Here is an article by Sonala Olumhense in the village voice about the extent of former CBN Governor Soludo's involvement in shady activities of the African Finance Corporation. A private sector initiative set up along the lines of the ainternational Finance Corporation. What is very clear is the apparent conflict of interest with respect to Soludo. How could he be the CBN Governor whist serving as Chairman Board of Director of a Private Investment Bank.

The same African Finance Corporation is now in debt to the tune of billions of Naira to one of the banks whose CEO's have been sacked by the current CBN Governor. Guess what ? Among the directors of AFC are Erastus Akingbola, Cecilia Ibru, and others .

This African Finance Corporation Stinks.



African Finance Corporation: Rusting Gold
Written by Sonala Olumhense
Sunday, 03 August 2008
African Finance Corporation: Rusting Gold
Sonala Olumhense

First of all, let me confess my admiration of the Chukwuma Soludo type: a man who does things and is not afraid to err.

To this man, as Governor of the Central Bank, we owe much of the wide-ranging reform of the nation’s banking sector and the relative discipline it now enjoys. He will also be remembered for the bold effort at re-denominating the Naira.

Perhaps his biggest enterprise, if only in terms of its Africa-wide application, is the Africa Finance Corporation (AFC). In its purest form, the AFC was designed as a machinery that would jumpstart the economic revival of Africa by bridging our huge funding gap that stands at about $16bn per annum.

Sitting in front of his computer at the Central Bank, Soludo must have been overwhelmed to see an ocean of funds belonging to Nigeria. It gave him an idea: a revolutionary endeavor that would channel these funds into a revolving investment machinery. His idea, bought immediately by President Olusegun Obasanjo the first time he heard it, was a private-sector entity providing funds for such critical economic sectors as energy, agriculture, telecommunications and tourism, but particularly transport infrastructure. It would also provide an assortment of banking services.

In April 2007, following approval by President Obasanjo and the work of a technical committee of 12 set up in January 2006 to actualize the dream, Soludo embarked on a tour to sell the concept to Africa and the world. Among his stops: London, New York, Egypt, Gambia, South Africa, Kenya, Ethiopia, Algeria and Tunisia.

The AFC was not a hard sell; it is difficult to conceive of any African to whom it was not a significant, powerful, idea. But our problem has never been the availability of good ideas, and the magic of the AFC seemed to have ended in those plush hotels. Implementation was next, on the card, and Soludo was completely unprepared.

The just-published report of the Presidential Committee to Investigate the Activities of the AFC reads like a Mafioso diary, not the record of a high-minded enterprise dedicated to the dream of helping African find development. As a result, not only is Soludo’s reputation now chin-deep in the sewers, the AFC may have died a premature and ignominious death.

What happened? Perhaps our old nemesis: self-interest and fuzzy thinking. How else do we interpret the conduct of the Central Bank of Nigeria, as Soludo led it in the AFC quest? The CBN seemed to have scant appreciation of the law as it hurried to ferry funds into the AFC, knowing that only Nigeria had signed the Agreement. That put it on the same level as Transcorp, a Nigerian company, but without Transcorp’s corporate legality. The AFC was not incorporated either as a domestic or international institution, and nobody, company or government outside Nigeria has placed a kobo in it.

Still, on 22 November 2007, Soludo’s CBN casually and illegally tossed in $462.9 million in easy money, like a casino hustler playing with house money, and another $288million from other Nigerian shareholders.

And then, the game got really interesting, as the AFC’s funds moved from being a casino activity to kalokalo or one-armed bandit involving such Nigerian banks as Ecobank, UBA, First City Merchant Bank, Oceanic Bank, Stanbic Bank, and Access Bank.

Consider, for instance, that five days after AFC illegally opened for business, the UBA New York branch opened with $250 million. Only two weeks later, those same funds began to be repatriated to Nigeria in various seedy ways. Five months later—abracadabra!—less than $19,000 was left in the AFC account.

