DANGOTE RUNS FOR COVER

THE PUNCH has this story about Dangote's withdrawal from the refineries imbroglio.

Blue Star Oil Services Limited, the consortium that acquired controlling stakes in the Port Harcourt and Kaduna refineries, has pulled out of the deal.
The consortium is made up of companies belonging to billionaire businessmen, Alhaji Aliko Dangote and Mr. Femi Otedola.
Consequently, the consortium is demanding a refund of the $721m it paid for the acquisition of the refineries, with interests accruable.
The spokesman of the Bureau of Public Enterprises, Mr. Joe Anichebe, told our correspondent on the telephone that he could not confirm if the bureau’s Director-General, Mrs. Irene Chigbue, had received any notification of the withdrawal.
Anichebe stated that Chigbue could not be reached as she was attending a meeting.
Investigations by our correspondent revealed that Blue Star, in a letter dated July 17, 2007, announced its withdrawal from the deal.
The BPE had divested 51 per cent of Federal Government’s shares in the two refineries in May, just before the exit of former president Olusegun Obasanjo.
In the letter, Blue Star said it was withdrawing from the deal in view of the continued vilification of the consortium by the organised labour and some vested interests in the Nigerian National Petroleum Corporation.
The letter, which was addressed to the BPE DG, reads in part, “We have, therefore, pulled out to enable the NNPC to operate it at full capacity, without government funding, then eliminate NNPC’s importation of petroleum products, and gradually eliminate queues at the filling stations within 12 months.”
The pull out was, however, with a caveat, “In the event that the NNPC failed to meet these commitments within 12 months, we reserve the right to resume interest in the refineries at a re-negotiated rate to reflect the state of the assets.”
As far as Blue Star was concerned, as noted in the letter, the purchase of the two refineries at the cost of $561m for Port Harcourt and $160m for Kaduna refineries, was a fair deal.
They added that, indeed, the price paid for the Port Harcourt refinery exceeded the reserve price quoted by the BPE.
According to the consortium, “Our interest in the refineries was borne out of patriotism (and our belief) that private sector participation would ensure efficiency and effectiveness in the operations of these refineries, which were expected to perform better than they did in the past.”
They argued that recent claims by the NNPC that it could run the refineries “more efficiently” contradicted “published data that showed an average of 35 per cent capacity utilisation between 1997 and 2005, which suggested the need for private sector participation.”
Under the terms of the agreement with the consortium, Dangote holds 55 per cent stake, Zenon Oil, promoted by Femi Otedola, holds 25 per cent, while the Rivers State Government and the Trans-national Corporation hold 15 per cent and five per cent respectively.
Meanwhile, the House of Representatives on Wednesday threw out a motion that sought to probe the sale of Port-Harcourt and Kaduna refineries, amid protest from many lawmakers.
The sale by former President Olusegun Obasanjo in the twilight of his administration has been a subject of national debate and investigation by the Senate.
Two related motions sponsored by Messrs John Agoda and Abdullaziz Abubakar, which were consolidated, triggered the debate.
Agoda‘s motion on the sale of Port Harcourt and Kaduna refineries was co-sponsored by three other lawmakers, while that of Abubakar on re-opening of the two refineries had 19 co-sponsors.

SO MUCH FOR THE SUN'S MEDIA CAMPAIGN

The SUN is a tabloid owned by Dr Orji Uzor Kalu, a flamboyant, outspoken and maverick ex-governor that is currently being held by the EFCC. Recently, the paper has been trying to create the impression that the U.S and other Western nations were opposed to his arrest on charges of corruption. According to The Punch, the U.S has now officially shrugged off such insinuations. Read the story.


By Oluwole Josiah, Abuja
Thursday, 19 Jul 2007
The United States has denied that it is averse to the trial of the former Governor of Abia State, Orji Uzor Kalu, by the Economic and Financial Crimes Commission.
In his valedictory press briefing on Wednesday, the outgoing US Ambassador to Nigeria, John Campbell, said it was not the business of the US Government to dictate to its allies how to run their judicial systems.
He was reacting to media reports in the wake of the arrest of Kalu, that the US opposed the arrest and trial of the ex-governor.
Campbell said, “This is a Nigerian judicial process, it is altogether improper for the United States to comment on such a process and as far as I know, contrary to press reports, we have not done so.
“The United States Government has made no statement absolutely ever about an entire judicial process that is now underway.”
He also noted that although the US regretted the poor conduct of the April general elections, it welcomed the call for reforms of the electoral system.
He said, “The United States will continue to walk beside Nigeria on its pilgrimage to democracy. We share with Nigerians their disappointment over the conduct of the April 2007 elections.
“We welcome the call by Umar Yar’Adua for the reform of the electoral system; we will continue to support the government of Nigeria and the civil society in an effort to strive and improve the electoral law, the tribunal system and promote the independence of the judiciary and the legislature, both at the national and state levels.
According to Campbell, at the moment, the US had earmarked $15 million for a three-year period in support of the electoral reform process, adding that the US was prepared to provide expertise as might be needed by Nigeria.
He said while the US shared the aspirations of the people of the Niger Delta and was prepared to provide development, medical and other expertise for the area, the kidnapping of toddlers was unacceptable.
He said he would like to see more American companies investing in Nigeria as an improvement on the present trade relations between the two companies.
On the influx of arms from the United States to the Niger Delta region of Nigerian, the ambassador noted that he was yet to identify arms used by militants that were made in the United States.

