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Senate Summons CBN, MTN, Banks Over $13.9bn Transfer Probe

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  • Senate Summons CBN, MTN, Banks Over $13.9bn Transfer Probe

The Senate on Thursday summoned the Central Bank of Nigeria, MTN Nigeria, the Financial Reporting Council of Nigeria, three commercial banks and some businessmen over alleged violation of the Foreign Exchange (Monitoring and Miscellaneous) Act.

The upper chamber of the National Assembly had instituted a probe into what it called the illegal transfer of $13.9bn by MTN from Nigeria to other countries between 2006 and 2016.

The Senate Committee on Banking, Insurance and Other Financial Institutions was mandated to carry out the probe by conducting an investigative hearing on the “unscrupulous violation of the Foreign Exchange (Monitoring and Miscellaneous) Act.”

The summons was contained in the “Notice of Appearance” issued by the Chairman of the committee, Senator Rafiu Ibrahim, to the affected organisations and individuals, and obtained by our correspondent.

The notice read in part, “Pursuant to Senate Resolution S/Res/017/02/16 of 27th of September, 2016 on the above subject matter, the organisations and individuals listed below are invited to appear before the Senate Committee on Banking, Insurance and other Financial Institutions on Thursday, 20th of October, 2016.

“The organisations and individuals who have not submitted the documents requested for in our earlier letter of 29th of September, 2016 are advised to do so on or before Tuesday, 18th of October, 2016.

“Mobile Telecommunications Network, Central Bank of Nigeria, Financial Reporting Council of Nigeria, Dr. Pascal Dozie, Colonel Sani Bello, Dr. Okechukwu Enelamah, Ahmed Dasuki, Gbenga Oyebode, Babatunde Folawiyo and Victor Odili.”

Also invited are Stanbic IBTC, Standard Chartered Bank, Citibank and Diamond Bank

The Senate began the probe on September 27, 2016, when a member of the upper chamber representing Kogi-West Senatorial District, Senator Dino Melaye, alleged that MTN illegally repatriated the sum out of the country through its bankers.

The lawmaker alleged that MTN transferred through Stanbic IBTC the sum of $4.87bn; Standard Chartered Bank, $5.72bn; Citi Bank, $2.98bn; and Diamond Bank, $0.35bn.

Melaye, who recalled that MTN, which is headquartered in South Africa, was incorporated in Nigeria as a private Limited Liability Company on November 8, 2000 and obtained its operating licence with $284.9m on February 6, 2001, alleged that the company did not request the Certificate of Capital Importation for the transaction.

He said, “The Senate observes that MTN did not request for the Certificate of Capital Importation from its bankers, Standard Chartered Bank, within the regulatory period of 24 hours of the inflow. The Senate observes also that the CBN was not notified of this inflow by Standard Chartered Bank within 48 hours of receipt and conversion of the proceeds to naira as required by regulations.

“It further observes that the sum of $117,683,987bn was also brought in by MTN between 2001 and 2003 in three different tranches. It is concerned that since inception, MTN had sought the collaboration of influential and unpatriotic Nigerians to assist them in looting our external reserves.”

The Nigerians, Melaye added, included a serving minister, who MTN allegedly used in moving $13.92bn out of the country, a sum that is over 50 per cent of the country’s external reserves, to floated and incorporated offshore Special Purpose Vehicles in the Cayman Island, Mauritius and British Virgin Island.

Melaye added, “The Senate was alarmed that the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, owner of CELTELCOM Investment Limited with address at No.608, St. James Denis Street, Port Lewis, Mauritius, purportedly claimed to invest in MTN on the 7th of February, 2008, got a Certificate of Capital Importation and filled the Form ‘A’ on the same date) and closed his investment in Nigeria after receiving dollar payment for repatriation to New York same day.

“It is also aware that these offshore entities were offered shareholders loan and their repayment to the extent of repatriation of proceeds of dividends back to MTN International South Africa through the entities and operators of the SPVs brought on board as directors of MTN Communications.

“The Senate observes that after five years of operation in Nigeria, the management of MTN Nigeria Limited suddenly realised that they needed the Certificate of Capital Importation to enable them to commence repatriation of funds realised from their businesses.

“It observes also that MTN directed their bankers, i.e. Standard Chartered Bank, Citi Bank and Diamond Bank, to issue Certificate of Capital Importation for inflows that came in five to seven years ago, which their bankers obliged without the relevant approval from the CBN.”

The lawmaker stated that what MTN’s bankers did was in strict violation of Section 15 of the Foreign Exchange (Monitoring and Miscellaneous) Act, 1995.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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EFCC Declares Former Kogi Governor, Yahaya Bello, Wanted Over N80.2 Billion Money Laundering Allegations

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The Economic and Financial Crimes Commission (EFCC) has escalated its pursuit of justice by declaring former Kogi State Governor, Yahaya Bello, wanted over alleged money laundering amounting to N80.2 billion.

In a first-of-its-kind action, the EFCC announced Bello’s wanted status in connection with the alleged embezzlement of funds during his tenure as governor.

The commission, armed with a 19-count criminal charge, accused Bello and his cohorts of conspiring to launder the hefty sum, which was purportedly diverted from state coffers for personal gain.

The declaration of Bello as a wanted fugitive came after a series of failed attempts by the EFCC to effect his arrest.

