Beware Of China!

Beware of China
By Blake Olisa and Chibuike Eze

CHINA is one of the last bastions of communism and the country\'s despots must be given credit for managing to somehow convince the rest of the world that they are an *okay *communist nation. While the two other remaining communist outposts, North Korea and Cuba, groan heavily under the weight of sanctions and have attained international pariah status, China has thrived economically and politically. It has done this through shrewd planning and realpolitik. China is now widely seen as the successor to the US.S.R in a world that is increasingly becoming bipolar. It is also an emerging economic power.

And despite the country\'s penchant for oppressing its neighbours and its citizens - it invaded Tibet, supports North Korea\'s paranoid regime, interferes in Cambodia and never misses the opportunity to intimidate Taiwan by staging mock invasions and issuing inflammatory statements - the International Olympic Community overlooked all these crimes and awarded them the right to host the 2008 Summer Olympics. This is China - a country that clearly understands that international politics is not about playing fair. The usually circumspect United States of America is so enamoured with China that it overlooks its abysmal human rights record when celebrating the entry of US. companies into China.

It is with great displeasure that we have observed China\'s increasing influence over the Nigerian economy. It is now very obvious that China is one of the major architects of Nigeria\'s economic problems and we will not be surprised if there are Chinese think tanks devoted to ensuring that the most populous black nation on earth remains a bottom feeding underdeveloped nation. Let us take for instance the Nigerian consumer goods market. Nearly everything Nigerians consume is now imported from China and the government makes no effort to stem the tide. Even when the Nigerian government announced that it had banned foreign textiles, it still allowed Chinese businessmen to erect the hideous Chinatown building in Oworonsoki where banned textiles are freely peddled by Chinese nationals.

The Chinese and other Asians who have discovered Nigeria are so unscrupulous that they actually come to the Nigerian market and undercut Nigerian traders with their imitation goods. This has happened repeatedly with hair extensions and Nigerian manufacturers are tired of complaining about the matter. However, because of the Nigerian government\'s inferiority complex and desire for all forms of Foreign Direct Investment, China floods Nigeria\'s markets with goods that they would not dare to export to Europe or America. Chinese companies have also become synonymous with death and disaster in Nigeria.

The Chinese and other Asians have formed the habit of running slave factories in Nigeria. Here, they subject Nigerians to the most inhuman working conditions. These shoddy companies make billions in profit, pay little in taxes and wages and move their profits out of the country. Nigerian economists do not realise that they have to buckle up while the oil lasts. They have to realise that only fervent nationalism and realpolitik will take Nigeria out of the doldrums. Oil should be used as a bargaining chip, lest this country becomes a vassal state of China. While most common Nigerians complain that the price of Cassava is very high, Nigeria still exports cassava to China at lower costs instead of finding new methods of improving our agricultural output for our own consumption. We have to start becoming nationalistic.

Asian jails are full of Nigerians imprisoned without trial and yet when Chinese citizens are apprehended for crimes in Nigeria, they are set free. When the government has the good sense to shut down an Asian company, they return and set up the same company under a different name. We are not xenophobic. We are just annoyed that the Nigerian government always manages to make the worst decisions. Instead of seeking a partnership with a responsible pacifist and progressive nation like Japan which have a lot to offer in terms of technological transfer and other benefits, we have chosen to become a vassal state of China. Recall that it was the same Chinese that won the huge contract to revamp our railway system during the days of Abacha.

They took the money, resuscitated some obsolete trains and laughed all the way to the bank. The simple truth is that the Chinese have always had a policy of exploitation towards black Africa . Most Chinese people are deeply racist and consider Blacks a sub-human species. Some states have even done worse. Recently, the Yobe State Government announced its partnership with North Korea, the most paranoid nation and one of the most dystopian nations in the world. Could someone please explain what benefits Yobe State is supposed to derive from a country that is in the same situation as Niger and Ethiopia? We Nigerians have to get rid of our inferiority complex if we are to become a developed country. It seems that most of our companies and government agencies feel that once one is White or Asian, he is automatically good at what he does. Perhaps that explains why expatriate technicians come here and lord over well-qualified and educated Nigerian engineers.

