Vanguard, MONDAY. AUGUST 8,2011-19
Omoh Gabriel
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igeria and three other coCOl! producing AJrlcaD countries will benerit from tbe 100 million curos grant by tlie Netherland.'; Govemment to develop the co· coe 5ector. Mr Bert Ronaha<lT, the Dulch Ambassador 10 Nigeria, h ilS said. Rooahaar disclosed Ibis in Abuja during a roundtable confere nce on cocoa developll'enl in Nigeria. The conference was o rganised by the Federal Ministry 01 Agricullure and Rural Development, the Dulch Susteinabie Trade Initiative (lDH) and the UNDP. Ronahaac said \bal Nigeria will reo ceive 30 million euros 10 support the hderal Government's eflort5 10 acbieve a viable cocoa sector. He 5aii that tbe fund will
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be disbuned under th e lIIu5p'ices 01 the 101-1 and will be utilised
[or the development of 15 olber commodities sucb as coHee, cotton, timbe!; tea, sp ices and natural slones. The ambassador identified tbe th ree other beneficiaries as Ghana, Cole D' ivoire and Cameroon.
IMF Managing Dire~tol, Christine Lagarde sued In France e E:III!!clllive Bollrd 01 lhe In le rnnllonal ~Ione l "ry I;und (IMF) hili disclosed lhllt Il public proseculor hil i in5tiluled an action agllinsl il' Managing Direclor, Ms . Chri~line laganla. In II lillie me n!, lhe IMF I/lid in r espon~e Lo lin acllon lIydinsl MllII/lging Duector, Chri,.tina lIlgorde inlUilted by II F~llch IJub11t: p,olK!Cutor, Ih'I! EXBc uli ve 80<\rd prior 10 11$ leleclion oflhe
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approprillie for too Board to comment on eo Cllse lhlll i. c urmntiy belon! the I:rench judicuur. Ilowever, U.., Roanl is conlidenlthlll Rhe will be able to ell!!'CUvely Cll rry oul her duti"",s as MII'lllging Dlrector_ H
Uganda central bank in forex market ganda's central bank has said It wu in th e foreign exc b ange market 10 lieU bard currency as'lhe 5hilling eyed a record low of 2,710 hit on June 30. The ban!. seid in a notice to Ule m;uketlhat it was also offe ring a 7-day reve rse repurchase aliJleemenl (r ep?) lor all unspecified "mounl o( Inottey dUllng Ihe ffl-SS IOD. Uke olhcrcurrencla, in ElIsl Alnca, lbe w0l1k'Ulad s ha rply agelnlll the dollllr this year, Inllinly due to huge tle mltnd for 1" 8 'l'genboo: k, II wellkenmg shilling In neighbou ring Kenya and . "ec\)J,",..,e tmdiog.
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hen the ongo ing reforms in Ihe hanklng seclor started, many Nigerians expressed reservations as to the lalrne55, of the exercise. Two yellIS down the line, many still entertain those fears . The CBN b llS not been able to remove the doubts in the minds of many. Expe<:talions were that once the list of chronic debtur.; in lhese banks was pubLisbed, they will rush and INIY up, the banks will be better off. Some did pay and one in particular had the assels confiscated. Today, as the banks sign uansactio n implemen tation aTr.logemeol with would be core investors who fortuna tely arc loclll blLDks, Ihe question 01 Ibe recovered and fode.ited lunds are begging for
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Cocoa: Nigeria, 3 other African countries to benefit from 100m-eu rosgrant from Dutc h Govt -Envo)l
