Thursday, September 22, 2011
Monday, September 19, 2011
Goldman to close Global Alpha fund after losses
Fri, Sep 16 08:17 AM EDT
By Lauren Tara LaCapra and Svea Herbst-Bayliss
NEW YORK (Reuters) - Goldman Sachs Group Inc is shuttering a well-known hedge fund that relies on computer-driven trading strategies after the portfolio rang up a hefty loss this year.
Goldman told investors in the roughly $1.6 billion Global Alpha fund the news on Thursday, one day after it announced a management shake-up at the fund that had been the crown jewel of its quantitative trading business. The fund will be closed in the next few weeks.
Global Alpha had tumbled 13 percent by early September, delivering a far worse performance than other hedge funds that rely on computer programs to quickly take advantage of opportunities in the market, people familiar with the number said. These types of funds are supposed to move quickly in and out of stocks, bonds, currencies and other assets and exit positions before losses accrue.
This is the second time in four years the Global Alpha fund -- once one of Goldman's biggest with $12 billion in assets -- has suffered big losses and its performance raises questions about the ability of Goldman Sachs to manage quantitative strategies for its wealthy clients.
In fact, people familiar with Goldman Sachs have said the company's decision to liquidate Global Alpha signals its decision to exit quantitative hedge fund strategies altogether. The firm still manages billions in quantitative mutual funds.
Goldman Sachs declined to comment.
Even though Goldman's Global Alpha fund is in the red, most other quantitative hedge funds are up or are flat for the year. The average quant fund is down less than 1 percent over that period, according to performance tracking service Hedge Fund Research Inc.
Mark Carhart, the man who managed the Global Alpha fund with Raymond Iwanowski for more than a decade until 2009, has gained 7 percent net of fees this year at his new hedge fund Kepos Capital, a person familiar with his numbers said.
The new turmoil at Global Alpha comes almost four years to the day after the fund lost 22.5 percent in August 2007, during the early days of the financial crisis. Those losses prompted investors to pull money out.
Even though the fund's performance steadied with a 4 percent gain in 2008 and raced ahead with a 30 percent increase in 2009, assets never recovered. By the time Carhart and Iwanowski left in 2009, the fund had shrunk to $4 billion from its $12 billion peak. Soon after the pair retired, assets shriveled further to about $2 billion. The fund neither gained nor lost money last year, delivering a zero return.
The quantitative group has been beset by departures for some time. More than two dozen left this year alone, people familiar with the numbers said.
On Wednesday, Goldman Sachs Asset Management sent a letter to Global Alpha investors notifying them that Katinka Domotorffy, the head of the group's quantitative investment strategies, would retire at year's end. The letter, a copy of which was obtained by Reuters, did not discuss the poor performance of the Global Alpha fund.
DEJA VU AGAIN
What may have hit the Goldman fund especially hard were the unexpected stock market sell offs in early August and recent currency market fluctuations in the wake of the Swiss National Bank's decision to halt the rise of the Swiss franc, people familiar with the fund's models said.
Andrew Schneider, president and CEO of Global Hedge Fund Advisors, said the first half of September has been brutal for some large hedge funds, due to unpredictable moves in market direction.
"The volatility has been so high; if you're wrong, especially if you're using margin or leverage, your returns are going to be extremely poor," said Schneider.
Other quantitative hedge funds, however, fared better. James Simons' Renaissance Technologies' Renaissance Institutional Equities fund has gained more than 25 percent this year, said a person familiar with the fund run by the math professor turned hedge fund manager. Another quant fund, QuantZ Capital Management, for instance, is up 12.8 percent through September 6, according to a letter sent to investors.
(Reporting by Svea Herbst-Bayliss, Lauren Tara LaCapra and Katya Wachtel in New York; editing by Matthew Goldstein, Matthew Lewis and Andre Grenon)
By Lauren Tara LaCapra and Svea Herbst-Bayliss
NEW YORK (Reuters) - Goldman Sachs Group Inc is shuttering a well-known hedge fund that relies on computer-driven trading strategies after the portfolio rang up a hefty loss this year.
Goldman told investors in the roughly $1.6 billion Global Alpha fund the news on Thursday, one day after it announced a management shake-up at the fund that had been the crown jewel of its quantitative trading business. The fund will be closed in the next few weeks.
Global Alpha had tumbled 13 percent by early September, delivering a far worse performance than other hedge funds that rely on computer programs to quickly take advantage of opportunities in the market, people familiar with the number said. These types of funds are supposed to move quickly in and out of stocks, bonds, currencies and other assets and exit positions before losses accrue.
This is the second time in four years the Global Alpha fund -- once one of Goldman's biggest with $12 billion in assets -- has suffered big losses and its performance raises questions about the ability of Goldman Sachs to manage quantitative strategies for its wealthy clients.
In fact, people familiar with Goldman Sachs have said the company's decision to liquidate Global Alpha signals its decision to exit quantitative hedge fund strategies altogether. The firm still manages billions in quantitative mutual funds.
Goldman Sachs declined to comment.
