INFORMATION NIGERIA » EFCC

Ibori In Fresh Trouble As MET Police Give EFCC Conviction Records

informationnigeria — Mon, 17 May 2010 03:38:09 +0000

Strong indications emerged on Saturday that the former Delta State governor, James Ibori, may be in fresh trouble as the Metropolitan Police in the United Kingdom have given the Economic and Financial Crimes Commission court records and documents of his alleged conviction in the UK.
It was also gathered that the Police in Dubai, United Arab Emirate have seized the former governor‘s travelling documents.

This is coming on the heels of the trip of a team of operatives from the EFCC and the MET Police to the United Arab Emirates on Friday. The EFCC team comprising lawyers, it was learnt, also went to Dubai with Ibori‘s case file and other documents to hasten the former governor‘s extradition to Britain.

Our correspondent learnt that the EFCC is planning to use Ibori‘s alleged record of conviction as one of the charges against him during his prosecution in the United Kingdom.

A security source said, ”His previous criminal conviction in the United Kingdom is definitely one of the charges against him because he lied on oath and obtained under false pretence the salary of government for eight years.

“A convict should not be a governor but he deceived the people and used his position to collect remuneration that he shouldn‘t have gotten. His travelling documents had to be seized to prevent him from sneaking out like he did in Nigeria.”

According to the source, security operatives and embassy officials are watching the ex-governor round the clock.

She said, ”We have security agents and embassy officials monitoring him. The Dubai police have assured us that he will not sneak out of their country. They assured us that they only granted him bail but he is still under ‘strict surveillance and restriction.”

Our correspondent gathered that security operatives from Nigeria, Britain and Dubai will start the extradition process on Monday.

The source said, ”The legal process of extraditing him will begin on Monday. You know that courts don‘t work on weekends. By Monday, all members of the investigating teams from Nigeria and Britain will all be in Dubai, then we will be in court to start the extradition proceedings.”

Explaining the importance of the MET Police in Dubai, the source said, “Even though we have a heap of evidence against him, there is no treaty between Nigeria and the United Arab Emirates even though the treaty is under way. We are working with the MET police because the United Kingdom and Dubai have this treaty. They are the only ones that can get him for us.”

It was also learnt that after the former governor‘s extradition, he will face charges in Britain before returning to Nigeria. She added, ”When he gets to the UK, he will face all the charges he has pending before him in their court which will not take more than one month. If he is sentenced, he will not immediately serve the sentence. Ibori will be brought back to Nigeria where he will be made to face the charges here. If he is also sentenced in Nigeria, he will serve the sentence before going back to fulfil that of Britain.”

Source: Punch Newspaper – www.punchng.com

EFCC places ministers under 24-hr surveillance

informationnigeria — Sat, 06 Mar 2010 23:52:12 +0000

The Economic and Financial Crimes Commission, EFCC, has placed all serving ministers on a 24-hour surveillance ahead of the investigation being conducted by the Presidential Projects Monitoring Committee into the various projects embarked upon and executed in the last two years.
An impeccable source at the commission revealed at the week-end that the anti-graft agency had mobilized operatives to monitor the movements of the ministers in a bid to forestall the possibility of their jetting out of the country.
According to the top EFCC operative, the action is a proactive one as, in the past, top government functionaries had suddenly vanished before findings are concluded by committees set up to carry out such a verification exercise of this nature.
The source explained: “We are not resting on our oars because we know very well that some of these ministers are neck deep in corruption and any attempt for us to allow a little laxity they will capitalize on it and junket out of the country making it very difficult for us to perform our tasks.
“We know the ministers that took laws into their hands and helped themselves with our commonwealth due to President Umaru Yar’Adua’s absence and turned their ministries into personal properties awarding contracts indiscriminately to their friends and family members in the name of the presidency.
“The acting president should be hailed for having the foresight to set up a committee of this nature as it will go a long way in helping us sanitize the country and bring the culprits to book.”
He stressed that “as I talk right now, they have been placed on the watch list and all borders are being monitored by our men and any attempt by anyone of them to risk traveling without approval from the acting president such a public figure will be accosted.”
Probed to comment on the most likely suspects, the source declined saying that”they know themselves and they know we know them too.”
When contacted, Head, Media and Publicity of the anti-graft body, Mr Femi Babafemi, simply said, “it is a routine that we carry out every now and then but I can assure you that there is no escape route for those that will be found wanting at the end of the verification”.
Last week, speculations had been rife as to the ministries that were flash points of corruption and embezzlement of government funds and some ministries that had thrown caution into the air colluding with contractors to defraud the Federal Government.
SOURCE: vanguardngr.com

EFCC Keeps 10% of Billion Recovered From Debtors

Information Nigeria — Sun, 08 Nov 2009 23:22:00 +0000

The EFCC, which energetically jumped into the banking crisis and whose chairman moved over 100 agents to Lagos at the height of the financial sector meltdown,is collecting 10 percent of all the monies recovered from debtors on behalf of banks, according to industry and EFCC sources.

This legally dubious and ethically questionable practice means that the EFCC has now profited to the tune of N17 billion from the total of N171 billion it says it has helped collect from some of the biggest debtors in the land, a list that is a who is who of Nigeria’s business and political elite.

We have no evidence to suggest that senior EFCC officials, including its chairman, Farida Waziri, are personally benefiting from the windfall. But the practice suggests that the EFCC now sees itself as a debt collector rather than a crime buster. And the law setting up the commission, clearly written to avoid a potential moral quandry, does not allow it take such self compensation from targets of law enforcement.

The ten per cent charge

This revelation introduces a new dynamics to the banking crisis, the role of the EFCC, the current ethical complexion of the agency, and the integrity of regulatory agencies in the country.”We of course collect 10 per cent administrative charges for all our labour” an EFCC operative told NEXT, on condition of anonymity, in Abuja at the weekend insisting that “it is not a bribe, it’s just administrative, and it’s done everywhere in the world, even the police do it here.”

