearing has been allowed. And on the basis of the recommendation and findings of independent auditors, government has taken this decision. The allegation of shielding corruption cannot stand in this matter.”

He added, “What government has done has nothing to do with the report of the House of Representatives. They are two separate things.

“When the House was carrying out its probe, there was no communication with the Executive.

“If the House concluded its work on the probe and forwarded its recommendation to the Executive, it would be treated on its merit.”

The report of the House ad hoc committee, led by Mr. Ibrahim El-Sudi, specifically stated that the embattled DG’s appointment violated “Section 3(2) a and 4ection 38 (1)(b), 2 and 3; Section 315 of the Investment and Security Act, 2007 in that she did not have 15 years experience in the Nigerian Capital Market as required…”

“That the appointment of Ms Arunma Oteh be terminated forthwith as DG, SEC,” the report said.

The report added, “She has shown incompetence in the management of human and material resources at her disposal in SEC, lack of transparency in the management of Project 50…and general inability to carry along her staff, board and management in decision-making in SEC and questionable staff recruitment.”

In another recommendation, the panel directed the prosecution of Oteh for lying on oath over the “ownership structure of the nationalised banks.”

Also to be prosecuted with Oteh for the same offence are a Deputy Governor of the Central Bank of Nigeria, Mr. Kingsley Moughalu; and the Managing Director of the Nigeria Deposit Insurance Corporation, Mr. Umar Ibrahim.

The House directed the Attorney-General of the Federation, Mr. Mohammed Adoke, to prosecute the officials for breach of Section 10 of the Legislative Houses Powers and Privileges Act “for giving false evidence under oath to the committee.”

While the officials had told the panel that the nationalised banks were owned by the Asset Management Company of Nigeria, it was later discovered that private individuals were the directors of the banks.

On another ground, Oteh and the Governor of the CBN, Mr. Lamido Sanusi, were recommended for prosecution for contempt.

The panel explained that they refused to produce documents that would have assisted the investigation in breach of “Sections 4&11(b) of the Legislative Houses Powers and Privileges Act and Section 89 of the 1999 Constitution.”

Also to be prosecuted for the same offence is the MD of Asset Management Corporation of Nigeria, Mr. Mustafa Chike-Obi.

For their roles in the banking sector crisis, which led to the CBN intervening in eight banks in 2009, the panel recommended a former Governor of the apex bank, Prof. Chukwuma Soludo, for “further investigation.”

Others to be investigated for the same reason are the Deputy Governor (Banking Supervision), Mr. Tunde Lemo; and a former deputy governor, Mr. Ignatius Imala.

Similarly, the House endorsed the recommendation of the panel asking President Goodluck Jonathan to strip the former MDs of the eight banks of their national honours.

In addition, it called on anti-graft agencies to “hasten their prosecution to serve as deterrence and to help restore investors’ a deterrent in the market.”

Although the panel had recommended the prosecution of Sanusi over nationalisation of AfriBank, Bank PHB and Spring Bank by the EFCC, the House stepped down the recommendation pending the outcome of consultation between the panel and the Committee on Banking/Currency.

This came after an explanation by the Chairman of the banking committee, Mr. Chukwudi Onyereri, who told the House that the committee was adequately briefed on status of the affected banks.

Members had obliged the committee a request to brief the House after the two committees had consulted on the matter.

But, one member, Mr. Abubakar Momoh, warned that the consultations should be done transparently to avoid a repeat of scandal witnessed during the consideration of the fuel subsidy probe report last month.

To strengthen the capital market, the committee recommended that both SEC and the CBN should improve on their regulatory duties by “detecting infractions and malpractices in their supervisory capacity.”

BY JOHN AMEH AND OLALEKAN ADETAYO

Read More

Senate to probe $1.09bn oil block scandal

9:03 AM Business, News No Comments

President of the Senate, David Mark
| credits:

The Senate on Thursday resolved to investigate the controversial payments involving Malabu Oil and Gas Limited and Shell/Agip arising from the sale of an oil block Oil Prospecting Licence 245.

