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Drop Your Appetite For Stolen Nigerian Crude Oil, Alison-Madueke Tells International Community

irEditor — Tue, 07 May 2013 17:31:55 +0000

The Federal Government has called on the global community and International oil traders to drop their appetite for stolen crude oil from Nigeria and join in the fight against the nefarious activities of oil thieves and pipeline vandals.

The appeal signaled a major focus in tackling the demand side of the global oil theft matrix which is a growing menace to the smooth operation of the oil and gas industry in Nigeria.

Speaking at the presentation of the Keynote Address at the ongoing Offshore Technology Conference, OTC, in Houston, Texas, Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke who was represented by the Group Managing Director of the NNPC, Engr. Andrew Yakubu, stated that it is imperative to halt the appetite for stolen crude oil from Nigeria if the country must make appreciable progress in this regard.

"The President is taking this matter seriously and the Honourable Minister is working at it aggressively. It takes two to tango, if those stealing our crude do not find a market for it there would be no incentive to steal, that is why we are appealing to the international community to take action. The tracing of our crude by DNA to the destination is being looked into to ensure that the finger prints of our crude are traceable to the various destinations. I can tell you that as an industry we are happy to work with government in this regard,’’ Engr. Yakubu stated while fielding questions on the sidelines of the conference.

The address which dwelt on the theme: Development Efforts in the West African Exploration Zone, described the sub-region as the most important petroleum province in the World.

"The natural advantages of the region's open and unrestricted sea lanes and light sweet crude makes it one of the most important petroleum provinces in the World," the Minister stated.

The Minister noted that as the dominant player in the sub-region Nigeria has pioneered some set of initiatives geared towards ensuring positive impact on the economy.

Some of the initiatives include: growth in crude oil reserves and expansion in production capacity, repositioning of gas for re-industrialisation/stimulation of the economy, regional and export penetration, revitalization of existing downstream capacities and additional capacity to support energy needs as well as reforms of key institution to anchor the growth aspiration of the industry.

On the Petroleum Industry Bill, Mrs. Alison-Madueke noted that the proposed law is further designed to increase exploration and development activities in the region by creating a more competitive environment for both independent and major oil and gas companies .

"This in addition will attract investment into the sector . Therefore, West African will continue to play a significant role in the global oil and gas energy supply mix post-Shale oil and gas discoveries in the World," she said.

Earlier on Monday, Engr. Yakubu declared open the Nigerian Pavilion at the OTC with NNPC and a record number of indigenous Nigerian operators and oil service companies making active participation at the global oil and gas industry theatre.

U.S. Govt Links Cotonou Car Importers To Drug Trafficking, Money Laundering Networks…Moves To Block Access To Used American Cars