Some of this information may not be strange to Nigerians who are paying attention. They would recall that on April 28 this year, the Financial Crimes Enforcement Network (FinCen) and the Office of the Comptroller of the Currency in the United States imposed an uncontested $15 million against UBA New York for violations of the Bank Secrecy Act.

That action followed two Cease and Desist Orders on the bank in January 2007 and February 2008, citing its failure to implement the law and report money laundering or other suspicious activity involving approximately $197 million in suspicious transactions.”

In other words, UBA was dubious and unprofessional. But that is exactly where our AFC funds were lodged, and we may not have known had the US authorities been playing the same game. And the funds placed in the UBA account, having been manoeuvred back to Nigeria, began to turn a “profit”. Prof. Soludo told the committee the profit on the CBN investment in the AFC stands at about $11.3 million.

Soludo seems to have taken to heart, the ad hoc approach of the man who appointed him to heart: without reference to the CBN or AFC Boards, he unilaterally authorized the transfer of a total of $300 million to UBA New York, and $593.2 to Citibank London.

Perhaps the absent-minded Professor was in such a hurry to save Africa he forgot the law, due process and transparency. Now, he has to explain how he could so casually dispense with the rules not once or twice, but from the formation stage of the AFC through its funding, operation and management. That would include his chairmanship of the Board in his personal capacity, contrary to the law.

Most of all, he and the management of the AFC have a lot to explain concerning the movement of the funds in their control. Apparently, there are serious legal and ethical issues of abuse of office, gross negligence, round tripping (which is some kind of “money-doubling”), and money-laundering.

The case of Austine Ometoruwa, the AFC Chief Executive Officer is doubly sad because it is difficult to extricate Soludo from the serious charges against him. Ometoruwa had a historic opportunity in his hands, but seemed to have chosen to put it in a chokehold and stuff it into his pockets.

And Nigerian banks! Sometimes, some of them are cited in the media for their “achievements”. Our newspapers and magazines that maintain an incestuous relationship with these institutions install a “Banker of the Year.”

And then came game day and exposed themselves, treating the AFC like their private ATMs). The Report says they “colluded with the AFC Management to mis-apply AFC funds as a source of cheap trading money rather than being deployed to the critical developmental objectives for which the AFC was established.”

Collusion is a very strong term, and the Report rightly recommends they be sanctioned or prosecuted. I expect them to deploy their slush funds to try to buy justice, of course, but the point has been made. They may be banks, but they are not professionals. They are overpriced petty-traders. And criminals.

Will the AFC rise from these ruins? I do not see how, yet it is an idea whose time has come. But then, so was electricity in Nigeria, and Transcorp, and roads.

Yes, we did reform the banking sector, but who will reform the bankers?

sonala.olumhense@gmail.com

We haven't heard the last of this story.

Here is an article published in the village voice by Solana Olumhense. It clearly reveals the extent of the former CBN Governor Soludo's involvement in an institution ( AFC ) which has now been listed by the CBN as been indebted to the tune of several billion Naira to one of the five banks whose CEO's have been sacked by the CBN.

The African Finance Corporation was founded as a private sector initiative along the lines of the International Finance Corporation , Soludo is the Chairman Board of Directors but the problem appears to be that of conflict of interest.


African Finance Corporation: Rusting Gold
Written by Sonala Olumhense
Sunday, 03 August 2008
African Finance Corporation: Rusting Gold
Sonala Olumhense

First of all, let me confess my admiration of the Chukwuma Soludo type: a man who does things and is not afraid to err.

To this man, as Governor of the Central Bank, we owe much of the wide-ranging reform of the nation’s banking sector and the relative discipline it now enjoys. He will also be remembered for the bold effort at re-denominating the Naira.

Perhaps his biggest enterprise, if only in terms of its Africa-wide application, is the Africa Finance Corporation (AFC). In its purest form, the AFC was designed as a machinery that would jumpstart the economic revival of Africa by bridging our huge funding gap that stands at about $16bn per annum.

