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Sanusi Dismisses Allegations Of Fraud
The suspended Governor of the Central Bank of Nigeria, Mr Sanusi Lamido Sanusi, has described the allegation of financial recklessness leveled against him by the Financial Reporting Council of Nigeria as a “malicious” and calculated attempt meant to mislead the President into believing that the management of the apex bank was guilty of misconduct and recklessness.
In what could be described as his first official response to the allegations, Sanusi, in a letter to President Goodluck Jonathan said contrary to claims by the Presidency that he was asked to respond to issues raised in the FRCN report, he only saw the “Briefing Note” of the council for the first time when it was attached to his suspension letter.
In the letter, submitted to the president on March 10, a copy of which was made available to our correspondent yesterday, the suspended governor said at no time were the allegations in the report sent to the CBN either by the president or the FRCN for comments or explanations.
He said, “On Wednesday, 10th March, 2014, I submitted a Memorandum to His Excellency, Mr President, with supporting documentation, effectively addressing all the allegations contained in the FRCN Briefing Note, the letter of suspension and the Akingbola Petition.
“Having submitted my response to the President, I am further compelled, following the recent press briefing and comments by the Senior Special Adviser to the President on Media, as well as numerous other references to the allegations in both local, international and online media, to put to the public my responses, in the interest of transparency, accountability and my responsibility to the Nigerian people.
“Let me also state that I saw the FRCN ‘Briefing Note’ for the first time when it was attached to the suspension letter. At no time was this report sent to the CBN either by the President or the FRCN for comments or explanations.
“A careful examination of the allegations contained in the FRCN Briefing Note to Mr President, will show that each of the allegations could easily have been resolved by a simple request for clarification or more careful review.
“There is no doubt that if the CBN had received the Briefing Note, which was prepared in June 2013, all the misconceptions, misrepresentations and erroneous inferences contained therein would have been cleared.
“ I am publishing these responses to enable the general public see that each and every allegation levelled against the CBN under my leadership is false and unfounded, and that many of the allegations were malicious and fabricated, having been designed to mislead the President into believing that the Management of the Central Bank was guilty of misconduct and recklessness.”
On the allegations by former Managing Director of the defunct Intercontinental Bank, Mr Erastus Akingbola of fraudulent takeover of the bank, Sanusi described them as baseless.
He said, “As for the Akingbola petition, it is a rehash of baseless allegations he has been making since 2010 which apparently he must have been asked to reproduce on February 9, 10 days before the suspension.
“It is indeed strange that the CBN Governor can be suspended based on allegations written by a man who ran his bank into the ground and against whom judgement has been obtained in a London court, and who furthermore is facing criminal prosecution at home for offences including criminal theft.”
The governor, in providing specific responses to all the allegations raised against the apex bank faulted all the claims by the FRCN report.
For instance, on allegation of weak corporate governance at the CBN on account of the fact that the office of the Governor is fused with that of the Chairman of CBN’s Board of Directors, Sanusi said the allegation ignores the fact that global best practice is that the Governor of the central bank is the Chairman of the Board of Directors of the central bank.
This, according to him, is currently the practice in about 55 countries.
On allegation that the CBN’s breakdown of “Currency Issue Expenses” for 2011 and 2012 indicated that it paid the Nigerian Security Printing and Minting Plc N38.233bn in 2011 for printing of banknotes, whereas the entire turnover of NSPMP was N 29.370bn, the suspended governor said the expense item of N38.233bn to NSPMP comprises N28.738bn payment to NSPMP in 2011; N6.587bn accrued liability in 2011 but paid in 2012 when deliveries were received; and N2.829bn audit adjustment journal entry into the account at the end of 2011 in respect of prepayments to NSPMP.
“ Evidently, the difference between the numbers in the financial statements of CBN and NSPMP is a simple reflection of timing differences between recognition of expenses by the CBN and income recognition by the NSPMP, with both entities applying conservative accounting policies,” he added.
On FRCN’s claims that the CBN made fictitious payments of N511m to Emirate Airlines which allegedly does not fly local charter in Nigeria; N425m to Wing Airline which allegedly is not registered with the Nigerian Civil Aviation Authority and N1.025bn to Associated Airline which allegedly did not have a turnover of up to a billion naira in 2011, Sanusi replied “The CBN neither engaged, paid nor claimed to have paid Emirates Airlines.”
Continuing, he added, “Rather, the CBN engaged and entered into an Air Charter Services Agreement with Emirate Touch Aviation Services Limited, which is a local Nigerian charter service company.