irEditor — Tue, 23 Apr 2013 23:26:47 +0000

The huge market of second hand or used cars, popularly called 'Tokunbo' usually brought into Nigeria from the United States through Cotonou in Benin republic may have suffered a fatal blow following findings by the American authorities that the vehicles are proceeds of drug trafficking and money laundering by some criminal networks operating in Lebanon and Africa. The report of the investigations by the U.S. Drug Enforcement Administration, DEA named two Lebanese exchange houses, Kassem Rmeiti & Co. For Exchange (Rmeiti Exchange) and Halawi Exchange Co. (Halawi Exchange), as conduits through which hundreds of millions of dollars are moved in cash into the U.S to buy cars which are then shipped to Cotonou where most 'Tokunbo' cars on Nigerian roads are brought into the country. The implication of the U.S action is that the syndicate will no longer have access to buy American used cars for shipment to Cotonou and this will largely affect the prices of used cars sold in Nigeria. "Halawi Exchange facilitates transactions for a network of individuals and companies which launder money through the purchase and sale of used cars in the United States for export to West Africa. In support of this network, management, ownership, and key employees of Halawi Exchange coordinate transactions – processed within and outside of Halawi Exchange – on behalf of Benin-based money launderers and their associates. For example, in early 2012, Halawi Exchange, including its management, ownership, and key employees were involved in arranging multiple wire transfers totaling over $4 million on behalf of one such money laundering network. As of mid-2012, central figures in this scheme planned to move $224 million worth of vehicle shipping contracts through this same network via a Halawi-owned Benin-based car lot, which receives vehicle shipments from the United States. "As of late 2012, Benin-based money launderers continued to use Halawi Exchange to wire transfer money to U.S. car suppliers in support of their money laundering operations. The proceeds of car sales were hand-transported in the form of bulk cash U.S. dollars from Cotonou, Benin to Beirut, Lebanon via air travel and deposited directly into one of the Halawi Exchange offices, which allowed bulk cash deposits to be made without requiring documentation of where the money originated. Halawi Exchange, through its network of established international exchange houses, initiated wire transfers from its bank accounts to the United States without using the Lebanese banking system in order to avoid scrutiny associated with Treasury’s designations of Hassan Ayash Exchange, Elissa Exchange, and its Lebanese Canadian Bank Section 311 Action. Money was then wire transferred via Halawi’s banking relationships indirectly to the United States through countries that included China, Singapore, and the UAE, which were perceived to receive less scrutiny by the U.S. Government", a statement from the DEA today explained. The full text of the DEA release reads: "The U.S. Department of the Treasury today named two Lebanese exchange houses, Kassem Rmeiti & Co. For Exchange (Rmeiti Exchange) and Halawi Exchange Co. (Halawi Exchange), as foreign financial institutions of primary money laundering concern under Section 311 of the USA PATRIOT Act (Section 311) – the first time the Department has used Section 311 against a non-bank financial institution. Today’s action reflects the Treasury Department’s continuing commitment to target illicit financial networks that launder millions of dollars in funds for narcotics traffickers and that, in the process, provide substantial financial benefits to the terrorist organization Hizballah. This action will protect the U.S. financial system from these activities and expose entities supporting the network of designated drug kingpin Ayman Joumaa. “Following Treasury’s action against the Lebanese Canadian Bank, the Joumaa narcotics network turned to Rmeiti Exchange and Halawi Exchange to handle its money laundering needs,” said Under Secretary for Terrorism and Financial Intelligence David S. Cohen. “As our actions against the Lebanese Canadian Bank, Joumaa and the two exchange houses today make clear, the Treasury Department, working with our partners across the Federal government, will aggressively expose and disrupt sophisticated multi-national money laundering organizations that handle drug proceeds for criminal enterprises including the terrorist group Hizballah.” “Drugs and terrorism co-exist across the globe in a marriage of mutual convenience," said DEA Special Operations Division Special Agent in-Charge Derek Maltz. "As State-sponsored terrorism has declined, these dangerous organizations have looked far and wide for sources of revenue to recruit, corrupt, train, and strengthen their regime. Many drug trafficking groups have stepped in to fill that revenue void, as have the financial facilitators such as Halawi and Rmeity.” The Treasury Department’s 311 action against Lebanese Canadian Bank in February 2011, as well as designations in January 2011 of Ayman Joumaa and two exchange houses, Hassan Ayash Exchange and Elissa Exchange, exposed the Joumaa network’s money laundering scheme and forced these financial institutions out of the U.S. and international financial systems. Rmeiti Exchange and Halawi Exchange subsequently picked up the network’s money laundering work, including the trade-based money laundering schemes involving used car dealerships in the United States and consumer goods from Asia. Rmeiti Exchange and Halawi Exchange used their foreign money transmitter businesses to process millions of dollars on behalf of narcotics traffickers and money launderers, and attempted to obfuscate the source of illicit funds by comingling or splitting transactions