STOCKBROKER DISOWNS BANK PHB EX-CEO OVER N4BN LOAN

Fresh facts emerged yesterday that the embattled ex-Managing Director of Bank PHB, Mr. Francis Atuche and the detained Managing Director of Falcon Securities Limited, Mr. Peter Ololo, have clashed over alleged non-performing loan of N4billion.

It was also learnt that Atuche may face fresh charges on alleged laundering of about N14.9billion.

These revelations came from the ongoing investigation of the records of Bank PHB by a special team from the Economic and Financial Crimes Commission (EFCC).

A highly-placed source in the commission, who spoke in confidence with The Nation, said the EFCC has made more startling discoveries from the book of Bank PHB.

The source said: “We have made fresh shocking discoveries including curious loans given as follows: Carejeke (N3.5billion); Futureviews Limited (N3.5billion); Extra Oil Nigeria Limited (N3.9billion); and N4billion to Pegosan Oil and Gas, allegedly owned by Ololo, to build a tank farm.

"When Ololo was confronted with the claim of a N4billion loan, he disowned Atuche and said that he never applied for any loan in Bank PHB to build a tank farm in Calabar.

"Ololo claimed that his signature and account records were forged. He said other signatories to the account were unknown to him. He said we should go to any length to probe him because he does not have a tank farm.

"We are suspecting that the fund had been wired out by Atuche and some of his former officials in Bank PHB.As the former MD of Bank PHB, we have asked Atuche to explain the whereabouts of the N4billion.

"The curious thing about the account credited to Ololo is that the account was opened on December 27, 2007 and on the same day, the account was credited with N4billion. The same controversy is surrounding a N3.9billion loan granted to Extra Oil Nigeria Limited purportedly owned by Diamond Uju. This Uju does not have an account at all in the bank.

"In Bank PHB record however, they said the oil firm belongs to an Economist, Tochukwu Kema Kolam. But in real life, Kema is a lawyer and a staff of Futureviews Securities Limited.

"Without the knowledge of the real owner of Extra Oil Nigeria Limited, they opened an account with fictitious documents and gave a N3.9billion loan to Extra Oil. Again, the purported loan has been wired out of the country.

"The same forgery was allegedly perpetrated by Atuche and some officials of the bank to launder N3.5billion each in the name of Craejeke and Futureviews Limited." The source added that Atuche and other bank officials linked to the granting of fake loans will soon face money laundering charges in court.

"So far, in the course of investigation, it was discovered that Atuche allegedly used to create fictitious accounts, put money there and launder same out of the country. Contacted on the latest discoveries and likely amended charges against Atuche, the Head of Media and Publicity of the EFCC, Mr. Femi Babafemi, said: "More charges cannot be ruled out.

"The Chairman of the EFCC, Mrs. Farida Waziri, has directed that further investigation be carried out in some of these cases. And that is what the operatives are doing presently."

Source: www.thenationonlineng.com

GUINEA INSURANCE, OTHERS PRESENT RESULT TO NSE

Guinea Insurance Plc has announced gross premium of N935.5 million, over a profit after tax of N75.3 million for its financial year ended December 31, 2008.

By the result presented to the council of the Nigeria Stock Exchange and their shareholders last weeks, the company's audited result for the year ended December 31, 2008 showed gross premium of N935.5 million higher than N261.21 million. Recorded in 2007. Its profit after tax stood at N75.2 million, compared to N92.6 million in 2007.

The date of closure of register for member is stated as November 30, 2009.

Audited result of Inter Linked Technologies Plc for the year ended June 30, 2009 showed a turnover of N292.1 million, up from N285.6 million recorded in 2008 while its profit after tax stood at N1.12 million, compared with loss after tax and exceptional items of N13.12 million in 2008.

First City Monument Bank Plc's unaudited result for the half year ended October 31, 2009 showed gross earnings of N35.2 billion as against N40.8 billion recorded in the comparable period of 2008. The banks loss before tax stood at N479.2 million, compared to profit after tax of N.4 billion in 2008.

