Connect with us

News and Report

Secret report bombshell: Cash-strapped PDP plans to sell party membership, ministerial slots…

Published

on

A high-powered committee set up to revamp the fortunes of the Peoples Democratic Party has submitted a report that may throw the fractious party into a new crisis. Among others, the committee advised the party to sell its membership and also restrict senior government positions and other perks to the highest bidder.

 

Reliable sources within the party told SUNDAY PUNCH that the plan had been accepted by the leadership of the Senator Ahmed Makarfi faction, which also set up the committee.

 

The Makarfi faction is the bigger of the two factions fighting for the soul of the former ruling party. It has the support of an overwhelming number of former governors, ministers and power brokers.

 

However, it suffered a major setback at the courts recently when the other faction led by former Borno State Governor, Ali Modu Sheriff, was declared as the authentic executive of the party. The Makarfi faction has however, challenged the decision of the Court of Appeal at the Supreme Court.

 

According to SUNDAY PUNCH findings, the committee, which has 201 members and is chaired by a former Minister of Information, Prof. Jerry Gana, is moving around the country, distributing copies of the report to prominent members of the party.

 

Among those who are said to have received it are former President Goodluck Jonathan; a former Chairman of the Board of Trustees, Chief Tony Anenih; and a former National Security Adviser; Gen. Mohammed Gusau (retd.) Some other members of the BoT and the national caretaker committee have also collected copies of the document, sources say.

 

The report, which was seen by our correspondent during the week, groups the party’s membership into six categories in descending order of members’ financial contributions. Those in the highest categories are to have special benefits based on their financial contributions to the party.

 

The categories are: Platinum, Diamond, Gold, Silver, Standard and Students in Tertiary Institutions.

 

According to the report, male members of the party who desire to be Platinum members are to pay N500,000 a year or N50,000 monthly instalments while women are to pay half the amount.

 

The benefits accruing to those in this category include “opportunities to attend the expanded national caucus meetings of the party, be invited to social and political events of the party with the President of the Federal Republic of Nigeria and the national chairman of the party.”

 

Members in this category are also to contribute and participate in the formulation of key policy decisions for the next general election.

 

“Consideration shall be given to platinum card-carrying members for appointment into boards of Federal Government-owned parastatals, agencies, ministerial appointments as well as other benefits that accrue to the party,” the report says.

 

Other perks, the report says, “are inclusive, but not limited to procurements, contracts and projects (awards) at all levels of the party governance structure.”

 

For those in the diamond category, they are expected to pay N250,000 (men) or N200,000 (women) annually to the party.

 

The document also states that diamond card-carrying members will enjoy most of the privileges associated with those in the Platinum group.

 

The report adds that those in diamond category “will (however) not be eligible for consideration into the membership of Board of Trustees as well as contest for the position of President and national party offices as the national chairman, deputy national chairman and national secretary.”

 

Gold card members will be expected to pay N200,000 (men) or N100,000 (women) minimum a year. They are expected to enjoy the benefits accruing to those in the diamond card category.

 

Holders of Silver cards in the party, according to the document, are expected to contribute N100,000 (men) or N50,000 (women) per annum to the party.

 

But they will not enjoy contracts from the government or be allowed to contest for national offices or be considered for appointment as ministers.

 

However, Silver members may be considered for commissionership appointments as well as other benefits that may accrue to the party such as “procurements, contracts and projects” at the state levels of the party’s governance structures.

 

Members who cannot afford to part with the sums quoted above will be asked to cough out N3,000 (men) and N2,000 (women) annually. However, they will only be allowed to contest for public posts at the local government and ward levels. Those in this category are called “Standard membership” card holders.

 

Student membership is planned to be free, but the document says it will be limited to “students in tertiary institutions approved by the Federal Ministry of Education.”

 

In his reaction, the National Chairman of the party, Senator Ali Modu Sheriff, said the cash-for-membership plan would not work, adding that the party was not for sale. Sheriff added that the plan of the Makarfi-led caretaker committee was to handover the party to the rich.

 

Speaking through the Acting National Publicity Secretary of the party, Mr. Bernard Mikko, the former Governor of Borno State said, “That idea won’t work. We are talking and planning to handover the party to the people, yet some people are secretly planning an alliance to hijack it.

 

“The PDP is not for sale. We won’t allow it to happen. The party is for ordinary Nigerians who are committed to its ideals and not for a few, who are desperate to hijack it.”

 

Deputy National Chairman of the PDP, Dr. Cairo Ojougboh, also condemned the new membership plan.