“ A simple enquiry by FRCN would have clarified and avoided this misrepresentation. With respect to Wings Aviation Limited, the CBN contracted Wings Aviation Limited, which changed its name to Jedidiah Air Limited on 21 August 2009 but only notified the CBN of the change on 28 February 2012.
“With respect to Associated Air Limited, the CBN did in fact pay a total of N1.025bn to Associated Airline Limited. It is worth stating that the CBN is not responsible for how the company reports its turnover.”
Responding to allegation that the CBN’s expenses on Private Guards and Lunch for Policemen went up from N0.919bn in 2011 to N1.257bn in 2012, he said that in 2007 before his tenure, the CBN adopted a policy to outsource non-core functions, including security services.
This decision, he added, enabled the bank to focus on its statutory mandate and to reduce its overheads.
He said, “Accordingly, the CBN retained the services of about 13 private security companies to provide access control and security check services.
“In 2012, the CBN budgeted N600m for security services but spent N582.2m on private guards.
“To complement the efforts of private guards, the CBN also requested the services of security agencies, in light of the increased security challenges, especially the activities of the Boko Haram terrorist group.
“These security personnel were engaged on a daily basis; and were attached to senior CBN officials; special assignments such as security coverage for currency movements; static guard duties at the bank’s premises nationwide, and other sundry engagements.
“About 2,406 Policemen are currently deployed on a daily basis to various branches and other locations of the CBN.
“These security personnel were paid a daily lunch and transport allowances totalling N675.02m in the year under review.”
In replying the allegation that the CBN paid excessive legal and professional fees of N20.202 Billion in 2011, Sanusi said the apex bank, like any other public entity, is not immune from liabilities that arise from judgments and orders of the Nigerian courts.
“The referenced N20.202bn spent under this head covered the CBN’s judgment debt liabilities in the year under review.
“Of particular reference is the judgment of the Supreme Court in the case of Amao v the Central Bank of Nigeria, [SC 168/2007] delivered on 21 May, 2010, wherein the apex Court directed that the CBN pay employees of the Bank who had retired prior to 2000, pension under the harmonised structure introduced by the FG.
“ Note that the negotiated litigation liability that arose from the above-specified matter was approximately N19.8bn.”
The suspended governor in his submission in the letter urged the president to “revisit and redress the issue of my suspension.”
He also called on the president to apply the same rationale and rigour to other agencies of the Federal Government that have had serious allegations and queries levied against them, and presume upon them to provide responses and explanations with the same level of clarity and transparency
L-R: Gov. Adams Oshiomhole of Edo State, Gov Aliyu Wamakko of Sokoto State; President, Nigerian Guild of Editors, Mr Femi Adesina and Gov Abdulaziz Yari of Zamfara State at a retreat of Nigerian Governors’ Forum in Lagos, last Friday
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DEPLOY YOUR CAPACITY, TECHNICAL KNOWHOW TO REVITALISE SONGHAI FARMS, FUBARA TELLS TASK FORCE
Rivers State Governor, Sir Siminalayi Fubara, has said that diversifying the economy of the State has become inevitable because of the need to solve the problem of food shortages while also providing jobs for the teeming unemployed youths.
These, he said, are the reasons why great care has been taken to critically look at the prospects of revitalising the Songhai Integrated Farms, which is located in Bunu Tai, in Tai Local Government Area of the State.
Governor Fubara insisted that if the problem associated with food shortages is tackled with good intent and purpose, about 40 to 50 percent of current problems of economic hardship plaguing the country and its people would have been solved.
Governor Fubara made the assertion while inaugurating the Chairman, Mr Biedima Oliver, and members of the task force saddled with the responsibility of supervising the revitalization of Songhai Integrated Farms by its partners: Vitalcrop Ventures Limited and Imagine Adama Limited, at Government House in Port Harcourt, yesterday.
Other members of the task force included, the Rivers State Commissioner for Agriculture, Engr Victor Kii; Commissioner for Finance, Barrister Emmanuel Frank-Fubara; Dr Ayebaesin Beredugo; and Mr Maurice Ogolo.
The Governor explained that it took him time to approve the constitution of the task force being inaugurated because of the ugly experience with the previous group that shown such interest.
Governor Fubara stated that a process was initiated and driven halfway into the handing over of Songhai Farms on concession to an interested partner who latter showed a total lack of the needed capacity to undertake such task.
He said, “As a matter of fact, if few of you could remember, we even conceded the place to an investor who came in after he had made his presentation, and we, believing that he has the capacity, we said okay to him, and we had already signed up.
“But something happened. He came back to tell us that he wanted us to give him a N5billion bank guarantee. We then asked him, why? If we have the N5billion, why do we need you to come and even revitalize Songhai Farms? We would have put that N5billion there ourselves. For that reason, we cancelled that arrangement.”