Spokesman of the Commission, Femi Babafemi who announced to reporters on Monday, November 2, in Abuja that it had so far recovered N171 billion from the debtors of the banks, vigorously denied that a portion of this had gone into the private pockets of EFCC officials.Mr Babafemiasked: “How can that be? There is absolutely nothing like that. The money is paid into the banks directly. EFCC has agents in those banks and they only co-ordinate the payment directly into the banks. Most of these transactions are not cash based. Whether formally or informally, it is not possible. Anyone who does that in this agency will go to jail. It is an allegation that we have heard and it is an allegation that we have investigated. There is no law allowing us to do that so how will the EFCC do that?” Mr. Babafemi stated.

Scripted Muteness:

NEXT received hostile responses from officials at the distressed banks when this question was posed to them. However, independent investigations confirmed that the practice is widespread.”We pay them 10 percent of whatever they recover for us. But it is not only us, go and find out from other banks, we all pay the 10 percent,” a spring bank official told NEXT.

Francis Barde, the of Head corporate affairs of Union Bank, however, claims that Union bank does not pay a commission to the EFCC or the Nigerian police. “No charge has been sent to Union Bank for payment by any of the law enforcement agencies.

Therefore, we have paid nothing,” Mr. Barde told NEXT in response to our enquiries.

Jude Nwauzor, a corporate communications officer at Spring bank failed to respond to repeated enquiries via text messages, email, and phone calls after an initial pledge to respond to our questions, if we would send them to him by email.

While official Spring Bank response was not forthcoming, inside sources insisted that “this is not the first time we are paying 10 percent to government agencies, we have always paid 10 percent to the police force at any rate, if they help us recover our bad loans. We don’t ask questions because what is more important is to recover the money,” the bank official told us.

NEXT has documentary evidence of these transactions.In a deal that occurred on October 28, 2009, Spring Bank paid a commission of N50,000 for a 500,000 recovery. The money was paid to the police. This practice, bank officials confess, has been going on for years, even though they are aware that the practice is illegal. They also explain a preference for law enforcement recoveries over those of attorneys. “If we go to recovery agents, we will still pay the 10 percent, so why not give it to the police or the EFCC since they will still help us get our money albeit in a shorter time,” a bank chief told NEXT.

While the EFCC denies that they collect the commission, the police, speaking through its public relations chief, Emmanuel Ojukwu, confirmed that they sometimes get paid for their services, though he declined to state the percentage they collect. “Police can collect money for some services rendered, and such is receipted for and paid to the Police Reward fund,” he said but distanced the police from debt recovery business. “The police is not employed to collect debts,” Mr Ojukwu stated in response to our enquiries.

Mr. Babafemi of the EFCC said he was unaware of police culpability. “I don’t speak for any other agency but I can speak for the EFCC. If any other agency is collecting 10 percent, not the EFCC,” Mr. Babafemi stressed .

The Spring Bank headache

An indication that the stressed banks are not comfortable with paying a 10 percent commission to the EFCC and another 10 percent to their recovery agents emerged at a meeting the new chief executive of the troubled Spring Bank Plc Olusola Ayodele, had on Wednesday, October 28,in the board room of the bank at its corporate headquarters in Lagos. In attendance were other top executives of the bank and senior management aides. “The mood was typically uneven between our spring bank old hands and the Bank PHB arrivals who we call gold diggers,” recalled a senior bank aide who spoke to NEXT in strict confidence, “top on the agenda was how the bank would debrief its recovery agents, law firms, that help us recover our bad loans.”

Since she arrived at Spring Bank, sources at the bank told us, Mrs. Ayodele has been gingely finding her way through the vestiges of institutional landmines that line all the operational pathways of the bank since the banking consolidation exercise of 2006.

The 2006 exercise sought to fuse sometimes radically dissimilar institutions into one healthy family but the Spring Bank experiment consistently proved to be a poster-child of institutional chaos. The peak of the turmoil came with the 51 per cent acquisition of Spring Bank by Bank PHB shortly before Christmas last year. The new banking crisis that came with the sacking of the board and management of eight banks including Spring Bank and PHB, racheted up the troubles of the bank,

Faced with a staggering N96 billion debt profile, Mrs. Ayodele thought, according to aides, that the bank was overly haemorrhaging, trying too hard to service her 15 or so debt recovery agents, all of which are major law firms who took 10% of all debt recovered.

“At the end of the meeting, the decision was reached” according to a source at the table, that the bank could not afford to pay this ten per cent agency fees twice, since the Economic and Financial Crimes Commsissions [EFCC] would also receive 10 percent of the recovered sum.”"Madam has asked us to stay all our relationships with our recovery agents. You know they were initially helping us on some of these loans. But so as not to make double 10 percent payment, to the agent and the EFCC, we had to terminate all our agreement with the recovery agents,” a top bank chief told NEXT.

Lawyers disgust:

Commercial, and criminal lawyers moved swiftly to

condemn these charges being collected by the anti-graft agencies. Jiti Ogunye, a Lagos human rights lawyer described the police spokesman’s statement as ill advised, and asked a series of question. “Why must you reward the police? Does it have a legal or statutory backing? It is only calling an act of corruption by another name. A police reward fund? Who utilises the fund, what do the police use the money for? Do they use the money to buy guns, or buy vehicles or run their police stations or what? Do they use it to pay their salaries?” Mr. Ogunye asked rhetorically stating that “our superior courts, particularly the court of appeal has said that the police is not a debt recovery agency.”

Nevertheless, Mr. Ogunye stated that it was illegal for the EFCC or any agency to collect such funds. “There is no law in Nigeria today that allows security agencies or anticorruption agencies to take any percentage of the money that is recovered in the course of their investigation or in the course of their work” adding that “it is just an act of corruption.”

Charles Musa, a criminal law expert speaking from Abuja, said “If it is true, it is most unfortunate. They have no legal basis. It is a flagrant breach of the police act and that will be a very corrupt practice, for the police to collect any money out of money it covers for banks.”

Mr. Musa said “the police should not be involved in recovering money because it is a civil matter. If there is a criminal aspect to the case, it is the duty of the police to prosecute that criminal aspect, and leave the negotiation and recovery of money. No money should even be paid to the police or paid to the police station, or even to EFCC.”

Regarding the police reward fund, Mr. Musa admitted that “I’ve not done any research into police reward fund, and I don’t know the legal basis” thinking “maybe it is an NGO registered with the CAC” but adding that “If police collect police reward fund, do they give you receipt, and on what basis, is it voluntary. I still think it sounds like a corrupt practice.”