Sitting in front of his computer at the Central Bank, Soludo must have been overwhelmed to see an ocean of funds belonging to Nigeria. It gave him an idea: a revolutionary endeavor that would channel these funds into a revolving investment machinery. His idea, bought immediately by President Olusegun Obasanjo the first time he heard it, was a private-sector entity providing funds for such critical economic sectors as energy, agriculture, telecommunications and tourism, but particularly transport infrastructure. It would also provide an assortment of banking services.

In April 2007, following approval by President Obasanjo and the work of a technical committee of 12 set up in January 2006 to actualize the dream, Soludo embarked on a tour to sell the concept to Africa and the world. Among his stops: London, New York, Egypt, Gambia, South Africa, Kenya, Ethiopia, Algeria and Tunisia.

The AFC was not a hard sell; it is difficult to conceive of any African to whom it was not a significant, powerful, idea. But our problem has never been the availability of good ideas, and the magic of the AFC seemed to have ended in those plush hotels. Implementation was next, on the card, and Soludo was completely unprepared.

The just-published report of the Presidential Committee to Investigate the Activities of the AFC reads like a Mafioso diary, not the record of a high-minded enterprise dedicated to the dream of helping African find development. As a result, not only is Soludo’s reputation now chin-deep in the sewers, the AFC may have died a premature and ignominious death.

What happened? Perhaps our old nemesis: self-interest and fuzzy thinking. How else do we interpret the conduct of the Central Bank of Nigeria, as Soludo led it in the AFC quest? The CBN seemed to have scant appreciation of the law as it hurried to ferry funds into the AFC, knowing that only Nigeria had signed the Agreement. That put it on the same level as Transcorp, a Nigerian company, but without Transcorp’s corporate legality. The AFC was not incorporated either as a domestic or international institution, and nobody, company or government outside Nigeria has placed a kobo in it.

Still, on 22 November 2007, Soludo’s CBN casually and illegally tossed in $462.9 million in easy money, like a casino hustler playing with house money, and another $288million from other Nigerian shareholders.

And then, the game got really interesting, as the AFC’s funds moved from being a casino activity to kalokalo or one-armed bandit involving such Nigerian banks as Ecobank, UBA, First City Merchant Bank, Oceanic Bank, Stanbic Bank, and Access Bank.

Consider, for instance, that five days after AFC illegally opened for business, the UBA New York branch opened with $250 million. Only two weeks later, those same funds began to be repatriated to Nigeria in various seedy ways. Five months later—abracadabra!—less than $19,000 was left in the AFC account.

Some of this information may not be strange to Nigerians who are paying attention. They would recall that on April 28 this year, the Financial Crimes Enforcement Network (FinCen) and the Office of the Comptroller of the Currency in the United States imposed an uncontested $15 million against UBA New York for violations of the Bank Secrecy Act.

That action followed two Cease and Desist Orders on the bank in January 2007 and February 2008, citing its failure to implement the law and report money laundering or other suspicious activity involving approximately $197 million in suspicious transactions.”

In other words, UBA was dubious and unprofessional. But that is exactly where our AFC funds were lodged, and we may not have known had the US authorities been playing the same game. And the funds placed in the UBA account, having been manoeuvred back to Nigeria, began to turn a “profit”. Prof. Soludo told the committee the profit on the CBN investment in the AFC stands at about $11.3 million.

Soludo seems to have taken to heart, the ad hoc approach of the man who appointed him to heart: without reference to the CBN or AFC Boards, he unilaterally authorized the transfer of a total of $300 million to UBA New York, and $593.2 to Citibank London.

Perhaps the absent-minded Professor was in such a hurry to save Africa he forgot the law, due process and transparency. Now, he has to explain how he could so casually dispense with the rules not once or twice, but from the formation stage of the AFC through its funding, operation and management. That would include his chairmanship of the Board in his personal capacity, contrary to the law.

Most of all, he and the management of the AFC have a lot to explain concerning the movement of the funds in their control. Apparently, there are serious legal and ethical issues of abuse of office, gross negligence, round tripping (which is some kind of “money-doubling”), and money-laundering.