It is pretty obvious that Nigeria is one of the few countries left in the world today with no concrete plan for development and while it is obvious that they have want to exploit us, the government just does not get the point. We think the Nigerian government should become more circumspect in its dealings with the Chinese government and realise that if we did not have so many natural resources, the Chinese would not be here. As the price of oil reaches new highs, we should do our best to take advantage of it while it still lasts.

www.guardiannewsngr.com

Chibuike Eze again? Isn't this Chibuike the same guy that attacked Nospetco in last Friday's Guardian? I don't think newspaper criticism counts for much in Nigeria. There are so many things to worry about.


The rise of the wonder banks-Guardian 21/07/07
By Chibuike Eze
SOME dogged investigative journalists and members of the public recently unearthed the activities of some Nigerian companies that promise investors extraordinary returns on cash deposits. These companies are reminiscent of the disastrous pyramid marketing scheme created in the eighties by Umana Umana, a storied con man who used a financial pyramid marketing scheme to cheat people out of their money in the eighties.

These latest incarnations are now referred to as "Wonder Banks" and recent press reports show that they have attracted a very high number of investors so far. Many people, illiterate and educated, from diverse walks of life have put money into these schemes. It seems that the appeal of easy money is just too great for many Nigerians. The Central Bank of Nigeria, which has been under intense pressure to clarify the legal status of these "wonder banks", finally released a statement that disowned their activities but stopped short of shutting them down. Rather, the bank advised members of the public to desist from doing business with all unregistered finance houses.

The apex bank also published an advertisement in the national papers that warns about "the recent spate of (sic) resurgence of illegal companies offering outrages (sic) interest rate (sic) under different guises, " It also published a list of seventy-six registered finance houses. However, the CBN did not directly condemn these wonder banks or mention them by name.

The feeling among people is that the issue could turn into a full scale public relations disaster for the apex bank, whose Governor is currently being attacked on several fronts. Most people feel that the CBN is sending a wrong message through its attitude towards these illegal firms and they feel that the bank could be blamed if these companies eventually collapse and disappear with investors' funds. According to the nation's financial laws, only registered financial institutions are allowed to accept deposits from the public. Many wonder why the case of Nospecto, Wealthzone and company, is being handled differently. The CBN is sending a wrong message by saying that it is okay for any company to set up shop and start accepting deposits from the public without meeting the regulatory requirements.

These companies also undermine the nation's achievements in terms of fighting money laundering and financial crimes. Since they are not subject to the nation's banking laws, they do not have to report suspicious looking deposits to the Central Bank and criminals could easily use them as avenues to launder money. It is commendable that some banks have refused to do business with these companies citing KYC (Know Your Customer) concerns.

However, some banks have been unable to resist the lure of easy profits and are fuelling the growth of these firms. If the CBN says that they are illegal, then why won't it shut them down and return all the monies to investors. If the CBN could shut down a registered bank like Savannah Bank for shoddy management practices, why can't it shut

down firms that are not even registered to carry out banking business but do it all the same?

Nospetco Joint Venture Management, a Lagos-based firm is clearly the biggest of these firms. The firm is known to be very secretive about its mode of operations and customers are made to sign blind contracts that give the firm complete control over their money. While the firm claims to be involved in the oil and gas sector and actually owns some trucks, their clandestine mode of business raises one important question. What do they really do?

Some people claim that several prominent Nigerians are known to be involved with these firms and some high net-worth individuals have even invested their money in these schemes. Could it be that our government agencies are being pressured by some of the country's big players?

Most people have risen to defend these firms. They say that there is nothing wrong with firms that pay out stratospheric interest rates. They also say that thrift collectors do the same thing without paying high interest rates. These are not logical arguments. Even though the country's economy is largely informal and traditional institutions like Esusu and thrift collection agencies thrive, they are all registered and do not operate under a shroud of secrecy like these firms.

The CBN initially denied responsibility for policing such firms and said that it was the duty of the Securities and Exchange Commission, SEC. However, this is not an issue that should attract such levity. It is not a matter of who is responsible. I can't imagine Ben Bernanke, the US. Federal Reserve Chairman allowing such a scandal to happen

under his watch. The most important thing is for the EFCC, CBN and the SEC to shut down these firms and return all deposits to customers before it becomes a financial fiasco. And Soludo should realise that he will be a big target if these companies fail. It is imperative that he joins hands with other agencies and end this nonsense.


Eze is with Project Think in Lagos.

At least he has an occupation.

Proffesional writer, who is helping to rid our society of bad eggs. His action is commendable.