Speaking specifically of the EFCC, Mr. Musa said he hoped they were not collecting such money. “EFCC or any law enforcement agency has no basis to collect any such money. No basis to collect any money at all. That is why the EFCC probably denied it. They are aware of that, I will be surprised if they will ever admit to such a thing,” he stated.

A case of growing rot in the system

Shortly after arriving back from a trip to the Unites States, the executive Chairman of the agency, Farida Waziri, on Monday November 02, huddled with her operational chiefs in a meeting at the EFCC’s training and research Institute in karu, near Abuja. Mrs Waziri complained bitterly about corruption in the ranks.She threatened to get stern on future reports of corruption but insiders say she has given a veil of protection to operatives found guilty but who are from the police ranks. “There is a blatant rank polling here. If you are from the police you are okay but if you come from other institutions, you are held to impossible standards,” said a bitter seconded staff. The case of an operative who collected a N13 million bribe who was merely shuffled from one department to another was offered to NEXT an illustrative example of the systemic rot now in the ranks of the agency.

How bad loans were recovered

Prior to the CBN wielding its axe on the management of five banks which it considered “stressed”, banks in the country employed law firms as ‘recovery agents’ to recover bad loans or non-performing loans from debtors.

Typically, law firms would seek to take debtor companies into receivership (a situation where the bank appoints a new management usually the law firm for the company), asking the court to declare the company bankrupt and thus not able to meet its financial commitments and thus sell the company among others.

These recovery agents, as part of their agency fee, were paid 10 percent of any money they helped the bank recover. However, since the EFCC was called into the case of the troubled banks, the recovery agents have had less to do.

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Bank PHB’s ex-MD in fresh N14bn scam

Information Nigeria — Fri, 23 Oct 2009 22:17:00 +0000

THE sacked Managing Director of Bank PHB, Mr. Francis Atuche, is in for more troubles as the Economic and Financial Crimes Commission (EFCC) discovered another N14 billion fraud allegedly perpetrated by him.

According to EFCC investigation, the sacked managing director was said to have given two subsidiaries of the bank, the Bank PHB Assets Management Limited and Platinum Capital Limited, loan facilities of N14 billion.

The two companies, upon further investigation, said to be owned by the sacked managing director and not the bank, as they made the people and staff to believe.

As if that was not enough, about 20 staff of Bank PHB were said to have been seconded to the two companies, while the bank was still paying their salaries.

In the course of investigation, the Nigerian Tribune gathered that the EFCC discovered that the two companies were owned by Atuche and not the bank, using the bank’s money to pay the staff working in his private companies.

When contacted on the development, the EFCC’s Head, Media and Publicity, Mr. Femi Babafemi said “I have an idea of what you are talking about, but not the details yet.”

Atuche, one of the five bank chiefs recently sacked by the CBN, was arrested by the commission’s operatives last Friday and has been in custody since.

He has applied to the EFCC to grant him bail or charge him to court rather than detaining him perpetually.

But the EFCC, which took two of the bank chiefs – Atuche and Spring Bank’s ex-Managing Director, Charles Enehola Ojo – to court was given the leave by the court to detain them in its custody until November 3, 2009.
source: tribune.com.ng
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EFCC Shuts 800 Scam Websites, Busts Syndicates

Information Nigeria — Fri, 23 Oct 2009 00:59:00 +0000

Economic and Financial Crimes Commission (EFCC) has shut down over 800 scam websites and arrested members of 18 syndicates behind the fraudulent schemes in its renewed bid to deal decisively with internet fraudsters.

The operation was carried out through an EFCC initiative, tagged “Project Eagle Claw,” a statement by the commission’s Head, Media and Publicity, Femi Babafemi, said on Thursday.

According to the statement, EFCC Chairman, Farida Waziri, disclosed this in Las Vegas, United States of America, on Wednesday while addressing a gathering of U.S. mayors at the 35th Annual Convention of Black Mayors.

The theme of the convention was “global vision for local action: a paradigm of connectivity in the African Diaspora”.

The statement quoted Waziri as saying: “We expect that Eagle Claw as conceived will be 100 per cent operational within six months and at full capacity, it will take Nigeria out of the top 10 list of countries with the highest incidence of fraudulent e-mails”.

She said at the moment, Eagle Claw has delivered the following results:

“Over 800 fraudulent e-mail addresses have been identified and shut down.

“The EFCC is fine tuning security modalities with Microsoft and upon full deployment, the capacity to take down fraudulent e-mails will increase to 5,000 monthly.”

“Further, it is projected that advisory mails to be sent to victims and potential victims will be about 230,000 monthly.

“There have been 18 arrests of high profile syndicates operating cyber crime organisations.”

While justifying her decision to adopt the latest strategy against cyber crime, Waziri said “Project Eagle Claw is an initiative of the EFCC for the smart use of technology in fighting cyber crime.

“Hitherto the EFCC structure for combating cyber crime revolved around cyber raids and investigation of petitions.

“However the proactive stance of the new leadership required a radical departure and Eagle Claw was developed,” she added.

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Mend Under Fire Over Attack Threat

Information Nigeria — Sun, 18 Oct 2009 02:13:00 +0000

The Movement for the Emancipation of the Niger Delta, MEND, is drawing flak from its former commanders who recently gave up arms, after its threat, on Friday, to resume attacks on oil installations in the country.

Other stakeholders in the region including the Ijaw leader, Chief Edwin Clark and Henry Okah are also rallying against fresh hostilities in the area. They want the people and MEND to give government at least six months to prove its sincerity before it can be taken on on its promises.
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The group in a one paragraph e-mail statement said: “The Movement for the Emancipation of the Niger Delta (MEND) resumes its hostilities against the Nigerian Armed Forces and its collaborators with effect from 00.00 hrs Friday, October 16, 2009.

This was at the expiration of its 90-day cease fire during which it expected government to address the issues that triggered the armed attacks three years ago.

It also set up a committee made up of Vice Admiral Mike Akhigbe (rtd) and Professor Wole Soyinka among others to negotiate on its behalf with the Federal Government.
Government however refused to recognise or negotiate with the team, preferring to concentrate on repentant militants giving up arms in return for amnesty.
Though the group has lost a number of its field commanders and fighters to the Federal Government amnesty, it is still considered a threat given the secrecy surrounding its operations.