across a variety of businesses, financial institutions, and continents, including in the United States. In conjunction with today’s findings that Rmeiti Exchange and Halawi Exchange are foreign financial institutions of primary money laundering concerns, Treasury’s Financial Crimes Enforcement Network (FinCEN) also issued an order, effective immediately and with a 120-day duration, that requires U.S. financial institutions to report information on any new or attempted transactions by Rmeiti Exchange and Halawi Exchange. Treasury also today issued a notice of proposed rulemaking that, if adopted as a final rule, would continue the reporting requirement imposed by the order and prohibit any U.S. financial institution from opening or maintaining a correspondent or payable-through account that is used to process a transaction that involves Rmeiti Exchange and Halawi Exchange, effectively cutting off these exchanges from the U.S. financial system. The Treasury Department will continue to work with the Lebanese Central Bank and other relevant Lebanese authorities to address concerns highlighted by today’s action. These actions would not have been possible without considerable support from the Drug Enforcement Administration, Customs and Border Protection, the Federal Bureau of Investigation, and the New Jersey State Police. Kassem Rmeiti and Co. For Exchange Rmeiti Exchange, its ownership, management, and associates facilitate extensive transactions for money launderers and drug traffickers. Between 2008 and March 2011, Rmeiti Exchange and its owner provided at least $25 million in payments to U.S.-based car dealers and exporters associated with the Joumaa narcotics and money laundering network. Some of these car dealers and exporters have been named in a civil money laundering and forfeiture action against the Lebanese Canadian Bank, drug kingpins Ayman Joumaa and Ali Mohamed Kharroubi, and Elissa Exchange and Hassan Ayash Exchange, brought by the U.S. Attorney’s Office for the Southern District of New York. Rmeiti Exchange and its management have also conducted financial activities for other money laundering and drug trafficking organizations operating in both Europe and Africa. Between March 2011 and October 2012, Rmeiti Exchange facilitated the movement of at least $1.7 million for Beninoise and Lebanese money launderers and drug traffickers. This included Rmeiti Exchange and Kassem Rmeiti taking on large cash deposits, collecting bulk cash currency, issuing cashier’s checks, and facilitating cross-border wire transfers on behalf of known and suspected money launderers, drug traffickers, and Hizballah affiliates. As of December 2011, we believe that Hizballah had replaced U.S.-designated Elissa Exchange owner Ali Kharroubi with Haitham Rmeiti – the manager/owner of STE Rmeiti – as a key facilitator for wiring money and transferring Hizballah funds. Rmeiti Exchange, through its owner, Kassem Rmeiti, owns STE Rmeiti. Treasury believes that this activity demonstrates Hizballah’s efforts to adapt after U.S. Government disruptive actions, and illustrates the need for continued action against its financial facilitators. Halawi Exchange Co. (“Halawi Exchange”) Halawi Exchange represents a substantial threat to the U.S. and international financial systems, given its extensive illicit financial activity on behalf of a variety of international narcotics trafficking and money laundering networks. Halawi Exchange often employs deceptive practices to disguise this illicit financial activity to mislead U.S. and international banking institutions. Halawi Exchange facilitates transactions for a network of individuals and companies which launder money through the purchase and sale of used cars in the United States for export to West Africa. In support of this network, management, ownership, and key employees of Halawi Exchange coordinate transactions – processed within and outside of Halawi Exchange – on behalf of Benin-based money launderers and their associates. For example, in early 2012, Halawi Exchange, including its management, ownership, and key employees were involved in arranging multiple wire transfers totaling over $4 million on behalf of one such money laundering network. As of mid-2012, central figures in this scheme planned to move $224 million worth of vehicle shipping contracts through this same network via a Halawi-owned Benin-based car lot, which receives vehicle shipments from the United States. As of late 2012, Benin-based money launderers continued to use Halawi Exchange to wire transfer money to U.S. car suppliers in support of their money laundering operations. The proceeds of car sales were hand-transported in the form of bulk cash U.S. dollars from Cotonou, Benin to Beirut, Lebanon via air travel and deposited directly into one of the Halawi Exchange offices, which allowed bulk cash deposits to be made without requiring documentation of where the money originated. Halawi Exchange, through its network of established international exchange houses, initiated wire transfers from its bank accounts to the United States without using the Lebanese banking system in order to avoid scrutiny associated with Treasury’s designations of Hassan Ayash Exchange, Elissa Exchange, and its Lebanese Canadian Bank Section 311 Action. Money was then wire transferred via Halawi’s banking relationships indirectly to the United States through countries that included China, Singapore, and the UAE, which were perceived to receive less scrutiny by the U.S. Government. "Additionally, Halawi Exchange is known to have laundered profits from drug trafficking and cocaine-related money laundering networks for a leading Hizballah official and narcotics trafficker. Halawi Exchange has also been routinely used by other Hizballah associates as a means to transfer illicit funds."

