LAGOS—The Economic and Financial Crimes Commission, EFCC, led by Farida Waziri, will today storm Lagos with 100 operatives and two Mobile Police units to arrest all loan defaulters who fail to meet the seven-day deadline given by  last Tuesday to pay up or have their properties sealed.

Meanwhile, the umbrella body for Nigerian lawyers, the Nigerian Bar Association, NBA, has asked  EFCC to follow due process  in the plot to arrest some of the former bank executives, recently relieved of their jobs by the CBN and declared wanted by the commission on Sunday.

A source close to the commission revealed that seals running into thousands were released to the operatives to seal up property belonging to the loan defaulters.

According to the source, specially designed seals for private jets were also prepared by the agency as most of the defaulters own private aircraft parked at the airports in Lagos.

It was also revealed that the amount paid back so far “is paltry when compared to the magnitude of what the debtors are owing.

The property of the debtors would be sealed up in different parts of Lagos that have been penciled down by the anti-graft agency before the sledge hammer of the apex bank slammed against the banks barely two weeks ago”.

The source explained to Vanguard that “the operatives left early this morning (yesterday) to enable them arrive early and carry out the operations as directed by the chairman as excuses will not be accepted for any failure.”
When asked of the possibility of being influenced by the loan defaulters, the source simply said “our operatives are well paid.

They see this assignment as a challenge than monetary rewards, in short they cannot be influenced by anybody.”
When contacted, Head, Media and Publicity of EFCC, Mr Femi Babafemi confirmed that operatives had been sent to Lagos as the deadline elapses by 12 midnight

http://www.vanguardngr.com/2009/08/25/waziri-100-efcc-men-storm-lagos-to-arrest-debtors/

bush woman

i am sincerely embarrassed by the olodo running EFCC

when did being in debt become a financial/economic crime?

oyb:

bush woman

i am sincerely embarrassed by the olodo running EFCC

when did being in debt become a financial/economic crime?

I am not a financial guru, but i am guessing that if you take a loan (especially doing so without due process) and refuse to pay back, it is a crime.

Epiphany:

I am not a financial guru, but i am guessing that if you take a loan (especially doing so without due process) and refuse to pay back, it is a crime.

yes it is definitely a crime.
can you imagine ex- bank executives too. lol  they should learn to manage their money well next time and always live at or below their means. rather than above it.

if these were very poor people looking for means of survival then i would have some sympathy. but these are rich executives. they should be able to pay back their loans.

@ Epiphany i was just going to say that, Just try owing the wrong dude and you'll see where you'll end up. @ Oyb We need to talk with some level of respect to people no matter how stupid someones action is doesn't give you a right to insult. lets mind our words pls

Criminal offence is difference from a civil offence. Borrowing money and not pay back is not a criminal offence. Efcc leader is truly olodo.

Shouldnt it be the banks taking the loan defaulters to court and not EFCC interfering in a situation involving two independent parties without invitation?I fear Nigeria!

Nlanders please keep us updated, i dey office and dont have radio.

As they are sealing the houses, offices and private jets please tell us oooooo.

@ Adekampe its like you ar the only ine complaining about this i dont see any of the defaulters complaining, what we know is what we read we are not in the system we dont know what and what have exchanged, we should be observers and we should be neutral. No one has done any small thing to help this nation. but yet we complain, if we work hard with a pure heart you'll see the difference. They say we are 140 million people one country, i dont think so i think we are more of 140 million people 140 million different countries.

Olodo or not, Mrs. Wazero now has some high profile work to do! If she sustains it well she may rightly arrest Yar'adua.

Despite the fact that I am not a fan of the method employed by Waziri in this matter, we all know that is the only language Nigerians understand.
Many of these Banks have been in different courtrooms seeking judicial inteference in the matter, but with the snail speed of justice in this country, they may end up in court for the next 10 years.
Therefore, whatever needs to be done to get depositors' money secured, is a very welcome idea.

They should go quickly to that oceanic nanny before she runs away to Ghana.

at least,the northerner bombardment of the southerners.Imagine the list of debtors,you could hardly see a northerner there.why? abi aboki no dey borrow money to rear their cattles

Whatever you guys call it. These guys should be arrested and brought to book through any method. Simple!

The MD’s misappropriated the public funds saved in their various banks. They same time gave out loans without Collateral and remained adamant in chasing about the borrowers,
There is definitely a Fraud, Cos have been on their heels ….I wonder why they are running when they have not committed any real crime?