The case of Austine Ometoruwa, the AFC Chief Executive Officer is doubly sad because it is difficult to extricate Soludo from the serious charges against him. Ometoruwa had a historic opportunity in his hands, but seemed to have chosen to put it in a chokehold and stuff it into his pockets.

And Nigerian banks! Sometimes, some of them are cited in the media for their “achievements”. Our newspapers and magazines that maintain an incestuous relationship with these institutions install a “Banker of the Year.”

And then came game day and exposed themselves, treating the AFC like their private ATMs). The Report says they “colluded with the AFC Management to mis-apply AFC funds as a source of cheap trading money rather than being deployed to the critical developmental objectives for which the AFC was established.”

Collusion is a very strong term, and the Report rightly recommends they be sanctioned or prosecuted. I expect them to deploy their slush funds to try to buy justice, of course, but the point has been made. They may be banks, but they are not professionals. They are overpriced petty-traders. And criminals.

Will the AFC rise from these ruins? I do not see how, yet it is an idea whose time has come. But then, so was electricity in Nigeria, and Transcorp, and roads.

Yes, we did reform the banking sector, but who will reform the bankers?

sonala.olumhense@gmail.com


I believe we haven't heard the last in the matter.

@ Remii

Cheer up, nobody is going to deport our dear friend Dr Olusola Saraki. I actually admire the man for his candour and the fact that he is a medic.


@ Kayality

My comments were meant as a satire, in any case learn not to be disparaging about other people's opinion. Try making your own point and stick to it.

Going back to Mali will give Sultan Olusola Abubarka Sar' aki the opportunity of turning Mali into his private enterprise just as he did Kwara State.

He can then install his son Bukola Saraki as the President of Mali whilst appointing himself as Mali ambassador to Nigeria, that allows him the chance to continue living in his present mansion in Abuja.

What a good life for some.

If Dr Olusola Saraki or is it Alhaji Abubarka El Sar 'aki or is it Chief Saraki claims to be a Fulani from Mali. Here is the solution to his identity crisis.

The Nigerian Immigration should simply deport him and his entire family back to Mali so he can be with his Fulani brethren.

He can then use his questionable wealth to contest for the Presidency of Mali.

@ OneNaija

Good question, is it possible to travel by road ( through land ) to an island country in the Atlantic , i think it will be a hell of a task to achieve even though you claim it's a free country.

I've noticed the activities of several unintelligent and idiotic scammers and fraudsters in the travel forum. They come in the guise of Visa and the so-called passport agents.

It is really sad to know people are still not wise enough to know it is downright fraudulent for anyone to claim to have the ability to obtain Visas for those wanting to travel to greener pastures.

One can only hope NL users will not fall for such ridiculous scams.

@ Larez

It is usually not my style to openly criticize anyone with a contribution on NL.  But i feel compelled to address your assertion that everywhere in the world, a plot of land is 60' X 120' and will always remain so.

Firstly, when referring to everywhere in the world, do you mean the UK, France, Germany, Angola, Japan and the rest. the truth is a lot of these countries use the metric system of measurement, how would you then expect them to have plots measuring 60 feet X 120 feet. it's simply not logical.

Secondly, one does not need to be a professional Surveyor or architect to recognise the fact that in any urban planning environment, plots are made up of different sizes to allow for different types of use either residential or commercial.
A plot of land can only refer to an area with a specified perimeter.  for example in Abuja plots allocated by the FCTA come in different sizes and you cannot say a plot of land in Abuja is always 60' X 120'.

It would be helpful  if you can correct the impression you gave regarding your statement that " A plot of land is and will always remain 60' X 120' ". as if that is gospel.   The facts point to the contrary.

Let's not be pedantic here, we should agree that people can carve up their land into any sized plots they so desire as long as it conforms to the local planning laws.

This should not come as a surprise if you recall that as early as July 2009.  The Africa Report ran a story in it's business section which indicated that Nigerian banks after wowing the world with their recapitalisation exercise, had fallen into bad habits.