EFCC Arrests Former Mint MD, Ehi Okomoyon Over $5m Polymer Bribery Scam

irEditor — Mon, 15 Apr 2013 09:54:03 +0000

Former managing director of the Nigerian Security Printing and Minting Company, Ehi Okomoyon has been arrested by the Economic and Financial Crimes Commission, EFCC. The former Mint boss, who recently resigned his appointment on the heels of the embarrassing disappearance of millions of N1000 currency notes from the company, was picked up on Sunday, April 14, 2013. Sources at the anti- graft agency informed that Okomoyon is being quizzed by investigators at the EFCC Abuja office in relation to the Australian polymer banknotes bribery scam.

Nigerian officials allegedly received bribes in a printing contract for banknotes by Securency, a note-printing firm partly owned by the Reserve Bank of Australia. Former Governor of the Central Bank of Nigeria, Professor Chukwuma Soludo has also been quizzed by the EFCC in January in connection with the scam.

The polymer notes bribery scandal which dogged the tenure of the former governor of the CBN, Chukwuma Soludo, occurred in 2006. The festering scandal surrounding the printing of polymer notes by the CBN was first reported by an Australian newspaper ‘The Age’ . The paper reported that Securency International, a company that manufactures polymer used in banknotes in over 28 countries, paid kickbacks to secure polymer note printing contracts in some countries, including Nigeria. The sum of N750 million was said to have been paid to bribe Nigerian officials. At the Nigerian end of the international swindle, the newspaper reported that Securency International, a subsidiary of the Reserve Bank of Australia, paid millions of dollars into the offshore bank accounts of two British-based businessmen for onward transfer to some top Nigerian government functionaries and CBN officials to win the 2006 polymer printing contract. Securency reportedly supplied 1.9 billion banknotes to the CBN between 2006 and 2008. Bribe payments for the contract were reportedly deposited in the Seychelles and the Bahamas, listed by the Australian Tax Office as tax havens known for their secretive banking arrangements. Nigeria’s contract was Securency’s biggest in Africa. The scandal was to force the Africa manager at Securency, Peter Chapman to resign while the firm’s South African middleman, Donald McArthur, was fired. The Australian Federal Government said it had referred all questions about Securency to the Reserve Bank, while the RBA has, so far, declined to answer questions about Securency’s activities in Nigeria. Naira notes and coins are printed/minted by the Nigerian Security Printing and Minting Plc and other overseas printing/minting companies, and issued by the CBN.

