Govt suspends PPPRA scribe
By Yetunde Ebosele and Taiwo Hassan
THE Federal Government's ongoing reforms in the oil and gas industry may have claimed its first casualty as the Executive Secretary of the Petroleum Products Pricing Regulatory Agency (PPPRA) Oluwole Oluloye was suspended indefinitely.
The suspension, according to the Federal Government, was the fallout of the ongoing investigations of the agency's activities by the Economic and Financial Crimes Commission (EFCC).
It was also gathered that the suspension of Oluloye would allow the EFCC to carry out its investigations without undue interference.
Specifically, the EFCC had started investigation into the PPPRA activities over the mode of payments by the agency to oil marketers on importation of petroleum products.
In addition, the EFCC is looking into the amount of funds, running into billions of naira received on behalf of the Federal Government to subsidise fuel.
The Guardian's attempts to contact him yesterday on his mobile phone to react to the suspension failed.
Besides, an official at the agency's headquarters in Abuja yesterday, who spoke on condition of anonymity, said he was not aware of the suspension of the agency's executive secretary, adding that it was mere rumour.
A government source told The Guardian that the move to suspend the executive secretary might not be unconnected with billions of naira which the federal government channels into fuel subsidy yearly.
Minister of State, Energy (Petroleum), Mr. Odein Ajumogobia, confirmed the suspension, saying: "There is an investigation into the management of the Petroleum Support Fund. His suspension is to enable a thorough independent enquiry."
Also the Special Adviser to the President on Petroleum, Mr. Emmanuel Egbogah, declared; "Dr. Oluwole Oluloye is suspended pending completion of the investigation of his office."
It was gathered that the EFCC had received a series of allegations against the agency, which prompted the National Assembly to summon the executive secretary to explain the PPPRA's role in the importation of petroleum products.
To reduce the huge financial input by the government on fuel subsidy, President Umaru Musa Yar'Adua has directed that new refineries should be constructed.
According to the President, the Federal Government requires N1 trillion to subsidise petroleum products, adding there was an urgent need to begin the building of new refineries to permanently solve the problems of fuel scarcity and price increases.
The PPPRA was given a total of N150 billion in 2007 for fuel subsidy by the former President Olusegun Obasanjo's Administration to tackle importation of petroleum products.
The following year (2008), the agency received N100 billion for the same purpose.
Besides, sources in the Presidency disclosed that the Federal Government may scrap the PPPRA soon. They explained that the ongoing reforms in the oil and gas sector may result in the merging of the PPPRA and the Pipelines and Products Marketing Company (PPMC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC).
Ajumogobia said the huge amount spent by the government to subsidise fuel importation was worrisome.
He said that the huge amount was now taking its toll on the government structure, adding that the only way forward was to revive the present refineries to meet the nation's consumption capacity and besides that to build new ones.
Already, Ajumogobia said the government had spent N500 billion on fuel subsidy since the beginning of this year and that this would increase to N800 billion before the end of the year.
He added that the subsidising of diesel would require N1 trillion before the end of the year.
Besides, the deregulation of petroleum products and the attendant increase in the pump prices is an emotive issue which makes Nigerians throw reasons and economics' no matter how sound, to the wind and emotions take the centre-stage he said."
The PPPRA was established by former President Olusegun Obasanjo in 2002. The purpose of establishing the agency is to support government importation of fuel. Due to the deregulation of the downstream sector, the Obasanjo government decided to give directive to oil marketers to import fuel to complement NNPC, an arm of the government that is saddled with the responsibility of acting on behalf of the government in the nation's oil and gas sector.
Besides, NNPC was the sole company that imported fuel into the country. But with the deregulation, the government decided to invite private sector participation in the importation of fuel to meet the increasing demands of Nigerians.
The PPPRA relates with the oil marketers in the downstream on behalf of the government by paying the oil marketers for the fuel import into the country on a 60:40 ratio basis.
The probe into the activities of PPPRA by the EFCC was the fall-out of the Oil and Gas Implementation Committee (OGIC) reports on the reforms in the oil and gas sector submitted to the government last month.
The members of the committee advised Mr. President that the huge sums being committed as fuel subsidy should be stopped, adding that the money could be channelled to other sectors of the economy such as health, education, transport, among others.
It was the disclosure by the committee to the President that almost N1 trillion had been expended so far on petroleum products that apparently prompted the EFCC to begin investigation into the activities of the PPPRA.
New age limit for used cars out
· Zero duty for educational materials
· Import of textiles banned
From Mathias Okwe, Abuja
ALTHOGH it is not deemed a policy reversal, the Federal Government has pegged the age limit for imported used cars also known as tokunbo at 10 years. The lifespan for such vehicles until yesterday was eight years. There were earlier moves to fix the age limit for imported buses and trucks at 10 and 15 years.
The government has also banned the importation of textiles and other fabrics.
In a five-year tariff regime released in Abuja yesterday by the Director-General of Budget Office, Dr. Bright Okogu, the government said that from 2008 to 2012, any car older than 10 years would not be allowed into Nigeria.
To ensure full compliance with the new order, the government has empowered the Nigeria Customs Service (NCS) to seize such cars from dealers and importers.
The same measures applied to banned textiles as the NCS was mandated to confiscate all banned textiles and fabrics from supermarkets, markets and other public places where they are displayed for sale.
The affected textiles are hollandis, English wax, guinea brocade and other fabrics commonly patronised by Nigerians.
NCS boss, Mr. Ahmed Mustapha, said that his men are set to invade the markets, raid shops and confiscate the items should they still find their way into the country in spite of the new rule.
The new measures evolved from the five-year
(2008 - 2012) new Tariff Book released by Okogu.
The fiscal policy, according to Okogu, is to encourage local automobile assembly plants as well as protect and bail out the ailing textile industries in Nigeria.
He also explained that the new tariff book was again Nigeria's second attempt to harmonise its tariff regime with the Economic Community of West Africa States (ECOWAS) Common External Tariff (CET).
The new tariff also features a reduction in duties for some goods, being part of efforts to encourage importers of such necessities as educational materials, which now attract zero duties while primary raw materials which before now attracted 10 per cent duty have been reduced to five per cent.
Under the new regime, intermediate products like Completely Knock Down (CKD) refrigerators and television sets are to attract 10 per cent; finished goods that are not locally produced and which required no protection 20 per cent while finished goods that are manufactured locally but require some protection are to attract 35 per cent duty.
The new tariff regime is with immediate effect and has no grace period, according to Okogu. He shed more light on the new policy thrust thus: " The new book is in line with the World Customs Organisation 2002 Harmonised Commodity Description and Coding System, which has moved from eight digits to 10 digits . This is to facilitate the separation of codes where ambiguity exists.
"The new tariff book is basically aimed at facilitating trade and industrial growth as it is simple and easy to administer. It is also hoped that it will lead to improvement in tariff revenue generation in the long run because of better compliance possibilities.''
Okogu appealed to the organised private sector to appreciate the need for "Nigeria to align its tariff regime with global trends because the country cannot afford to lag behind the rest of the world in this era of globalisation."
Under the Olusegun Obasanjo administration, the government of Nigeria had fixed the age limit for used cars for eight years. The government had said the move was to stop the dumping of unserviceable cars in the country. It, however, allowed unfettered import of buses and trucks to facilitate the movement of people and goods in the country.
The government said in the absence of a viable rail system, it was unwise to ban or fix age limit for imported buses and trucks.
But since the Umaru Musa Yar'Adua government came into office, it has taken steps to limit the import of buses and trucks.
But yesterday's announcement that the age limit for used cars was unexpected considering that the government wants to peg the age limit for buses at 10 years while trucks lifespan would stand at 15 years.
Industry Minister, Mr. Charles Ugwuh, said recently that the move was to stop the 'importation of vehicles that would require excessive maintenance." He made the announcement during a meeting with the local automotive manufacturers/assemblers and major importers/distributors.
Motlanthe assumes office, experts hail Mbeki
From Oghogho Obayuwana, Abuja (with agency reports)
"I WILL be faithful to the Republic of South Africa, and will obey, observe, uphold and maintain the constitution and all other laws of the republic." With this oath, 59-year-old African National Congress (ANC) Deputy Leader, Kgalema Motlanthe, yesterday emerged as the third president of post-apartheid South Africa.
Before the oath was administered on him, he had won a resounding victory in the country's parliament election with 269 of the 360 votes cast in a secret ballot. He was sworn in by the Chief Justice of the Constitutional Court, Pius Langa.
His first major task is to guide the country toward elections next year and bridge the gaping divide within the ruling ANC. A power struggle within the party plunged the nation into one of its worst political crises since the end of apartheid in 1994, after Thabo Mbeki was forced to resign a few months before the end of his second term as president.