* It’s a paper tiger – Boyloaf
For ex militant leader, Ebikabowei Ben Victor alias Gen Boyloaf, a former field commander of the group in Bayelsa State, MEND is nothing but a paper tiger whose threat should not be taken seriously.

“What you see of MEND today is just an individual pushing out those write-ups through the internet, which is a reflection of the frustration on his part. They threatened on the 15th (of September 2009). What happened? Who is ready to fight? Nobody will fight. They just sit down in their hotels, with laptops in front of them and without the consent of any other person. Forget such people anyway, they are paper-tigers.”

Another MEND commander in the Koluama flank of Bayelsa State on the Atlantic fringe, Pastor Reuben Wilson, said any fresh outbreak of hostilities would not be in the interest of the region. He asked the group to rescind its threat given the commitment of President Yar’Adua to develop the Niger Delta.

“This is the time for our people to embrace peace once and for all. The world is today aware of the problem of the Niger Delta. The plight of our people is known and the Federal Government has, for the first time, shown genuine commitment to addressing the issues raised by our people and it will only be proper for MEND to give peace a chance,” ex militant leader Wilson said.

Also reacting to the threat of fresh out break of hostilities in the region, Joseph Ambadekeremo, a minority rights activist and coordinator of South-South Element Progressive Union, urged MEND to rescind its planned offensive against the nation economic interest saying the world has moved away from armed struggle in settling contentious issues with aggrieved parties now resorting to dialogue in addressing issues.

“It is a pity that we are still talking of armed attack at this time when everybody the world over is pursing peaceful resolution of grievances and conflict. MEND or whoever they are should know by now that armed struggle should be over and the struggle is now an intellectual struggle and should be left intellectuals.

“I say so against the backdrop of what we have today on ground. We have not fared better since the arms insurrection and any continuation of violence will further impoverish our people and the region. Therefore we should all give President Umaru Yar’Adua the necessary support he deserves at this time to succeed. If the President fails then we should be ready to share in the blame.”

The founding Director of the Ijaw Council for Human Rights and one of the architects of the now famous Kaiama Declaration, Patterson Ogon, in his reaction called for caution saying the President has shown genuine commitment to the development of the region and as such deserves the support of every Niger Deltan to actualise his plan for the region.

His words, “The Federal Government has made a sluggish start to building peace in the delta. Given the fact that several key figures in the militant struggle of the Niger Delta have bought into the amnesty offer, we are certain that the internal building blocks for development will begin to flower.

“While we have taken the challenge this far, it is only proper that we remain calm and vigilant and see the next steps the Federal Government takes.

“The world is watching and the government knows that increasing its belligerent posture against the Niger Delta people will tell on it. I’ll advise MEND to also review their position on resuming attacks of oil installations so that the government will have no excuse to withhold implementation of the development plans for the region.”

* Ignore them – Tompolo
On his part, ex-militant, Government Ekpemupolo alias Tompolo speaking through Paul Bebenimibo said: “As far as we are concerned, that is a baseless one because we don’t know where it is coming from at this time when the key players have embraced the presidential amnesty”.

“People should ignore that declaration and begin to do those things that will bring enduring peace and development to the Niger Delta region,” the spokesman told AFP.
The government said last week that more than 8,000 militants had surrendered their arms under the amnesty including many of MEND’s leading fighters.

MEND ordered a truce in July to allow for possible talks with President Umaru Yar’Adua’s government. It set up a committee — which included 1986 Nobel literature laureate Wole Soyinka – to run negotiations, but no formal talks are known to have taken place yet.

The group rejected the government’s amnesty offer, which it described as a “charade”, saying it failed to address the key issues of under-development and injustice in the Niger Delta.

A prominent ethnic Ijaw leader and former information minister, Edwin Clark, urged the rebels to hold their fire.

“We are appealing to MEND not to resume hostilities. They should give peace a chance,” Clark told AFP.

Timiebi Koripamo-Agary, a spokeswoman for a panel overseeing the amnesty exercise, urged MEND to follow the action of their ex-fellow combatants who have embraced peace.

“I sincerely hope that MEND respects the wish of Nigerians… to end a chapter of violent struggle and participate in addressing fundamental issues for the healing growth of he Niger Delta and Nigeria,” she said.

In the last three years Nigeria’s oil output has been cut from 2.6 million barrels a day to 1.7 million currently. It has now been equalled by Angola as Africa’s top exporter.
And in the last year, Nigeria has also seen its foreign exchange reserves drop from more than 67 billion dollars to 40 billion.

Hundreds of oil workers, including dozens of foreigners, have been kidnapped by MEND and other groups in the Delta region. It has attacked pipelines and offshore facilities and even Lagos harbour.

Although there is no precise death toll, several hundred fighters and civilians have been killed
in the region since 2006.

Clark, Okah intervene – Jomo Gbomo
MEND spokesman, Jomo Gbomo confirmed to Sunday Vanguard online that appeals had been pouring in from prominent Niger-Deltans, including the Ijaw national leader, Chief Edwin Clark and Henry Okah, asking it not to resume hostilities.

However, he said since the Federal Government was not prepared to dialogue with the Aaron team set up by the body to chart a way forward, it had no option than to resume hostilities.

His words, “We have started receiving appeals to extend the deadline and the latest appeal has come from Chief E. K. Clark…Henry Okah has also appealed for an extension of the ceasefire and believes the government will see reason to engage the Aaron Team in constructive dialogue on the root issues”.

Chief Clark confirmed to Sunday Vanguard on phone that he contacted the MEND not to resume fresh attacks and even though it had decided otherwise, he was still appealing to the group to reconsider its stand.

He said he spoke to Henry Okah to be part of the post-amnesty programme and told him not to harbour the feeling that anybody was slighting him in the affairs of the region.

Former national chairman of the Traditional Rulers of Oil Producing Communities Organization of Nigeria, Pere Charles Ayemi-Botu , however, told Sunday Vanguard , There is no need for MEND to start any fresh hostility, they should wait a while, give the Federal Government between six months and one year to find out whether they are really prepared to do what they are saying or not before talking about taking up arms again”.