One cannot absolve Soludo of his inability or what some would even call his complicity in allowing a host of bad banking practices to go unchecked.

The Africa Report stated that some banks had serious governance issues requiring urgent attention, these following banks were  listed - Intercontinental bank, Oceanic bank , Union bank, Access bank, Ecobank, First city monument bank and Sterling bank.    The same report listed Afribank amongst others as having margin lending issues.

A lot of commentators criticised and rubbished the Africa Report as lacking substance , well ,   i believe they are now vindicated.  

I see Lamido  Sanusi as a real professional who will bring sanity and credibility to Nigeria's banking sector. Wish him well.

@ lakeside44

What you said makes sense.

In as much as it is difficult to verify the authenticity of this story, one has to be worried about the type of justice Libya is imposing on Nigerians who have fallen foul of Libya's repressive laws.

Yesterday the President's media spokesman ( Adeniyi ) confirmed that information given to the Nigerian Government by it's Ambassador to Libya showed 14 Nigerians are on death row for various offences ranging from murder, drugs, armed robbery and 419.

57 Nigerians are serving life sentence for alcohol related offences, fake currency, drugs, robbery and fighting. 587 others are awaiting trial for various other offences.

One wonders why any Nigerian should be sentenced to life imprisonment in a foreign land for fighting, i think that is barbaric of the Libyans.

The Federal Government needs to seriously tackle the Libyan Authority on this issue.

It is a myth that rugby players are one of the most disciplined sportsmen. The fact is the game has witnessed several incidents where players have been sanctioned for gouging opponents eyeballs. What could be more barbaric than that, so rugby lovers should give us a break and stop extolling the virtues of the loutish game.

I always fancy a round of golf and believe me you don't have to be affluent to enjoy it.

Your President's illness is very serious, he has Churg-Strauss Syndrome. A disease with unknown aetiology and in his case a very poor prognosis.

@ Kharis

Please can you tell me where Maitama Extension is, is it part of cadastral zones A05 and A06.

A plot of Land in Nigeria is what ever you want it to be.  Nigeria uses the Metric system of measurement so it puzzles me when people describe Land in terms of feet X feet. All surveyed land should be in Metres X Metres ( Sq M ).

A plot can be 850 Sq M  or  1,200 Sq M so anyone involved in land transaction should ask the land vendor what the size of the plot for sale is in Square Metres, it's as simple as that.

By the way One Hectare is 10,000 Sq M  and an Acre is 4,046.85 Sq M . One Acre is roughly 40% of a hectare.

Yar' adua's condition can be serious.   Churg-Strauss Syndrome even with treatment has a 1-year  survival  rate of 90% and a 5-year survival rate of 62%.

In terms of prognosis,  Organ involvement like the Kidneys suggest a poorer prognosis and can be fatal. The principal causes of mortality are myocarditis and myocardial infaction ( Stroke ).  There you have it.

This gives a brief description of the condition Yar' adua is battling with.

Churg-Strauss Syndrome:

This is a rare disease affecting coronary (heart), pulmonary (lungs), cerebral (brain), abdominal visceral and skin circulations.

It affects small and medium sized arteries and veins ( blood vessels) and is associated with asthma.

Aetiology ( cause ) is unknown.

Presentation:
Allergic rhinitis ( hay fever ), asthma, sinusitis, heart failure, myocarditis, myocardial infarction., SKIN PURPURA, urticaria ( itching ), digital ischaemia ( pale fingers and toes ), KIDNEY DISEASE ( glomerulonephritis ),hypertention, ADVANCED KIDNEY FAILURE, peripheral neurophathy, gastric vasculitis and bleeding, appendicitis,
WEIGHT LOSS, FATIGUE, FEVER, MALAISE, MUSCLE PAIN, JOINT PAIN.

Management:
High dose steroids, cyclophosphamide, IV immunoglobulins , interferon alpha, blood transfusion ( plasma exchange).