Senators were, however, divided as to whether the investigation should be conducted by an ad hoc committee or by a standing committee.

President of the Senate, David Mark, warned that calls for an ad hoc committee probe indicated lack of trust in the Senate’s standing committees, saying that it was not good for the Senate.

Deputy Leader of the Senate, Abdul Ningi, the motion’s lead sponsor, argued that the Senate was concerned by recent media attention on the circumstances surrounding a tripartite transaction involving the Federal Government, Shell/Agip and Malabu Oil and Gas Limited.

He said that the transactions referred to the oil block “OPL 245” to the effect that the Federal Government sold the block to Shell/Agip consortium for $1.092bn.

Ningi said, “The media reports have raised legal and ethical issues surrounding the transaction and pattern of distribution of proceeds to the beneficiaries.

“If all these weighty allegations are ignored, Nigeria may be sanctioned by the Extractive Industry Transparency Initiative for violating a global initiative to which it is a signatory and our image will further be eroded locally and internationally.”

While calling on the Senate to commit the investigation into the matter to an ad hoc committee and to report back in four weeks, he noted that Nigeria signed up to the EITI in 2003 and followed it up with the policy on Extractive Industry Transparency Initiative.

He said, “We want to find out whether it is true that money from the sale was paid to the Federation Account. Whether the Federal Government agent by his position disbursed the money. Whether the government agent moved money from the federation account or the same agent has moved money from Keystone Bank. This has to do with finance, banking and currency; it has to do with anti corruption.”

President of the Senate intervened in the ensuing debate, warning that it was wrong to insinuate that only an ad hoc committee could investigate an assignment of the Senate.

He said, “Let me say that no Senate committee is under investigation; so any Senate committee can do the assignment. Any committee can do the job.”

Deputy President of the Senate, Ike Ekweremadu, had said the matter should be investigated and recommended that it should be referred to the Senate’s selection committee to determine which of the committees to handle the probe.

Senator Ayogu Eze agreed with Ekweremadu and noted that standing committees could do the work as much as an ad hoc committee.

Ahmed Lawan also supported the call for an investigation, but insisted that it should go to an ad hoc committee, arguing that it had to do with finance, petroleum and anti corruption.

In Mark’s concluding remarks, he said, “Because of the heat that this issue has unnecessarily generated, I think that the selection committee should look at it.”

BY OLUWOLE JOSIAH, ABUJA

Read More

Jega risks court sanction over Edo poll

2:02 AM News, Politics No Comments

INEC Chairman, Prof. Attahiru Jega
| credits: File copy

A Federal High Court in Abuja has asked the Chairman of the Independent National Electoral Commission, Prof. Attahiru Jega, to explain why he disobeyed its order barring the use of collapsible transparent ballot boxes for the July 14 governorship election in Edo State.

The summons issued by Justice Adamu Bello is contained in FORM 49, a notice to show cause for disobeying an order of the court.

Other parties affected by the summons are, INEC and the Registrar Of Patent, Ministry of Commerce and Industry.

The summons read, “Take notice that the plaintiff will apply to this court for an order for committal to prison the alleged contemnors for having disobeyed the order of this court made on the 5th of June 2012 enjoining and restraining you.”

The summons arose from Jega’s failure to comply with the court’s judgment in a suit brought by Bedding Holdings Limited against INEC and other respondents over the use of the ballot boxes in the 2011 general elections.

The plaintiff claimed it had the patent right to the electoral material, and that INEC and the other respondents used it without first seeking and obtaining its permission, in line with patent laws.

In its judgment of June 5, 2012, the court declared as illegal, the use of the ballot boxes in the 2011 general elections by INEC without the consent of the owner of the patent right.

The court also barred INEC from using the boxes for any subsequent polls, including the Edo State governorship election, without first seeking the approval of the patent owner.