Worsening Cases Of Oil Theft Put Nigeria’s Economy In More Jeopardy, Says ACN

irEditor — Sun, 14 Apr 2013 11:49:54 +0000

The Action Congress of Nigeria (ACN) has warned that the rising cases of crude oil theft and pipeline vandalism in the Niger Delta will definitely worsen the country's economic woes, when placed side by side with other problems besetting the country's troubled oil sector, unless the Federal Government acts decisively to stop the criminal act In a statement issued in Lagos today by its National Publicity Secretary, Alhaji Lai Mohammed, the party said oil theft and pipeline vandalism, the cost of which has been put between 6 and 12 billion US dollars per annum, have now reverted to the pre-amnesty period, when oil theft peaked at about 350,000 barrels of per day - higher than the quantity of oil produced daily by Gabon or Equatorial Guinea. ''On Feb. 24th 2013, we raised the alarm that the country's economy was heading for the rocks, citing the skyrocketing cost of oil production, from 4 dollars per barrel in 2002 to 35 dollars per barrel presently; the massive corruption in the oil sector; the sharp fall in the discovery of new oil and gas reserves due to the low investment in the sector, and the challenge posed by alternative sources of global supply of oil and gas. ''For raising that alarm, we were pilloried by those who acted more out of emotion than facts. Today, we say the situation is actually worse than we had thought, exacerbated by pipeline vandalism and crude oil theft which have reached an unsustainable level. Add this to the resurgence of attacks by the Movement for the Emancipation of the Niger Delta (MEND), and we are compelled to cry out again,'' it said. ACN said the action taken in recent times by two major oil companies, Shell Petroleum Development Company (SPDC) and Nigerian Agip Oil Company (NAOC), is the clearest indication yet of the seriousness of the situation. ''In March 2013, SPDC announced that it will shut down the 150,000bpd Nembe Creek oil pipeline this April due to the urgent need to clear away illegal connections meant to facilitate the theft of crude oil from the pipeline. Also in March, NAOC declared a force majeure regarding crude oil liftings at the Brass terminal and suspended its activities in Bayelsa State, following the intensification of illegal bunkering activities and the vandalisation of the 10'' Kwale-Akri-Nembe-Brass oil delivery line. ''The shutdown of these two key oil delivery trunk lines by SPDC and NAOC has cut nearly 300,000 barrels per day from already dwindling Nigeria’s oil output, now put at 2.2 million barrels per day, down from 2.75 million barrels per day a year ago, resulting from increased, organised and sophisticated illegal bunkering of oil by criminals operating in the creeks of the Niger Delta. ''To worsen matters, it has been alleged that some bad eggs in the military Joint Task Force (JTF) deployed to the region to protect oil personnel and facilities have been accused of complicity in the illegal bunkering activities. This is why the Federal Government must quickly engage key stakeholders in a dialogue with a view to finding ways to stop the criminal act before it cripples the economy and brings Nigeria down to its knees,'' the party said. ACN said it is particularly worrisome that the relative peace witnessed in the Niger Delta following the amnesty programme for oil militants seems to have waned, going by available statistics: A total of 350,000 barrels per day was lost to illegal bunkering in the Niger Delta in 2012, representing an increase of 45% over the figure for 2011 and 67% over that of 2010. It added that the trend for 2013 is alarming. ''We are particularly concerned that the Nembe Creek axis seems to have been the worst hit by the criminal act, despite being the operating base of a key former militant who has cornered a lucrative Federal Government contract to protect Nigeria’s coastline from the same bunkering activities that are now getting out of control,'' the party said. It said that without prejudice to whatever solutions that key stakeholders may proffer to the criminal act of pipeline vandalism and oil theft, it is important for the security agencies operating in the Niger Delta to ginger up their efforts to safeguard lives and property in the Niger Delta; and the government must recommit itself to enhancing security of investment in the region, while at the same time tackling headlong the grinding poverty in the oil region.