For Total Nigeria Plc, its unaudited result for the half year ended June 30, 2009 showed a turnover of N85.1 billion as against N85.8 billion recorded in the comparable period of 2008. It profit after tax stood at N1.8 billions compared with N2.2 billion recorded in 2008.

Unaudited result of Mobil Oil Nigeria Plc for the third quarter ended September 30, 2009 showed a turnover of N47.1 billion, as against N49.6 billion in the comparable period of 2008 while profit after tax stood at N1.7 billion, compared with N2.1 billion in 2008.

Unilever Nigeria Plc's unaudited result for the third quarter ended September 30, 2009 showed a turnover of N32.6 billion, over N27.9 billion recorded in the comparable period of 2008. It profit after tax stood at N3.9 billion higher than N1.7 billion in 2008.

Unaudited result of Glaxosmithkline Consumer Plc for the third quarter ended September 30, 2009 showed a turnover of N11.4 billion up from N9.3 billion recorded in the comparable period of 2008 while the company's profit after tax stood at N1.6 billion, higher than N1.1 billion in 2008.

C & I Leasing Plc's unaudited result for the half year ended July 31, 2009 showed Gross income of N4.1 billion, over N2.4 billion in the comparable period of 2008. Its profit before tax stood at N281.3 million, compared with profit after tax of N217.1 million in 2008.

Unaudited result of Nigeria Aviation Handling Company Plc for the third-quarter ended September 30, 2009 showed a turnover of N4.4 billion, up from N3.2 billion recorded in the comparable period of 2008 while the its profit after tax stood at N1.1 billion, compared with N805.1 million in 2008.

First Bank of Nigeria Plc's unaudited result for the half year ended September 30, 2009 showed Gross earnings of N128.1 billion, over N96.9 billion recorded in the comparable period of 2008. While the bank's profit after tax stood at N2.3 billion, compared with N23.8 billion in 2008.

Unaudited result of Stanbic IBTC Bank Plc for the third quarter ended September 30,2009 showed Gross earnings of N42.8 billion, as against N47.1 billion recorded in the comparable period of 2008 while its profit after tax and exceptional items stood at N3.7 billion, compared with N10.6 billion in 2008.

Ecobank Nigeria Plc's unaudited result for the third quarter ended September 30, 2009 showed Gross earnings of N45.1 billion, higher than N38.8 billion recorded in the comparable period of 2008. The banks loss after tax stood at N8.3 billion, compared with profit after tax of N5.2 billion in 2008.

Unaudited result of University Press Plc for half year ended September 30, showed a turnover of N975.9 million; up from N714.5 million recorded in the comparable period of 2008 while profit after tax stood at N141.8 million, higher than N117.6 million in 2008.

UTC Nigeria Plc's unaudited result for the third quarter ended September 30, 2009 showed a turnover of N1.8 billion, as against N1.16 billion in the comparable period of 2008. Its profit before tax stood at N45.1 million compared to profit after tax and extra-ordinary items of N69.4 million in 2008.

Unaudited result of Longman Nigeria Plc for the third quarter ended September 30, 2009 showed a turnover of N2 billion over N1.5 billion in the comparable period of 2008 while profit after tax stood at N264.7 million, compared with N114.9 million in 2008.

Source: http://www.ngrguardiannews.com/

HEALTHY BANKS PROVIDE FOR OVER N262BN BAD LOANS

Over N262 billion has been provided as non-performing loans, as at the end of September, for 12 of the 14 banks declared healthy by the Central Bank of Nigeria (CBN) following a directive it issued to all commercial banks that they should publish financial accounts with full provisions for loan losses.

The Central Bank also instructed the remaining 10 banks - the troubled ones - to submit a six-month plan on how they intend to return to profitability.

During the period in view, the United Bank for Africa Plc recorded the highest provision for non-performing loans of over N41.07 billion, while Ecobank Nigeria, Skye Bank, Access Bank and First Bank of Nigeria followed with N33.39 billion, N32 billion, N30.39 billion, and N29.50 billion.

Analysts say the current development in the banking industry will boost investor confidence. The Financial Advisor at Resource and Trust Company Limited, Opeyemi Agbaje, said the practice of disclosing bad loans is good for investors because they (investors) can now start to analyse transparent financial results.

