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Face off as NTDC board tackles DG on mismanagement, cancels consultancy agreements…

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The governing board of the Nigeria Tourism Development Corporation (NTDC) has decided to deal with the issues of mismanagement, high handedness and disregard for civil service rules which are reportedly being perpetrated by the Director General, Mrs. Sally Mbanefo.

We learnt that in a board meeting held at the agency’s complex in Abuja on Friday, the board decided on the cancellation of all consultancy agreements entered into by the Director General.

Society Reporters NG had reported how Mbanefo engages consultants to do almost everything in the agency thereby making some staff of the agency redundant. This development is part of the growing disaffection between the staff and their boss. There are consultants in charge of restructuring, development of products and marketing alongside special projects which is being handled by one Ola Wright.

In a another development, we were told that the Director General without proper notification of the board had invited members of the press to cover a re-commissioning ceremony by the Chairman of the Board, Adamu Atta of the NTDC office complex recently renovated by her administration. She also wanted him to commission open roof tourism buses being managed by the ABC Transport Company in partnership with the NTDC. The chairman who became very angry at the development scolded her thoroughly.

The Chairman, we learnt insisted that until the DG is able to clear all the issues and complaints brought against her by various persons, there was no way she could embark on any new venture. Journalists who were invited to cover the commissioning event were later turned away without proper explanation.

It will be recalled that the same building was commissioned November 19, 2009 by President Goodluck Jonathan who was then Vice-President.

Our source disclosed that members of staff of NTDC were all in jubilant mood at the decision of the board chairman to correct all illegalities and injustice going on in the management of the corporation.

One who spoke on the basis of anonymity said: “We are all celebrating the Chairman. Even though some members of the board have compromised, he has remained resolute. The Chairman is standing his ground that every irregularity must be corrected”.

We spoke with Mr. Andy Ikemneme, a member of the board representing the Ministry of Foreign Affairs. Our source accused him of compromise and complicity in the irregularities that goes on in the NTDC for personal gains.

He is also seen by our source as one who is not fit to sit on the board of the NTDC.

According to him, the position is meant for the Ministry of Foreign Affairs and should only be occupied by a civil servant of a Director cadre.

“I can tell you that he is a personal staff of one of the Ministers in the foreign affairs ministry and not a career civil servant,” he alleged.

According to our source, Ikemneme was ‘settled’ by a security contract in which Fountain Source Security Company (a company he is alleged to have interest in and endorsed) was engaged to take over from Scapat Security Services which provided security services for the corporation for years before the new DG was appointed.

Investigations by us revealed that the new security company retained the staff of the former security company with a promise of better welfare and salary package.

A security officer who spoke after an agreement of identity protection told us that it was based on the promise to increase welfare packages that the amount the NTDC pays the security company was reviewed from N500, 000 upward.

“As I speak to you, Fountain Source has reneged completely on all agreements they had with us. We used to earn N16, 000 monthly, they promised to pay us N24, 000 but that increase has not been implemented. To make the matter worse, some of us have not been paid for two months.

“We have complained but nobody seems to be doing anything about it,” he complained to our reporter.

Ikemneme who spoke to our reporter agreed to have attended the meeting however denied the entire allegation. He said he has no relationship with the said company and have not compromised in any way.

His words: “Why are you people distracting this woman? The DG complained of some security challenges in the organization and so the need to change the company providing the service and so we gave her approval.

“The present company tendered for the job and won the contract.”

When asked to comment on the botched commissioning ceremony, he said: “the issue of commissioning was not in our agenda and so I don’t know anything about that.”

When we spoke with the Chairman of the governing board of the NTDC, Adamu Atta, he explained that those decisions the board took were in the interest of the corporation as so many actions of the DG have generated bad publicity in the media.

According to him, it is not time for the DG to grand stand or celebrate any mile stone but should devote her energies at explaining the query she got from the Minister of Tourism, Culture and National Orientation, Chief Edem Duke.

He said: “There have been gaps in the way the organization is being run by consultants because they do not brief or report to the board on developments.

“Consultancy must follow due process, but this is not the case in NTDC and that is why I have to cancel all the arrangements with them.

“A case in hand is the Fan’s village in Brazil issue; the people we cleared to travel to Brazil have complained that the consultants took over the assignment and also accusing us of using them to collect money illegally. These are allegations we cannot overlook.”

Concerning the botched re-commissioning ceremony, he said: “the said ceremony was not communicated to the board properly. She only informed me by a text message which was not proper presentation.

“I informed her earlier that I was not going to perform the commission but she went on with her arrangements.

“More interestingly, I was not given the background explanation for the said developments; how much was spent on the renovation and of what benefit. All these, I don’t have an idea. So it was not that I was angry, but I believe things must be done properly”.