Agence France Presse (AFP) quoted the ANC as saying that Motlanthe's election was meant to assure the world of South Africa's stability.
"His election to this office sends a signal to the country, our neighbours and the international community of the ANC's commitment to maintaining stability and continuity in government," ANC said.
In addresses to the House, opposition parties urged the new President to rise above the ANC's internal squabbles.
"The country is crying out for resolute and strong leadership to reduce the level of anxiety currently felt by a great many of our people who have been deeply unsettled by the governing party's internal power struggles," said Joe Seremane of the opposition Democratic Alliance.
Seremane, who was Motlanthe's only challenger for the presidency, urged him "to act with speed to calm both domestic and international fears" and bring about "stability and continuity."
Motlanthe will have to build bridges between supporters of ANC President Jacob Zuma and Mbeki, who resigned last weekend after the party pushed him to leave.
Motlanthe attended Mbeki's last cabinet meeting on Wednesday, trying to send a message of continuity within the government after a third of the country's top leaders, including the deputy president, resigned in solidarity.
Zuma, who in December 2007 replaced Mbeki as ANC leader, has downplayed concerns that the political turmoil has plunged the country into crisis.
"There is no problem, the situation is under control, there must be no panic," he said on e-tv news on Wednesday.
In Nigeria, university teachers and experts in international relations have said that Africa has gained democratic milestones with Mbeki's resignation as South Africa's president.
According to them, the gain is particularly swift when it is considered that Mbeki's resignation would not impede the rapprochement being brokered by the Southern African Development Commission (SADC) between President Robert Mugabe and the opposition movement in Zimbabwe. The Southern African leaders said yesterday that Mbeki would continue as chief mediator.
Ambassador Ayo Adeniran, professors Nwangu Okeimiri and Ino Ukaeje, who spoke to The Guardian yesterday, added that Mbeki's resignation and that of some members of his cabinet only made sense if done within the framework of consensus existing in the country.
Adeniran, who is Nigeria's former Ambassador to Venezuela with concurrent accreditation to Colombia and Ecuador, and currently Director, Geostrategic Affairs of the National Defence College, Abuja, said: "Leadership is a continuum. What is ideal is for African leaders to understand the diplomacy of this fact, nationally and internationally. He (Mbeki) was able to understand the implication and ramification of his continued stay in office. He came to power through the ANC. Mbeki's action is honourable. It is food for thought for Africa."
Adeniran added that "continuity, necessity and change in policies within the polity and South Africa has now proven not to be an exception."
He, however, disagreed with the school of thought, which says that there should have been a resignation at the top level of government in Nigeria before Pretoria took "the lead."
Adeniran said: "These are two different cases entirely. The Nigerian President as we have it today by law is fit to continue to take charge of affairs having proven to be of sanguine extraordinary character... South Africa is a friendly country. Nigeria expects that the right thing will be done in terms of change of leadership over there, in terms of openness, accountability and the rule of law. Once they conform, then Nigeria has no problem with South Africa. Our policy will continue to be Afro-centric"
Mbeki, former President Olusegun Obasanjo, Abdelaziz Bouteflika (Algeria) as well as Abdulaye Wade (Senegal) were the prime movers of the African Peer Review Mechanism (APRM) of the New Partnership for Africa's Development (NEPAD).
Prof. Okeimiri, while agreeing with Adeniran on the lessons of Mbeki's resignation, however, said it might just end up as a symbolic gesture since it came far too deep into his tenure.
He said: "The ANC was always dodgy on the issue. Once it was clear that there was complicity from Mbeki's office with regards to the allegations and trial of his former Deputy Jacob Zuma, the pressure could have come earlier. The episode should also be seen as one that had the subtle display of the power of an African incumbent, hence the ANC could only act so, so late."
Okeimiri said history would be kinder to Mbeki than most of the other sit-tight leaders of the continent.
His words: "Here (Nigeria) for instance, we could have seen the muscling of the party leadership; that is if they stand up against being compromised, which is why until now, the register of leaders who have voluntarily resigned in Africa has been so thin."
Ukaeja, a former President of the Nigerian Society of International Affairs (NSIA) now with the Nasarawa State University, was more reverent of the emerging change process.
He said: "We have to study the dialectics of the entire saga. When a president resigns on the recommendation of his party, we should first ascertain whether the pressure did not originate from his office in the first instance. A lot of politics that had graced the pages of South African newspapers over the past few months - the scandal, the international resentment of his handling of the Zimbabwe peace process, and so on. While from our circle, we regard it as a huge victory for Africa. It is safe to watch the first few steps of the new president so we can judge how cosmetic or substantive the change of leadership that has occurred in South Africa is."
S'Court warns counsel against delay in Buhari, Atiku appeals
· Fixes Oct. 23 for hearing
From Lemmy Ughegbe, Abuja
THE Supreme Court yesterday fixed October 23, 2008 for definite hearing of the appeals filed by the 2007 presidential candidate of the All Nigeria Peoples Party (ANPP), Gen. Muhammadu Buhari and his counterpart of the Action Congress (AC), Alhaji Atiku Abubakar, challenging the victory of Alhaji Umaru Musa Yar'Adua at the polls last year.
The seven - man panel presided over by Chief Justice Idris Legbo Kutigi announced the date after dispensing with preliminary applications, which were impeding the hearing in the substantive appeals.
In doing so, Kutigi enjoined counsel to the parties to prepare to argue their respective briefs on the next date as the apex court was in no mood to tolerate any other preliminary application that could have the effect of frustrating the hearing of the appeals.
He expressed the court's readiness to hear and dispose of the entire appeals on time but that the delay was caused by the need to give all the parties ample time to prepare their cases.
Atiku Abubakar was represented at yesterday's proceeding by his legal team led by Mr. Ricky Tarfa (SAN) while Chief Wole Olanipekun (SAN) led senior lawyers including Chief Alex Izinyon (SAN) for President Umaru Musa Yar' Adua. The Peoples Democratic Party was represented by Chief Joe Kyari-Gadzama (SAN) while Chief Mike Ahamba (SAN) led Femi Falana to appear for Buhari.
Some of the preliminary applications resolved yesterday related to those by some of the parties for extension of time to file their briefs and to deem those already filed as properly filed.
Tarfa also applied to consolidate some interim appeals filed while the Court of Appeal was hearing the main petition with the appeal on the appeal court's final judgment.
Buhari and Abubakar were dissatisfied with the decision of the Court of Appeal upholding the election of Yar'Adua as president. Consequently, they had appealed to the Supreme Court as a last resort.
In his appellant's brief, Buhari argued that the Tribunal stood the law and logic on its head when it held that he had failed to prove allegations of substantial non-compliance to the Electoral Act 2006, massive rigging and violence.
In his appeal, Atiku prayed the Supreme Court to save the country from plunging into violence over the April 2007 presidential election by annulling it.
In a -235-page briefs of argument he filed in support of his appeal, Atiku warned that Nigeria may go the way of Kenya and Zimbabwe unless the apex court nullifies Yar'Adua's election and ordered a fresh election.
He said: "This Court has a golden opportunity and responsibility to save Nigeria from going the way of Kenya and Zimbabwe following the outcome of greatly flawed elections."
Atiku also said that heavens would not fall if the 2007 presidential ballot was nullified and a fresh election ordered to be supervised by a truly neutral, impartial and independent personnel in the National Electoral Commission (INEC.)
According to him, the court of appeal missed the point when it concluded its judgment by relying on political consideration to determine the outcome of the petition. In concluding its judgment at the Court of Appeal, Justice Afolabi Fabiyi had said: "I take note of the importance of the election and the vital character of its relationship to and the effect upon the welfare and safety of the entire nation, which cannot be too strongly stated."
Atiku was particularly irked by this statement and accused the justices of the Court of Appeal of placing high premium on political consideration at the expense of doing justice.
He remarked: "The passage smacks of a judgment based on public policy which clearly should never have been resorted to by the court as it is a convenient instrument by the court to sanction and validate the rigging of elections in Nigeria."
Atiku said that Yar'Adua, like any other Nigerian citizen by birth had no sacrosanct right to be elected President of Nigeria in order "to secure the welfare and safety of the nation".
He argued that on the contrary, the welfare and safety of the people ought to compel the nullification of the election because the right of Yar'Adua to be elected as President was no way superior to that of his own.
He also asked the court to invoke section 22 of the Supreme Court Act to consider some of the evidence which he canvassed before the court of appeal but were not considered. He asked the court to set aside the judgment of the appeal court and declare that he was excluded from taking part in the election. Alternatively, he asked the apex court to hold that Yar'Adua was not validly elected.