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The case o f OceanIc Dank comes out s tronger than many otbers . The Economi c and Financial Crimes Commil5ion had proseculed the e:a:CEO on a 25counl charge of financial aimes before sbeenlered a plea bargain deal with the antigraft agency in October 2010. The Cbief Judge of the federaJ High Co urt , Justice- Dan Abutu, convicted th e CEO on a threecounl cha.rge and onlered the lorieilure of N 191 bUllon assea comprising 49 properties in Nigeria, United State5 a nd Duba.l. United Arab Emirates, to a Fedefi.ll Government agency, tbe Asset5 Managem ent Corpor.ltion of Nigeria which 1Wa5 yet to take oU aod it did effectively in December2010. The l orleil~d properties include s hares in over 100 !inns some of which are listed and some not listed on the Nigerian Stock &change_The ILDti-gfi.lft body had earUer lold tbe court that there was an agreeme nt a nd urg ed the court 10 forleit the properties aHaclled 10 section VI of lbe setUe ment agreemenl to . AMCON. The assets set out in section VI of the lettlement agreelDe nt are herebyJorfeited toAMCON. Totheord i.nary mind who is nol a banker, Oceanic Bank has had ILD injection o f N602 billion into it whereas the nonperlorming loaDS for whicb tbe CON intervened in lbe bank was N278 bi.1lion . The a5llels forfeit e d ilIDounted to Nt91 billion. The non performing loans the hank was carrying wa5 N278 blWo,! by CBN books. 11 i5 this amount that erod ed tbe 5bue!Jolder5 funds to negative position. Now, the CBN intervened in the bank: and rescued it with N 100 billion. AMCON bought th e bank's ' non performing loans to the tune of N200 billion in bonds. The bank in November 2010 said that il had recovered Nll1.4bn from bad debtJr as at tile end of tbe thin1 quarter and bad written ~back NI4.8bn. It made a profit of NIO.247 biHion which was re t ained. Going by the figures lhat are in public domaJn, even if tbe CBN continues 10 hold onlo tbe NI91 bUJlon forfe iture5. what has happened in the last one year seems to suggest thallbe bank: sbouJd be on sound footing . The N200 billion sa] e of nonperforming loall 5 to AMCON effectively reduced lbe
gabomo@yahoo,co,uk , rext only -1)8053068790 -
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Where is the place of forfeited N191bn assets in Oceanic recapltallsation? According to John Abob. the CBNa ppolnled Managing Director of the bank, Ih e nonper lorming loans to total loan5 and advancC5 01 the bank drop~ trom 7:1' pe l cent to 69 per cent, while loans and advancH plus advances under finance leMe stood at N420.2hn as at September 30. 2010, up by 7.5 per cenl from N391bn In DeCember, 2009. John Abob bad also said: 'Our turnaround ,. programme continues 10 yield good results; we are keeping operating cos t s In cbeck, puuuing NPL recoveries 4ggtHsively and focusing 0 11 tbk m anagement': AMCON by Its charier Is 5UPPOS~ 10 bring t/le negative Shareholders' Funds (SIiFl of tbe rellcued banks to zero, 10 a ll ow lor injection of frellh capital from strategic Investor5. Jt was In Iwtherance of this that the bank concluded the lIale 01 some of ils nonperfonoing loan porlfolio to AM CON and received bonds worlh OVCl" N200 bank'. bad debt to N78 hillion. billion in uchange. IJ it recovered N 111.4 billion But the curious tiling is that tile which ill now pront due to tbe N191billion forfeiture is previou$ pr ovlslon5 f or non banging s_o mewhere, ostensibly performing loans. then it would w;uehoused by AMCON. For bave fU rther reduced the wbat reason, nobody ucept the nonperforming loans from tbe CBN and EPCC can explain. If outlltanding N78 hillion to ;i the N 191,btWon is given directly positive ligure of N33 billion. 10 Oceanic Bank, It would The reta.lned profit increit:sed ill require no additional capital 10 holding 10 N43 biltioR. What the be ftl.lly back to busi.ness . bank said it n eeded as (rellb Lawyer5 ILDd otber 5lake!Iolders capi llll was N25. billion have fau lte d Central BlLDk of minimum. requIred by the CBN. Nigerieo'l {CBN) decision 10 hand It wouJd bave bad more than tbat over Ibe asset 10rfelted by the abou t 1\143 billion. I am not bank's fonner chlel executive ta lking about the eB N N 100 oUicer 10 Asset Management billion injections whicb ;ue tier Corporation of Nlgerlll two capltll.15 thaI lIhould Jake. (AMCON), saYing AMCON.hM some five yearll to pay back. no bU51neu ' In the lecovered
