4 BUSINESS DAY NEWS
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Ladol sues Samsung Heavy Industries, declines to renew license DIPO OLADEHINDE
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adol, a Nigerian logistics company that operates a hub for the offshore oil industry, has started a court action against Samsung Heavy Industries Co. Ltd. and said it’s ending ties with the South Korean ship-builder, Bloomberg reported. “Samsung’s contract expired and due to the failure to meet the minimum standards required to qualify for an operating license, it has not been renewed,” a spokesman for Ladol told Bloomberg. Ladol has filed a suit against the company at the Federal High Court in Lagos, Nigeria’s commercial capital, he said. Samsung completed the con-
struction of one of the world’s largest floating oil platforms for Total SA at Ladol’s base in Lagos last month. It built the $4 billion Egina vessel, designed to hold 2.3 million barrels of oil, in South Korea and Nigeria, before it set sail for a deep-water field off the Niger River delta coastline. The project was seen as a test of the Nigerian government’s drive to build an oil-services industry and get more international energy companies to use local firms. Amy Jadesimi, a former Goldman Sachs Group Inc. banker who is Ladol’s managing director, said in a May interview that she would probably bid for similar upcoming work from the likes of Royal Dutch Shell Plc and Eni SpA once Egina was finished.
Alpha Beta accuser, Apara, wants EFCC to investigate claims Endurance Okafor
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apo Apara, former managing director of Lagos based tax consulting firm, has said that he is not ready to go to prison. “I do not want to go to prison. I am a whistle blower, and want my petition investigated,” Apara responded to a question from BusinessDay on twitter. In a series of tweets, Apara has disclosed details of what he says are allegations of tax evasion and money laundering in Alpha Beta, a firm he claims to have 30 percent stakes in. His revelations have given insight into one of the most controversial companies in Lagos state, in charge of collecting the state’s revenues for which it allegedly earns 10 percent of revenues collected. But Apara clarified that Alpha Beta does not really keep 10 percent of all revenues it collects but 10 percent of revenues above a set benchmark by Lagos state. He claims that Alpha Beta, which he managed was culpable in bribing government officials, money laundering and tax evasion. Apara admits culpability in the ‘crimes’ and claims to have sent a petition to the Economic and Financial Crimes Commission (EFFC) which they have acknowledged. “Alpha Beta LLP has been IGR consultants to Lagos state since 2002, earning about 10 percent commission and has generated IGR of about N1.5 trillion excluding FAAC and loans. From this, Alpha Beta LLP has earned about N150 billion in fees. My petition alleges that the bulk of this amount has been laundered to evade taxes and to bribegovernmentofficials.Fortunately, all is documented through the banking system including the fake loans,” Apara wrote through on twitter handle. The former Managing Director of Alpha Beta LLP, Apara also disclosed through the same medium that his responsibility was to blow the whistle on the alleged rampant and blatant corruption, and ask for the support of Nigerians to prevail on the EFCC to investigate his petition. “As a 30 percent shareholder, my share of profits (about N45 billion) has beenstolenandlaundered,”Aparasaid. In the petition which was written by his lawyer, Adetunji Shoyoye and Associates, the ex-CEO claimed that the fraud had been covered by powerful politicians in the state. The petition signed by Adetunji
Adegboyega on behalf of the law firm, read in a part, “over the years the companyhasbeenprotectedandshieldedby somepowerfulpoliticiansandpeoplein the society which made them to always boast of being untouchable, but our client, feeling the need not to keep quiet again and strengthened by his belief in thefactthatthegovernmentofPresident MuhammaduBuhariiskeenonfighting corruption, which has been the bane of our country, is of the firm belief that it’s time to expose and open the can of worms called Alpha Beta Consulting.” When Apara was asked via his twitter thread why it took him so long to speak out he said “I became substantive MD in 2014, which is when I started investigating the financials and when I confronted them internally, the response I got was “Dapo, no one will believe you. We control everything the press, the courts, EFCC. You will only be endangering your life.” When BusinessDay however checked on Alpha Beta’s website, Apara’s name was not found as a member of the management board instead Doherty Akin had the title of MD/CEO of the tax consulting firm. Meanwhile, the company in a statementreleasedyesterday, 11 September 2018 denied the allegation by Apara and said it was up for any investigation “our attention has been drawn to the publication of false allegations made recently in the social media against our company and its Managing Director, Akin Doherty, by Dapo Apara. In making these claims, Apara has engaged in the worst form of libel.” Itfurtherexplainedbysaying“theallegationsarefalseandwilfullycontrived to tarnish our hard-earned reputation and track record as the pioneer developerofthetechnology-basedElectronic Banking and Internal Controlled Revenue Enhancing System, which was designed to promote good governance and accountability. He does so in a desperate attempt to conceal and distract attentionfromhisownwrongdoingand misconduct that led to his termination from Alpha Beta.” “A company such as ours that specialises in tax collection would never of all things fall short in paying the taxes it owes. As a responsible private organisation working with Lagos State, we can assure you that we are law abiding and fully tax compliant. Our company records are open and available for audit, investigation and all compliancy checks by designated statutory authorities. Our records are in order because we have done nothing wrong,” it concluded in a statement.