“I think it is a good development because now we’ll know the true conditions of all the banks. By the time they write-off their bad loans, investors will know what is actually left of their balance sheet. We’ll see how much capital they truly have and we’ll know the reality of the financial system. Then the banks can start on a new scale with a clean balance sheet and clean loan portfolio,” he said.

First City Monument Bank Plc’s audited result for the year ended April 30, shows high gross earnings of N71.658 billion against N52.818 billion in 2008; representing 35.67 per cent increase. Profit after tax and provision for losses stood at N3.994 billion compared with N15.109 billion in 2008; 73.57 per cent decline in profit.

The company’s Board of Directors, in a statement to the Nigerian Stock Exchange on Friday, stated that the “Appropriation of profits for the financial year ended April 2009, whether to cash dividend, bonus or transfer to reserves would be communicated as soon as the CBN approval is received.”

Meanwhile, the bank’s unaudited result for the half year ended October 31 shows gross earnings of N35.206 billion, as against N40.793 billion in the comparable period of 2008. Loss before tax stood at N479.2 million compared with profit after tax of N9.368 billion in 2008.

The unaudited financial account of Stanbic IBTC Bank for the third quarter ended September 30, showing gross earnings of N42.798 billion, against N47.135 billion in the comparable period of 2008. Profit after tax and exceptional items stood at N3.718 billion compared with profit after tax of N10.575 billion in 2008. The bank reported an exceptional provision charge of N5.905 billion which represents additional provisions on loans and advances (N5,339 million) and other assets (N566 million) arising from the CBN special examination.

Stanbic IBTC has forecast gross earnings of N58.105 billion and profit after tax of N8.886 billion during the fourth quarter ending December 31.

NIGERIAN BANKS POSITION THEMSELVES FOR MERGERS

* Audit, common year-end gives clearer view on sector
* Higher loan loss provisioning surprises investors
Nigerian banks are positioning themselves for a second round of consolidation after an industry-wide audit and tighter accounting rules exposed the strengths and weaknesses of their rivals.

The central bank has injected around 600 billion naira ($4 billion) into the banking system since mid-August after its auditors found nine institutions had built up bad loans which left them too weakly capitalised to sustain operations.

It has since demanded all of Nigeria's 24 banks publish accounts as at the end of September detailing full provisioning for loan losses, a new departure in a country where corporate disclosure levels lag even smaller rivals such as Kenya.

The move, which comes ahead of the introduction of a common financial year in December, has for the first time forced banks to fully provide for non-performing loans, giving a clearer basis for comparison across the sector.

"Even until late last year, banks were still declaring profits, and all of a sudden we're seeing huge losses and provisions," said Wole Famurewa, banking analyst at Lagos-based PHB Asset Management.

"Investors are panicking because they are surprised at the level of provisioning," he said, noting that even conservative lenders considered to be among the country's strongest had posted higher provisions than many analysts expected.

Shareholders in Equitorial Trust Bank have pledged to diversify its capital base either through a public offering of shares, securing a core investor or merging with a local bank within a year, the central bank said on Thursday.

Brokerage Renaissance Capital said in a report last week it believed the most prized acquisition targets would include Diamond Bank, Ecobank Nigeria, Fidelity Bank and Skye Bank, all of which passed the audit and which it said offered solid niche businesses.

But Henry Ogbuaku, head of research at Express Discount Asset Management in Lagos, said such mid-tier banks might seize the opportunity to grow their own market share and view any attempt to take them over as a hostile bid.

BLUE CHIP STOCKS CONTRIBUTE TO MARKET WOES
The Nigerian Stock Exchange has attributed the continuous bearish trend witnessed at the capital market to the decline in the prices of some highly capitalised stocks.

In its stock weekly report, last Friday, the Exchange stated that the drop in the prices of these equities, though infinitesimal, had negative effect on measuring indices – the market capitalisation and the All-Share Index.

At the close of trading last week, eight of the 15 most capitalised stocks depreciated in share prices. Ecobank Nigeria Plc, First Bank of Nigeria Plc, United Bank for Africa Plc, Zenith Bank Plc, and Stanbic IBTC Bank Plc shed N0.92, N0.71, N0.35, N0.04, and N0.02 per share, respectively.