Governor Fubara said now that two separate companies have come together to indicate interest and given the assurance of having the needed capacity to drive the process, he is delighted to see them meeting that expectation.
Governor Fubara pointed to the expectation of the people who want to see the Songhai Farms back on stream on a sustainable basis.
That expectation, he insisted, is also what his administration wants to see actualised within its lifespan.
He noted, “We want to see food sufficiency, because we know when Songhai Farms comes on board, there will be food, which is one of the problems we are having in this country. If we are able to tackle the issue of food, 40 to 50 percent of our problem will be solved.”
Governor Fubara also stated that although he believes in the presentation made by the group and has taken their assurance to heart, but warned that he would not tolerate a repeat of what happened before.
The Governor said, “I hope your story will not be (end) halfway too. I hope you have the capacity and all the technical knowhow to handle it. It is not when we start now, after we had finished inaugurating the task force, you will come back to tell us that you need $2million. If we have $2million, we won’t need you. We will invest it by ourselves.”
Governor Fubara, however, praised the capacity of the Chairman of the task force, Biedima Oliver, saying that incidentally, he was one of the personnel that convinced the then administration to develop the Songhai Farms, and had worked with the Rivers State Sustainable Development Agency (RSSDA) to manage the project.
He said, “He knows and understands the workings of Songhai, and now that we are making you the chairman of the task force, we want to believe that you will make that place come back to life.
“I don’t have any doubt in your capacity. A few things you’ve touched, you turned them to gold. Please, bring it back to what we used to see in Songhai. Bring it back with the help of your committee.”
Governor Fubara assured that his administration will remain committed to providing all the necessary support that they may require to make their assignment a success.
He added, “So, I hereby inaugurate you. Your task is very simple: Do everything within your powers and with our support to make sure that Songhai becomes operational to the benefit, not just the people of Tai, but to the entire Rivers State and Nigeria as a whole”.
In his acceptance speech, the Chairman of the Task Force to Supervise the Revitalization of Songhai Farms with Vitalcrop Ventures Limited and Imagine Adama Limited, Mr. Biedima Oliver, expressed appreciation to Governor Fubara for the opportunity and confidence reposed in them to revive Songhai Farms.
Mr. Oliver assured that they will deliver the expected goal on Songhai Farms, and doing so on time and on target so that the good people of Rivers State can eventually be happy and also benefit from the huge investment.
Rivers State Governor, Sir Siminalayi Fubara, has declared that all the policies and programmes of his administration are tailored towards the protection of interest of Rivers people, especially the youths.
This, he said, is borne out of the importance his administration attaches to youths’ development and empowerment as leaders of tomorrow.
Fubara, according to a statement by his Chief Press Secretary, Nelson Chukwudi, disclosed this when he received the youths of Emohua Local Government Area under the auspices of “Emohua Youths For SIM” on solidarity visit to Government House, Port Harcourt, last Friday.
He said that his administration has put in place modalities that will boost the livelihoods and well-being of Rivers citizens, which youths of Emohua will also benefit when they materialise.
The governor, who spoke through the Rivers State Head of Service, Dr. George Nwaeke, pointed out that the recently awarded Elele-Omudiaga-Egbeda-Ubimini-Ikiri-Omoku Road, the ongoing Emohua-Kalabari Road, reinstatement of illegally sacked workers of Emohua Local Government Area and the approval for electrification of the area, are part of deliberate measures to open up the area to make life conducive and more meaningful for the people.
According to him, “Everything about the governor is putting the interest of Rivers State first. He is looking at and taking action on those things that we need to do to restart the wheels of progress in Rivers State.
“There are many things the governor has planned and is already doing that will boost the life and welfare of every citizen of Rivers State, but most importantly the youths.
“Growing up, I learnt that Egbeda is one of the biggest communities in the whole of Ikwerre, and it’s predominantly an agrarian community. They have food in Egbeda, they have food in Ubimini, they have food in Omudiaga and other natural resources. The whole world is tilting to agriculture, and this is the way to go.
“The Elele-Umudioga-Egbeda-Ubimini-Omoku road, when completed, will open up the area for real development. Your food and everything you produce there will now have value, they will no longer be thrown away. In all these, you the youths are going to be the utmost beneficiaries.”
He added, “Same will be applicable to the Emohua-Kalabari Road which will also, trigger development in the area, and you will be the greatest beneficiaries. When the LGA is also electrified, you will be having 24 or 20 hours of electricity, and those things the youths can do with electricity, you can stay at home and create wealth for yourself and children.
“All the totality of what the governor is doing, when they are completed, or even as some are completed now, the youths are going to be utmost beneficiaries.”