We had reported that the Minister had on the accusation of financial impropriety and betrayal of trust against the DG by President of Za Entertainment, Mr. Azania Omo-Agege set up a probe panel to unearth the truth of the matter and report back to him. We also reported that she shunned invitations to appear before the panel thereby squaring up with him.

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EFCC indicts Sirika, brother in new N19bn fraud

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The Economic and Financial Crimes Commission has charged former Minister of Aviation, Hadi Sirika, his brother, Ahmad Sirika; and his company – Enginos Nigeria Limited, with over N19.4bn fraud.

The sum is said to be for several aviation ministry contracts from the former minister to Enginos Nigeria Limited, owned by Sirika’s younger brother, Abubakar.

The Sirika brothers and Enginos Nigeria Limited will be arraigned before Justice Belgore of the Federal Capital Territory High Court, Garki, Abuja today (Tuesday).

It is the second criminal charge the EFCC will be filing against the ex-aviation minister.

He was last Thursday arraigned for N2.7bn fraud before the High Court of the Federal Capital Territory in Abuja.

Sirika was arraigned on six counts alongside his daughter, Fatimah; brother-in-law, Jalal Hamma, and Al-Buraq Investment Ltd.

The defendants pleaded not guilty while Justice Sylvanus Oriji granted them N100m bail each, with the condition that they must not travel out of the country until the end of the criminal case.

On Monday, EFCC insiders informed The PUNCH that the anti-graft agency had filed a second charge against the ex-minister, bordering on N19.4bn fraud.

In the copy of the fresh charges sighted by our correspondent on Monday, the EFCC alleged that Sirika, “while being the Minister of Aviation, on or about 18th August 2022, in Abuja, within the jurisdiction of this honourable court, did use your position to confer an unfair advantage upon Enginos Nigeria Limited, whose alter ego, Ahmad Abubakar Sirika, is your biological brother, by using your position to influence the award to him, the contract for the construction of a terminal building at Katsina Airport for the sum of N1,345,586,500.00.”

According to the EFCC, Sirika’s alleged action was a violation of Section 19 of the Corrupt Practices and Other Related Offences Act, 2000 and punishable under the same section.

In another count, the EFCC alleged that “on or about 3rd of November, 2022, in Abuja,” Sirika used his position “to confer unfair advantage upon Enginos Nigeria Limited, whose alter ego, Ahmad Abubakar Sirika, is your biological brother, by using your position to influence the award to him, the contract for the establishment of Fire Truck Maintenance and Refurbishment Centre at Katsina Airport for the sum of N3,811,497,685.00.”

In another count, he was accused of corruptly awarding a N615,195,275.00 contract to his brother for the procurement and installation of lift and air conditioners and power generators for the Aviation House in Abuja.

Furthermore, the EFCC alleged that Sirika, between August 2022 and May 2023 in Abuja, “had possession of an aggregate sum of N2,337, 840,674.16, which sum you knew indirectly represented the proceeds of criminal conducts of Hadi Abubakar Sirika, who was the Minister of Aviation at the time.”

It was revealed that the ex-minister’s younger brother, Abubakar, was earlier arrested and detained by the EFCC in connection with N3,212,258,930.18 paid to his company, Enginos Nigerian Limited’s bank account by the former minister.

 

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Nigerian Bank chiefs obtain N549bn insider loans in five years

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Directors and key management personnel of Deposit Money Banks borrowed about N549bn from their financial institutions in five years.

This is according to The PUNCH analysis of the banks’ annual reports filed with the Nigerian Exchange Limited between 2019 and 2023.

However, the banks’ loans and advances to some directors and key management personnel as well as related party transactions dropped significantly in 2023.

These transactions dropped to N52.40bn for eight financial institutions compared to N111.31bn in 2022, indicating a 52.92 per cent decline in one year.

Financial institutions reviewed in the 2023 review include Access Holdings, Guaranty Trust Holding Company Plc, Zenith Bank Plc, United Bank for Africa, Fidelity Bank, Wema Bank, Stanbic IBTC Holding Plc and the FCMB Group.

This decline came amid the release of new corporate governance guidelines by the Central Bank of Nigeria which went into effect August 1, 2023.

In the circular dated July 13, 2023, and signed by Director, Financial Policy and Regulation Department, Chibuzo Efobi, the guidelines which imposed responsibilities on the bank board and the executive compliance officers, supersede other previous codes, circulars and related directives, according to the apex bank.

The CBN guidelines on related party transactions said, “Banks shall establish a policy concerning insider trading and related party transactions by directors, senior executives, and employees, as well as publish the policy or a summary of that policy on their website. 22.2 The policy shall contain appropriate standards and procedures to ensure it is effectively implemented. 22.3 In addition to the requirements in Section 22.2, there shall be an internal review mechanism carried out by the internal audit function of the bank, to assess the compliance and effectiveness of the policy.