Complications:
Principal causes of death are myocarditis and myocardial infaction secondary to coronary arteritis.

Prognosis:
Good overall but severe asthma usually persists.  Organ involvement e.g Kidneys suggests a poorer prognosis and can be fatal. With treatment 1- year survival rate is 90% and 5-year survival rate is 62%.

There you have it.

Another example of empty promises by the Government.

I recall that in April 2009, The Federal Government of Nigeria set up a committee headed by the former IGP Mike Okiro to investigate the Halliburton scandal in which about $ 180 M was spent through a conduit company set up by Halliburton to bribe prominent Nigerians to gain lucrative contracts in the Nigerian oil sector.

The committee had six ( 6 ) weeks to determine which so-called prominent Nigerians where involved and  bring them to justice.

Does anyone know the outcome, afterall the Yar Adua administration promised to get to the bottom of this.

Your comments.

Give Onovo the chance to prove he is up to the job, if he fails to live up to expectation then he should be held to account.

@   Brein,

Whilst one appreciates your attempt to highlight Nigeria's problems.  I believe you should attempt to get your facts right before you post any comments,  this relates to your assertion that Nigeria has not been included in US Secretary of State Hillary Clinton's trip to Africa.

The fact is Secretary Clinton is currently embarking on an eleven day, seven Nation trip to Africa including Kenya, South Africa, Angola, Democratic Republic of the Congo, Nigeria, Liberia and Cape Verde.

You need to back your posts with pure facts if you want NLanders to accept them as credible.

@ Aloy Emeka.

Your brief insight on Awolowo makes sense to me. I believe some people should learn to examine and question the actions of their so-called leaders without myopic vision.

Talking about professionalism in TV broadcasting. The presenter of AIT's program titled Osisi's world (I believe his name is Osis) has zero presentation skill, he can hardly string a few words together in English without a struggle and his pronunciation sucks, BUT, Focus Nigeria should be commended.

@ danjumaali

Where exactly is Maitama extension, is it within cadastral zone A05 and A06. I will appreciate your response.

All hail to Dr Olusola Saraki ( Chairman and Absolute Chief Executive Officer , Kwara State Plc )
Kwara State it appears is the sole personal property of God Saraki.

Who can one blame but all the fools who call Kwara State their home, such madness would not be possible without their tacit collusion, i only hope they will eventually wake up from their slumber and do the right thing.

The shame should be on Alamieseigha, this is further proof that he an unintelligent slowpoke,  coupled with the fact that he an unrepentant thief who can't seem to understand the gravity of the fraud he perpetuated against the people of Bayelsa State.

I am not sure what the intention of the poster is. I only hope he is not an alams apologist.

I have one word for Alamieseigha,       Voleur !

one senses jamace and sojapikin are one and the same, , catch my drift.

She is so ugly no amount of money can salvage that face, i guess she inherited it from OBJ.

Private Oladipo Diya, the most pathetic coward of all time. That man is a disgrace to his people.

Everyone has a right to be ugly, but isn't Senator Iyabo Obasanjo-Bello ( Queen of Scam and theatre of the absurd ) abusing that privilege ?

@ mamaarthur or kubis or madam kelechi.

I'm shocked to find that you have been posting what can only be described as downright fraudulent requests for any takers for your illegal cote d ivore passport with the so called Chinese visa.

Such nonsense which is clearly designed to defraud innocent nairalanders ought to be discouraged.

Nobody should be conned into taking up your offer as the outcome will be financial disaster and a long jail term .

You should be ashamed of yourself.

Gov Akala may not be your ideal governor but is anyone suggesting N 5 million ( £20,000 ) is too much to build a well designed public toilet .

If one has to be realistic and fair, a public toilet has to be constructed to a different standard to your average domestic lavatory. Remember it has to be housed in a newly constructed structure and all the required services i.e electricity, water, clean water, foul discharge drainage have to be connected.

When you take all these into consideration you'll begin to appreciate maybe the cost is reasonable after all.