Even though Goldman's Global Alpha fund is in the red, most other quantitative hedge funds are up or are flat for the year. The average quant fund is down less than 1 percent over that period, according to performance tracking service Hedge Fund Research Inc.
Mark Carhart, the man who managed the Global Alpha fund with Raymond Iwanowski for more than a decade until 2009, has gained 7 percent net of fees this year at his new hedge fund Kepos Capital, a person familiar with his numbers said.
The new turmoil at Global Alpha comes almost four years to the day after the fund lost 22.5 percent in August 2007, during the early days of the financial crisis. Those losses prompted investors to pull money out.
Even though the fund's performance steadied with a 4 percent gain in 2008 and raced ahead with a 30 percent increase in 2009, assets never recovered. By the time Carhart and Iwanowski left in 2009, the fund had shrunk to $4 billion from its $12 billion peak. Soon after the pair retired, assets shriveled further to about $2 billion. The fund neither gained nor lost money last year, delivering a zero return.
The quantitative group has been beset by departures for some time. More than two dozen left this year alone, people familiar with the numbers said.
On Wednesday, Goldman Sachs Asset Management sent a letter to Global Alpha investors notifying them that Katinka Domotorffy, the head of the group's quantitative investment strategies, would retire at year's end. The letter, a copy of which was obtained by Reuters, did not discuss the poor performance of the Global Alpha fund.
DEJA VU AGAIN
What may have hit the Goldman fund especially hard were the unexpected stock market sell offs in early August and recent currency market fluctuations in the wake of the Swiss National Bank's decision to halt the rise of the Swiss franc, people familiar with the fund's models said.
Andrew Schneider, president and CEO of Global Hedge Fund Advisors, said the first half of September has been brutal for some large hedge funds, due to unpredictable moves in market direction.
"The volatility has been so high; if you're wrong, especially if you're using margin or leverage, your returns are going to be extremely poor," said Schneider.
Other quantitative hedge funds, however, fared better. James Simons' Renaissance Technologies' Renaissance Institutional Equities fund has gained more than 25 percent this year, said a person familiar with the fund run by the math professor turned hedge fund manager. Another quant fund, QuantZ Capital Management, for instance, is up 12.8 percent through September 6, according to a letter sent to investors.
(Reporting by Svea Herbst-Bayliss, Lauren Tara LaCapra and Katya Wachtel in New York; editing by Matthew Goldstein, Matthew Lewis and Andre Grenon)
Friday, September 16, 2011
State of the Nation
The signals about the state of our nation are pervasive and palpable. In my church “The prayer for Nigeria in Distress” has returned. The newspaper before me as I reflect, has a piece, wondering if Dr. Goodluck Jonathan will be the last President of Nigeria, and small pub talk seems to have reached a consensus that the first 100 days of the current administration has been, to put it charitably, anything but what people had hoped for.
Still this reflection has been particularly challenging for me. It has been so for a variety of reasons. First I took the view that if our democracy is to mature, we have to cultivate what is “practiced restraint” to allow a new government a honeymoon to implement their promise so that share partisan bickering from day one, when what they are trying to do is not even clearly articulated in a legislative agenda, and the unfolding of certain policy initiatives, do not frustrate governance.
Secondly, the states of things are so fragile that a responsible statesman must be on guard, lest a statement not too well considered, produce an outcome more damaging to our collective desire for peace and progress.
Thirdly, this is a time of rapid change in the global arena making a certain delicacy in how we position, see ourselves, and project into that arena, critical for the legacy we bequeath to our children. It was important to make haste slowly at times like this in terms of rush to judgement in public comments.
All things considered, however, the grave nature of the current condition is such that failure to alert the simple, the ordinary, and the mighty and powerful about our country’s sad race towards anarchy may be a betrayal of the mission of my generation, in the Franz Fanon sense. Perhaps patriotic counsel can cause a reflection and review that may yet save us all unwarranted agony.
In this review, which is by no means exhaustive, we consider security of the governors and the sovereign wealth fund, we also reflect on failing institutions from the Judiciary to the Central Bank, the healthcare system, infrastructure in a rapidly urbanizing situation, the deepening electric power crisis and labour tensions.
Then we shall speak on the issue of constitutional reform, fiscal federalism and the competitiveness of the Nigerian economy as well as challenges with agriculture, corruption and the cost of governing.
On Security
The first demand of modern man on the Leviathan is security. Escape from the philosophical “state of nature” is pointless if the state cannot provide security. Yet to read our newspapers is to read a “manifesto” on insecurity. Kidnappings are now daily routine that attract little coverage unless high profile targets like Mikel Obi’s father and Dr. Kusamotu’s daughter are involved. Armed robbery reigns in many parts and big target hits like banks are not rare anymore.
Then there is terror. I do not have the statistics of exodus from Maiduguri but most admit that it is headed to “ghost town” status. The suicide bombing of the UN Building in Abuja, finally brought to the World, after the Police Force Headquarters bombings the phenomenon of Nigeria’s journey to Pakistan, which has already paralyzed several states in the North East of Nigeria.
