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Jaiz Bank crisis Deepens as MD, Mallam Hassan Usman, others fight dirty over appointment

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There appears to be a brewing boardroom bickering at Jaiz Bank Plc over the tenure of the current Managing Director and the appointment of a successor.

The two claimants are the current Managing Director, Mallam Hassan Usman and a new candidate, Mr. Mohammed Shaheed Khan, who was appointed by the board to succeed Usman.

It was alleged that due to COVID-19 pandemic which ravaged the bank’s board, the current MD fought back to regain his seat while a new appointment was subsisting.

Reacting to the alleged infighting among directors, a top official of the bank said there was no rift on the board of Jaiz Bank.

“In fact, the board of directors held its 34th board meeting with 100 per cent attendance on the 27th of October 2020. This was followed by a successful Extra Ordinary General Meeting (EGM) the following day which was presided over by the Chairman, Dr Umaru Mutallab,” the source said.

Regarding the offer of appointment to Khan, the source said the offer was given subject to the approval of the Central Bank of Nigeria (CBN). The apex bank approved terms different from what was offered to Khan and the board consequently decided not to proceed with the process of appointing him as managing director of the bank.

Meanwhile, according to investigation, both the current Managing Director of the bank and the new candidate have been caught in the bitter boardroom politics of Jaiz Bank.

Findings confirmed that some shareholders of the bank have sharp disagreement with some directors and board members.

It was gathered that some board members took advantage of COVID-19 infection of some of their colleagues to gain upper hand to reverse the decision of the bank to hire a new Managing Director/ CEO.

The boardroom crisis may cost the bank about N2 billion being the six-month salaries of Khan at $175,000 per month.

Investigation showed that the new candidate, Khan (who is a foreigner) was offered a letter of appointment on August 3, 2020.

The Central Bank of Nigeria (CBN) also on 17th September 2020 confirmed that it has no objection to Khan’s choice.

A top source, who spoke in confidence, said: “We have a boardroom crisis at hand. The current MD/CEO, Mallam Hassan Usman, was doing well but some directors insisted on change. They asked him to proceed on retirement and set machinery in motion for the recruitment of a new MD/CEO.

“Along the line, some board members who wanted the MD to retire became ill. Some aggrieved shareholders and board members held an Emergency Board meeting to nullify the retirement notice of the current MD/CEO.

“This is the challenge at hand. We are expecting the intervention of the CBN and restoration of peace to the board.

“The new candidate has written the bank to demand N2 billion as salaries for six months at US$175,000 per month. We may be drawn into a prolonged legal battle.”

Another source in the bank said: “I think the problem at hand was borne out of mutual suspicion among board members.

“Some board members are nursing fears that they may be edged out by certain powerful shareholders. We are really in trouble. And this is the first Islamic bank in Nigeria. Business interest is overriding the fear of Allah.”

A letter to the Chairman of the board of Jaiz Bank, Alhaji (Dr) Umaru Mutallab and the CBN by Khan’s counsel, A. U. Mustapha (SAN) gave insights into how Jaiz ran into crisis.

The letter, dated 26th October, 2020, was also copied the President of the Chartered Institute of Bankers of Nigeria (CIBN) and the Secretary of Jaiz Bank.

The letter said: “Khan, who has a Fintech background, strong network and profile, was approached by Jaiz Bank because the current Managing Director was retiring, and the Bank needed transformation (both cultural and digital) to compete with other digital focused Islamic banks and incumbent banks;

”After rigorous and exhaustive interviews, Khan was offered a letter of appointment as managing Director/CEO of Jaiz Bank on the 3rd of August 2020 and the same letter was duly accepted. Thereafter, a Contract of Employment was drawn between Jaiz Bank and Khan.

”On the 7th of August 2020, Jaiz Bank wrote to the Central Bank of Nigeria (CBN) requesting for its approval to appoint Khan as its MD/CEO.

“The CBN replied by its letter dated 14th August requesting for further clarifications.

“On the 21st of August 2020, Jaiz Bank wrote another letter to CBN where it acknowledged CBN’s letter dated 14th august 2020, stating “we will strongly request your kind consideration and approval for the appointment of Muhammed Shaheed Khan as managing Director Designate”.

“In response to the passionate request, CBN, by its letter dated 17th September 2020 CBN formally confirmed that it “has no objection to the appointment of Mohammed Shaheed Khan as Managing Director/CEO for two years from the date of his appointment.

”Following his appointment as the MD/CEO of Jaiz Bank, Khan completed all formalities and resigned from his previous job and his resignation was duly accepted by the board of his former employers.

“He withdrew his children from their current school, donated/sold his furniture, secured a smaller accommodation for his close relations and thereafter, started working remotely for Jaiz Bank.