Jonathan In Fresh Face-Off With N’Assembly…Rejects, Returns 2013 Budget To NASS

irEditor — Tue, 19 Mar 2013 16:01:19 +0000

Weeks after signing the harmonized N4.987 trillion 2013 Appropriation Bill into law, President Goodluck Jonathan has rejected the budget and returned it to the National Assembly, insisting that the lawmakers must reverse themselves on a number of clauses including the zero budget for the Aruma Oteh led Securities and Exchange Commission, SEC. Besides the zero budget for SEC due to their call for the sack of Oteh as SEC DG, the lawmakers also made it part of the 2013 budget clauses which will make it mandatory for the Coordinating Minister for the Economy and Minister of Finance as well as the Accountant-General of the Federation to brief the National Assembly on the performance of the budget and fund releases. Three months after the lawmakers passed the harmonised appropriation bill, the president grudgingly signed it last month without the usual ceremony and presence of the leadership of NASS. But in what appears as a daring move by the president to take on the lawmakers, he in a letter addressed to the Senate President berated the NASS for over stepping its bounds on SEC. Part of the letter dated March 14th, 2013 reads: "I seize this opportunity to express my appreciation of the National Assembly for giving accelerated hearing to the 2013 budget proposal and passing it in record time. This, indeed, demonstrates the enduring partnership between the two arms of government in discharging our shares responsibility for nation-building. "However, as noted in our various consultative meetings with the leadership and various committees of the National Assembly following the passage of the budget, it became imperative that certain provisions including cuts to personnel cost across the service and provisions for some capital projects be changed through an amendment budget. "Distinguished Senate President, the overriding objective remains to help improve the lives of Nigerians. In this respect, I hereby forward a copy each, of the 2013 Amendment Budget Proposal and the 2013 Subsidy Reinvestment and Empowerment Programme (SURE-P) Amendment Budget Proposal. It is my hope that the distinguished members of the Senate will consider and approve these revised proposals in your usual expeditious manner. "Furthermore, the 2013 Appropriation Act includes clauses which may be injurious to the spirit of separation of powers and which would hamper the work of the executive arm of government. "I, therefore, request that these should be reviewed. The relevant clauses are: Clause 6(II) which states that: "The Accountant-General of the Federation shall forward to the National Assembly full details of funds released to government agencies immediately such funds are released," while Clause 9 states that: " All accounting officers of ministries, parastatals a d departments of government who control heads of expenditures shall upon coming into effect of this Act furnish the National Assembly on quarterly basis with detailed information on the internally generated revenue of the Agency in any form whatsoever." According to the letter: "Clause 7 states that: "The Minister of Finance shall ensure that funds appropriated under this Act are released to the appropriate agencies and/or organs of government as and when due, provided that no funds for any quarter of the fiscal year shall be deferred without prior waiver from the National Assembly. This requires the Minister of Finance to seek a waiver from the National Assembly each time the Ministry of Finance cannot make full funds releases to the MDAs when due. "As you are aware, the nation experiences a shortfall in revenue once in a while and if the minister is to seek a waiver on each occasion, the practice would give down budget implementation, as this would involve the minister writing a formal letter to the National Assembly, presented in plenary and sent to the relevant committees for discussion. These would create delays and constraints on the budget implementation; and "Clause 10 states: "All revenue however described, including all fees received, fines, grants, budgetary provisions and all internally and externally generated revenue shall to be spent by the Security and Exchange Commission for recurrent or capital purposes or for any other matters, nor liabilities thereon incurred except with prior appropriation and approval by the National Assembly. "Considering the fact that the budget of the SEC does not form part of the core 2013 federal budget as presented to the National Assembly, I believe that this clause ought not to have been inserted in the 2013 Appropriation Act in the first place. "Secondly, the import of the clause is tantamount to shutting down the business of the Commission with a potential negative impact on the capital market. While continuing to count on the productive partnership of the Senate in our national transformation efforts, please, accept, distinguished Senate President, the assurances of my highest consideration."

FG Intensifies Efforts To Cripple Wale Babalakin…Terminates Another Airport Business With Bi-Courtney

irEditor — Tue, 19 Mar 2013 15:03:44 +0000

The federal government today intensified its efforts to cripple the multi-billionaire business empire of embattled lawyer turned businessman, Wale Babalakin who is the Chairman of Bi-Courtney Ltd. The government which recently terminated the company's concession on the Lagos-Ibadan expressway, also dragged the businessman before a high court in Lagos for money laundering charges. As if all that was not enough, the government has again renewed its moves to take over the management of the MMA2 airport built and operated by Bi-Courtney. While that is still going on, the federal government through the Federal Airports Authority of Nigeria (FAAN) announced the termination of two leases granted Bi-Courtney Limited at the Murtala Muhammed Airport, Ikeja for the development and management of a four-star hotel and conference centre, respectively. "In two separate letters, dated April 19th 2012, the Authority had informed Bi-Courtney that the leases granted it in respect of the two projects had been terminated as a result of breaches committed by the company in the agreements it signed with FAAN on the two projects. By the said agreements, the two projects were to be completed in 2008 but FAAN graciously extended the construction period to July, 2009 but Bi-Courtney still failed to complete the two projects at the expiration of the extended period. "By that termination order, the demised premises, in respect of the two projects, have reverted to FAAN automatically, in line with the terms of the agreements. It will be recalled that Bi-Courtney forcefully and illegally acquired part of the premises belonging to the Murtala Muhammed Airport, School, Ikeja to construct the conference centre, despite loud protest by the pupils and parents of the school. It was these protests that stopped the company from acquiring the entire premises of the school, which Bi-Courtney had planned to take to another location in Lagos", the FAAN statement signed by its spokesman, Yakubu Dati stated.

