Economy
Governor Diverts N500m Refund to Repay Personal Loan
By Dipo Olowookere
EFCC recovers cash from firm
NGF: we did nothing wrong
Consultant: we broke no law
Detectives have recovered N500 million allegedly diverted by a Governor from the London-Paris Club loan refund.
The Governor diverted the N500 million (out of his state’s share of the N19 billion first tranche) to a mortgage bank but the Economic and Financial Crimes Commission (EFCC) tracked and secured the cash.
Besides, two firms have refunded N220 million of the N3.5 billion traced to some aides of Senate President, Mr Bukola Saraki.
But the Nigeria Governors Forum (NGF) insists it was not within its purview to determine how Melrose General Services Limited spent its share of the N3.5 billion consultancy fees.
The company yesterday said it was not involved in any N3.5 billion scandal.
It said it executed the consultancy awarded it in line with global best practice.
EFCC traced N2.2 billion payment to another consultant, which allegedly gave the yet unnamed governor N500 million.
The Governor directed that the cash should be transferred to a mortgage bank where he was indebted to the tune of N800 million.
The Governor used the “cash-at-hand” to defray his debts with a waiver by the mortgage company.
A source close to the investigation said, “Of the N19 billion, we discovered that a consultant brought by the North-West Governor was paid N2.2 billion. From the N2.2 billion, the Governor got N500 million.
“He then instructed that the N500 million be transferred to the mortgage bank where he had borrowed money to buy two properties in 2013 and was unable to pay. The debts accumulated to N800 million but with N500 million cash-at-hand, the governor renegotiated the debts and used the cash to defray his liabilities.”
According to the source, the mortgage bank decided to refund the N500 million to the EFCC.
“We have all the evidence of the recovery in our records,” he said.
The two companies which refunded about N220 million out of the N3.5 billion consultancy fees in which some aides of the Senate President were implicated, are Wasp Networks and Thebe Wellness Services.
The Nation stumbled on a document about the investigation. It states: “That Mr Bosun Ottun, the Managing director of Xtract Energy Services, a company that deals in forex trading confirmed that Wasp Networks Limited transferred N170,000,000 on the 16th January 2017 to Xtract Energy Services Limited’s FCMB account for the purchase of $350,000, which he later transferred into Wasp Networks Stanbic IBTC US dollar domiciliary account.
“That Wasp Networks has returned to the EFCC the sum of N200 million paid to the company by Mr Robert Mbonu of Melrose General Services.
“That Mr Robert Mbonu through Melrose General Services Company paid N20 million to Thebe Wellness Services.
“That Mr Richardson A. Ajayi, the Managing Director of Thebe Wellness Services confirmed that N20 million from Melrose General Services Company was a loan from Mr Robert Mbonu, which was to be used as an investment in Thebe Wellness Services.”
On the jewellery which cost about N92,685,000($183,000 then) of the N3.5 billion refund, the EFCC said the former Executive Director of Heritage Bank, Mr Robert Mbonu, could not say the exact date the items will be delivered.
The document added, “That Mr Robert Mbonu, through Melrose General Services Company Limited Access Bank account transferred N92,685,000 to Acarast Communication Limited in exchange for $183,000, which was later transferred to Bhaskar Devji Jewellers in Dubai for purchase of jewellery.
“That Mr Robert Mbonu has not taken delivery of the jewellery and couldn’t provide a date when the jewellery he paid for would be delivered.”
But, the NGF yesterday said it had no business with how Melrose spent the N3.5 billion consultancy fees it paid to the company.
It, however, confirmed that the company was one of its consultants on the London-Paris Club loan refund.
http://thenationonlineng.net/governor-diverts-n500m-refund-repay-loan/
By Dipo Olowookere
A 1.08 per cent growth was further printed by the Nigerian Exchange (NGX) Limited on Friday on improved appetite for Nigerian stocks.
Data showed that the insurance sector lost 0.61 per cent yesterday due to profit-taking as the energy space gave up 0.08 per cent, while the commodity counter closed flat.
However, the industrial goods landscape appreciated by 2.06 per cent, the banking index improved by 1.31 per cent, and the consumer goods sector expanded by 0.83 per cent.
At the close of business on Customs Street, the All-Share Index (ASI) increased by 1,563.92 points to 147,040.07 points from 145,476.15 points and the market capitalisation went up by N996 billion to N93.722 trillion from N92.726 trillion.
UAC Nigeria led the advancers’ log yesterday after it grew by 10.00 per cent to N96.80, Transcorp Hotels jumped by 9.71 per cent to N172.80, Royal Exchange appreciated by 8.89 per cent to N1.96, Ikeja Hotel soared by 8.74 per cent to N31.10, and Veritas Kapital leapt by 8.07 per cent to N1.74.
On the flip side, Union Dicon declined by 10.00 per cent to N6.30, ABC Transport slipped by 9.88 per cent to N3.10, AXA Mansard depreciated by 7.19 per cent to N12.90, FTN Cocoa lost 4.62 per cent to trade at N4.75, and Guinea Insurance dropped 3.36 per cent to finish at N1.15.