The Exchange’s market capitalisation of the 198 First-Tier equities closed lower on Friday at N5.076 trillion after opening the week at N5.143 trillion; representing over N67 billion loss or 1.30 per cent decline. The NSE All-Share Index dropped by 1.32 per cent to close on Friday at 21,517.29 basis points from 21,804.69.

One of the four sectoral indices appreciated; the NSE Food/Beverages Index rose by 1.94 per cent to close at 494.41. However, The NSE Banking Index dropped by 2.8 per cent to close at 346.28. The NSE Insurance Index dropped by 2.41 per cent to close at 290.12. The NSE Oil/Gas Index dropped by 1.1 per cent to close at 299.94.

A total of 33 stocks appreciated in price during the week, lower than the 41 in the preceding week. Nestle Nigeria Plc led the gainers’ table with a gain of N21.93 to close at N235.93 per share while Unilever Nigeria Plc followed with N4.15 to close at N19.22 per share.

On the other hand, 59 stocks depreciated in price against 55 in the preceding week. Lafarge Cement WAPCO Nigeria Plc led on the price losers’ table, dropping by N2.00 to close at N29.00 per share while Flour Mills of Nigeria Plc followed with a loss of N1.95 to close at N33.87 per share.

A turnover of 2.4 billion shares worth N14.65 billion in 31,070 deals was recorded last week, in contrast to the 1.95 billion shares valued at N11.4 billion exchanged last week in 30,579 deals.

Finding a credible buyer - NITEL

By Elisha Bala-Gbogbo
June 6, 2009 11:23AMT

Five companies are bidding to acquire the state-owned Nigerian Telecommunications Limited and its mobile arm M-TEL. The information emerged shortly after the government reversed the sale of both companies to Transnational Corporation of Nigeria Plc.

According to Joseph Anichebe, the spokesperson for the Bureau for Public Enterprises, the body responsible for all privatisation deals, five envelopes were received from prospective investors.
“At the expiration of the May 30th deadline, we received about five envelopes but we haven’t opened the envelopes,” he said.

The Federal Government has struggled to find credible investors for NITEL, which is heavily indebted and is plagued by deteriorating infrastructure. The government first tried and failed to sell the ailing telecoms company in 2001. The preferred bidder then failed to pay up the $1.3 billion price before the stipulated deadline expired.

In 2005, Orascom Telecom of Egypt, a company with experience in countries with infrastructure problems, had its $256.5 million offer rejected because the government thought it was too low. In August 2006, Transcorp paid $500 million for 51 percent stake in the company. However, the company was unable to raise the financing required to effect a turnaround. This, and Transcorp’s failure to meet the terms of sale contract prompted the government to revoke the contract last week.

The potential investors
Mr. Anichebe also confirmed that Globacom, the second national carrier, was interested in acquiring the 51 percent controlling interest in NITEL.

Mike Adenuga, the chief executive officer of Globacom, led a team of investors who indicated interest in the company, at a forum organised by the government’s privatisation agency in London in May.

Mr. Anichebe said that there were other parties that expressed interest.

“Another notable group was led by Adrian Woods, the former MTN Nigeria managing director,” he said. “There were interests from investors from Libya, India, Malaysia and Russia.”

NEXT gathered that Globacom, Afrinvest West Africa, FutureView Financial Services Limited, and Redwood Technologies are some of the companies that have signified interest in the 51 percent stake.

Globacom is a composite telecommunications company with a license that covers fixed lines, GSM, international gateway services, broadband services and leased capacity services. The company is widely recognised as a mobile operator because of its more than 16 million subscribers.

Globacom is one of the two companies in Nigeria branded as national carriers, the other is NITEL.

If Globacom’s bid is successful, it will effectively have a monopoly over telecommunication services in the country, replacing the old NITEL.

Ike Chioke, managing director of Afrinvest said: “We have potential buyers who have indicated interest but I’m not at liberty to discuss it at this time. It is my client’s position.”