Tight security as Appeal Court sits on Edo guber polls
From Alemma-Ozioruva Aliu, Benin City
THE Court of Appeal in Benin City yesterday finally began hearing the appeal brought before it by the Edo State Governor, Oserheimen Osunbor, of the Peoples Democratic Party (PDP), challenging the declaration of Mr. Adams Oshiomhole of the Action Congress (AC) as the duly elected governor of the state by an election tribunal.
The development came six months after the Edo State Election Petition Tribunal gave its judgment on the election.
The PDP and Osunbor, however, withdrew the appeals they filed on May 14, 2008 which was however, dated May 12, 2008 and filed a new one. The AC and Oshiomhole were given eight days to respond to the grounds of the appeal.
The three-man panel headed by Justice Saka Ibiyeye, also has members, Justices George Shoremi and Helen Ogunwumiju.
Although the court was billed to resume sitting by 9.00 a.m. yesterday, it did not do until 11.05 a.m. after lawyers complained of insufficient sitting space. This prompted the justices to order a recess, which lasted over one hour.
A rowdy session ensued when security operatives and some lawyers attempted to send reporters out of the courtroom, with a counsel even threatening to beat up a reporter. Normalcy was restored when unaccredited individuals were sent out of the courtroom.
The court rose at 1.48 p.m. after a very stuffy session, as the air conditioning system failed to work and the six available fans were overwhelmed.
Mr. B. L. Akpofure (SAN) led nine others as counsel to the governor; Mr. Adeninyi Akintola (SAN) led 22 other lawyers for Oshiomhole and the AC; Mr. Akin Olujimi (SAN), with 15 others, represented the PDP while Mr. Kanu Agabi (SAN) led six others for the Independent National Electoral Commission (INEC).
No date was fixed for hearing. However, Ibiyeye said "the hearing date will be communicated to the parties and their counsel."
Security was beefed up in most parts of the ahead of the hearing and security men had a hectic time controlling party faithful around the court premises.
Virtually all members of the state executive council accompanied Osunbor to the hearing.
The governor and Oshiomhole shook hands and embraced themselves in the courtroom.
Court orders prison chief to produce Masaba
From Lemmy Ughegbe, Abuja
A FEDERAL High Court, Abuja Division yesterday ordered the authorities of the Nigeria Prison Service (NPS) to produce before it on October 27, 2008 Alhaji Bello Masaba, who is currently being hounded for allegedly marrying 86 wives.
Masaba has been locked up on the orders of an Upper Sharia Court in Minna, Niger State.
Sitting over a fundamental rights enforcement application filed by the polygamist, a vacation judge, Justice Gani Kolawole had ordered all parties in the suit to stay action in the matter pending determination of Masaba's application.
But in breach of Justice Kolawole's order, Masaba was last week Tuesday arraigned before an Upper Sharia Court in Minna, Niger State, which remanded him in prison custody until October 6.
When Masaba's rights enforcement case came up before Kolawole yesterday, the judge expressed displeasure over the violation of his order.
He said as a superior court, it was necessary for him to know if the respondent had infringed on Masaba's fundamental human rights.
The judge therefore, ordered the superintendent of Minna prison to produce Masaba in court in person at the next adjourned date, October 27, 2008
He also directed parties to file their written addresses and come back to court for adoption on the same day.
Masaba is in court seeking an order nullifying a Fatwa (death sentence) passed on him by the Jamatu Nasril Islam (JNI), an Islamic group in the north.
He also wants the court to declare the order of the Bida Emirate Council banishing him from the town as illegal and unconstitutional.
The Emirate Council is the highest organ of the traditional institutions comprising the Emir and traditional chiefs in Nupe Kingdom.
In the application for the enforcement of his fundamental human rights filed at the court by his lawyer, Femi Ikotun, the applicant wants the court to hold that notwithstanding the provisions of Islamic laws, the provisions of the 1999 Constitution of the Federal Republic of Nigeria take precedence.
According to him, his marrying 86 wives did not constitute a legally punishable offence at the time the marriages took place, while the Fatwa issued against him is unknown to Nigeria's common law.
Arbitration panel on PHCN services takes off
From Emeka Anuforo, Florence Oretade, Abuja
A Customer Complaints Handling Forum to serve as arbitration body for electricity consumers and distribution companies has been set up by the Federal Government.
Also, the government says it has earmarked N178.98 billion to subsidise all consumers in the power sector for the next three years under a Multi-Year Tariff Order (MYTO).
The Minister of State for Energy (Power), Hajiya Fatima Balarab Ibrahim hinted of the developments yesterday at the inauguration of a forum organised by the Nigerian Electricity Regulatory Commission.
Represented at the event by Hyelampa Nggada, the Acting Permanent Secretary in the ministry, Ibrahim said electricity consumers could now appeal to an independent body to look into complaints not handled to their satisfaction by electricity providers.
The forum for each of the distribution areas has five members representing industrial, commercial and residential customers.
They are nominated by five institutions including the Manufacturers Association of Nigeria (MAN), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Consumer Protection Council (CPC), Nigerian Society of Engineers (NSE) and a non-governmental body.
Ibrahim said: "Consumers and distribution companies alike will now have an arbitration process that would ensure disputes are heard and addressed in line with our laws and the Electric Power Sector Reform (EPSR) Act 2005".
According to her, "We know that electricity consumers do not always receive services at the level of satisfaction they deserve. They complain about their bills, quality of supply, adequacy of electricity and safety of life and equipment, 'the first level attention' is at the distribution company (DISTCO) level".
Affirming government's resolve to back the MYTO of NERC which provides for correct pricing over three years, she said the new rate will also attract investors and ensure availability of power to consumers.
NERC Chairman, Dr. Ransome Owan, said the EPSR Act was allowing fundamental changes which include orderly sector reform.
He noted that the Act includes consumer protection, quality service delivery of electricity to consumers and the improvement of quality of life.
Owan assured that the potentially divergent interests of consumers and distribution companies were considered in setting up the forum.
Nigeria, U.S. trade volume hits $35 billion mark
By Roseline Okere
TRADE volume between Nigeria and the United States (U.S.) last year was worth $35 billion, making this country the 20th U.S. global trade partner, according to the 2007 yearly report presented by President of the Nigerian American Chamber of Commerce (NACC), Mr. Olaolu Akinkugbe.
Akinkugbe presented the report in Lagos yesterday at the chamber's yearly general meeting.
According to him, primary U.S. exports to Nigeria included grains, oil and gas equipment, machinery, vehicles and aircraft, with overall U.S. export to Nigeria recording a 25 per cent increase from the 2006 figures.
He added: "On the other hand, petroleum products, at 99 per cent, was the primary Nigerian export to the U.S. Others were organic chemicals, rubber, cocoa, arts and handicraft."
The current favourable exchange rate between the Nigerian naira and the U.S. dollar, he said, will continue to provide a favourable exporting climate for Nigeria, as the naira strengthened considerably against the dollar during the year under review, appreciating from N126/US$1 in January last year to N116/US$1 in December.
However, the NACC chief lamented Nigeria's significant infrastructure decays, especially the deteriorating power supply system, which he said had continued to make the country unattractive to foreign investors.
He urged government to focus more on reviving the agriculture and manufacturing sectors, describing them as the engine room of great economies of the world.
Akinkugbe said: "The Nigeria government has focused too much on oil and gas. Great economies of the world today are not driven by the oil sector, but by agriculture and manufacturing. Over-dependent on oil is the cause of the Niger Delta unrest. I think government should begin to have a sense of re-direction for the progress of the country."
He also advised exporters under the African Growth and Opportunities Act (AGOA) scheme to improve on the packaging quality of their products in order to make them more competitive at the international level.
Akinkugbe said Nigerian products had suffered rejection in global markets because of poor product and packaging quality.
"There should be standardisation. The U.S. companies will never compromise on quality. We must begin to pay attention to quality and also learn to invest back into the business," he stressed.
Senate won't take blame for delayed cabinet
From Alifa Daniel (Asst. Political Editor) and Kelechi Okoronkwo (Abuja)
FOR the Senate of the Federal Republic of Nigeria, any delay in raising a new federal cabinet should be put far from its doorstep. The declaration of its position may have become rather necessary as the Presidency on Wednesday explained that the delay in announcing a new look Federal Executive Council was occasioned by the current Senate recess.
But the Senate spokesman Ayogu Eze, who spoke on phone yesterday, said the lawmakers should not be blamed for the failure to make the new ministers known on Wednesday.
Eze spoke even as other ranking lawmakers of the Upper House frowned at the attempt to blame the legislature for the slowness in the executive arm of government.