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But the curious thing is that the N191 billion forfeiture is hanging somewhere, ostensibly warehoused by AMCON;for what reason, nobody except the CBN and EFCC can explain
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alleged 10 get it51undlng· uom abroad _ When a re1ipected article l as t ';Teek in reli¢ou5 leader can say Islamic -\ -trnguOld titled, GuIdelinelil /or Bariklng bas come to stay. in the non-lnfcrcfl oonH; Seems foshow midsl of all that i. going on and tbllt you listened 01 understood in al'leaullJ'stateas ours, then we Sanusi'• .preseniation before the are in trouble. +2341033008835 National Assembly. He nill Thank · you . for drawing Islamic Banking ,Is one form of IIottent:lon to a sen51tive aspect oj non-Interest banking. the CBN Guidelines. 1 atld that :+234111.45710'2:0 Read your Bml«m links today the CBN ill yel to release tbe and congratuldte you on the GuideUnes that will apply to the higb qulllity of presentation. CBN Sb.lUia CoJ,mcil. +2348 139273526 like the 1999 Constitution, the TIlank you for I,hl. expose_ Do banking acts were dr.:rwn up lo tbe yeaffl we were under- militAry more meuch and you ....111 see domination . Who are these also that tbe CB.N abo mandtlted faceless people 'who have appUed for Islamic Banklngl . Tbe of banking. It Is all there on defunctArllb Bankwas run undcl sharia law, why did It nol . cenbankorg lor fr ee. You are succeed? There Is an agenda dOing okay. Do more. Garuba . p laying out bere_ See the tImIng +234.8029132067. with Boko HarAlD thai bas be('n You r
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funds. John Aboll had said lhal the bank: will pu rsU!! a fou.pronged rccapilali5ation plan to achieve. the N2S billion minimum capitalisation r equired 10' national commercial banks . These Include: organic means through profit from operations, sale assets to the A.llet Manllgemenl Corporeotion of Nigeria. If CBN/EFCC/AMCON bave not beld on to the N 191 billion forfeiture 01 Ihe lonne r MD of the bank will Ihe bank not have lIchieved the N2S billion required by Aboh to r e tain Dational bank slatull without the sale of tile bank to Ecobankl O rdinarily, the said forfeited a.uels were a pproprialed Irom the bank liS opposed to her personal p loperly an d M lIuch. sbould be returned 10 Oceanic 8ILDk to add up 10 t be bank'5 liquid Il5sel5. AMCON in th e litsl pleoce wu nolln e:Kistence wben . the crime was allegedly committed and the fund recovered sbould be pAid back 10 tbe bank's vaull 10 further boost its liquidity. Shareholders of the blUlk h ad warned Ule Economic a nd 'finan'clal Crimes Comm1sslon (EFcq and CBN 10 xttly oU the funds, warning that tbe yettolakcolf AMCON has no moral or legal basis to a ppropriale the recov ered funds . Ibru was iacked by the CBN lI long with the managing directors of four other banks on August 14, 2009 follOWing a llegations of corrulltion, bad corporale govemance p ractices and mismanagement of public lunds. ·The CBN, EPCC and MICON h ave 11101 01 explaining 10 do.
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Re: Brden Unlr& of July 18. Greetings sir, I Just lent a document to your e-mai l to locate t be trajectory 01 tbe infamous [Ught Sanu.si is trying to pilot. TIll5 is also an inrilation to you to he lp exp05e and comprehensively defeat the predator monsters feeding on our blood In the name of some dubious Nlgerianll. . +2348023018612. Omoh. hmw, mOle power to your brain and wease to ~ow: I.nk. Thank you for telling us something differenL AAbI Sanwi do u.s juju that nobody can talk. Can you imagine Mogbalu, Lemo a.nd co sitting over a fiipOop CBN1Thanks and tllaoks again. The enlire leaderllhip should e'Vl!po[llte; they are yes men to Sanust period. +234.8094.912584