Also confirming its role was FutureView. Elizabeth Ebi, the chief executive of the financial service company said, “We’re acting on behalf of a client... It’s a foreign client.”

What has NITEL got to offer?
Nitel is plagued by huge debts and deteriorated infrastructure. The number of its fixed lines have declined to less than 100,000 from at least 500,000 in 2001, and MTEL, the company’s mobile arm, has seen its subscriber-base drop to a few hundred thousand from 1.3 million since Transcorp took over in 2006.

Despite this damning statistics, it is still able to attract a reasonable number of buyers. Industry players believe this is because the company, as the first national telecom carrier, boast significant assets like a fixed line network, copper to the home, national cable network and switches, competent human resources, and the SAT3 cable, the only international fibre optic cable connecting Nigeria to the rest of the world.

“NITEL still has the monopoly of the SAT3 cable, at least the others by Globacom and Main One Cable companies have not been finished,” says Lanre Ajayi, president of the Nigerian Internet Group.

Transcorp Revocation
The discussions in London last month for the sale of NITEL occurred amidst speculation in Nigeria that the government would take the company back from Transcorp, a conglomerate that currently has its two chief executives in the custody of the Economic and Financial Crimes Commission in Abuja on charges of fraud.

And on Monday, June 1, government announced that it had “terminated” the sale of the company to Transcorp, citing Transcorp’s inability to meet the terms of the contract.

Mr. Anichebe said that Transcorp “failed to meet the conditions stated in the contract of sale it entered into” with the privatisation agency, adding: “Yes, the government has terminated the contract signed by Transcorp.

“I won’t say revoked because, it will imply that all conditions of the contract were met.”

Mr. Anichebe mentioned two conditions in particular - that Transcorp was to have a technical partner for the management of the company but the arrangement with British Telecom fell through, and that “Transcorp was to inject N8.9 billion within its first 100 days of assuming control of the company, and pay about 11 months arrears owed staff, but Transcorp failed to meet all these agreements.”

Also on Monday, the National Council on Privatisation, which oversees the Bureau for Public Enterprises halted the sale of any NITEL asset and said it would create a “technical board” to manage the company until a new investor is found. This means that the process of selling the outfit will be stalled for a while.

According to Mr. Anichebe, “We’re not going to open the envelopes until a decision is taken whether we’re going to extend (the deadline) or not. Why we haven’t opened the five envelopes is because government have not taken a decision whether we want to extend it or not, given the new development.”

Nigerians hope that the sale of NITEL will be successful, putting an end to government’s attempt to revamp the moribund national carrier.

STOCKBROKER DISOWNS BANK PHB EX-CEO OVER N4BN LOAN

The Nation Newspaper (Nov 1, 2009)

Fresh facts emerged yesterday that the embattled ex-Managing Director of Bank PHB, Mr. Francis Atuche and the detained Managing Director of Falcon Securities Limited, Mr. Peter Ololo, have clashed over alleged non-performing loan of N4billion.

It was also learnt that Atuche may face fresh charges on alleged laundering of about N14.9billion.

These revelations came from the ongoing investigation of the records of Bank PHB by a special team from the Economic and Financial Crimes Commission (EFCC).

A highly-placed source in the commission, who spoke in confidence with The Nation, said the EFCC has made more startling discoveries from the book of Bank PHB.

The source said: “We have made fresh shocking discoveries including curious loans given as follows: Carejeke (N3.5billion); Futureviews Limited (N3.5billion); Extra Oil Nigeria Limited (N3.9billion); and N4billion to Pegosan Oil and Gas, allegedly owned by Ololo, to build a tank farm.

"When Ololo was confronted with the claim of a N4billion loan, he disowned Atuche and said that he never applied for any loan in Bank PHB to build a tank farm in Calabar.

"Ololo claimed that his signature and account records were forged. He said other signatories to the account were unknown to him. He said we should go to any length to probe him because he does not have a tank farm.

"We are suspecting that the fund had been wired out by Atuche and some of his former officials in Bank PHB.As the former MD of Bank PHB, we have asked Atuche to explain the whereabouts of the N4billion.