Perhaps there is a link to corrupt activities? I hope so if not this is embarassing. Arresting loan defaulters is not the job of the EFCC

If these debtors claim to be servicing their loans, asking them to pay down or arresting them isn't right i think.because it nullifies d offer/contract terms duely executed by both parties. And i think CBN classifying the loans as non performing should only be based on prudential guideline

[size=16pt]Recalcitrant Debtors James Ibori…… Others wants Sanusi’s Head [/size]

http://www.huhuonline.com/index.php?option=com_content&view=article&id=233:recalcitrant-debtors-james-ibori-others-wants-sanusis-head-&catid=1:latest-news&Itemid=18

Too many ignorant and illiterate people. Loan defaulters cannot be arrested as it is no crime to owe money. Many organisations borrowed money with good intentions and submitted solid business plans these banks. Many have defaulted on their loans for various reason including stiffling operating conditions in the country and other unforseen circumstances. Richard Branson and Sir Freddie Laker ran down several businesses taking along huge loans from financial institutions down with the businesses before finally making it big in business. Imagine if the authoriites in the UK had arrested and locked up this people for having bad debts. If you fail to meet your debt obligations, the right thing for the bank to do is go to court and get an order to liquidate as done by Access Bank recently. At no point shoul the law enforcement agencies come into the scenario. Only if a case of malpractise has been identified. As far as we know, the only crime these debtors have commited is to owe money.

I like designers things, like the EFCC designer wars. This WAZERO EFCC war is now against Business people who took loans, maybe not repaid for whatever reasons.

In any good society, it is a civil matter, and the risk departments of banks are responsible for underwriting of loans.

But in Nigeria, anything goes. Now, YAR A'LIAR as advised by Aoondoanka and Ibori shifted the fight from Corrupt politicians to 'corrupt business' people because the later do not have political power and maybe godfather and easy targets.

It is sad to say, that we live in ANIMAL KINGDOM, the COMEDY REPUBLIC. Borrowing and lending is a civil matter unless the state can proof fraud, and usually it is the bank that always call in the cops to investigate, even if it is collusion between bank staffs and customers.

Then to collect money from debtors you need court orders and baillifs. Now the tactics being employed by WAZERO EFCC may not be legal , and due procees and rule of law certainly is not followed but if it is the only tool that Nigeria can use to make those business executhieves to pay up, so be it.

NOW, YAR 'DAFT should now apologise to RIBADU because that was exactly Ribadu's point about chasing corrupt people especially politicians, you do not apply conventional means against them.

The truth is begining to come out. The real reason why RIBADU was removed was to cover corrupt politicians, and to make WAZERO  EFCC to appear to be doing something on the same line of RIBADU( including disregard for Due process and rule of Law) she was asked to chase bank debtor's.

Debtors are no criminals except if they got the loan fraudulently or they are deliberately not paying back.

It is all fire brigade mentality we operate in this country, checks and balances should have been applied before loans were given out, and business do fail especailly if the bank are charging 25% interest rates on funds they got from central banks less than 10% plus excessive and dodgy fees and bank charges. After loans given out, the banks are all on prayers.

In a nutshell , IT IS THIEF STEALING FORM THIEF INCLUDING OUR GOVERNMENT.

There is also the case of discrimination by starting with 5 banks when 14 are yet to be audited, it gave unfair advantage on the debtor's of those other banks to escape the same adverse publicity as the curent customer's of the 5 that are sactioned at present.

So who should punish them and when should they be punished?

It's like these people have benefactors on nairaland o

This waziri is a dolo, guess she doesnt understand her job description, These are not criminal casese, it s civil offence , and come to think of it its very stupid der would av bn an agreement btw d banks nd the so called debtors before the loans are been given out, so now squeezing these people out ti pay back at once is very stupidd, der gonna mess up amny thingsss ( Soludo to me has startd failing!!!!)

this is what you get when someone is either too scared to do their job or has been compromised.

The EFCC has effectively been reduced to Bailiffs

For a Government that deployed all institutions of Government from Attorney Generals office to Justice Ministry, to EFCC to the Courts, to the Police, just to set Ibori free.
Its interesting that they are so happy to chase loan defauleters arround and declare them wanted criminals.

@ Falciparum :

I understand wha youre saying but pls understand that these MD's created a lot of job opportunities and helped businesses.This action by the EFCC would discourage prospective business men and let the young undeveloped minds believe that taking loans for business is a criminal thing.

I guess the country is finished.Since their notheRn businessmen wouldnt do business they frustrate the southerners who do .I guess they want everyone begging for contracts and government positions to grow.

Criminal offence is difference from a civil offence. Borrowing money and not pay back is not a criminal offence. Efcc leader is truly olodo.

bush woman

i am sincerely embarrassed by the olodo running EFCC

when did being in debt become a financial/economic crime?