A total of 38 stocks ended on the gainers’ table and 17 stocks finished on the losers’ table, representing a positive market breadth index and strong investor sentiment.
Traders transacted 361.6 million equities for N14.8 billion in 21,051 deals yesterday versus the 1.9 billion equities worth N19.2 billion traded in 23,369 deals a day earlier, showing a decline in the trading volume, value, and number of deals by 80.97 per cent, 22.92 per cent, and 14.20 per cent, respectively.
The busiest stock for the session was Zenith Bank with 59.5 million units worth N3.6 billion, Access Holdings traded 46.1 million units valued at N973.0 million, Fidelity Bank exchanged 29.4 million units for N560.4 million, FCMB transacted 27.9 million units worth N293.9 million, and Tantalizers sold 13.0 million units valued at N29.8 million.
By Adedapo Adesanya
Energy stocks influenced the 4.76 per cent loss recorded by the NASD Over-the-Counter (OTC) Securities Exchange on Friday, December 5.
The culprits were the duo of 11 Plc and Nipco Plc,with the former shedding N32.17 to end at N291.83 per share compared with the previous day’s N324.00 per share, and the latter down by N21.00 to sell at N195.00 per unit versus the previous session’s N216.00 per unit.
Consequently, the NASD Unlisted Security Index (NSI) slumped by 170.16 points to 3,401.37 points from 3,571.53 points and the market capitalisation lost N101.81 billion to close at N2.035 billion from the N2.136 trillion quoted in the preceding session.
The OTC securities exchange suffered the decline yesterday despite the share prices of three companies closing green.
Central Securities Clearing System (CSCS) Plc was up by N1.80 to close at N39.80 per share compared with Thursday’s price of N38.00 per share, Air Liquide Plc appreciated by N1.09 to N11.99 per unit from N10.90 per unit, and FrieslandCampina Wamco Nigeria Plc grew by 78 Kobo to N56.57 per share from N55.79 per share.
During the session, the volume of transactions rose by 6,885.3 per cent to 18.2 million units from 4.3 million units, the value of transactions ballooned by 10,301.7 per cent to N389.7 million from N347.2 million, but the number of deals declined by 29.7 per cent to 26 deals from 37 deals.
Infrastructure Credit Guarantee Company (InfraCredit) Plc ended the day as the most traded stock by value on a year-to-date basis with 5.8 billion units worth N16.4 billion, followed by Okitipupa Plc with 170.4 million units valued at N8.0 billion, and Air Liquide Plc with 507.5 million units worth N4.2 billion.
InfraCredit Plc also finished the day as the most traded stock by volume on a year-to-date basis with 5.8 billion units transacted for N16.4 billion, followed by Industrial and General Insurance (IGI) Plc with 1.2 billion units sold for N420.2 million, and Impresit Bakolori Plc with 536.9 million units worth N524.9 million.
By Adedapo Adesanya
The Naira depreciated further against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, December 5, as FX demand pressure mounts.
The Nigerian currency lost N2.60 or 0.18 per cent against the greenback to close at N1,450.43/$1 compared with the previous day’s N1,447.83/$1.
Equally, the domestic currency declined against the Pound Sterling in the official forex market during the session by N4.48 to trade at N1,935.45/£1, in contrast to Thursday’s closing price of N1,930.97/£1 and shrank against the Euro by 43 Kobo to end at N1,689.17/€1 versus the preceding session’s rate of N1,688.74/€1.
Similarly, the local currency performed badly against the US Dollar at the GTBank FX counter by N2 to close at N1,455/$1 versus Thursday’s N1,453/$1 but traded flat at the parallel market at N14.65/$1.
As the country gets into the festive period, pressure mounted on the local currency reflecting higher foreign payments and lower FX inflows.
However, there are expectations that the Nigerian currency will be stable, supported by interventions by to the Central Bank of Nigeria (CBN) in the face of steady dollar Demand and inflows from Detty December festivities that will give the Naira a boost after it depreciated mildly last month.
Traders cited by Reuters expect that the Naira will trade within a band of N1,443-N1,450/$1 next week, buoyed by improved FX interventions by the apex bank.
As for the crypto market, it was down yesterday due to profit-taking associated with year-end trading. However, the December 1-Year Consumer Inflation Expectation by the University of Michigan fell to 4.1 per cent from 4.5 per cent previously and 4.5 per cent expected. The 5-Year Consumer Inflation Expectation fell to 3.2 per cent from 3.4 per cent previously and 3.4 per cent expected.
With the dearth of official economic data of late, these private surveys have taken on a new level of significance and the market banks of them to make decisions.
Cardano (ADA) depreciated by 5.7 per cent to $0.4142, Dogecoin (DOGE) slid by 5.1 per cent to $0.1394, Ethereum (ETH) dropped by 3.9 per cent to $3,039.75, Solana (SOL) declined by 3.8 per cent to $133.24, and Litecoin (LTC) fell by 3.7 per cent to $80.59.
Further, Bitcoin (BTC) went down by 2.6 per cent to sell at $89,683.72, Binance Coin (BNB) slumped by 2.2 per cent to $883.59, and Ripple (XRP) shrank by 2.1 per cent to $2.04, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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