But Ohanaeze chieftain and former Biafran General, Chief Joseph Achuzia, asked the Federal Government to dialogue with the MEND through the Aaron committee if it truly wanted peace in the Niger-Delta, saying there was no point discussing with people who had no mandate to speak for or represent the group.

The Commander of the Joint Task Force (JTF) on the Niger-Delta , Major-General Sarkin Yarkin-Bello told Sunday Vanguard there was no need for MEND to resume further hostilities and advised the militants to support the post –amnesty programme of President Yar’Adua, as destruction of oil installations would not bring development to the region.

No, no, MEND should not start any fresh war – Clark
Chief Clark said the fact that Government Ekpemupolo, alias Tompolo, Ateke Tom, Boyloaf, Fara Dagogo, Shoot-At-Sight, Young Africa, Ogunbos and others surrendered their arms did not mean that there were no other people in MEND that refused to surrender arms, saying the declaration of resumption of fresh hostilities by some unrepentant militants was, therefore, not surprising.

He said his appeal to Henry Okah was that nobody was ignoring him and he should, therefore, be part of the peace process because what everybody is saying at the moment is that MEND should give peace a chance and Okah should be part of the discussions with the government.

The Niger-Delta leader noted that the Federal Ministry of Niger-Delta and the Niger-Delta Development Commission had not lived up to expectations in the last few months and urged President Umaru Yar’Adua to find out what is wrong and plug the loopholes.

He said it was not enough for the Federal Ministry of Niger-Delta in particular to advertise its plan to award contracts on the pages of newspapers and go to sleep, as if that means that the contracts have been awarded and work going on, the ministry should put its act together and let the people see action, otherwise, it should be called to order.

Chief Clark also said it was bizarre the government was still keeping the report of the Ledum Mitee Committee, which reviewed all the previous reports on the region, starting from the 1958 Willinks Commission Report and gave step-by-step recommendations on the way forward under the table, nine months after it was submitted, when the right thing to do was to publish it and take action on it.

The former Federal Commissioner for Information said it was not the case of giving the government one year to see that they can do, adding, “they should start something and let us see what they are doing between now and December, nobody is saying that they should develop the region overnight, but, they should start massive development of the region, it’s not only the boys that are angry, we , the elders and the entire people of the Niger-Delta are angry about our underdevelopment and deprivation”.

MEND should give peace a chance – HRH Ayemi- Botu

Pere Ayemi-Botu, who is the traditional ruler of Seimbiri kingdom in Delta State said: “I don’t know MEND. We are onlookers but those we know were MEND generals and commanders have accepted amnesty. One of the them is Victor Ebikabowei Ben, alias Boyloaf who told the world that the MEND we have now is a phantom MEND and so, whoever is threatening war in the name of this phantom MEND should please give peace a chance”.

“MEND should not fight an unjust war. Everybody in Niger-Delta wants peace and that is what we are stand on. They should sheathe their swords and let’s us see what the Federal Government is prepared to do. They (MEND) should not throw spanner in the wheels of progress.

He, however said the Federal Government was too slow in making clear its plans for the region, saying that by now, it should have come out with a clear-cut policy direction for the region in terms of infrastructural development.

“At the moment, there is no blueprint, there is nothing to hold and say this is the Federal Government’s action plan for the region. Even the report of the Niger-Delta Technical Committee headed by Mr. Ledum Mitee has been abandoned, nothing has been done about it since it was submitted, last year, 2008 and 2009 is almost ending”, he said.

FG is discussing with wrong people

Chief Achuzia in his comments said, “You don’t expect MEND, which voluntarily announced a ceasefire and the government refused to open dialogue with it within the period even after it was postponed for another 30 days not to announce resumption of hostilities, that is expected. Government should have discussed with the Aaron team set up by the militant group within the period instead of discussing with people that are not representing its interest. That is the problem in my judgment”.

He said some people were busy claiming glory for the success of the amnesty programme instead of focusing on why the leadership of MEND, which is the main militant group in the region, has refused to embrace the amnesty programme.

Why we’ll continue with hostilities – MEND
But MEND’s spokesman, Jomo Gbomo said the militant group was going ahead with its planned hostilities, warning that anybody assuring the oil companies that all was well was deceiving them.

His words, “The only reason the oil companies and the government still tremble at our threats is because they have come to realize from experience that we demonstrate rather than explicate”.

On when exactly the hostilities would commence, he said, “Times have changed and our strategy has also been upgraded. We will not reveal information on attacks but from the time the ceasefire lapses; there will be a resumption of hostilities”.

Asked why the group chose to now raze oil installations, he said, “Burning down installations will hasten development and emancipation. A majority of our people understand that what they are witnessing is not the solution to real peace and development, but more of development for other regions and persons who will benefit from the kick-backs from over inflated contracts from white elephant projects. We will not give them that enabling environment.

Since the hunter can shoot without missing, the birds have learned to fly without perching. Our offensive will be unpredictable but effective in hastening the exodus of the region from
bondage”.

Commenting on why the militant group did not wait for its Aaron team to finish discussions with government before declaring resumption of hostilities, he said, “The government has said it does not recognize the group and the Minister of Defence tried to ridicule the Aaron Team so they obviously are not ready to dialogue on the root issues”.

“What is the way forward?” He said, “The only way forward for the region is true federalism. Whatever was agreed in that meeting is not binding on the real freedom fighters who have resolved to continue fighting until justice is achieved.

The word “development” is the catchment phrase being used to deceive our people. After waiting for over 50 years, we want more than development and as such we do not believe the government has done enough except it introduces back fiscal federalism”.

His words, “We have said it in very simple terms that the root issues must address through dialogue and since the government has refused to talk, we have resolved to respond with the only language that they seem to respond to and that is violence”.
“What of if the Federal Government decides to use ex-militant leaders to sabotage the operations of the militant group?”

He said, “Will they be given weapons to become security men or will they work side by side the JTF? Aside from a few individuals who accepted amnesty for money, the suggestion will be considered ludicrous to others”.