FG Lifts Ban On Dana Airline…Resumes Operations

irEditor — Mon, 18 Mar 2013 22:22:32 +0000

Forty eight hours after placing a ban on its flight operations, the federal government again today asked the embattled airline to resume operations. The airline's flights were halted Saturday following a report of a fault in one of its aircrafts. Trouble began pouring in for the airline since June last year when its flight coming into Lagos from Abuja crashed in Iju-Ishaga area of Lagos killing all 154 passengers and crew members on board in addition to about 16 others in buildings it crashed into. A statement lifting the ban placed weekend by Aviation ministry's spokesman, Joe Obi today said "Officials of the Federal Ministry of Aviation and the Nigerian Civil Aviation Authority (NCAA) met with the Management team from Dana Airlines today in Abuja and deliberated on some safety issues in connection with the operations of the airline. At the end of the meeting, the suspension of the operations of the airline which took effect last Saturday was lifted. The airline is to resume normal operations immediately. "However, the particular aircraft which had a snag over the weekend is to remain grounded until after its air-worthiness has been recertified by Boeing, the manufacturer of the aircraft."

FG Grounds Dana Air Again

irEditor — Sun, 17 Mar 2013 17:18:33 +0000

The federal government has again come down hard on Dana Air few days after President Jonathan sacked the Director General of the Nigerian Civil Aviation Authority, NCAA, Dr Harold Demuren. The Federal Ministry of Aviation was said to have ordered the suspension of all Dana Air flights on Saturday after the airline reported that one of its planes had a safety issue with its batteries. The Federal Government had in June last year grounded Dana Airline following the crash of its Lagos-bound aircraft at Iju-Ishaga area killing all the 154 passengers and crew on board as well as 16 others on ground when it landed on a two-storey building. Th Aviation ministry which withdrew the airline’s operational licence said it was “suspended for safety operational reasons.” The latest in the troubles facing the airline was confirmed today in a statement by the management of the embattled airline. "We regret to announce the temporary suspension of our flight operations following a directive from the Ministry of Aviation through the Nigerian Civil Aviation Authority (NCAA) on Saturday, 16th March, 2013; No specific reason was given for the action. A meeting is, however, scheduled between the management of Dana Air, the Ministry of Aviation and the NCAA on Monday 18th March and we will update you as we get more information. We thank you for your patience and understanding, and we look forward to having the pleasure of welcoming you on board again shortly", the statement explained.

EFCC Arrests Francis Atuche Over Forgery, Taraba Ex-Dep Gov Danladi Over N1.3Bn Fraud

irEditor — Thu, 14 Mar 2013 00:34:42 +0000

A former Managing Director and Chief Executive Officer of defunct Bank PHB, Mr Francis Atuche has been arrested by the Economic and Financial Crimes Commission, EFCC. He was picked up on Wednesday March 13, 2013 in Lagos over a case of forgery and attempt to smuggle forged board resolutions into Keystone Bank, the successor to Bank PHB.

Two other suspects implicated in the scam are Nnosiri Joachim and Uguru Onyike. Both are employees in the Central Sharing System Centre of Keystone Bank Limited. They will all be charged to court soon, a statement by the agency announced today.

Atuche has been facing separate trials before the Lagos State High Court Justice and the Federal High Court since 2009.

The ex-bank chief was arraigned before Justice Lateefat Okunnu for allegedly stealing the sum of N25.7 billion belonging to the bank, now Keystone Bank. The EFCC had charged Atuche along with his wife, Elizabeth, and a former Chief Financial Officer of the bank, Ugo Anyanwu.

In January this year, the Lagos High Court ordered the recall of two prosecution witnesses who had earlier testified in the trial of Atuche.

The same Atuche had been facing a 45-count charge before a Federal High Court in Lagos .

After a three-year legal battle, Atuche’s trial, alongside ex-Bank PHB Director, Charles Ojo, started afresh in November 2012, before the Federal High Court.

Meanwhile, the EFCC also yesterday arrested a former Deputy Governor of Taraba State , Alhaji Sani Abubakar Danladi for alleged abuse of office and diversion of public funds totalling N1.3 billion. Danladi, who was impeached by the state House of Assembly in October 2012, was being grilled in Abuja by the anti-graft agency.