Femi Fani Kayode's girlfriend and other tales from the Sahara

Femi Fani Kayode's girlfriend confesses!
http://www.saharareporters.com/www/news/detail/?id=359

Andy Uba @ OBJ stash their loot!
http://www.saharareporters.com/www/news/detail/?id=352

Yar'Adua's big headache
http://www.saharareporters.com/www/report/detail/?id=335

FERNANDEZ FRIES ERELU DOSUNMU

In the last edition of City People, Nigeria's highest selling tabloid, Erelu Dosunmu, a popular Lagos socialite and businesswoman granted an interview where she flashed pictures of Deinde Fernandez and referred to him as her second husband. Seems Mr Fernandez, a globe-trotting billionaire of international repute didn't take the interview too kindly. In Tuesday's edition of This Day, he commissioned an advert which took Erelu to the cleaners. We hope to reproduce the contents of the ad very soon.

DEADLOCK ON HERBERT MACAULAY WAY

THE TRAFFIC SITUATION ON HERBERT MACAULAY WAYThe infuriating traffic usually experienced on the popular Herbert Macaulay Way, Yaba, is giving many motorists and pedestrians cause forconcern. Every day, residents of the mainland that commute to theIsland are stumped by the traffic congestion that stalls theirmovement at night.For years, two main institutions, one public and the other private,have greatly contributed to this problem by endangering the lives ofpeoplethat use this popular road. They are the Adekunle Police Station andSTACO Assurance Plc.Together, they have combined to deny motorists free use of theroad that leads to the Third Mainland bridge. This is in spite of the factthat the Nigerian Police Force claims to "Serve and Protect" the Nigeriancitizenry while STACO Plc is a multimillion dollar insurance company thatwas just listed on the Nigerian Stock exchange and posted a profit after taxof 491.5 million naira.Any first time visitor to the Adekunke intersection at Yaba willmarvel at the level of insensitivity shown by these institutions.Every day, they effectively take over half of the highway by parkingcars indiscriminately. While the police use the road as a place todump damaged and impounded vehicles, STACO Assurance Plc uses it as aprivate car park for its impressive fleet of cars.While the Nigerian Police Force has a reputation for gross inefficiency, corruption and under-performance, it is absurd that apublicly-quoted company that professes good corporate governanceshould take a cue from the NPF and brazenly put the lives of ordinaryindividuals at risk.The amazing thing is that STACO Plc is not the only firm that has anoffice on the busy Herbert Macaulay Way. DiamondBank, IntercontinentalBank, GTBank and other blue-chip firms have branches there. However,STACO is the only public firm that dos not keep its cars off thehighway. All the other firms ensure that their car parks do not extendinto the road or cause a public nuisance.STACO, on the other hand, prefers to have its main office on a plot ofland that is too small for the purposes it was meant for. In anycivilised country, the Yaba Mainland local Government Authoritieswould have put a stop to this behaviour but the word on the street isthat the company has settled the big local government officials.The DPO of the Yaba Police Station should also ensure that his stationstops abusing the highway and enable residents move freely along the highway. If the companies like STACO Plc and the NPF can change theirways, it will surely improve the traffic situation in Yaba Mainland.