"It is always very easy to mention the National Assembly when they know very well that we are on recess. They know the process that the Senate doesn't have to be in session for a letter to be sent to the Senate President. When we resume in October, he will read the list to us. Even then, it will take some time for the screening to be completed. As you know, there is always the delay of sending security reports, tax clearances and such other things that should accompany the list. Depending on the number, the exercise should be concluded in a week, but if it is a thorough re-organisation, then it will take longer," a ranking Senator said yesterday in Abuja.
On his part, Ayogu Eze said: "The recess had already been scheduled in the calendar of the legislature. We did not know that the list will be ready during the holiday."
According to him, the Senate would not be away for too long; the lawmakers "will treat the letter expeditiously as soon as it is brought to the Senate."
Explaining the delay in the new members of the council, Presidential spokesman, Mr. Olusegun Adeniyi, had said on Wednesday: "Well, the cabinet reshuffle is not a public relations gambit for the President. It is based on the need to galvanise government and improve on service delivery by identifying areas where there ought to be changes and bringing in new talents that would do the job.
"That process, I can assure you, is completed. But since the Senate, which is the confirming authority, is currently on recess, there is no wisdom in creating vacuums at a period finishing touches are being put on the 2009 budget. The better part of next week is public holidays. So, there is no hurry. And I know the President to be a very painstaking person when it comes to crucial decisions as in this instance. And perhaps to assure you, I have not been gagged, you can quote me on that, there will be a ministerial reshuffle."
The Minister of Information and Communications, Mr. John Odey, who also spoke on the impending change in the council, said that it was at the discretion of the President who appointed all the cabinet members.
Odey said Yar'Adua would announce the cabinet change when he pleases.
"That is at the pleasure of Mr. President, all cabinet ministers and members are at the pleasure of Mr. President and of course that will be done by Mr. President himself," Adeniyi stressed.
Meanwhile, the leadership of the All Nigerian Peoples Party (ANPP) has met with President Yar'Adua on the status of the party's involvement in the Government of National Unity (GNU). At the meeting at the Presidential Villa yesterday, the National Chairman of the ANPP, Chief Edwin Ume-Ezoke, denied mooting plans to quit the GNU. Senator Ahmed Yerima was also at the meeting.
Ume-Ezoke said: "Why should we withdraw (from the GNU) when the reasons we went there in the first place are still there. We went there because Nigeria wasn't stable, there wasn't peace. Up till now, the fighting is going on in the Niger Delta and no answer has been found for it. We are in the Government of National Unity to spearhead efforts, to make sure there is peace and stability all over the country, not just in one portion".
Also, the Chairman, Progressive Peoples Alliance (PPA), Mr. Clement David Ebri, had on Wednesday, while reacting to the PDP statement daring the two opposition parties to leave the GNU if they wanted, said: "It is not all about regional politics but about the stability of the country. We have an agreement with the PDP over the GNU and if there is a crack, all we need do is heal the crack. We have been asking for an opportunity to discuss some issues about the GNU but we have not reached the stage of pulling out yet. When we get to that point, we will pull out."
Ebri was reacting to a statement by the PDP National Vice Chairman, South-East who is also a member of the party's National Working Committee (NWC), Olisa Metu, who said: "We dare the Progressive Peoples Alliance (PPA) and their allies to pull out of the Government of National Unity (GNU) if they feel strongly about our position and watch the dissipation of whatever is left of their crumbling empire."
Ume-Ezoke at the meeting said: "Our involvement in the GNU is not the cause of the problems we are having in the country today. Is our involvement in the GNU the cause of dilapidated health-care facilities and education in the country, or is our involvement the cause of bad roads, or the Niger Delta crisis, before we talk about the almighty unemployment? It is not. The problem is from the PDP's inability to rule. The time to make a change has now come and the PPA is the second opposition party, which has all it takes to run a national organisation.
"We dream that one day, the PPA and the ANPP will form a stronger opposition that will take the government of this country. For how long can we continue taking medical treatment elsewhere. I can afford it but how many Nigerians can afford it. That is one of the issues we need to address."
Soyinka, Amaechi urge Niger Delta youths to shun militancy
From Kelvin Ebiri, Port Harcourt
NOBEL Laureate, Professor Wole Soyinka, has advised youths in the Niger Delta to shun militancy and restiveness and to contribute to the development of a national critical mindset through the use of literature.
Also, the Rivers State government has said it is satisfied with the steps taken so far by the Joint Task Force (JTF) and other security agencies to rid the state of militancy and banditry, which poses threat to normal business activities.
Soyinka spoke at the opening session of the three-day Garden City 2008 Literary Festival and Book Fair at the University of Port Harcourt, Rivers State.
The Nobel laureate, who recently advocated for mental militancy, observed that militant agitation had often not resolved most of the problems that the militants set out to achieve. To buttress this, he cited the instance of South Africa where black youths abandoned their education and protested against their leaders for not doing enough to end Apartheid.
He noted that although their protest and agitation was a noble cause, the consequences of the loss of a generation of educated youths have continued to plague South Africa till date.
Soyinka observed that the country is not interested in mourning the loss of many potential minds who may have been misled into crimes, adding that his presence in the Niger Delta is part of his contributions towards ensuring peace in the region.
He also called for the location of the Institute for Cultural and International Understanding in one of the national archives as against a private library, noting that by so doing, the cultural archives of Nigeria would have been properly repositioned and protected.
He lauded the organisers of Garden City Literacy Festival for inviting him and other literary scholars to the ceremony, assuring that as writers, they would highlight the situation in the region objectively through literary activities.
The Rivers State Governor, Chibuike Rotimi Amaechi, said he encouraged the hosting of the festival to show the world that Port Harcourt is relatively peaceful. He challenged students to cultivate the habit of reading and writing.
Amaechi, who said he had the privilege of reading most of the books of Prof. Wole Soyinka and Ghana's literary icon, Ambassador Kofi Awoonor and other literary giants, challenged students of literature to strive to attain the height of these literary icons.
He said as a student union leader, he was always at the forefront of fighting for better welfare for students. He then enjoined them to shun all negative tendencies that are detrimental to their studies.
Awoonor expressed gratitude to the organisers for the time and energy invested in the programme, which he noted was to awaken the minds of young writers. He also commended Captain Elechi Amadi, who was being celebrated, describing him as a man loaded with history and literary achievements.
The founder of Rainbow Book Club, Mrs. Koko Kalango, explained that her organisation has partnered with UNESCO, the British Council, Alliance Francaise, the Association of Nigerian Authors among others to encourage a reading culture in Nigerians.
Kalango said the Garden City Literary Festival would be an annual event that would draw people from all over the world to Port Harcourt, noting that the programme would help to restore Nigeria as a destination for lovers of literature and the arts.
The Vice Chancellor of the University of Port Harcourt, Prof. Don Baridam, said the university was glad to associate with the First Garden City Literary Festival and Book Fair, describing the event as a gathering of distinguished literary icons, creative artists and critics, whose works have immense influence and powers on society.
Workers to wear Nigerian dresses on Fridays
From Lawrence Njoku, Enugu
NIGERIAN workers, especially the civil servants, may soon be expected to wear traditional outfits to work on Fridays to promote the country's various dress cultures and traditions.
Minister of Tourism, Culture and National Orientation, Prince Adetokunbo Kayode, who dropped the hint yesterday in Enugu, while briefing journalists on the 22nd edition of the National Festival of Arts and Culture (NAFEST) 2008, slated for the Coal City next month, said that the introduction has become necessary to encourage local content and inculcate in the people the superiority of their dress code over others.
According to him, the 22nd edition of the NAFEST would be used to showcase Nigeria's rich textile and design culture. According to him, the ministry intends to draw attention to the textile sector and the abundant talents in the fashion industry as a way of challenging them to come out with creative designs that would have better acceptability than the foreign ones as well as preserve the nation's time tested African dress culture of dignity and decency.
The minister, who noted that NAFEST would open up new vistas of opportunity, called on all stakeholders through the Fashion Designers Association of Nigeria (FADAN), Textile Manufacturers Association of Nigeria and other relevant stakeholders to take up the challenge and once more resurrect the dying dress culture.
Lamenting the importation of foreign fabric designs and wares, which according to him, "promote obscene mode of dressing as against the time -tested humble, decent and glamorous creative designs of our past", the minister stressed the need for Nigerians to embrace their culture.
He said: "Over the years, the challenge of globalisation as well as the new trend of ostentatious demands gave way to a massive importation culture. Consequently, Nigeria became a dumping ground for all manner of textile materials and designs, some even of very inferior quality. This sad trend resulted in low patronage for our textile industries resulting in closures and staff lay-offs".