80% Of Nigeria’s Oil Blocks Owned By Foreigners, Not Northerners -Falana…Says Senator Enang’s Claim Misleading

irEditor — Sun, 10 Mar 2013 12:23:24 +0000

Lagos lawyer, Femi Falana has described last week celebrated claim by Senator Ita Enang that 80 percent of Nigeria's oil blocks is owned by Northerners as totally false and misleading. The lawyer in a statement released today and obtained by iReports-ng.com said majority of the nation's oil blocks are owned by foreigners and foreign companies. The statement reads in full: "During the debate on the Petroleum Industry Bill last week on the floor of the Senate at Abuja the names of a few Nigerians to whom the Federal Government had allocated oil blocks were revealed. It was specifically alleged that 83 per cent of all oil blocks in the country are owned by northerners. Not unexpectedly, those who are won't to complain of neglect and maginalisation of their geo-political zones have been demanding for equitable distribution of oil blocks among the comprador bourgeoisie of the various ethnic groups. Embarrassed by the disclosure and the diversionary furore it is generating the Arewa Consultative Forum has called for a public inquiry into the allegation that northerners are the largest beneficiaries of the oil block largesse in the country. While I have never supported the policy of allocating the oil blocks owned exclusively by the Federal Government to selected individuals and foreign oil companies it is pertinent to point out that the list published by the media last week is totally outdated and grossly misleading. The list contained only the names of those who were allocated oil blocks under the defunct military junta. In other words, the list did not contain the names of the other traders who have been allocated oil blocks by the ruling party since 1999. Equally missing from the list are the names of multinational companies otherwise called "Oil majors" which control and manage the lion share of the oil and gas industry. For instance, I have a suit pending at the Federal High Court against the Ministry of Petroleum Resources over the renewal of the expired 40-year old licences of three oil blocks (which produce 580,000 barrels of crude oil per day) for Mobil Producing last year for the sum of $600 million notwithstanding that a Chinese oil company had offered to pay $5.8 billion for the same oil blocks ! Apart from Mobil there are about 17 other foreign oil companies which are the major key players in the oil industry while Nigerians are forced to operate in the marginal fields .The said foreign companies or Oil Majors own 80 % of the oil blocks and as such they are completely in charge of the oil and gas industry. They produce the oil and gas, and declare the figures they like. They smile to the banks daily while Nigerians fight over the crumbs from the Master's Table. In spite of the indictment by the National Extractive Industry Transparency Initiative (NEITI) some of the companies have continued to withhold billions of dollars from the Federation Account. The joint venture agreements between some oil producing countries and oil companies are in the ratio of 80/20 percent in favour of the owners of the oil. But in Nigeria it is 60/40 percent in favour of the Federal Government of whatever is declared by the oil companies. It is common knowledge that some of the foreign oil companies operating in Nigeria have, with the connivance of the Federal Government, been leasing oil blocks allocated to them to other persons or companies. Incidentally, the disclosure in the Senate last week coincided with the death of President Hugo Rafael Chavez of Venezuela who nationalised the oil industry which enabled his government to generate enough revenue to fund a comprehensive welfare programme for the hitherto improverished people of the Latin American country. But the enomous commonwealth of the Nigerian people have been cornered by a few rent collectors and other members of the parasitic ruling class. A few of them who raked billions of dollars from the illegal sale of the oil blocks have openly confessed that they do not know what to do with the huge fund! Because such wealth has been privatised Nigeria cannot, like Venezuela, meet the eight Millenium Development Goals by 2015. In view of the confusion caused by the partial information released by the Senate last week the Ministry of Petroleum Resources should, without any further delay, publish an up-to-date list of all local individuals and foreigners who have been allocated oil blocks by the Federal Government. After the publication the Goodluck Jonathan Administration should proceed to cancel all oil blocks allocated to a few interest groups and vest them in the Federal Government in line with section 44 of the Constitution. In other words the oil and gas should be nationalised in the interest of the Nigerian people. Instead of empowering either the President of the Republic or the Minister of Petroleum Resources to dole out oil blocks to serving ministers, party members, personal friends and business partners the National Assembly should ensure that all blocks are owned by the Federal Government in trust for the Nigerian people. This demand accords with section 16(1)(c ) of the Constitution which states that the State shall "manage and operate the major sectors of the economy". Femi Falana SAN.