 

“The committee should stop misrepresenting us. It is going about dishing out the report to eminent members of our party without authorisation,” he said.

 

But the spokesperson for the Makarfi faction, Prince Dayo Adeyeye, disagreed with the critics of the new plan, saying that it would be wrong for anyone to say that the committee was not serving the interest of the party.

 

Interestingly, the party’s thinkers would still like to have a situation where government funds political parties. In the report, the Gana-led committee said the Federal Government should continue to fund political parties.

 

It said, “It has been established that political parties all over the world are funded by governments of their various countries. This was also in practice in Nigeria before a PDP-controlled National Assembly stopped it.

 

“Public funding of political parties made it morally right for INEC to audit political parties’ assets since most of the funds came from the government. It is hereby recommended that the PDP should collaborate with other political parties to amend the Electoral Law to restore regular funding of political parties by the government.”

 

The committee further recommended that the party should invest five per cent of its annual income in commercial companies. In order to make more money, the committee said the party must establish companies that would bid for contracts as well.

 

The report said, “It is recommended that five percent of the party’s income be invested in reputable fund managers and blue-chip companies such as pension funds, treasury bills, bonds, telecommunications companies, oil companies etc. NEC should determine such companies from time to time.

 

“It is further recommended, if approved by the appropriate organs of the party, to establish PDP incorporated organisations to handle party investments and also bid for contracts.”

 

23 PDP state chairmen back Sheriff

 

Meanwhile, 23 out of the 36 state chapter chairmen have thrown their weight behind the National Chairman of the party, Senator Ali Modu Sheriff.

 

They also said they were backing recommendations made by the Governor Seriake Dickson’s Peace and Reconciliation Committee for a unity national convention to hold not later than August this year.

 

The state chairman stated this after their meeting in Abuja on Friday night.

 

In their communique, which was made available to journalists on Saturday, they expressed concerns that if the ongoing leadership crisis in the party was not resolved quickly, it would affect the fortune of the party, especially as the Independent National Electoral Commission had released the 2019 election timetable.

 

The communique of the meeting was read by the Federal Capital Territory PDP chairman, Mr. Yunusa Suleiman.

 

He said he and his colleagues were supporting Sheriff because of the judgement of the Court of Appeal, which pronounced him as the party’s substantive national chairman.

 

Suleiman added that the support of the chairmen for Sheriff was without prejudice to the ongoing appeal lodged by the Senator Ahmed Makarfi-led National Caretaker Committee of the party, at the Supreme Court.

 

He said whatever decision reached by the apex court would be adhered to by them as well.

 

The chairman insisted that the political solution being proffered by former president Goodluck Jonathan was the best way out of the crisis.

 

The communique added, “The PDP state chairmen are very concerned about the crises engulfing the party as it is degenerating into the several defections from the party across the nation.

 

“Bearing in mind the upcoming Presidential elections timeline recently announced by the INEC, as key political actors of the polity, we cannot sit back and allow our party to degenerate to this level and we have thus decided to come forward and proffer solutions to this crisis.

 

“In line with the only template presented by the Peace and Reconciliation Committee of our party headed by Henry Seriake Dickson, Governor of Bayelsa State, we wish to state that we support the recommendation that a political solution is the best and only solution to our crisis without prejudice to the ongoing judicial processes,

 

“We are also in support of the committees’ recommendation of an all inclusive unity convention to be held as soon as possible.

 

“We, as legitimately elected chairmen wish to state on the grounds of clarity that we shall never be in support or be a part of any plan to tinker with the option of leaving the PDP and forming another party.”

 

The communique was signed by 23 participants at the meeting.

 

But in a swift move, Makarfi described the state chairmen as fake, and dissidents.

 

Makarfi, who spoke through a member of his committee, Prince Dayo Adeyeye on Saturday, added that the action of the chairmen was a ruse.

 

He said, “We wish to state without ambiguity that the action of these elements is a ruse, lies from the pit of hell and a mere continuation of impunity of Senator Sheriff and his dissident backers within the party.

 

“For the records, we wish to make it clear that many of those men are not elected state chairmen of our party, even when Senator Sheriff was the recognised chairman of the party.”

Continue Reading
Advertisement

News and Report

EFCC indicts Sirika, brother in new N19bn fraud

Published

on

By

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.

 

Continue Reading

News and Report

Nigerian Bank chiefs obtain N549bn insider loans in five years

Published

on

By

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

Continue Reading

News and Report

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

Published

on

By

 

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

Continue Reading

Trending