While acknowledging that youths are the true leaders of tomorrow and any government that fails to carry them along in the scheme of things is doomed to fail, the governor assured them of his administration’s commitment to always address issues concerning youths and ensure that they are part of his government.
He commended the youths for toeing the path of truth by identifying with his administration, urging them to sustain the tempo and shun evil, as his government will ensure that the trend whereby politicians turn youths to beggars are over.
He said, “Youths are, indeed, the leaders of tomorrow. The time of youth is a very important time. It a time that your parents or whoever is your leader at that time have to make the greatest investment in you. And any Government that decides to only carry the elderly, chiefs aling and abandon the youths is bound to fail,” he asserted.
“But I am happy that Governor Fubara has concentrated his energy on everything that will benefit the society, especially the youths.
“And based on these, I want to thank you for recognising what is good and calling it good, for shunning what is evil, for saying the Governor is standing for you.
“Let me tell you, you are on the right direction. Let me tell you again, Rivers State is the bride of Nigeria. The whole Nigeria is looking at what will happen here. As they look here and see you standing on the path of truth, this is a very important step that you have taken to right all the wrongs of the past, to make Rivers State stand on the tripod of justice, peace and security. That is what we are going to gain through the governor, taking all the wise actions that he has already initiated.
“The projects the governor is embarking on are meant to prepare nets for the youths to fish and put food on their table, hence you should continue to follow him.
“The SIMplified Movement brought upon by the governor will ensure that Rivers youths stop the habit of going to bow down before politicians, pledging loyalty before they can eat.”
Earlier, spokesman for the Emohua Youths for SIM, Comrade Ovamale O. Ovamale, had said that the visit by youths from the 14 political wards in Emohua Local Government Area was to thank the governor for the award of the Elele-Omudiaga-Egbeda-Ubimini-Ikiri-Omoku road, the approval for electrification of the area and reinstatement of sacked workers of Emohua Local Government Council, of which the youths were mostly affected.
According to him, “Siminalayi Fubara of recent has given Emohua Local Government road that links Elele to Omoku, which comprises over four communities in the local government.”
“Emohua Local Government has also been in darkness for eight years. No community in the local government that has light. But, of recent, because of the passion and love the governor has for the people of Emohua, he has approved the electrification of the local government.
“Also, the illegal sack of Emohua Local Government workers, for which the youths were mostly affected and without the approval of the Local Government Service Commission, the governor, in his compassionate nature, has reinstated them, and that is why we said we must come and thank His Excellency”, he said.
Rivers State Governor, Sir Siminalayi Fubara, has assured that his administration will collaborate and continue to consult widely in delivering a liberated State experiencing enduring peace.
Fubara said, in doing so, he would not operate as a dictator but as a member of a team that has the best interest of the State at heart and determined to leave a lasting legacy that can be celebrated.
The governor spoke during the formal presentation of Certificate of Recognition and Staff of Office to the Amanyanabo of Okochiri Kingdom, King Ateke Michael Tom, as first class tradition ruler, at Government House in Port Harcourt, yesterday.
Fubara stated that, during the Sixth State Executive Council meeting, N80.8billion was approved with 50 percent contract value paid already as the Government awarded the construction of the Elele-Egbeda-Omoku Road.
He said the project will be funded from the savings from Internally Generated Revenue (IGR) to underscore his administration’s prudence without also borrowing to complete the project.
“We are at a crossroad in our State where we all need to stand for what is right. It happens once in a life time. So, for now, be one of those people that will be in the course to liberate and free our dear State.
“And I know strongly that having the support of a peace-loving Amanyanabo of Okochiri Kingdom, having the support of the wonderful Council of Chiefs, having the support of the great people of Rivers State, we will bring peace in our State. We will do those things that are right to develop our State.
“We will continue to consult. We will not act as dictators. We will act as people who know that one day, we will leave, and when we leave, the way we have acted will speak for us. We will not force people to talk good about us. Our legacy will be a signature for how we led”, the governor said.
Fubara explained that he acted within the ambit of the law to upgrade the traditional stool upon which King Ateke Tom sits in recognition of his efforts in promoting peace in Okrika, and indeed, the State, and urged him to continue to do justice to everyone.
In his speech, Commissioner for Chieftaincy and Community Affairs, Hon Charles Amadi, congratulated King Ateke Tom for being formally presented with the Certificate of Recognition and Staff of Office as first class traditional ruler.
Also speaking, former Transport Minister, Chief Abiye Sekibo, thanked the governor for fulfilling his promise of upgrading the traditional stool of Okochiri Kingdom, and pledged the support of Kirike Se people to his administration.