On the Aaron team, he said, “The eminent Nigerians who accepted to mediate are not fools. The issues they will talk about are not jokes either. If the president is sincere, let him invite them to open discussions on those issues now that he has a window of relative calm or he will be begging for them in an atmosphere of war”
Source: vanguardngr.com
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Bank debts: 80 EFCC operatives storm Lagos

Information Nigeria — Fri, 16 Oct 2009 02:09:00 +0000

CHAIRPERSON of the Economic and Financial Crimes Commission, EFCC, Mrs. Farida Waziri, yesterday, led a team of 80 operatives to Lagos to recover the non-performing loans granted some Nigerians by the four banks that were recently slammed by the Central Bank, CBN, for non-compliance to banking principles.
The four banks are Bank PHB Plc, Spring Bank Plc, Equitorial Trust Bank Ltd and Wema Bank Plc.

It was reliably gathered that following the release of the debtors’ list which includes such notable names like former Vice President Atiku Abubakar, former governor of Lagos State now Ambassador to South Africa, Brigadier-General Buba Marwa (rtd), Chief Tony Anenih and other Nigerians, the anti-graft agency’s boss had no choice than to lead the team herself.
EFCC 80 operatives in Lagos to recover the non-performing loans granted some Nigerians by the four banks

EFCC 80 operatives in Lagos to recover the non-performing loans granted some Nigerians by the four banks

EFCC spokesman, Mr. Femi Babafemi, who spoke to our reporter on phone confirmed that the commission’s chairman was in Lagos and met with operatives over the issue.

It was further gathered that arrests will likely be made from today while the operatives will use the weekend to round up those who may fail to come forward personally to make commitments towards the recovery of the debts.

The source explained that the EFCC boss was more concerned with recovering the non-performing loans so that they could be returned to the banks rather than arrests and detentions.

It could be recalled that the banking sector had come under the sledge hammer of the apex bank all in a bid to sanitise the sector.

A CBN audit of banks led to the sack of the Managing Directors of the affected banks namely: Oceanic Bank Plc, Union Bank Plc, Intercontinental Bank Plc, Spring Bank Plc, FinBank Plc, Bank PHB Plc, Afribank Nigeria Plc, and Equitorial Trust Bank (ETB) Limited.

Atiku admits bank debt, promises to pay

Former Vice-President Atiku Abubakar, yesterday, admitted owing some money to a bank and pledged to immediately liquidate it.

The former Vice-President in a statement issued by his media office explaining the circumstances surrounding the mention of his name in the list of debtors of non-performing loans by the Central Bank said the loan was linked to an “old dormant account”.

He said that no attention had been paid to the matter by his staff.

“I have since resumed talks with the bank on the issue and the matter will be resolved. We will pay the outstanding sum as soon as it is agreed upon,” he said in the statement.

The former Vice President also expressed his full support for the on-going reform of the banking sector as part of measures to stimulate economic growth.

He expressed gratitude to his admirers and supporters who had called him since the publication of yesterday.

Anenih alleges fraud, petitions EFCC

On his part, erstwhile chairman of the Board of Trustees of the Peoples Democratic Party, PDP, Chief Tony Anenih, has petitioned the Economic and Financial Crimes Commission, EFCC, alleging a N2 billion fraud under his name unknown to him.

Anenih, in a statement yesterday disclosed that he had discovered that yet unknown elements had linked his name as a Director and shareholder of Mettle Energy and Gas Ltd through which platform he supposedly obtained a N2.065 billion loan from Spring Bank Nigeria Plc.

Denying any linkage with the company, Chief Anenih in a statement he signed last night also affirmed that he had never entered into any branch of Spring Bank in his life.

He said: “This morning (yesterday) as early as 7 O’clock, telephone calls from friends and members of my family drew my attention to the list of bank debtors published by the Central Bank of Nigeria (CBN) in most of today’s (yesterday) national dailies and on the CBN website.

“I read most of the Newspapers and I was deeply embarrassed that my name should appear as owing Spring Bank N2.065 billion. The CBN in the same publication stated that I am a Director in a company called Mettle Energy and Gas Ltd.

“In the last 8 hours, I have carried out investigations and I can firmly say that records in the Corporate Affairs Commission (CAC) show that I am neither a Shareholder nor a Director in Mettle Energy and Gas Ltd. Spring Bank records including the Memorandum and Articles of Association, form CO7 and Board resolutions with the Bank do not have my name in any of the documents,” the statement added.

Not wrong to owe — Ugbo

Also reacting to the alleged debt to the tune of N29.5 billion owed to Afribank Nigeria Plc, Mr. Emmanuel Ugbo, Managing Director, DEAP Capital & Trust Plc, said “There is nothing wrong owing money and there is no law that states somebody should not owe.”

He commended the Central Bank of Nigeria, CBN, for the effort at recovering debts owed to banks but cautioned the apex bank to do a thorough job of the list of debtors by ensuring that people who borrow money by following due process are not treated in the same way with those who borrow money fraudulently.

Mr. Peter Amah, Head of Research and Corporate services, DEAP Capital, who reacted on behalf of Mr. Ugboh said, “Owing money is not a crime, but when somebody refused to pay it becomes a crime. Debtors who owe and do not want to pay is not good because other people who need money would not be opportuned to get money from the bank.”

However, he said, “The money our company is owing is a performing one. We followed due process in getting the money from the bank and we are servicing it. It is not a good thing for CBN to be publishing list of debtors because no economy can survive without credit from the banks. The banks are in existence to lend money to people or corporate entity that needs it.”

I don’t owe any bank Obat Oil boss

In his reaction to an alleged indebtedness to the tune of N4.47 billion to Oceanic Bank, Oba Frederick Akinruntan, Chairman of Obat Oil & Petroleum Company, said, “The N4.47 billion debt being alleged has been duly paid up, and I am currently not indebted to any bank.”

He noted that the debt was earlier published during the sacking of the Managing Directors of the first five banks which failed the audit test and wondered why it is still being brought up now after he has ensured a prompt payment of the debt.

“We have since paid up the money, and we are no longer indebted to either Oceanic or any other bank as the debt being talked about has been paid up.”

Senator Al-Bashir disowns N574m debt

Also, former Senator from Yobe State, Alhaji Usman Al-Bashir, has said that the inclusion of his name in the list of debtors was politically motivated.