“22.4 Any director whose facility or that of his/her related interests remains nonperforming in any financial institution for more than one year shall cease to be on the board of the bank and shall be blacklisted from sitting on the board of such bank and that of any other financial institution under the purview of the CBN. 22.5 No director-related loans and/or interest thereon shall be written off without the CBN’s prior approval.”

Leading the pack in terms of major decline in loans to related parties and entities controlled by key management personnel was Fidelity Bank Plc, which went from N92.31bn at the end of December 2022 to N2.09bn at the end of last year.

In footnotes, the bank however said that some of the related parties like A-Z Petroleum Limited, Dangote Group and Genesis Group as of 31 December 2022, had “exited the related party relationship post 2022 financial year in line with CBN requirement.”

In 2022, the total value of insider loans for 10 banks including Access Holdings, Guaranty Trust Holding Company Plc, Zenith Bank Plc, United Bank for Africa, Fidelity Bank, Wema Bank, Stanbic IBTC Holding Plc, FCMB Group, Unity Bank and Sterling Bank amounted to N131.04bn.

Fidelity Bank led the highest for the year, followed by Unity Bank at N17.32bn and UBA at N13.74bn.

In 2021, the loans to related parties of these financial institutions rose to N139.16bn with Fidelity Bank and UBA leading at N97.73bn and N15.28bn, respectively. GTCO trailed in third position with N6.859bn.

Between 2019 and 2020, a total of N226.6bn was disbursed as loans. In 2019, eleven banks borrowed its key management personnel a total sum of N29.65bn. The figure also includes loans to companies related to the directors.

An analysis showed that GTCO lent N155m, Zenith Bank (N1.76bn), UBA borrowed its directors N297m, Wema Bank (N5.2bn), Stanbic IBTC (N95m), FCMB (N4.8bn), Unity Bank(N7.14bn), Sterling Bank (N10.12bn) to related parties.

In 2020, the figure increased by 564 per cent or N167.32bn to N196.97bn.

Checks showed that Access Bank lent the highest with a total of N174bn to its directors and companies related to them. This was followed by Unity Bank with N7.55bn. Third on the list was Sterling Bank with N6.01bn.

Other banks including Fidelity borrowed its directors N986.2m, GTBank (N67.9m), Zenith Bank (N1.797bn), UBA (N206m), Wema Bank (N2.82bn), Stanbic IBTC (N332m), FCMB (N3.2bn), Unity Bank (N7.55bn), Sterling Bank (N6.01bn).

Commenting on the trend, the Chief Research Officer at InvestData Consulting, Ambrose Omordion said “In my language, they say, it is the yam that you know that you use to make pounded yam. If an organisation feels that the insider or director can pay the loans given to them, then there is no issue. It is when they do not pay that is where there would be issues.

“Like what is happening now in the economy, banks are not giving loans to ordinary companies unless those with names because of economic headwinds. If they give loans to the public and they are unable to repay, Non-Performing Loans will rise. If the banks offer to insiders that would pay, it is better for them.”

 

The Punch

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Court Orders Arrest of Ex-Naval Chief, Usman Jibrin Over Alleged N1.5billion Money Laundering Charges

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Justice Inyang Ekwo of the Federal High Court, Abuja, has ordered the arrest of a former Chief of Naval Staff, Vice Admiral Usman Jibrin, and two other officers over N1.5 billion money laundering charge.

 

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) dragged the trio before the court over fraud N1.5bn allegations.

 

The court issued the arrest warrant after hearing a motion exparte marked FHC/ABJ/CR/158/2023 and filed by ICPC counsel, Osuobeni Ekoi Akponimisingha.

 

In the motion, the lawyer submitted that Usman Jibrin Oyibe, Adam Imam Yusuf, Brigadier General Ishaya Gangum Bauka (first to third defendants), were investigated for allegations of money laundering and making false statements regarding diversion of funds in their respective military and paramilitary institutions, into companies in which they allegedly had stake.

 

According to him, at the commencement of the investigation into the allegations, the defendants were released on administrative bail on self-recognition because of their status as serving and former public figures and has since then refused to show up for possible arraignment in court.

 

The Lawyer prayed the court for a bench warrant against the 1st, 2nd and 3rd Respondents (Vice Admiral Usman Jibrin Oyibe, Adam Imam Yusuf, and Brigadier General Ishaya Gamgum Bauka) in charge No. FHC/ABJ/CR/158/2023 which is pending before the court for the purpose of arresting and bringing them to court for their arraignment and trial.

 

Listed as first to sixth defendants in the 17-count charge are Usman Jibrin Oyibe, Adam Imam Yusuf, Brigadier General Ishaya Gangum Bauka, Lahab integrated & Multi Services Limited, Gate Coast Properties International Limited and Ummays Hummayd Energy Ltd

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