Meanwhile, INEC had explained that it deployed the ballot boxes for the Edo State election because it was not possible for the commission to procure new design of the boxes before the elections.

INEC’s explanation was contained in an affidavit the commission filed before the court in support of a motion in which it is seeking a stay of execution of the court judgment.

In the affidavit, dated June 28, 2012, the deponent, one Rahima Aminu, a legal officer of INEC, stated “The Edo State election is due to hold on14th July 2012, three weeks hence.

“The Ondo State Election is due to hold on 20th October, 2012 four months hence.

“I know that it is not feasible for the applicant to acquire/procure a new design or different ballot boxes for the said elections given the short time for the elections.”

BY IHUOMA CHIEDOZIE, ABUJA

Read More

PHCN workers down tools over soldiers take over

12:45 AM News 1 Comment

WORKERS of Power Holding Company of Nigeria, PHCN, Friday downed tools to protest soldiers seizure of the corporate headquarters of the company in Abuja, as the logjam between the Federal Government and workers over severance and gratuity benefits ahead of the privatization of PHCN deepened.

Union leaders have directed workers of PHCN in Ilorin to vacate their offices, go home and await further directive following the sale of the company to private investors in the country.

It will be recalled that while labour said last month meeting with government ended in deadlock without agreement, the government on the other hand, said it had finished discussions with labour.

It was gathered that the withdrawal of service was a spontaneous reaction to government decision to draft armed soldiers to take over the corporate headquarters of PHCN when labour issues concerning the planned privatization of PHCN were yet to be resolved.

Though officials of the two unions; the National Union of Electricity Employees, NUEE, and Senior Staff Association of Electricity and Allied Companies, SSAEAC, said members were not on strike, but reports across PHCN stations showed that the workers were on strike.

In many parts of Lagos where reports of faults were made to PHCN stations, consumers were politely told that they were protesting soldiers take over of their head office.

Meanwhile, it was gathered that the House Committee on Power was making frantic efforts to bring the government and Labour back to the negotiating table to save the country the looming crisis in the power sector.

PHCN sale: Labour leaders direct staff in Ilorin to go home

Union leaders have directed workers of PHCN in Ilorin to vacate their offices, go home and await further directive following the sale of the company to private investors in the country.

The directive according to Weekend Vanguard was to avoid embarrassment of the staff from the new buyers.
Staff of the company were seen at Baboko and Challenge district stations milling around the office aimlessly and unsure of future development. Some of the staff who spoke on condition of anonymity said they had not received any letter to any effect, saying they heard the media report and decided to close the offices.

Consequently,district offices of the company have been put under lock and key in Kwara state.

The staff also debunked speculations that all staff of the electricity company had been laid off by the new owners, as some of them even said the letters they received recently was about promotional interview scheduled for Monday next week.

Efforts to speak with the labour leaders as at the press time proved abortive as they could not be reached for comment.

Vanguard News

Read More

FG to offer airlines low-interest loans

12:08 AM Business, News 1 Comment

Minister of Aviation, Mrs. Stella Oduah
| credits: File copy

Following the Dana airplane crash on June 3, the Federal Government has said it will provide low interest intervention fund to enable domestic airline operators to stand the test of time.

It is also considering lowering the age limit of aircraft allowed to operate in the Nigerian airspace as a further measure towards ensuring safe airways and restoring confidence in the aviation industry.

President Goodluck Jonathan made these known at the opening of a safety conference of African ministers responsible for aviation in Abuja on Thursday.

The President, who was represented at the event by Vice- President Namadi Sambo, also pledged support for any company that would want to establish aircraft maintenance and overhaul facility in the country.

The modalities for the intervention fund have yet to be worked out. The Federal Government had in the past provided N300bn intervention fund to the industry but much of the money was allegedly diverted by the beneficiaries.

Jonathan said, “There is no doubt that air safety and safer travels provide significant means to grow our economy and develop our people. We must take advantage of our current challenges and turn them into bountiful opportunities.