Wednesday 12 September 2018
L-R: Anuradha Gupta, deputy CEO, Gavi, The Vaccine Alliance; Clemens Adams, director, division of administration, United Nations; Tedros Adhanom Ghebreyesus, director-general, World Health Organisation (WHO); Awele Elumelu, GAVI Champion for Africa/founder, Avon Medical, and Seth Berkley, CEO, GAVI, The Vaccine Alliance, at a conference to champion increased vaccine coverage, targeting under-immunised nations, in Geneva, yesterday.
FG explains Paris club refund but silent on Osun state fiasco ... Aregbesola releases N19.8bn for workers’ four months salary arrears DIPO OLADEHINDE
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he Federal Ministry of Finance on Tuesday provided some clarifications on the Paris Club Refund approved for the 36 States of the Federation although it was still silent on the reason why Federal Government secretly released the sum of N16.6 billion Paris Club refund to Osun State. This comes as Governor Rauf Aregbesola released N19.8 billion for workers’ four month salary arrears less than eleven day to election. “As an interim measure to alleviate the financial challenges of the States during the 2016 recession, the President had approved that 50 percent of the amounts claimed by States be paid to enable the States clear salary and pension arrears,” Federal Ministry of Finance explained on Tuesday. The Federal Ministry of Finance noted that the refund was part of the government’s fiscal stimulus to ensure the financial health of Sub-National Governments which was scheduled for released between 1st December 2016 and 29th September 2017. “The payment of the approved amount is to be made in phased tranches to the States,” Federal Ministry of Finance said.
However less than eleven days to the Osun state governorship election, Governor Rauf Aregbesola approved payment of four months’ salary of workers as well as pensioners, Commissioner for Finance, Bola Oyebamiji said on Tuesday. The governor approved the release of N19.8 billion and also directed “going forward workers in the state should be paid their full salary as at when due to demonstrate his commitment to his earlier promises.” However, workers in the state have reacted to the sudden disbursement, saying it has everything to do with coming election. “How can a governor be paying four month salaries few days to election, it does add up,” a civil servant told Business Day by Phone. The Federal Ministry of Finance remained silent on why the Federal government secretly released a Paris club refund of N16.6 billion which has continued to generate controversy following the resignation of the Accountant General of Osun State, Alaba Kolawole. Also, Peoples Democratic Party (PDP) last weekend accused the federal government of releasing N16.6 billion Paris Club refund to Osun state ahead of the September 22 gubernatorial election.
In a statement issued last Saturday by PDP national publicity secretary, Kola Ologbondiyan, “the party said the purported illegal diversion of public funds is tantamount to corruption on the part of President Muhammadu Buhari.” The party alleged that part of the fund was meant to “bribe” leaders of the All Progressives Congress (APC) to support Buhari’s re-election bid. “Further investigation reveals that bulk of the money has already been pencilled for sharing to APC leaders, especially at the national level, as bribe, to short-circuit the system to favour Buhari’s reelection bid, while the people of Osun continue to suffer deprivation,” the statement said. “The PDP has been further made aware of how part of the fund will be moved to private company accounts as well as various hidden locations for the compromised INEC officials and APC leaders.” Paris Club refund is a partial settlement of long-standing claims by state governments relating to over-deductions from their Federation Account Allocation Committee (FAAC) allocations for external debt service between 1995 and 2002.
•Continues online at www.businessdayonline.com
Apapa gridlock: Firms close offices as businesses count losses Sobechukwu Eze & Oghogho Edosomwan
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s Apapa, Nigeria’s premier port city, gets messier with continued siege on roads/bridges by trailers and tankers coupled with worsening port congestion and crippling gridlock, the few banks still operating in the traumatised city are closing shop while other businesses count their losses on daily basis. An otherwise flourishing port city with limitless marine activities, Apapa is gradually but steadily degenerating into a wasteland where all the routes have become ‘highways to hell’ and the only thriving industry is ‘okada riding’ with its attendant risk. Wharf Road and Commercial Road used to be the ‘Central Business Districts’ of this port city where high net worth firms and banks had their offices and branches respectively. A walk through these ‘districts’ shows that most of the banks have
either relocated or have reduced the number of their branches. On Wharf Road alone, more than 10 banks and two eateries have shut down their branches due to the pain and difficulty in accessing these branches, leading to loss of substantial customers in the area. Unity Bank, for instance, which used to have four branches, now has two, Ecobank with eight branches has reduced to four and Access Bank with seven branches also cut down to four. “You can’t compare the situation now and how it was before. No one has been to hell and heaven but from this experience, we can liken the situation to hell. Apapa used to be a place for good businesses,” said Ruwase Babatunde, President of Lagos Chamber of Commerce and Industry (LCCI). “People used to come from all over Lagos to do business in Apapa due to the opportunities it offered. The problem has been the same over the
years and it is an issue of bad roads as well as corruption,”Babatunde added. Eateries like Tetrazini has shut down, Tantalizer with three outlets has reduced to one and the only Mr Biggs eatery in Apapa on Creek Road is now out of the market. Film House Cinema inside Apapa Mall has also shut down. Even the famous Apapa Amusement Park which used to be a source of joy for the kids has closed down due to low patronage. Major hotels like Rockview, Excelsior and many others are groaning for lack of patronage as most of their rooms are empty, and social events that require renting their halls are no longer frequent. The popular Eleganza complex that used to house over 1000 offices is virtually empty because the tenants have relocated or are out of business.
•Continues online at www.businessdayonline.com