"The curious thing about the account credited to Ololo is that the account was opened on December 27, 2007 and on the same day, the account was credited with N4billion. The same controversy is surrounding a N3.9billion loan granted to Extra Oil Nigeria Limited purportedly owned by Diamond Uju. This Uju does not have an account at all in the bank.

"In Bank PHB record however, they said the oil firm belongs to an Economist, Tochukwu Kema Kolam. But in real life, Kema is a lawyer and a staff of Futureviews Securities Limited.

"Without the knowledge of the real owner of Extra Oil Nigeria Limited, they opened an account with fictitious documents and gave a N3.9billion loan to Extra Oil. Again, the purported loan has been wired out of the country.

"The same forgery was allegedly perpetrated by Atuche and some officials of the bank to launder N3.5billion each in the name of Craejeke and Futureviews Limited." The source added that Atuche and other bank officials linked to the granting of fake loans will soon face money laundering charges in court.

"So far, in the course of investigation, it was discovered that Atuche allegedly used to create fictitious accounts, put money there and launder same out of the country. Contacted on the latest discoveries and likely amended charges against Atuche, the Head of Media and Publicity of the EFCC, Mr. Femi Babafemi, said: "More charges cannot be ruled out.

"The Chairman of the EFCC, Mrs. Farida Waziri, has directed that further investigation be carried out in some of these cases. And that is what the operatives are doing presently."

Source: www.thenationonlineng.com

Bank PHB ex-MD in fresh N15b scam

By Daniel Alabrah

Sunday, November 1, 2009

The Economic and Financial Crimes Commission (EFCC) might file fresh money laundering charges against the sacked Managing Director of Bank PHB, Mr Francis Atuche, following the discovery of about N15 billion he allegedly transferred abroad illegally.

Sunday Sun authoritatively learnt yesterday that the former bank chief unilaterally used front companies and names of firms with accounts in the bank to procure credit facilities without their knowledge.

Sordid details of the illegal transfer emerged about 72 hours after Atuche’s arraignment before a Federal High Court sitting in Lagos. He was docked alongside an Executive Director of the bank, Mr Charles Ojo, on a 26-count charge bordering on fraud and financial malpractices totaling about N80 billion.In one of the deals, the ex-bank chief was said to have illegally obtained N4 billion credit facility for Pegosan Oil and Gas, owned by Mr Peter Ololo, without the knowledge of the company. According to the application for the loan, Pegosan purportedly needed the facility to build a tank farm in Calabar, Cross River State.

The bubble however burst when Mr Ololo, one of highest debtors to several banks in the country, denied obtaining the loan when he was being quizzed by the anti-graft agency.Ololo was also said to have disowned his signature on the loan papers as well as the two signatories.Curiously, the facility was granted on the day the account was opened on December 27, 2007.

The former Bank PHB MD was also said to have illegally advanced N3.9 billion to Extra Oil Nigeria Limited. He reportedly opened a loan file for the company without its knowledge in a name of a front, one Mr Tochukwu Kemakolam as Managing Director. The latter had purportedly signed the document as an Economist.The EFCC later discovered that the real MD of Extra Oil is Mr Diamond Uju and that Mr Kemakolam is a lawyer and a staff of Futureview Financial Services Limited.

Even Futureview Limited was not left out of the illicit deals perpetrated by Atuche as he allegedly obtained a N3.5billion loan facility without the knowledge of the company. The amount was later transferred to an account abroad.Similarly, Atuche, using a firm that had no account with the bank, Tradjek Nigeria Limited, obtained a loan of N3.5 billion. The names of the directors of the company were later found to be fake while the amount was allegedly transferred to an account abroad.

Source: http://www.sunnewsonline.com/webpages/news/national/2009/nov/01/national-01-11-2009-010.html

BOND MARKET THRIVES OVER EQUITIES

Investors' confidence in the Federal Government of Nigeria's (FGN) bonds has been growing in the last 10 months.

Between January and October, total transactions on FGN Bonds through the Over-The-Counter (OTC) market were 15 billion units valued at N15.95 trillion in 109,588 deals. This represents about 83 per cent increase in volume against the comparable period of 2008 when transactions on the OTC market for the FGN Bonds were 8.21 billion units worth N8.22 trillion in 66,650 deals.