“Nigeria has made some significant strides towards overcoming the challenges in aviation sector. The government is determined to restore confidence in air transportation in Nigeria by paying special attention to the protection and defence of air travelers through support for industry best practices.

“Our commitment to the transformation of the sector will be holistic and far reaching. Every avenue will be explored to grow domestic aviation industry, including the much needed finance by providing single digit intervention fund to grow domestic airline and encourage high net worth investors and indigenous companies to invest in the industry.

“In this regard, I have directed the Ministry of Trade and Investment, the Ministry of Finance and the Central Bank of Nigeria to propose an actionable plan towards the actualisation of this programme.”

The President also expressed commitment to total rehabilitation and completion of aviation infrastructure in the shortest possible time.

He said, “We will encourage all stakeholders to redouble their efforts in ensuring that our airports are safe and secure to attract public confidence and patronage. We cannot allow such an important industry to become a source of sorrow and regret.”

The Minister of Aviation, Mrs. Stella Oduah, said the Federal Government was considering lowering the age limit of aircraft that could operate within the nation’s airspace to 15 years. The current age of 22 was set after the air crashes of 2005 and 2006.

She admitted that this policy could have a short term negative impact on the desire to encourage the growth of domestic airlines but added that the issue should be how to strengthen and enhance airlines’ viability as business concerns.

Oduah said, “We will continue to encourage domestic airlines not only to grow in their individual capacities but to also consolidate wherever possible, so as to pool resources together for the emergence of more stable, viable and profitable airlines.

“The dynamism of modern airport operations has also propelled us to embrace the concept of Aerotropolis. The development of Aerotropolis comprising clusters of aviation businesses around the major international gateways is aimed at harnessing the economic potential that exist in the country.”

She disclosed that work had begun on the development of four international airport terminals in Lagos, Abuja, Kano and Port Harcourt, adding that the effort at transforming 22 airports in the country was expected to be completed in 2013.

BY EVEREST AMAEFULE, ABUJA

Read More

Oyo empowers women with cash, trade equipment

12:05 AM Health, News No Comments

The Oyo State Ministry of Women Affairs has donated cash, generators and a deep freezer to 198 individuals across the state as part of its poverty alleviation programme.

Selected beneficiaries were given N20,000 each.

The Commissioner for Women Affairs, Community Development, Social Welfare and Poverty Alleviation, Mrs. Atinuke Osunkoya, said the programme was aimed at “waging war” against poverty among the masses.

“It is a global reality that no society can develop without meaningful improvement in the area of job creation for women to complement the efforts of their husbands, by augmenting the family income and reducing the rate of juvenile delinquency,” Osunkoya said.

One of the beneficiaries, Sarat Rasaki, an 80-year-old woman from Oranyan, Ibadan, said she was a petty trader.

“I hope to use the money to trade and take care of my children. We have been surviving on the sale of cold pap. I used to sell rice, beans and yam flour before but I had to stop because there was no money. With this money I can go back to my business,” she said,

Another beneficiary, a sand supplier, Olaide Adegbola, said things had been very difficult for her family.

“I want to use the money to expand my business. I am very happy for the progress made on the empowerment programme,” the 46-year-old Oremeji-Agugu, Ibadan resident said.

40-year-old trader, Rashidat Olaniyan, was equally full of appreciation for the money she had received as she said she would like to go into cement business.

“This will help me in trading. I sell beverages. My business is really going to move forward as a result of this,” another beneficiary, who went home with a generator, Mujidatu Adekunle, said.

The wife of the state governor, Mrs. Florence Ajimobi, said women empowerment and poverty alleviation were core visions of the Governor Abiola Ajimobi administration.

She said the need to empower women became necessary considering the vital role they play in home building.

“I hope the beneficiaries will make good use of the opportunity given to them today. Our women should be lifted in the overall interest of the state,” she said.

Punch News

Read More