Kayode said the development has complicated the unemployment situation in the country and aided the ugly trend of smuggling that has further driven the sector aground.
The minister added that as part of efforts to tackle the ugly trend, the ministry carefully choose the theme of this year's NAFEST, which is "Culture and the Challenge of Our Time: Promoting Nigeria Dress Culture", adding that the festival was planned to address the country's march towards productive economy.
He explained that the one-week festival was designed to feature both competitive and non-competitive events aimed at exploring and bringing out the best from Nigeria's diverse cultural heritage.
He disclosed that the competitive events of the festival include live presentation, specialised exhibition, food fair, traditional music/dance, traditional moonlight games and traditional wrestling (open category) while the non-competitive category were the opening and closing ceremonies, NAFEST Colloquium, command performance, crafts expo/fair, poetry recitation (praise chants and evocations).
These, he further said, were designed to tap and promote our collective heritage as well as attempt to "showcase the ingenuity and creative ability of our people which have great potentials to leverage and drive our socio-economic growth towards actualising the seven-point agenda of President Umar Musa Yar'Adua and vision 2020."
In his speech, Commissioner for Information and Culture, Mr. Chuks Ugwoke, represented by the Director of Culture, Chief Anekwe, said the state was fully ready to host the festival, assuring that necessary arrangements had been put in place to ensure that the event was hitch-free.
Wema Bank recalls suspended officials
By Enitar Ugwu
RESPITE many have come for 14 out of the 26 workers of Wema Bank Plc who were suspended indefinitely at the wake of the disturbance that characterised the September 2, 2008 resumption to duty of former Group Managing Director (GMD) and Chief Executive Officer (CEO), Mr. Adebisi Omoyeni.
According to the bank's management, the decision arose from the need to restore peace and stability in the bank.
It added: "The decision to recall the 14 workers arose from the conclusion of an exhaustive internal investigation of their involvement in the illegal resumption and forceful take over of the bank by Omoyeni."
The affected workers are: Wole Ojurongbe, Sina Abayomi, Ifedayo Dairo, Gbenga Ajiboye, Ademola Fayemiwo, Shola Oluwashola, Paul Arotiba, Tunde Olofintila, Florence Kayode, Tayo Ogunkorode, Adeboye Shodeinde, Yemi Jaiyeola, Adeboye Akinboye and Taiwo Taiwo.
However, a source in the bank told The Guardian that the fate of the remaining 12 members of staff depended on the outcome of the investigation, which he said, was on-going.
It will be recalled that on September 17, 2008, the Association of Senior Staff Union of the Banks, Insurance and Financial Institutions (ASSBIFI) had disclosed exclusively to The Guardian of its plan to meet with the bank management on the suspension of the 26 senior officers.
The bank had suspended the workers indefinitely without pay over their alleged roles during the disturbance that marred the Omoyeni's resumption.
Confirming this to The Guardian on telephone, National Secretary General, ASSBIFI, Mr. Javis Eromosele, said that the national body was aware of the plight of the workers.
He disclosed that to this effect, it had already written to the new management of the bank, requesting for a courtesy visit.
The essence of the visit, he said, was to discuss with the new management on the issue at hand and generally advise on the way forward.
Meanwhile, an unconfirmed report had also indicated that prominent South-West indigenes waded into the crisis with a view to resolving it.
Earlier, the suspension letter in the possession of The Guardian dated September 5, 2008 and signed by one Dele Olaolu, noted that: "Following the unfortunate incident that happened at the Corporate Head Office of the bank on Thursday, September 2, 2008, culminating in the house arrest of the former GMD/CEO, Mr. John Aboh and other management staff, the executive management committee has reviewed this episode of the unprecedented challenge to our apex regulatory authority, which threatens the safety and stability of the bank.
"Consequently, management has approved that the following workers be placed on indefinite suspension without pay, with immediate effect pending full investigation of their roles by the Chief Inspector."
The affected workers are: Muyiwa Fagbola, Sanni Adeeko, Funmi Owolabi, Laide Omotosho, Titi Atewologun, Lasisi Gbadegesin, Wole Ojuroungbe, Moses Akinyemi, Sina Abayomi, Ifedayo Dairo, Ayo Ajibola, Gbenga Ajiboye others include, Lawrence Osuntuyi, Sola Oluwasola, Tunde Olofintila, Adeagbo Monisade, Yinka Siyanbola, Florence Kayode, Paul Arotiba, Tayo Ogunkorode, Charles Fasuba, Sodeinde Adeboye, Yemi Jaiyeola and Taiwo Taiwo.
Umeh wants 1999 Constitution dumped
From Alifa Daniel, Asst. Political Editor, Abuja
DEPUTY Senate President Ike Ekweremadu and 87 other federal lawmakers may be eager to begin the review of the 1999 Constitution when the National Assembly resumes from its recess in October, but the Chairman of the All Peoples Grand Alliance (APGA), Chief Victor Umeh, has suggested that the constitution should be dumped in 2011 for a brand new one.
He has also warned that "if we do not tear this constitution by 2011, there will be no democracy by 2015."
He called on the lawmakers to allow for the inauguration of a Constituent Assembly that will allow for the preparation of a brand new constitution, while the present crop of political office holders should sit out their tenure until 2011.
Said Umeh: " The import of my statement is that the proposed amendment of this constitution by the National Assembly dominated by 90 per cent of PDP will be a ruse. It will not address the issue. That is why they said they will rule for 60 years. They know that it is because of the weakness of this constitution that they can rule Nigeria for 60 years without regard to the feelings of Nigerians. But a responsible party that will be put to serious contest by other political parties for power cannot be arrogant to say it will be in office for 60 years. Let's not deceive ourselves. Other important issues that a new constitution will address will be the nature of our federation which I did not want to discuss here."
On the enormous powers conferred on the President by the 1999 Constitution which he said should be whittled down, the party chairman, who was early this year endorsed as the authentic APGA chairman, observed that there was need to make the President accountable to the Nigerian people with the constitution.
"The only way to achieve that is by putting serious and various checks on the excessive powers of the President of Nigeria so that any thing that will affect national life will be robustly debated by Nigerians before the President can implement such things," he said.
He cited the example of the ceding of Bakassi to Cameroun agreed to by former President Olusegun Obasanjo, without recourse to Section 12(1) of the Constitution.
The section reads: "No treaty between the federation and any other country shall have the force of law except to the extent (that) any such treaty has been enacted into law by the National Assembly of Nigeria."
"The Green Tree agreement which was implemented by Yar'Adua and Obasanjo with which Nigeria lost Bakassi did not receive any ratification by the National Assembly of Nigeria. Yet, the President was able to cede Bakassi to Cameroun because as the Commander-in-Chief of the Armed Forces, he ordered the armed forces to relocate to Cross River State and hold Nigerians hostage and ensure that whatever they did, Bakassi has now become part of Cameroun. And you know that, that action like we have pointed out, is very unconstitutional," he added.
He identified the 1999 Constitution, which he said was prepared by former Military Head of State, the late Gen. Sani Abacha, to perpetuate himself in power, and was not tailored to a democratic dispensation.
On the need for the financial independence of the judiciary, Umeh said: "The constitution does not provide for financial independence for the judicial arm. The Nigerian government, through the Executive makes provision for the funding of the judiciary and the National Assembly will appropriate the funds. For the independence of the judiciary to succeed, the Nigerian judiciary should also partake in the revenue sharing of this country statutorily. The way we have Federal Allocation Accounting Committee (FAAC), where the federal, states and local governments come to collect money, the judiciary should be made to do so. Even if it is 0.1 per cent so that at any point in time, that organ will function without recourse to any body. And if they are empowered this way, they will be very bold in discharging the functions assigned to them by the constitution."
EFCC arrests woman over alleged N70 million fraud
By Alex Olise
A WOMAN who has divorced her husband is currently in detention of the Economic and Financial Crimes Commission (EFCC) in Lagos for allegedly diverting about N70 million meant for the joint account of their company into her private account in one of the new generation banks.
The Guardian learnt that the company, Texas Connections, deals in boat business, which convey passengers within the waterways at the Island in Lagos State.
The woman, who was said to have divorced the husband sometime ago, was later allowed to oversee the company's affairs with a standing order to post accruing revenue into the joint account earlier opened when the marriage was smooth.
A statement from Head of Operations of the EFCC in Lagos indicates that the woman was arrested yesterday for interrogation over the disbursement of the sum she lodged in her private account instead of the joint account of the company.
The EFCC acted on a petition from the former husband, alleging "fraudulent corporate activities" of her erstwhile wife, who jointly owned Texas Connection in Lagos Island. As at press time, the woman (names withheld) was still being interrogated at the EFCC office in Lagos over the missing fund.
