Wednesday 13 March 2019
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COMPANIES & MARKETS
BUSINESS DAY
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C O M PA N Y N E W S A N A LY S I S A N D I N S I G H T
AVIATION
Boeing shares sink the most since 2001 as jittery customers dump Boeing 737 Max …Air Peace, Green Airways under pressure to cancel orders IFEOMA OKEKE & OLUFIKAYO OWOEYE
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hares of Boeing were in a free fall on Monday after Sunday’s air mishap involving Ethopian Airline Nairobibound Boeing 787 ax 8 aircraft which crashed shortly after take-off killing all passengers onboard. The shares sank 11 percent to $374.31 on Monday on the New York Stock Exchange (NYSE) after sliding as much as 13 percent for the biggest intraday decline since Sept. 17, 2001, the first day of trading after the infamous September 11 attacks. The ill-fated flight followed the crash of Lion Air’s 737 Max off the coast of Indonesia on October 29 last year killing all passengers onboard. This has raised concern among major airlines across the globe. The aircraft model, 737 Max 8 is Boeing’s most im-
portant aircraft type, generating almost one-third of the company’s operating profit and forming the backbone of many global airline fleets who use the model
and Airbus’s competing A320 family on shorter routes. Chinese airlines account for about 20 percent of 737 Max deliveries worldwide
and the country’s aviation authority has ordered carriers to ground all 96 of Boeing’s newest 737 model Following Sunday’s plane crash, Nigeria’s larg-
est carrier, AirPeace Airlines, and prospective airline, Green Airways, are currently under pressure from customers to cancel orders it made with Boe-
ing to purchase Boeing 737 MAX 8 aircraft. Recall that Air peace last year ordered for 10 of the same aircraft brand. Also, Green Airways Africa, a prospective domestic carrier also claimed to have ordered for 100 of the same B737-800 MAX from the aircraft manufacturer. Chris Iwarah, corporate communications manager, Air Peace Limited in a statement confirmed that the Airline placed orders for new Boeing 737 MAX 8 aircraft but are yet to take delivery of the aircriafts noting that the aircrafts are still at the design stage. “Although it is premature to comment on the incidents, we wish to assure members of the flying public that we are closely following and monitoring developments on the issue as an airline that prioritises the safety and well-being of our customers,” he said.
BANKING
Access Bank clears the air on metal billet allegations SEGUN ADAMS
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ollowing publications in some media on charges filed against Access Bank by the Special Fraud Unit (SFU) of the Nigeria Police Force, the tier-1 lender has refuted allegations of conspiracy and theft of metal billets said to belong to BMCE Bank International whilst explaining its side of the story in a release sent to the Nigerian Stock Exchange (NSE), Monday. Last week, some publications across several media platforms stated that Herbert Wigwe, CEO of the Access Bank, and other named individuals were to stand trial before an Ogun State high court for the N2.5 billion fraud over the sales of some metal billets. However, Access Bank in the release to the NSE maintained that it financed the importation of the billets and that the Receiver/ Manager it appointed and a syndicate of lenders had the right to sell the goods.
In the statement, the Bank insisted that ‘’ at no time did the Bank or any of its executives or officers commit any of the alleged offenses’’. According to Access Bank, Metal Africa Steel Products Limited in 2015 was granted credit facilities to finance the importation of billets and machinery for expansion of the manufacturer’s factory. The Bank said it opened Form M and Letters of Credit, consequent upon granting the credit, in order to facilitate the importation of the billets for which the shipping documents were consigned to the bank. The credit facilities were secured by a Debenture Trust Deed over the assets of Metal Africa Steel Products shared with other lenders. Access Bank in the statement said that it released the shipping document to Metal Africa Steel Products upon arrival of the billets so the goods could be cleared but discovered thereafter that
Metal Africa Steel Products ‘’had cleared the goods from the port without payments of appropriate customs duty’’ Bound by its duty to protect its depositor’s fund, Access Bank said it reported the alleged crime to SFU and was authorised by a court order to take over Metal Africa Steel Product’s operations. The Bank further stated that it petitioned Interpol which is making efforts presently to repatriate from India, suspects in the alleged fraud. Access Bank explained that under the Debenture Trust Deed, it as well as the beneficiary banks appointed a Receiver/Manager to take over operations of the manufacturers business and paid the appropriate customs Duty on the billets. The Receiver/Manager subsequently obtained a court order from the Federal High Court, sold the billets and distributed the proceeds among Access Bank and the beneficiary banks. The tier-1 bank expressed that it was aware that BCME
Bank International also laid claim to the same billet and that there were unsuccessful attempts to settle between the Receiver and BCME Bank International, the petitioner, which led to BCME Bank filing a complaint with the SFU. In response to the recent development, Access Bank
stated the charges of fraudulence and theft brought against it is surprising and untrue. Access Bank said that it is both aware that there are civil matters in court on the subject matter and on-going settlement negotiations between the Receiver and BCME Bank International,
assuring stakeholders of its continued commitment to safeguarding depositors’ fund. Shares of Access Bank gained 0.83 percent in the Monday’s trading as the Banking index and NSE AllShare index declined by 2.87 percent and 0.90 percent respectively.
L-R: Yemisi Edun, executive director, finance, First City Monument Bank (FCMB); Eme Essien, country manager, International Finance Corporation; Adetayo John-Fishers, managing director, Richman Fishers Limited and a recipient of the FCMB SheVentures zero interest loan for Women entrepreneurs, and Olapeju Sofowora, director, FCMB Group Plc, during the launch of the bank’s SheVentures proposition and celebration of International Women’s Day in Lagos.