“On the 3rd and 11th of September, Khan attended to official electronic mail from the Company Secretary “Executive Directors would like to have your input on a proposal to secure some IT infrastructure, details of which will be shared with you shortly”;

”But the current outgoing Managing Director of Jaiz Bank, Mallam Hassan Usman, on the 25th of September 2020, after an emergency board meeting, informed Khan that Jaiz allegedly cannot proceed with the appointment.

“Khan replied by claiming that he had been in contact with the Chairman and Company Secretary as the Chairman had no knowledge of the alleged termination of his appointment and that as an outgoing Managing Director, he lacks the authority to send the correspondence.

“On 30th September 2020, Khan wrote the Chairman, Board of Directors of Jaiz Bank, Alhaji (Dr) Umaru Mutallab CON, FCA, and the Company Secretary that he has completed all the formalities and as per the offer letter and he will be joining Jaiz Bank on October 2nd 2020.

On the same 30th September 2020, Alhaji (Dr) Umaru Mutallab CON, FCA, Chairman; Board of Directors of Jaiz Bank replied back “We look forward to your resumption on the 2nd of October officially as MD designate while the visa formalities are being finalized. On behalf of the Board, we look forward to seeing you soonest in person in Nigeria.

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CBN Director: How I Collected $600,000 Bribe For Emefiele

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A former Director of Information Technology of the Central Bank of Nigeria (CBN), Mr. John Ayoh, has explained how he collected $600,000 allegedly for contract gratification for the embattled ex-apex bank governor, Mr. Godwin Emefiele.

Ayoh, while being led in evidence by the Economic and Financial Crimes Commission (EFCC) counsel, Mr. Rotimi Oyedepo (SAN), on Monday, April 29, told an Ikeja Special Offences Court that he spent eight years in the apex bank.

He told the court that he received a letter from the agency concerning two transactions which he facilitated through Emefiele.

Ayoh, Head of Procurement and Support Services (PSS) Department, told the court that the first envelope containing $400,000 was brought to his house in Lekki while he received the second envelope containing $200,000 at the Tinubu Head Office of the CBN.

Ayoh said he was vested with powers to receive applications for award of contracts to select successful bidders.

According to him, the first leg of the transaction was at his residence in Lekki Phase One while the second envelope money he received occurred at the Tinubu Head Office of the CBN.

He said: “The man to deliver the second transaction came to our office in Lagos and I informed the governor but he said he did not want to see a third party that I should bring the envelope myself.

“I complied with the instruction and went to his office and delivered it. Mr John Adeola was the one I sent my address to and he came to my house. He is the governor’s assistant and the total money I received on his behalf was $400,000 and $200,000, respectively.”

The witness informed the court that the vendors who allegedly brought the envelopes with money were in charge of the implementation of Netapp Storage Architectural and Infrastructural Services.

While under cross-examination by the first defence counsel, Mr. Olalekan Ojo (SAN), he told the court that his schedule of duties did not include running errands for Emefiele but he directly worked under him.

Ayoh confirmed to the court that Emefiele was not a member of the PSS but a member of the Major Contract Tender Committee (MCTC).

He added that he had never facilitated in the commission of any crime.

Ojo asked if the witness wrote in his statement that he was forced to aid or abet the commission of accepting gratification.

The witness said: “I do not remember the exact word that I used and I did not write in my statement that I opened the two envelopes on the two occasions to check the total sum of money.

“I wrote a statement and it implied that the money in the envelopes was given to me to influence the award of contract. I did not take part in the decision of the MCTC but I recommended that the award be given and I was not bribed.

“I was invited by the EFCC on February 17, I was not arrested but I returned home on administrative bail.”

The witness told the court that he operated under duress, while he received the two envelopes from the contractors.

“On your honour, did you indicate in your statement that you were acting under duress while running errands for the first defendant,” the learned silk asked.

The prosecution, however, objected to the question and argued that the statement of the witness was not before the court.

The first defence counsel sought that the statement of the defendant be admitted into evidence.

Justice Rahman Oshodi, thereafter, admitted the statement of the witness (three pages) into evidence, following arguments and counter arguments of the counsel.

The Senior Advocate reteirated that the witness showed to the court where it was written in his statement that he acted under duress.

The witness told the court that the instructions from Emefiele indicated that he bent rules.

The judge, thereafter, adjourned the case until May 3 for continuation of cross-examination.

Emefiele’s counsel also pleaded with the court to release the defendant to him on self-recognition because he had not met with his bail application.

The learned silk, however, prayed the court that the defendant would meet up before May 17.

There was no objections from the second defence counsel and the prosecution left the decision at the discretion of the court.

 

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Copyright Infringement: MTN Managing Director, Four Other Defendants Fail To Appear In Court

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The trial of the Managing Director and Chief Executive Officer of MTN Nigeria Communications Ltd, Karl Toriola, Senior Executive Officer, Nkeakam Abhulimen and two others for criminal charges bordering on “copyright infringement” was on Monday stalled due to the absence of the defendants in the court.