In the debtors’ list, he was quoted as Chairman of Savannah Airlines that owes Unity Bank N574m. But reacting Bashir, said, “I do not own anybody anything anywhere in the country”.

Senator Al-Bashir pointed out that this was the second time his name was being dragged into the debtor controversy without evidence. “The first time was in 2007, on the eve of my gubernatorial ambition when someone alleged to owe Bank of the North N14m and the EFCC went after him”.

Addressing Journalists in Abuja yesterday the Group Managing Director

of Savannah Airline Ltd, Abdul Ringim also affirmed that, though Bashir was the chairman of the Savannah Airlines that was indebted to the defunct Bank of the North to the tune of N14m but “the airline was a limited liability company”.
Source: Vanguardngr.com
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EFCC moves to repatriate Akingbola, Nana-Shettu, Oye

Information Nigeria — Thu, 15 Oct 2009 00:23:00 +0000

The Economic and Financial Crimes Commission has commenced plans to file for the repatriation of the former managing director of Intercontinental Bank, Erastus Akingbola, and two aides of Cecilia Ibru, the former managing director of Oceanic Bank, Nana Shettu and Dele Oye, an EFCC source told NEXT on Monday.

Akingbola and Oye are believed to be in the UK, while Ms. Nana-Shettu is believed to be currently in the United States.

The source, who refused to be quoted because he is not authorised to talk on the case, also revealed that new money laundering charges are being prepared against Mrs. Ibru and Mr. Oye in the light of fresh discovery. An EFCC source said the two had been involved in a strange financial transaction of $110 million.

“It was discovered that she paid Oye $110 million in the name of Waves Nig. Ltd,” the source said.

As at 2006, Waves was owned by one of the sacked directors of Oceanic Bank and Mrs. Ibru, who had relinquished the ownership to Oye and Nana-Shettu. The same company was constructing the Oceanic Bank headquarters in Victoria Island, Lagos.

The source also disclosed that the commission found out that out of the $110 million, there was a direct payment of $10 million into Mrs. Ibru’s personal account.

“The monies were supposed to be facilities granted to Waves to build the headquarters,” the source said. “The building was to be owned by Waves, but rented to Oceanic Bank and the land on which it is built was owned by the Ibrus. The building is presently still undergoing construction, but the Oceanic Bank has already paid a $22 million rent for 10 years. Oye is being used as a front for the Ibrus,” he said.

All these, he said, form the basis for the fresh charges and the basis used by the EFCC prosecutors to prepare the papers for repatriation.

EFCC working on them

“We have to file charges different from the previous ones in court,” he said. “If they cannot come home, then we will now ask the court to repatriate them. Our lawyers are preparing fresh money laundering charges against Ibru, Oye and Nana-Shettu to enable us repatriate them.”

There are also indications that the commission’s officials will again move to Lagos within the week to begin investigation of the recently sacked bank managing directors and the remaining debtors.

The spokesperson for the commission, Femi Babafemi, said he does not have details about the new charges.

“I don’t have the details you referred to,” he said. “But I know the commission is working very hard on the cases of some of the individuals you referred to.”
Source: 234next.com
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FG seeks investors for 8 troubled banks

Information Nigeria — Tue, 06 Oct 2009 16:53:00 +0000

THE Federal Government has started an earnest search for investors to purchase the eight troubled banks whose chief executives were sacked by the Central Bank after an audit of the banks.

Meanwhile, the Central Bank, yesterday, dismissed allegation of bias in its audit report on Unity Bank, saying that the same criteria were used to examine all the 24 banks. The apex bank also said the negative impact of its reforms on the economy were minimal and temporary.
Intercontinental Bank Plc, Union Bank of Nigeria Plc, Afribank Nigeria Plc, Finbank Nigeria Plc, Oceanic Bank International Plc, Bank PHB Plc, Spring Bank Plc and Equatorial Trust Bank Ltd

The eight troubled banks are Intercontinental Bank Plc, Union Bank of Nigeria Plc, Afribank Nigeria Plc, Finbank Nigeria Plc, Oceanic Bank International Plc, Bank PHB Plc, Spring Bank Plc and Equatorial Trust Bank Ltd. In addition to sacking the chief executives and executive directors of the banks, the apex bank also injected N600 billion tier two capital (long term loan) into the banks.

However, despite denials by the CBN that it is not planning to sell the banks, Minister of Finance, Dr. Mansur Mukhtar, disclosed that the Federal Government is already looking for investors to buy the banks.

Speaking at a joint press conference of African Finance Ministers at Istanbul Turkey, Mukhtar said: “We expect that shareholders will be given time to recapitalise banks and also we are looking for new capital injection from investors from both local and foreign banks, and we would expect that the creation of an asset management company to remove some of the toxic assets and boost liquidity.

“We would expect that, if in the event that banks cannot be saved, we want an orderly exit. That would protect the depositors and the shareholders. And we will also consider government ownership as an interim arrangement depending on the time we are able to get buyers. So these are all options under consideration.

In the meantime, efforts are being made to strengthen regulation and supervision, to focus on risk management as well as to foster greater coordination among all the regulatory authorities. Now in this overall context, we have huge financing gaps to meet our infrastructure needs; and therefore, our resource needs continue to mount and we expect to receive support.

“I can tell you that the central bank governor has the strongest possible backing from Mr. President and the core economic team. We’ve had a series of meetings on his. We are coordinating our efforts. We have a strategic perspective on this issue. We’ve given endorsement to the initial measures that have been taken to restore confidence in the system and the Ministry of Finance and the central bank are working very closely together to ensure that going forward, we’re able to ensure a smooth transition once these issues now in terms of addressing fiscal costs.

“We have a core team of the Chief Economic Adviser, the Governor of the Central Bank, the Minister of Finance, and the Minister of National Planning who are looking at this on an ongoing basis and we have full consensus in terms of the sets of measures and we have been given assurances that the implementation of these measures will be supported fully and promptly,”

Meanwhile, the Nigerian Stock Exchange (NSE), yesterday, placed the shares of BankPHB Plc and Spring Bank Plc on technical suspension for one week, following the sack of their Managing Directors and Executive Directors by the Central Bank.