On the other hand, activities at the equity market dipped by 51 per cent in the last 10 months comparable same period in 2008. Total turnover of 85.94 billion shares worth N582 billion was recorded, against the 175.5 billion units valued at N2.3 trillion in the comparable period during 2008.


OPERATORS CAUSED STOCK CRASH - OTEH
The crash witnessed in the shares of companies listed on the Nigerian Stock Exchange (NSE) was as a result of the recklessness and failure of those responsible for the day to day running of the Exchange, Acting Director General and President Umaru Musa Yar’adua’s nominee for the Securities and Exchange Commission (SEC) Ms Arunma Oteh has said.

Ms Oteh, who spoke yesterday at the National Assembly during her confirmation hearing by the Senate Committee on Capital Market said, “Operators of the Exchange have broken the trust between them and Investors, and we need to restore confidence in the sector.

We have to punish those who malpractice on the stock exchange and deepen the capital market, have risk management, revamp our regulation, disclosure and enforcement.”

President Umaru Musa Yar’adua had in July approved the nomination of Ms Arunma Oteh as Director-General of the Securities & Exchange Commission (SEC) along with that of Mr. Ahmed Remi Makele who was named Executive Commissioner (Legal & Compliance).


REPS, NSE DIFFER ON DEMATERIALISATION BILL
AS part of measures to reposition the Nigerian capital market, the Director-General of the Nigerian Stock Exchange (NSE), Professor Ndi Okereke-Onyiuke yesterday, said a dematerialisation bill aimed at converting share certificates to electronic form has been sent to the National Assembly (NASS) for consideration.

The NSE DG stated this while welcoming the Committee of House of Representatives on capital market, which was at the NSE to deliberate on how to curtail the crisis in the market.

But the Chairman, House Committee, Aliyu Wadada, denied knowledge of such bill in the House, adding that neither he nor any of his colleagues is aware of the bill.

Wadada also warned that a bill of that nature would likely not sail through if the committee was not notified by the House.

He told stockbrokers that the House would do everything within its power to stabilise the market, just as it would work in consonance with the NSE to ensure that the bill receives adequate attention since it is the responsibility of the committee to make sure that the market rebounds.

Dematerialisation is a process whereby a shareholder will no longer be issued a physical certificate as an evidence of share ownership in a company.

Its implementation is expected to forestall problems of stolen share certificate, delay in verification of certificate before investors would offload his/her holding in a company in instance of share price appreciation among other benefits.

She noted that the bill when passed would make the print out of CSCS on share statement a valid document of law, adding that it would also help in the dematerialisation drive.

The NSE boss further disclosed that CSCS, which was 100 per cent owned by the NSE is no longer a subsidiary of NSE.

She explained that that NSE's equity holding in the outfit has been reduced to 30 per cent following the private placement embarked upon earlier in the year.

"CSCS is now an affiliate company of NSE not a subsidiary. NSE used to own 51 per cent of CSCS shares, but now divested to 30 per cent, which made them become a core shareholder."


Starcomms records 60 per cent growth in third quarter
STARCOMMS Plc recently announced its results for nine months, ending September 30, 2009.

The company said that within the period, it recorded an increase in its active subscriber base with about 60 per cent amounting to 2.466 million.

Starcomms explained that while subscribers churn reduced to 0.90 per cent per month, revenues grew by five per cent to N25.6 billion against N24.3billion recorded in 2008.

Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) grew by 305 per cent to N6.7 billion as against N1.6 billion in 2008 "as a result of higher revenues and operational efficiencies."

Explaining further, Starcomms said, "operating profit moved into positive territory, being N603, 692 million for the nine-month period, from a negative N2, 421 billion for the same period in 2008."

A statement said Interest expense rose in the third quarter to N555.3 million, while unrealised foreign exchange losses, because of the decline in the value of the Naira, contributed to a loss before taxation of N1.114 billion for the quarter.

"Because the Foreign Exchange loss is unrealised, should the Naira appreciate from its current position, part of the loss could be reversed.