She was said to have earlier complained to the police over threats to her life.
It was learnt that she owns 20 per cent share of the company based on her contribution before she clashed with her husband.
The police later took the husband to court. While the case was on, the man stepped aside and handed the affairs of the company to the wife with the agreement that she must remit the profit to their original joint account.
The woman was said to have acted the other way, which prompted the former husband to petition the EFCC, leading to the recent arrest.
NCC okays O'Net for national roaming facility
THE campaign for shared infrastructure among telecommunications companies may have started yielding result with an approval from the Nigerian Communication Commission (NCC) granting national roaming facility to the Odu'a Telecommunications (O'Net).
O'Net is licensed to operate a CDMA 20001X based network in Ogun, Osun, Oyo, Ondo and Ekiti states.
According to a statement, the approval is a big leap in the industry that has been racked by duplicity of facilities with subsequent effect on quality of service and high tariff. It will also make O'Net the first PTO to actualise the NCC agreement for national roaming facility.
O'Net's Chief Executive Officer, Mr. Kesavan Madhavarao, praised the NCC's gesture, saying it would give regional players access to states outside their coverage regions.
It is a common practice all over the world to allow operators to roam on other compatible networks when there is a scarcity for frequency spectrum - the most scarce precious commodity today in Nigeria, he added.
The O'Net chief said although the company has embarked on massive expansion programme that would bring in more areas into the network, the roaming licence would fast-track the expansion.
The company's Chief Technical Officer, Mr. Emmanuel Kehinde, said: "This decision is good for the industry as a whole and particularly O'Net as a foremost regional operator in the South-West. We hope to go into negotiation with suitable national CDMA operators for the roaming agreement, which will give us access to states outside the South-West, especially Lagos, Abuja, Rivers and other states".
Mbeki's mistake
By Reuben Abati
FORMER South African President, Thabo Mbeki has many Nigerian friends. But he obviously failed to consult them in the course of his bitter rivalry with his former Deputy President, Jacob Zuma. He is now the loser having been humiliated out of office by the more politically savvy Zuma. This is Mbeki's big mistake. Rivalry between a sitting President/Governor, and his Deputy is a familiar episode in Nigeria's political landscape, but usually, such confrontations are resolved in favour of the senior man of power. Nigerians would easily recall the bitter confrontation between former President Olusegun Obasanjo and Vice President Atiku Abubakar, between Orji Kalu and his Deputy, Enyinanya Abaribe in Abia State; and between former Governor Bola Tinubu and two Deputies, one after the other - Senator Kofoworola Bucknor-Akerele and Mr.
Femi Pedro.
In Nigeria, ambitious Deputies who make the mistake of confronting their Principal are often made to pay dearly for this. They are ostracized and rendered irrelevant within the party. The only exception to this rule, perhaps is Deputy Governor Adebayo Alao-Akala (as he then was) who managed to upstage his boss, Rashidi Ladoja in Oyo State. But this was not due to any political dexterity on Alao-Akala's part, the decisive factor in that battle was the late Chief Lamidi Adedibu's overweening and pervasive influence. Has Mr. Mbeki ever heard of "Godfather" politics? His exit from power appears too logical, too easy; it is almost unbelievable.
Ordinarily in Nigerian politics, the king is always right, and the Presidency in particular is so powerful that the man in the chair can wield the power of life and death. In comparison with South Africa, it is not a question of differences in system of government (parliamentary system as opposed to a presidential system), but culture. If Thabo Mbeki were a Nigerian President, he would still be in power today. If Jacob Zuma were a Nigerian, he would not have been in a position to humiliate, to use a popular Nigerian phrase, "an incumbent" President.
The parting of ways between President Thabo Mbeki and Jacob Zuma occurred in 2005, when following the conviction of Zuma's financial adviser on the grounds of corruption and indications that Vice President Zuma, as he then was, was complicit in this, President Mbeki relieved Zuma of his position as Vice President. Zuma was subsequently charged to court, not only for corruption but also rape in what became one of the most sensational trials in post-apartheid South Africa. Zuma and his supporters alleged political persecution. President Mbeki insisted on the integrity of the Presidency and the rule of law. But Zuma, pushed out of high office, remained a member of the African National Congress (ANC), the ruling party and while his case was being heard in court, Zuma concentrated on consolidating his influence and power base within the party. A populist and a cynical
politician with a capacity to move the crowds, sing and dance with them, Zuma is/was seen by the average ANC member and black South African as a champion of black interests in contrast to Mbeki who is seen as pro-West, pro-white and somewhat too aloof. The Mbeki government's inability to meet the expectations of the black majority in a post-apartheid season, the slow pace of economic freedom and black empowerment further alienated the Mbeki government from the black majority. Losing this perception and popularity game was bound to be costly. Mbeki should have called on his Nigerian friends in politics. If Nigeria was too far away, he could have sought counsel in Kenya or Zimbabwe. There is Mwai Kibaki in Kenya. And the old fox, Dr. Robert Mugabe in Zimbabwe. But I would have recommended Nigeria's Obasanjo, who deserves the top prize for giving effect to the idea of politics as war. The beginning of Mbeki's end can be traced to the December 2007 ANC
elections. Zuma dealt a deadly blow on him in that election, when he and his supporters took over all the positions in the party hierarchy, with Zuma emerging as Chairman of the party. In South Africa's parliamentary system, Zuma as party chairman had technically gained an upper hand in the power game. This would have been difficult to achieve against "an incumbent" President in Nigeria. Why didn't Mbeki consult Obasanjo? His first lesson would have been about the power of incumbency. Two years earlier, Mbeki could have been advised by Nigerian strategists to remove Zuma as Vice President and in addition engineer his dismissal from the ANC for anti-party activities!
When former President Obasanjo became dissatisfied with Atiku Abubakar's politics - his opposition to the Third Term agenda, his open declaration of interest in the 2007 Presidential election, and his public criticisms of Obasanjo - the first thing Obasanjo did was to isolate his Vice President. Atiku was the leader of the political machinery, the PDM that brought Obasanjo to power. Wielding the power of the Presidential office, however, Obasanjo dismantled the PDM. He removed PDM and pro-Atiku persons from positions of influence. He reduced Atiku's own personal staff, scaled down the security around him. In due course, it was clear to everyone in the corridors of power that anyone who was seen either exchanging greetings, or notes with Atiku would be automatically considered an enemy of the President.
State Governors who appeared to be loyal to Atiku were slammed with corruption charges and the Economic and Financial Crimes Commission (EFCC), which became Obasanjo's personal army was unleashed on such Governors. Opportunism is the engine oil of Nigerian politics. Some of those Governors were impeached. Obasanjo even changed the PDP Constitution and made himself the most powerful member of the party. One by one, those who had founded the party and invited him to join it in 1998, were driven out of the party.
Atiku and his sympathizers and other anti-Obasanjo forces, in an attempt to remain in politics, had to form a rival political party, the Action Congress. But Obasanjo's government still found an answer to that by quickly setting up a Presidential panel which indicted the Vice President and thus technically declared him unfit for Presidential office. The man went to court to challenge the assault on his rights; he won all the cases, but he was successfully distracted by the system.
If Mbeki had taken classes in the Nigerian school of politics, Zuma would have had a taste of this Atiku treatment. He and his supporters would have been hounded out of the party and the country; the old apartheid machinery would have been carefully resurrected to deal specifically with Jacob Zuma and his friends. The stubborn ones among them would have been kidnapped, threatened and reported to the traditional chiefs of their original communities. The ANC elections which brought Zuma to power within the party would have been rigged or it would have been inconclusive and if concluded, the results could only have favoured the incumbent President. If this would not be possible, Mbeki and his supporters could have organized thugs to disrupt the process. In the run-up to the election, Zuma's supporters would have been picked up and detained until after the election. This is
the Nigerian way. In Nigerian politics, the end justifies not the means, but the meanness.
It is noteworthy that former President Nelson Mandela is not on record anywhere as having taken sides in the Mbeki-Zuma squabble. In Nigeria, a man like that would have been forced by the President to come out in his support, both publicly and within the ANC. Mrs. Mbeki has also not said a word. A Nigerian First Lady would have seized the initiative. She and Mrs. Zuma would have had a spat of their own in the public arena. Former President Mbeki was too busy allowing democracy to take its course. In Nigeria, democracy means winning power and position by any means possible. Nigerian consultants could have helped to remind him that the anti-apartheid struggle ended long ago, and that the new challenge is to stop ambitious ANC apparatchiks.