Despite an ex-parte order from Justice Emeka Nwite of the Federal High Court, Abuja, mandating the EFCC to apprehend and produce Bello in court for arraignment, the former governor managed to evade capture with the reported assistance of his successor, Governor Usman Ododo.

This latest development shows the challenges faced by law enforcement agencies in holding powerful individuals accountable for their actions.

However, it also demonstrates the unwavering commitment of the EFCC to uphold the rule of law and ensure that justice is served, irrespective of the status or influence of the accused.

In response to the EFCC’s declaration, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, issued a stern warning to Bello, stating that fleeing from the law would not resolve the allegations against him.

Fagbemi urged Bello to honor the EFCC’s invitation and cooperate with the investigation process, saying it is important to uphold the rule of law and respect the authority of law enforcement agencies.

The EFCC’s pursuit of Bello underscores the agency’s mandate to combat corruption and financial crimes, sending a strong message that individuals implicated in corrupt practices will be held accountable for their actions.

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Concerns Mount Over Security as National Identity Card Issuance Shifts to Banks

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Amidst the National Identity Management Commission’s (NIMC) recent announcement that the issuance of the proposed new national identity card will be facilitated through applicants’ respective banks, concerns are escalating regarding the security implications of involving financial institutions in the distribution process.

The federal government, in collaboration with the Central Bank of Nigeria (CBN) and the Nigeria Inter-bank Settlement System (NIBSS), introduced a new identity card with payment functionality, aimed at streamlining access to social and financial services.

However, the decision to utilize banks as distribution channels has sparked apprehension among industry stakeholders.

Mr. Kayode Adegoke, Head of Corporate Communications at NIMC, clarified that applicants would request the card by providing their National Identification Number (NIN) through various channels, including online portals, NIMC offices, or their respective banks.

Adegoke emphasized that the new National ID Card would serve as a single, multipurpose card, encompassing payment functionality, government services, and travel documentation.

Despite NIMC’s assurances, concerns have been raised regarding the necessity and security implications of introducing a new identity card system when an operational one already exists.

Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers, questioned the rationale behind the new General Multipurpose Card (GMPC), citing NIMC’s existing mandate to issue such cards under Act No. 23 of 2007.

Ogunbanjo highlighted the successful implementation of MobileID by NIMC, which has provided identity verification for over 15 million individuals.

He expressed apprehension about integrating the new ID card with existing MobileID systems and raised concerns about data privacy and unauthorized duplication of ID cards.

Moreover, stakeholders are seeking clarification on the responsibilities for card blocking, replacement, and delivery in case of loss or theft, given the involvement of multiple parties, including banks, in the issuance process.

The shift towards utilizing banks for identity card issuance raises fundamental questions about data security, privacy, and the integrity of the identification process.

With financial institutions playing a pivotal role in distributing sensitive government documents, there are valid concerns about potential vulnerabilities and risks associated with this approach.

As the debate surrounding the security implications of the new national identity card continues to intensify, stakeholders are calling for greater transparency, accountability, and collaboration between government agencies and financial institutions to address these concerns effectively.

The paramount importance of safeguarding citizens’ personal information and ensuring the integrity of the identity verification process cannot be overstated, especially in an era of increasing digital interconnectedness and heightened cybersecurity threats.

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Israeli President Declares Iran’s Actions a ‘Declaration of War’

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Israeli President Isaac Herzog has characterized the recent series of attacks from Iran as nothing short of a “declaration of war” against the State of Israel.

This proclamation comes amidst escalating tensions between the two nations, with Iran’s aggressive actions prompting serious concerns within Israel and the international community.

The sequence of events leading to Herzog’s grave assessment began with a barrage of 300 ballistic missiles and drones launched by Iran towards Israel over the weekend.

While the Israeli defense forces managed to intercept a significant portion of these projectiles, the sheer scale of the assault sent shockwaves through the region.

President Herzog’s assertion of war was underscored by Israel’s careful consideration of its response options and ongoing discussions with its global partners.

The gravity of the situation prompted the convening of the G7, where member nations reaffirmed their commitment to Israel’s security, recognizing the severity of Iran’s actions.

However, the United States, a key ally of Israel, took a nuanced stance. President Joe Biden conveyed to Israeli Prime Minister Benjamin Netanyahu that, given the limited casualties and damage resulting from the attacks, the US would not support retaliatory strikes against Iran.

This position, though strategic, reflects a delicate balancing act in maintaining stability in the volatile Middle East region.

Meanwhile, Russian Foreign Minister Sergei Lavrov and his Iranian counterpart Hossein Amir-Abdollahian cautioned against further escalation, emphasizing the potential for heightened tensions and provocative acts to exacerbate the situation.

In response to the escalating crisis, the Nigerian government issued a call for restraint, urging both Iran and Israel to prioritize peaceful resolution and diplomatic efforts to ease tensions.

This appeal reflects the broader international consensus on the need to prevent further escalation and mitigate the risk of a wider conflict in the Middle East.

As Israel grapples with the implications of Iran’s aggressive actions and weighs its response options, President Herzog reiterated Israel’s commitment to peace while emphasizing the need to defend its people.

Despite calls for restraint from global allies, Israel remains vigilant in safeguarding its security amidst the growing threat posed by Iran’s belligerent behavior.

The coming days are likely to be critical as Israel navigates the complexities of its response while international efforts intensify to defuse the escalating tensions between Iran and Israel.

The specter of war looms large, underscoring the urgency of diplomatic engagement and concerted efforts to prevent further escalation in the region.

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