@BAC & oyb,
your opinions above represent the typical wisdom of nigerians that have brought us this far in developments. most of us who had the priveledge and opportunities to be in the universities or travel to the uk do think they are in good positions to use and manipulate english language.
crime is crime and they fall under the anointing of efcc especially when the crime has to do with finance. be not decieved, what our so-called elites do is to gather the poor masses funds and use them to buy private jets while the poor ppl loose out in all rounds.
if what these fools committed are not crimes, what happens to those banks that went bankcrupt? nigeria has about 25 banks and 5 are been investigated so what is wrong with that? this has been the case with nigerian where ppl loose their deposits just no other than these so-called rich men.
it is high time these jimohs, dangotes and otedolas are told the game is over.
in other developed countries, these kind of conmen die in the prison yards while countries like china will sentence them to death.

chidichris:



@BAC & oyb,
your opinions above represent the typical wisdom of nigerians that have brought us this far in developments. most of us who had the priveledge and opportunities to be in the universities or travel to the uk do think they are in good positions to use and manipulate english language.
crime is crime and they fall under the anointing of efcc especially when the crime has to do with finance. be not decieved, what our so-called elites do is to gather the poor masses funds and use them to buy private jets while the poor ppl loose out in all rounds.
if what these fools committed are not crimes, what happens to those banks that went bankcrupt? nigeria has about 25 banks and 5 are been investigated so what is wrong with that? this has been the case with nigerian where ppl loose their deposits just no other than these so-called rich men.
it is high time these jimohs, dangotes and otedolas are told the game is over.
in other developed countries, these kind of conmen die in the prison yards while countries like china will sentence them to death.

God bless you.

Pls i want my name to be published on the lsit of debtors too. i need the billions. help anybody?

This is absolute bullshit, full or political propaganda. efcc is busy running after business who are trading genuinely, but owe money to the bank when their main priorities should be the political office holders. they have basically been reduced to bailiffs and recovery agents when they are supposed to channel their priorities to more important issues. absolute nonsense.

http://en.wikipedia.org/wiki/Default_(finance)

In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant (condition) of the debt contract. A default is the failure to pay back a loan.[1] Default may occur if the debtor is either unwilling or unable to pay their debt. This can occur with all debt obligations including bonds, mortgages, loans, and promissory notes.Contents [hide]

1 Distinction from insolvency and bankruptcy
2 Types of default
2.1 Sovereign defaults
3 References
4 External links
5 Bibliography


Distinction from insolvency and bankruptcy

The term default should be distinguished from the terms insolvency and bankruptcy.
"Default" essentially means a debtor has not paid a debt which he/she/it is required to have paid.
"Insolvency" is a legal term meaning that a debtor is unable to pay his debts.
"Bankruptcy" is a legal finding that imposes court supervision over the financial affairs of those who are insolvent or in default.

[edit]
Types of default

Default can be of two types: debt services default and technical default. Debt service default occurs when the borrower has not made a scheduled payment of interest or principal. Technical default happens when an affirmative or a negative covenant is violated.

Affirmative covenants are clauses in debt contracts that require firms to maintain certain levels of capital or financial ratios. The most commonly violated restrictions in affirmative covenants are tangible net worth, working capital/short term liquidity, and debt service coverage.

Negative covenants are clauses in debt contracts that limit or prohibit corporate actions (e.g. sale of assets, payment of dividends) that could impair the position of creditors. Negative covenants may be continuous or incurrence-based. Violations of negative covenants are rare compared to violations of affirmative covenants.

With most debt (including corporate debt, mortgages and bank loans) a covenant is included in the debt contract which states that the total amount owed becomes immediately payable on the first instance of a default of payment. Generally, if the debtor defaults on any debt to any lender, a cross default covenant in the debt contract states that that particular debt is also in default.

In corporate finance, upon an uncured default, the holders of the debt will usually initiate proceedings (file a petition of involuntary bankruptcy) to foreclose on any collateral securing the debt. Even if the debt is not secured by collateral, debt holders may still sue for bankruptcy, to ensure that the corporation's assets are used to repay the debt.,

There are several financial models for analyzing default risk, such as the Jarrow-Turnbull model, Edward Altman's Z-score model, or the structural model of default by Robert C. Merton (Merton Model).

in civilised countries, the highlighted represents how debts are collected. why do you think access bank and GTB took AP and Virgin Nigeria to court?



do you have any idea how stupid it is to send law enforcement agents whose job it is to pursue criminals after debtors?

in civilised countries, the highlighted(spam bot deleted the post) represents how debts are collected. why do you think access bank and GTB took AP and Virgin Nigeria to court?

do you have any idea how stupid it is to send law enforcement agents whose job it is to pursue criminals after debtors?

the inability to service a loan DOES not constitute a crime - you lot are assuming that all debtors DELIBERATELY go out of their way to default on payments. you are thinking in the typical nigerian way, that the next thing to do when someone is owing you is to organise some thugs to go after him.

this is the other action that CIVILISED people take with unrepentant loan defaulters


http://en.wikipedia.org/wiki/Repossession