The judiciary played a central role in the Mbeki-Zuma affair. It was the ruling by a High Court judge suggesting that Zuma's trial is politically motivated and that the Mbeki government has a hand in this that galvanized the Zuma wing of the ANC into action against the President. The party recalled Mbeki as President and he quietly complied. If Mbeki had taken Nigerian lessons, the High Court Judge would not have had the effrontery to speak as he did. He would have been reminded in all kinds of manner that it'd be improper to give a ruling that could jeopardize national security. Indeed, he could have been quietly promoted or recommended for promotion a few days earlier!
The meeting of the ANC National Executive Committee where the decision to recall Mbeki was taken, if this were in Nigeria, would definitely have ended in chaos. First, an attempt would have been made to bribe the members with oil and gas contracts, mining contracts and offers of positions in government. Traditional rulers from their communities would have been asked to prevail on them not to destabilize the country. Mbeki's likely resignation would also have generated serious tension between Zulus and Xhosas, with the latter - Mbeki's kinsmen protesting that there is a Zulu agenda against the President and that he, Mbeki should be allowed to complete his tenure. In parliament, all Xhosas would have queued up behind their President; they would have staged a walk-out or snatch the Mace or engage other lawmakers in physical combat.
After the submission of Mbeki's letter of resignation to Parliament, state Governors, businessmen, rich men and women would have prevailed on the lawmakers to reject the resignation in the national interest. There would have been arranged solidarity rallies where rented crowds would have argued that the country would come to a sudden end, if Mbeki leaves. And if every option looked difficult, if the trouble-makers refused to accept all pleas, the government itself could have organized a phantom coup and Zuma and some of his supporters would have been arrested as the ring-leaders. Their trial would be on-going until after next year's elections.
Some commentators have expressed fears about the likely factionalization of the ANC in a post-Mbeki era. The former President, if he were a Nigerian, would in fact, have encouraged that. A Nigerian President and his supporters would have imagined the kind of humiliation that they could suffer outside power and office. If Zuma were a Nigerian, for example, by now, a probe of the Mbeki era would have become the main task of the new government. To prevent such humiliation, Nigerian leaders cling to power at all costs.
Mbeki has been praised for being a disciplined party man, for respecting the will of the majority, his devotion to his country, his dignified conduct as President, his careful management of South African affairs in a post-Mandela season, his commitment to the African renaissance, respect for rule of law, his diplomacy and his skills as a bridge-builder. Nigerian politicians have been asked to learn from his example. It is like preaching to the deaf. Nigerian politicians assume that the best way to be a good party man is to turn the party into a personal property. Zuma is far more Nigerian than Mbeki. But running a country is not the same as dancing toyi-toyi, or having a sweet revenge. Mbeki may, in the long run, have the last laugh. With his exit, South Africa has lost its innocence...
Mbeki's resignation devastating, says Mugabe
ZIMBABWEAN President Robert Mugabe has described the sudden departure of South African President Thabo Mbeki, who brokered a government-opposition power-sharing deal here, as 'devastating.'
But although he has been retained as mediator in Zimbabwe's political crisis, Mugabe said Mbeki's resignation was devastating and disturbing.
"It's devastating news that President Thabo Mbeki is no longer the President of South Africa, but that is the action of the South African people," he said.
"Who are we to judge? But it is disturbing," he added, in remarks carried by the official media.
Mugabe's comment came as South Africa's parliament yesterday elected Kgalema Motlanthe, deputy leader of the ruling African National Congress (ANC), as interim president of a country gripped by the worst political crisis since the end of apartheid.
Motlanthe, overwhelmingly elected in a secret ballot, replaces Thabo Mbeki, who resigned on Sunday after nine years in power.
Mugabe, who is in New York attending the United Nations (UN) General Assembly, was commenting on the Mbeki's resignation for the first time.
The Zimbabwean leader said he saw no obstacles to carrying out a power-sharing agreement with rivals and hoped it would lead the West to ease sanctions, which he blamed for devastating the country's economy.
In an interview with The Associated Press (AP), the 84-year-old Robert Mugabe was sharp, quick and animated - and made clear he is determined to remain president despite what he said were efforts by Britain and the United States to oust him.
"They are waiting for a day when this man, this evil man, called Robert Mugabe is no longer in control," he said. "And I don't know when that day is coming."
Asked if he had thoughts of resigning?
"No - or a thought of dying," Mugabe chuckled.
The former South African leader spent months painstakingly negotiating a power sharing deal between Mugabe and the opposition after a disputed presidential poll early this year.
The two sides signed the deal two weeks ago, but are still haggling over ministerial positions.
Under the agreement, both the government and the opposition will form a national unity government to jointly run the country.
The ANC withdrew its backing for Mbeki after a judge suggested he had interfered in a graft case against his arch rival, party leader Jacob Zuma, who is widely expected to become president in a general election next year.
Almost one-third of South Africa's cabinet stepped down on Tuesday out of loyalty to Mbeki, who presided over South Africa's longest period of economic growth.
Motlanthe, a quiet spoken leftist intellectual and ally of Zuma, faces huge challenges including slowing economic growth and high inflation. Officials said on Thursday consumer inflation hit its highest level since before the end of apartheid in August, at 13.7 per cent.
Reflecting the ANC's dominance of parliament, Motlanthe won 269 votes from members of parliament, compared to 50 for the candidate of the opposition Democratic Alliance.
ANC parliamentarians greeted the announcement of the vote with cheers and clapping.
The upheaval in the ANC, climax of a power struggle between Mbeki and Zuma, has raised concerns of instability in Africa's biggest economy and a possible split in the formerly monolithic ruling party.
In a sign of the wounds, parliamentary officials said Mbeki would not attend Motlanthe's swearing-in despite being invited.
It was not immediately clear when Motlanthe would name his new cabinet although investors are keenly watching to see if highly respected Finance Minister Trevor Manuel will be re-appointed.
Markets were rattled on Tuesday, with both the rand currency and stocks suffering, after Manuel joined the exodus from the cabinet, but they partially recovered when he said he was ready to serve under a new president.
Motlanthe, a former mine union leader and anti-apartheid soldier, is widely respected by both radical leftists and business tycoons within the African National Congress.
He will try to heal the worst rifts in the history of the party because of the battle between Mbeki and Zuma, which has overshadowed pressing issues such as widespread poverty and crime and an AIDS epidemic ravaging millions.
Radical policy changes under Motlanthe in the short transitional period are unlikely but foreign investors eager for stability and a continuity of economic policy will be watching closely for clues on whether the ANC will change course.
The populist Zuma is trying to reassure foreign investors he would not stray from business-friendly economic policies but is under pressure from left-leaning union allies to alleviate poverty through more government spending.
Sahara kidnappers demand ransom to free tourists
BANDITS who kidnapped 19 tourists and Egyptians in the desert have asked for Germany to be responsible for paying a ransom of six million euros ($8.8 million), according to an Egyptian security official.
"The kidnappers have asked for the German government to be the only ones to be responsible for paying the six-million-euro ransom as the condition for releasing the hostages," Agence France Presse (AFP) yesterday quoted the official as saying.
The group of five Germans, five Italians and a Romanian as well as eight Egyptian drivers and guides was snatched by masked bandits while on desert safari to view prehistoric art in Egypt's remote south-west on Friday last week.
Egypt has said that Germany is heading negotiations via the German wife of the Egyptian tour operator who is among the missing. Germany has only said it has set up a kidnap crisis team.
"The six million euros are to be given to the German wife," to bring to the kidnappers, the official said.
The bandits have taken the group across the border into Sudan, where Sudanese forces have said they are besieging the group but refraining from any rescue operation that could harm the captives.
Several different ransom figures have been cited since the group was first reported missing on Monday.
A Sudanese government spokesman, meanwhile, yesterday, said the kidnappers holding had moved from Sudan into Libya.
"The group moved towards the Libyan border and then crossed the border, and they are now 13 to 15 km (eight to 10 miles) inside Libya," said Ali Youssef Ahmed, head of protocol in the Sudanese Foreign Ministry.
Israel accuses Iran of fanning global terror, violence
PRESIDENT Shimon Peres of Israel has sharpened his attack on Iran's counterpart Mahmoud Ahmadinejad, accusing him of "taking the world for a fool" in his statements to the UN General Assembly.
In his blistering speech before the UN General Assembly, Peres, according to Agence France Presse (AFP), said Iran was "at the centre of violence and fanaticism" and had "built a danger to the entire world."
"(Ahmadinejad) has committed a fatal error, and is taking the world for a fool. He thinks he is an absolute prophet, proclaiming that there is no more hope for the United States or Israel," Peres told Israeli public radio.
"It is shameful to Islam, to all religions, to the United States, and to democracy. His voice does not come from heaven but hell and one day it will pass away like a breeze," he said in the interview conducted in New York.
