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Fayose sacks Ekiti LG chairmen, boards …shuns government house………..

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Ekiti Governor, Ayodele Fayose, on Saturday sacked all the Caretaker Chairmen of the 16 Local Government Areas and the 19 newly created Local Council Development Areas in the state.

Also dissolved are all boards of government corporations, agencies and parastatals constituted by the immediate past Governor, Dr. Kayode Fayemi.

Fayose, in a statement by his Chief Press Secretary, Mr. Idowu Adelusi, directed all the caretaker chairmen to immediately hand over to the Director of Administration of their respective council.

“The dissolution takes immediate effect.

“All the local government and local council development areas’ caretaker chairmen are to hand over to the Directors of Administration of the existing local government areas.

“The Directors of Administration are to take inventory of the property handed over to them,” the statement read.

Caretaker chairmen were in control of the 16 constitutionally recognised LGAs during the administration of Fayemi.

Caretaker committees were also appointed for the 19 LCDAs inaugurated shortly after the June 21 governorship election.

An attempt by the Fayemi to hold council election in the 16 councils on February 4, 2011, was stopped by the state High Court, following a suit filed by the PDP in the state that some of the members of the State Independent Electoral Commission were members of the then ruling party, APC.

Fayemi, who had promised to hold council election before the end of the year was defeated by Fayose in the June 21 election.

Fayose had his inaugural speech on Thursday vowed not to fund the LCDAs with the Federal Allocations for the 16 councils listed in the 1999 Constitution.

He said “Section 7 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) clearly spells the authorities and procedures for the creation of local government.

“The sudden and shoddy balkanisation of the existing 16 local government areas by the immediate past administration under the guise of creating local council development areas is being challenged in the court of law.

“Our party considers the hurried creation of the 19 LCDAs, after incumbent (Fayemi) lost the June election, as gratuitous afterthought of a bad loser. It smacks of political subterfuge masterminded in utmost bad faith.

“But at the moment, the matter is sub judice, and as law abiding citizens, our government will not do anything that will render the decision of the court nugatory.

“However, pending the pronouncement of the court, our administration shall be guided by the provisions of Section 3, Part 1, First Schedule of 1999 Constitution on the list of local governments in Nigeria in the allocation of resources to that tier of government.”

Meanwhile, Fayose, has yet to move into the new Government House, Oke Ayoba, Ado-Ekiti, just completed by the immediate past Governor, Dr. Kayode Fayemi.

Investigations by us revealed that Fayose is still governing the state from his campaign office in the Government Reservation Area, Ado-Ekiti.

Fayose had on Tuesday, in a live interview monitored in Ado-Ekiti, invited the prophets in Ekiti, both Islamic and Christian, for the cleansing of the Government House.

Also on Thursday in his inaugural speech, the governor threw open the gates of the government lodge, asking people to go and enjoy themselves there as it was built with their collective wealth.

At a thanksgiving service held the Central Mosque, Ado-Ekiti, on Friday,

Fayose told the congregation that he was not in a hurry to occupy the Government House.

He said, “I am for the masses. I’m not in a hurry to go to the Government House. Those who want to go there can go there and enjoy themselves.

“How will a governor put electricity in his house and the whole town is in darkness,” he queried.

In a related development, Governor Fayose, and the Speaker of the state House of Assembly, Adewale Omirin, have engaged themselves in war of words over a one-month recess declared by the lawmaker.

Fayose had faulted the recess, saying it was declared in bad faith.

Omirin had in a statement by his media aide, Wole Olujobi, said the recess was to allow possible change of guide by the personnel of the Assembly.

However, in a statement made issued by his Chief Press Secretary, Mr. Idowu Adelusi, in Ado-Ekiti on Saturday, the governor said the reason given by the Speaker for his action was a “lame excuse.”

Fayose accused Omirin of making a move to make the present government unpopular among lawmakers, urging him to purge himself of destructive tendencies and chart a new course.

Omirin, however, denied plotting to frustrate Fayose, describing the governor as a “rabble-rouser.”

Speaking through his Special Adviser (Media), Mr. Wole Olujobi, he said the allegations made by the governor against him were baseless.

He said, “They had been busy monitoring constituency projects to ensure their completion for inauguration by the former Governor, Dr. Kayode Fayemi.

“Even if Fayemi were still the governor, they would have still gone on the recess.”

@ Sunday Punch

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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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