The telecommunications giant is standing trial following criminal charges filed by the Nigerian Copyright Commission (NCC) against Karl Toriola, Nkeakam Abhulimen; Fun Mobile Ltd, a telecommunications service provider; and Yahaya Maibe, its CEO.

The matter which was slated for arraignment before Justice Inyang Ekwo at the Federal High Court Abuja could not go on due to the absence of the defendants, Toriola and Abhulimen in court.

 

Both Toriola and Abhulimen were not represented in court by any lawyer but MTN Nigeria Communications Ltd was represented by Obafemi Ajaba while Fun Mobile and Maibe were represented by Abdullateef Afolabi.

The prosecution lawyer, Emeka Ogbonna told the court the defendants were not in the court despite the fact they had been served with the processes.

 

He said the defendants had been on administrative bail and the sureties also assured that they would be in the court today.

 

He said the expectation was that all of them would be in court today.

He therefore sought for the adjournment to enable the defendants to appear in court and take their plea.

 

 

“If they don’t come willingly, we know what to do to bring them before the court,” Ogbonna said.

 

But in his own submission counsel for the MTN (1st defendant) told the court that only the company was served with the court processes.

 

He added that they had filed a motion on notice on April 26, challenging the jurisdiction of the court to proceed on the matter as presently constituted.

 

Maleke Moye who is the nominal complainant in the case and his lawyers, Abudul T.Kohol and Zino Ugboma were also present in court to watch the brief.

 

The presiding judge, while agreeing with the prosecution’s request, therefore adjourned the case to May 14, 2024 for arraignment.

 

 

It would be recalled that the case with the number FHC/ABJ/CR/111/2024 was filed at the federal high court in Abuja.

 

In the three-count charge, NCC alleged that the defendants, between 2010 and 2017, “offered for sale, sold and traded for business, infringed musical works of Maleke Moye, an artiste, without his consent and authorisation”.

 

The commission alleged that the defendants used Maleke’s musical works and sound recordings with subsisting copyright, known as “caller ring back tunes” without the authorisation of the artist.

 

 

The musical works and sound recordings of the musician allegedly infringed upon include 911, Minimini-Wana Wana, Stop Racism, Ewole, 911 instrumental, Radio, Low Waist, and No bother.

 

 

The defendants were also alleged to have illegally distributed the musical works to their subscribers, without authorisation, thereby infringing on the rights of the artist.

 

 

In the third count, the defendants were alleged of having in their possession, the musical works and sound recordings of the artist, other than for their personal or domestic use.

 

 

The copyright commission said the alleged offences are punishable under section 20 (2) (a) (b) and (c) of the Copyright Act, Cap. C28, laws of the federation of Nigeria, 2004.

 

 

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World Malaria Day 2024: Moment of Excitements and Gratitude as Shalina Gives Back to the Society

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It was a moment of great excitement and gratitude, as a leading multinational pharmaceutical company in Nigeria, Shalina Healthcare marked this year’s World Malaria Day with a variety of events to create awareness about the deadly disease and at the same time use the opportunity to give back to the people. The WMD activities powered by Shal’Artem, (a brand of Antimalaria from Shalina Healthcare) Commenced at Campos Mini Stadium, Lagos Island on April 21st and ended at Ayangburen Market, Sabo, Ikorodu; Lagos on Thursday 25th 2024.

Speaking on the main concept of the activities, Mr Chiuba Nwaosu, the Marketing Manager, Shalina Healthcare said; “the brands effort was to accelerate the fight against Malaria to a new level via infusing Sport, entertainment, Sanitation, Free test & treatment exercise to raise awareness about malaria.

The football match, titled “Join the Cast” with Shal’Artem as official antimalarial, and Rear Admiral Anakwe as the Special Guest of Honor, also had active participation of some top Nigerian celebrities and entertainers like Frank Idoho, Ali Baba, I Go Save, Akpororo amongst others.”

This was followed by a wide scale Free Clean up exercise across 3 Markets in Ikorodu Lagos (Sabo, Alison & Ladega) to emphasize the importance of a clean environment to prevent the breeding of Mosquitoes.

The exercise ended with free malaria testing & prompt treatment of positive cases with Shal’Artem. Over 300 ecstatic market men, Women, Children & Artisans received free gifts at the end of the screening exercise.

The brand gesture is a commitment to ensuring that every Nigerian has a right to quality, affordable & accessible healthcare.

Appreciating the company, the Iyaloja of Ayangburen Market, Sabo, Ikorodu, Alhaja Mutiat Abeni Ojulari said, “Shalina has done greatly with this gesture. Free drugs and medical tests are very necessary at this time. We are very grateful to them for thinking about us. I pray that God will bless the company and everyone involved.”

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