THE RETURN OF THE WONDER BANKS

We have been trying to alert the general public about THE RISE OF THE WONDER BANKS but people just couldn't care less. However, it seems as if we have been vindicated as one of these new wonder banks folded up today as its operators absconded with depositors' funds. Well, what can we say. Some dogged investigative journalists and members of the public recently unearthed the activities of some Nigerian companies that promise investors extraordinary returns on cash deposits. Thesecompanies are reminiscent of the disastrous pyramid marketing scheme created in the eighties by Umana Umana, a storied con man who used a financial pyramid marketing scheme to cheat people out of their money in the eighties. These latest incarnations are now referred to as "Wonder Banks" and recent press reports show that they have attracted a very high numberof investors so far. Many people, illiterate and educated, fromdiverse walks of life have put money into these schemes. It seems thatthe appeal of easy money is just too great for many Nigerians.The Central Bank of Nigeria, which has been under intense pressure toclarify the legal status of these "wonder banks", finally released a statement that disowned their activities but stopped short of shutting them down. Rather, the bank advised members of the public to desistfrom doing business with all unregistered finance houses.The apex bank also published an advertisement in the national papersthat warns about "the recent spate of (sic) resurgence of illegalcompanies offering outrages (sic) interest rate (sic) under differentguises…" It also published a list of seventy-six registered finance houses. However, the CBN did not directly condemn these wonder banks or mention them by name.The feeling among people is that the issue could turn into a full scale public relations disaster for the apex bank, whose Governor iscurrently being attacked on several fronts. Most people feel that theCBN is sending a wrong message through its attitude towards these illegal firms and they feel that the bank could be blamed if these companies eventually collapse and disappear with investors' funds.According to the nation's financial laws, only registered financial institutions are allowed to accept deposits from the public. Manywonder why the case of Nospecto, Wealthzone and company, is beinghandled differently. The CBN is sending a wrong message by saying thatit is okay for any company to set up shop and start accepting deposits from the public without meeting the regulatory requirements.These companies also undermine the nation's achievements in terms offighting money laundering and financial crimes. Since they are notsubject to the nation's banking laws, they do not have to reportsuspicious looking deposits to the Central Bank and criminals couldeasily use them as avenues to launder money. It is commendable thatsome banks have refused to do business with these companies citing KYC(Know Your Customer) concerns.However, some banks have been unable to resist the lure of easyprofits and are fuelling the growth of these firms. If the CBN saysthat they are illegal, then why won't it shut them down and return allthe monies to investors. If the CBN could shut down a registered banklike Savannah Bank for shoddy management practices, why can't it shutdown firms that are not even registered to carry out banking business but do it all the same? Nospetco Joint Venture Management, a Lagos-based firm is clearly the biggest of these firms. The firm is known to be very secretive about its mode of operations and customers are made to sign blind contractsthat give the firm complete control over their money. While the firm claims to be involved in the oil and gas sector and actually owns sometrucks, their clandestine mode of business raises one importantquestion. What do they really do? Some people claim that several prominent Nigerians are known to be involved with these firms and some high net-worth individuals haveeven invested their money in these schemes. Could it be that our government agencies are being pressured by some of the country's big players?Most people have risen to defend these firms. They say that there isnothing wrong with firms that pay out stratospheric interest rates.They also say that thrift collectors do the same thing without paying high interest rates. These are not logical arguments. Even though thecountry's economy is largely informal and traditional institutionslike Esusu and thrift collection agencies thrive, they are all registered and do not operate under a shroud of secrecy like these firms.The CBN initially denied responsibility for policing such firms andsaid that it was the duty of the Securities and Exchange Commission,SEC. However, this is not an issue that should be treated with such levity. Itis not a matter of who is responsible. I can't imagine Ben Bernanke,the U.S Federal Reserve Chairman allowing such a scandal to happenunder his watch.The most important thing is for the EFCC, CBN and the SEC to shut downthese firms and return all deposits to customers before it becomes afinancial fiasco. And Soludo should realize that he will be a big target if these companies fail. It is imperative that he joins hands with other agencies and end this nonsense.



Project Think Team!

EFCC BLUES

Some governors are getting a first hand experience of life without the perks of office. The hideous immunity clause that encouraged many ex-governors to loot their state treasuries is no longer applicable and Nuhu and his men are closing in. The other day, Saminu Turaki, the self proclaimed "ICT" governor broke down in court after being arraigned for theft and fraud. He is alleged to have looted a whopping 3 billion in one day! Well, a good friend of mine feels that Saminu Turaki should really be in jail and he sent me this letter to support his case. I will reprint it here for all my readers.

Dear Lagos Blogger,

Regarding the Saminu Turaki Campaign scam.Last year, The Turaki for President Campaign team commissioned aseries of advertisements in most of the national newspapers. Theadverts directed people to dial some numbers, wait for a voice promptand then listen to a message from Saminu Turaki's campaign team in anyselected language. In return, the ex-governor promised to rewardcallers with recharge cards. I was naturally curious and decided tocall one of the numbers. After listening to the five minute message, avoice told me that I would receive my reward later.However, I neither got a reply nor a reward. I figured that a servinggovernor would not destroy his reputation by conning the same peoplethat he expected to vote him into office. Needless to say that many ofus that believed this were disappointed as it turned out that thewhole exercise was a fraud and that Turaki never had the intention ofreally running for president.Today, the ex-governor is in an unenviable position. He is a guest ofthe the EFCC and he is said to have broken down in tears during hisarraignment. I see no reason why anybody should feel sorry for SaminuTuraki. After all, this was a man that saw nothing wrong in deceivingthe masses, some of whom used their hard earned money to call thoselines only to be defrauded by a serving governor.Our leaders must learn to value integrity. That particular incidentshowed the kind of person that Turaki is. He is no better than a 419scammer and I don't think I'll ever feel sorry for such a cold-heartedperson. I personally call on everybody that was a victim of that scamto pick up their pens and petition the EFCC. No crime should go unpunished.

Yours Faithfully,

Chibuike Eze


If these allegations are true, and he swears they are, then the ex-governor must be an incorrigible thief.

I also wonder why Nigeria's King of the Tabloids, The Sun, has been less than objective in reporting the truth about its owner's travails with The EFCC. Orji Uzor Kalu, OUK, an ex-governor and businessman, who owns the sun has also been arrested. The Sun has spared no effort in spewing out propaganda that suggests that his case is politically motivated. This argument would have made more sense if he was the only one in the dock. But Chimaroke Nnamani, who is also on the list, is a very loyal disciple of the old Baba of Aso Rock, OBJ himself. So the argument is not very logical. I hope our new governors learn from the experience of their predecessors.


The Lagos Blogger