This was after the completion of the audit on the remaining 14 banks by the CBN.
The suspension, announced by the Assistant Director-General of the NSE, Mr. Musa Elakama, in Lagos, is as a result of the need to forestall a run on the shares of the banks by panicky investors.

The share price of BankPHB Plc was frozen at N3.33 per share, and it recorded a transaction of 91,210 shares valued at N0.29 million in eight deals, while Spring Bank Plc’s share price was frozen at N2.92 per share, while it traded 72,208 shares valued at N0.2 million in six deals.

CBN denies allegation of bias

Also, the apex bank yesterday dismissed allegation of bias in its audit report on Unity Bank saying that the same criteria were used to examine the 24 banks.

The apex bank also said the negative impact of its reforms on the economy were minimal and temporary.

In a statement issued yesterday by the Head of Corporate Affairs, CBN, Alhaji Mohammed Abdullahi the apex bank said, “The intervention didn’t give any advantage to the other banks because the criteria were the same and the data required were not the type that could be quickly massaged or cooked up.

CBN acted in a pro-active manner to strengthen the five banks, and those five banks are stronger and safer today.

If CBN had waited till the completion of the entire examination, some of those banks might have gone under. This would have had dire implications for their creditors and depositors, and the larger economy.

“Unity Bank Plc performed well on two of the three criteria used by the examiners, unlike the eight affected banks that were found wanting on all the three criteria.

Unity Bank has problem with only capital adequacy and this has been an issue with the bank since consolidation. Unity Bank Plc is a combination of nine legacy institutions and this has naturally impacted on the bank’s performance.

“The other eight banks had problems with liquidity, with capital adequacy and with corporate governance. Comparing them will be like comparing apples with oranges. CBN only made exception for Wema Bank by not replacing its management because it is a new management.

So, CBN made liquidity support available to Wema Bank Plc and asked its management to recapitalize in nine months.

“The banks were clearly in different situations. CBN had to intervene to save and strengthen banks that were in danger of collapse so as to protect depositors and creditors and prevent a systemic crisis.

The first five banks had shown persistent signs of distress, and the examination report confirmed that, as they were found wanting on all the three criteria mentioned above.

The three newly affected ones fell into the same category, as they were also found wanting on the three criteria. So, the issue is not just capital, and asking them to just recapitalize will be really superficial as it will not take care of liquidity and governance issues.

“Objective criteria were used to examine all the banks. There was nothing sectional or regional about those criteria. For emphasis, these criteria are: liquidity, capital adequacy and corporate governance.

The only agenda that the CBN has is to carry out its regulatory responsibilities in a way that will guarantee a safe, sound and stable banking system in Nigeria.

“Both the banking sector and the economy are better off because of the banking reforms.

Yes, there have been some effects. But they are minimal and temporary, never mind that some people with vested interests are desperate to blow them out of proportion and force a doomsday picture on the country. Most of the real negative consequences were anticipated and quickly contained. The on-going reform has cleared the thick air of suspicion hovering over Nigerian banks. Depositors, creditors and investors now have more confidence i

n Nigerian banks and the Nigerian economy. Nigeria is the better for it,” the statement said.
Source: Vanguardngr.com
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CBN to fire Bank PHB MD, other heads set to roll

Information Nigeria — Fri, 02 Oct 2009 03:05:00 +0000

The Managing Director/ Chief Executive Officer of Bank PHB, Frank Atuche, will be dismissed later today by the Central Bank of Nigeria, highly placed sources told NEXT last night. Mr. Atuche’s sacking is said to be a direct result of the failure of the bank he heads, to pass the CBN stress audit. The bank is among the second batch of banks that the CBN audited.

The Central Bank is reported to have offered the board of Bank PHB a chance to replace Mr. Atuche with an executive of their choice, but Mr. Atuche doggedly refused to resign thereby forcing the CBN’s hand. All attempts by NEXT to reach Mr. Atuche proved futile.

Four other banks, ETbank, Unity Bank, Wema Bank and Spring bank are reported to have also failed the CBN’s stress audit. In all cases, it is expected that their chief executives will either resign or be relieved of their jobs by the CBN.

Our source also says the Central Bank will pump N200 billion into the banks to stabilise them. The Central Bank is shopping around for capable hands to run the banks during this emergency situation. It is not clear if the banks will be allowed to stand alone or be forced into the hands of more robust institutions.

NEXT investigations reveal that the problems of Bank PHB centre around non-performing loans . ETB on the other hand is in trouble not for lack of money but a total lack of corporate governance, according to our source. Spring Bank was described as a shell, while Unity Bank is believed to be broke.

Two weeks ago, the Central Bank in a communiqué confirmed that it had completed the audit of 11 more banks, and was continuing work on the audits of the last three. The communique said: “The CBN wishes to confirm that examiners have concluded their audit on 11 out of 14 banks not included in the first exercise. They have also made significant progress on the remaining three banks and these are Citibank, Stanbic IBTC and Standard Chartered.”

The Nigerian banking sector has been in a state of flux since August when the then new CBN Governor, Sanusi Lamido Sanusi, in one fell swoop, got rid of, the chief executives of five banks, namely Oceanic Bank, Union Bank, Afribank, Fin Bank and Intercontinetal Bank. When he announced the sacking, Mr. Sanusi said “these banks were unable to meet their maturing obligations as they fall due without resorting to the CBN or the inter-bank market. As a matter of fact, the outstanding balance on the Expanded Discount Window of the five banks amounted to N127.85 billion by the end of July 2009, representing 89.81% of the total industry exposure to the CBN on its discount window, while their net guaranteed inter-bank takings stood at N253.30 billion as at August 02, 2009. Their Liquidity Ratios ranged from 17.65% to 24% as at May 31, 2009. (Regulatory minimum is 25%).”

Once the dust settled, it became quickly clear that the banks had weak risk management frameworks and poor corporate governance, which resulted in the depletion of their capital and overexposure to marginal loans in the downstream sector of the oil and gas industry.

The five banks that were affected by the sackings have since seen a sharp drop in share price. Speculators believe their market value may drop to the nominal value of 50 kobo.

The CBN has so far injected N420 billion into the five banks for emergency capitalisation. The Central Bank also continued its cleansing action with the publishing of the over 200 debtors, owing more than N740 billion.

234next
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