Israel has long considered Iran its greatest threat, both because of Tehran's accelerating nuclear programme and repeated statements by its leaders predicting the demise of the Jewish State.
Israel and the United States accuse Iran of trying to develop nuclear weapons, while Tehran has insisted its programme is entirely peaceful and vowed to proceed despite three rounds of UN Security Council sanctions.
Israel is the Middle East's sole if undeclared nuclear armed state with an estimated arsenal of 200 warheads.
Neither the United States nor Israel has ruled out a military response to the Iranian nuclear stand-off, and Israel's Defence Minister Ehud Barak said all options remain on the table.
"Iran continues to exert every effort in its activities to achieve a nuclear weapons capability," he said in a statement.
"For now there is still time for addressing the issue diplomatically, but we believe we must not renounce any option and we do not think anyone else in the world should either," he added.
In his own address to the assembly on Tuesday, Ahmadinejad lashed out at what he called international "bullying" and vowed to press ahead with Iran's nuclear drive.
As for Israel, he said "the Zionist regime is on a definite slope to collapse and there is no way for it to get out of the cesspool created by itself and its supporters."
Friday, September 26, 2008
EU bans Chinese baby milk, as recalls grow worldwide
THE European Union (EU) has banned imports of baby food containing Chinese milk as tainted dairy products linked to the deaths of four babies turned up in candy and other Chinese-made goods that were quickly pulled from stores worldwide.
It came as China yesterday launched its riskiest space flight yet, sending three men into orbit around the earth on a mission that would include the nation's first ever space walk.
The Shenzhou VII spacecraft lifted off from Jiuquan Satellite Launch Centre in north-west China at 9:10 p.m. (1310 GMT) in the presence of President Hu Jintao and other senior leaders, state television reported live.
The 27-nation EU move, added to the growing list of countries that have banned or recalled Chinese dairy products. In addition to the ban, the European Commission called for tighter checks on other Chinese food imports.
Chinese baby formula tainted with melamine has been blamed for the deaths of four infants in China and the illnesses of 54,000 babies there. Health experts say ingesting a small amount of the chemical poses no danger, but melamine, used to make plastics and fertiliser, can cause kidney stones and lead to kidney failure. Infants are particularly vulnerable.
All imports of products containing more than 50 percent of milk powder will have to be tested under the new rules due to come into force Friday after talks among the EU's 27 member nations.
EU food safety experts said they have found only a limited risk in Europe from food imports from China. But the European Commission says it is acting as a precaution in the face of the growing health scare.
The World Health Organisation and, the UN Children's Fund (UNICEF), issued a joint statement Thursday expressing concern about the widening crisis.
"Whilst any attempt to deceive the public in the area of food production and marketing is unacceptable, deliberate contamination of foods intended for consumption by vulnerable infants and young children is particularly deplorable," the statement said.
Melamine has been found in infant formula and other milk products from 22 Chinese dairy companies. Suppliers trying to cut costs are believed to have added it to watered-down milk because its high nitrogen content masks the resulting protein deficiency.
"We also expect that following the investigation and in the context of the Chinese government's increasing attention to food safety, better regulation of foods for infants and young children will be enforced," the UN statement said.
The rest of the statement called for more awareness of the benefits of breastfeeding. That has become less common in recent years in China as busy mothers switched to powdered baby formula.
Melamine-tainted products have also turned up in an increasing number of Chinese-made exports abroad, from candies to yoghurt to rice balls.
In China, the problem has spread to a popular brand of candy, with authorities pulling White Rabbit candy from shelves in Shanghai and the southern province of Hainan.
The Reality of Global Depression
By Samuel Jaja
THE reality of a global depression that could adversely affect world markets reminiscent of the great depression of the early1930s became a very distinct possibility with the recent bankruptcy of Lehman Brothers, one of the oldest and most respected investment banks in America and the near bankruptcy of AIG, the largest Insurance Group in the world. The intervention of the US Treasury with a purported $700 billion bailout to save the Insurance Group from what would have been imminent bankruptcy and send shock waves around world markets as its aftermath was fortunately averted.
However, there was no such luck for Lehman Brother which went under; consumed by an avalanche of principally mortgage loan debts, the results of an American home loans market gone mad. The world financial Markets are still reeling from the effects of the collapse of the Mortgage loans market in America, caught in the middle are the big investment banks like, Morgan Stanley, Merrill Lynch, and Goldman Sachs. Luckily the diversified investment portfolio of these big investment banks has made it possible to sail over the storm. Many Mortgage institutions have not been that lucky, the recent collapse of Bear Stearns is still fresh in our memories. Morgan Stanley and Merrill Lynch it was reported have been injected with fresh capital from foreign investors
Are there lessons we can learn in Nigeria from the collapse of these huge investment Banks in American? The recent Central Bank of Nigeria's injection of $ 1.2 billion into the Nigerian economy is a pointer that the Nigerian Government views seriously the events taking place in America. African economies may not be seriously affected by the collapse of these institutions in America that resulted principally from the non regulation of the Mortgage loans market. The Nigerian homes loans market is still very small and is largely regulated, we may not experience a major collapse as happened recently in America.
The regulatory authorities must be careful to put in place stricter regulations to forestall so called "wonder banks" from taking advantage of gullible member of the public with promises of huge interest rate payments on depositor's funds. The experience of Nigerians under the Babangida regime is a reminder that lack of proper regulation of the financial institutions could spell doom for the economy. The regulatory authorities; SEC, NSE, CBN, and NDIC should be vigilant because as the watchdogs of the economy the rules must be rigidly adhered to.
What happened in America is a reminder that no country is immune from a collapse of its financial Institutions. If it could happen in America the world's largest economy it is possible any where in the world. Is there a risk of a world wide recession following the financial crisis in America? Personally, I do not see it happening. The America experience is an isolated case and the reverberations may cause a temporary fall in the prices on the major stock markets around the world but after a while the markets would bounce back again.
In Nigeria and Africa the effects would be negligible because our economies are not directly linked to the mortgage loans market in America. It may possibly have been worse if AIG, the largest Insurance Group in the world had collapsed with offices in over 120 Countries and trillions of dollars in portfolio investment funds, the repercussions would have been felt around the world.
How close are we to a global depression? Close to the brink. According to economic analysts what happened in America was the worst financial crisis since the great depression of the early 1930s. We can only be thankful that lessons have been learned and the market will be more tightly regulated to forestall the occurrence of a major financial crash.
*Jaja lives in Port Harcourt, Rivers state.
New owners take over NITEL May 29 - BPE
Bola Badmus and Gbola Subair, Abuja with Agency Reports - 26.09.2008
NEW owners of the Nigerian Telecommunications Limited (NITEL) will take over the company on May 29, 2009 after their name is announced in April.
Director General of the Bureau of Public Enterprises (BPE), Mrs. Irene Chigbue, disclosed this at a briefing in Abuja on Thursday.
According to her, the BPE will pick a new owner at a bidding in April while NITEL will be handed to them on May 29.
Chigbue said the time frame for concluding the sale was “quite challenging,” given the amount of work to be done.
The sale of ``NITEL is now on a fast track,'' she said. The agency plans to sell 51 per cent of the company and Mtel, its mobile-phone subsidiary, to a new investor after the failure of Transnational Corporation of Nigeria Plc (Transcorp), the former majority investor, to meet targets set by the government. Transcorp paid $500 million in 2006 for the stake.
The BPE also gave an assurance that Nigerians will not be short-changed in the privatisation of NITEL.
Mrs. Chigbue said at the ministerial press briefing that she appreciated the concerns of stakeholders and indeed all Nigerians on the issue.
Chigbue’s assurance came as Minister of Information and Communications, Mr. John Odey, disclosed that the privatisation exercise had saved for the country $10 billion, which could have been wasted on moribund enterprises.
The BPE boss said that anytime the sale of NITEL would come up, Nigeria would never be short-changed.
“The Bureau appreciates this concern and has, therefore, worked exceptionally hard to make sure that at any time, no matter when it is sold, and how many times it has gone to the market, Nigerians will never be short-changed,” she said.
She added: “And the purpose of setting up the enterprise must be met.”
Chigbue, who recalled the operation of NITEL under Transcorp Plc. as core-investor, declared that Transcorp was adjudged as a failure by the verdict of the Ministry of Finance and BPE, among other stakeholders.
“The meeting, after reviewing the performance of NITEL and Mtel under the one-year leadership of Transcorp, came to the conclusion that Transcorp had failed to achieve the targets contained in the Share Sale Purchase and Purchase Agreement (SSPA) which it had signed with government before taking control of the two companies.