To this alarming situation can be added saber rattling in the traditional Niger Delta battleground, and Plateau State’s travel on the road to Somalia.
Sadly, this has been tragedy foretold. The book by the American writer Robert Kaplan, The Coming Anarchy, in which West Africa’s descent into wantom criminality, ethnic and religious conflict and the revenge of the poor, pointed to Jos going this wayv15 years ago. But we did nothing, I was recently in Jos to speak at the National Institute for Policy and Strategic Studies in Kuru.
To encourage responsible Youth, I spent hours in Radio interviews, and in meetings to motivate Youth to consider the dignity of the human person cardinal, and human life sacrosanct. I was sad that a day after my visit one of those youth listening to me died a torturous death in these ethnic and religious orgies that have stripped beauty from once serene Jos.
In the face of all this the reaction of government has been pathetic. Every new event shows that intelligence, instead of improving, is caving in. The desperate need to rethink the structure of the police force is apparently ignored even as experience around the world suggest the imperative of decentralization and review of command structure.
I have always favoured community policing and the need for state and regional police force but the fact that no serious discussion seems to be going on about this makes one wonder what the purpose of the Federal Executive Council is. Evidence suggests that the FEC has become a tender board rather than the national operating committee engaging on our key challenges.
Failing Institutions
Central to my model for reviewing state performance for years are six critical variables. Among them, the state of Institutions, the Value System (Culture) and Leadership. The state of institutions is a veritable barometer for the health of a nation. Weak institutions have been the bane of progress in Nigeria for a long time. In the last 100 days they just got much worse.
Particularly traumatized and traumatizing for Nigeria are the immobilizing punches to the midsection of the last frontier institution, the Judiciary.
It is considered the hope of the Common Man, and the final bastion for expectation that all will get a fair, if not perfect chance to actualize in Civil Community.
The issues around the controversy over allegations by the lead judge of the Court of Appeals, Justice Salami, and the handling of the matter by the government left a sour taste about the possibilities of Justice in Nigeria. This is the dominant reason why many investors skip over Nigeria in spite of alluring market possibilities. As author of the 1998 book: Managing Uncertainty. I have evidence based reasons to be frightened about a future in which the judiciary declines so badly in the estimation of fair minded people.
Institutions are so central to progress that in dealing with them state actors must be focused on the long term good of society rather than small time transaction partisanship. Nigeria is hemmoraghly badly from the many errors of judgment of Justice Kastina-Alu and the Presidency.
I recall that in my response when the story first broke I had suggested that both Kastina-Alu and Salami resign graciously, not because they were right or wrong but because the responsibility of high office which they had attained, made saving the institution more important than establishing who was right or wrong.
Just as troubling is the case of the Central Bank stumbling from one set of questionable decisions to another. I have to confess that each time I think of the actions of the CBN in the last two and half years the metaphors that strike me are Adolph Hitler in Germany and Juan Peron in Argentina. Both men enjoyed public acclaim in populist jingoism of their style but the effort in the end was the near destruction of their countries.
Argentina went from being more or less at par with the United States in 1939, as Allan Beattie lucidly shows in his surprising Economic history of the World, False Economy, to West Africa level GDP by the 1990s, thanks to Peron’s nationalism. Hitler brought utter devastation to the Third Reich.
The description by someone of the CBN functioning like an Animal farm of mental asylum run by raving lunatics, is an extreme parody of George Orwell. What I am more saddened by is that we will wake up 10 years from now and realize this CBN has done more damages to the Nigerian economy than all the corrupt bank executives removed and left behind through some of the most arbitrary choices I have ever encountered as a student of the public policy process around the world, put together.
Even more ridiculous than the disruption of the financial system is the Islamic Banking matter that could result in the breakup of Nigeria. There is nothing peculiar about non-interest banking of even one of an Islamic flavour. I had collaborated with Alhaji Umaru Mutallab and others in trying to explain it, several years ago, including featuring the subjects on Patito’s Gang. But this CBN, staying in character, to score cheap points has made it polarising.
What is troubling is not that CBN is the way it is, the matter is that the administration has watched unconcerned as it is dealing death blows to the economy. A sick and enfeebled Umaru Yar’Adua could stop the decimalisation programme of CBN so why is autonomy an excuse to hand cheques to people working at dismantling the economy.
The National Assembly is quick to claim the powers of appropriation, so how much have they done to check tax payer’s monies being recklessly disbursed in the name of banking reform. One illegality after the other has gone on and the Attorney – General office has pursed shadows elsewhere.
If government is serious it should invite independent international analysts to review every decision of CBN from the stress test to nationalization to establish if the protest travesty has not been inflicted on investors and citizens. What seems sure is a decline of the sector and the economy for whose sake SAP sought financial deepening and the banking sector liberalization that was to be its processor.
Suddenly we are back to those times when people bribed to be appointed bank executives by a public sector in which we have a “tragedy of the commons” writ large.
In one year before better connected people replace the successful bribers from one round of executive changes, the appointed would have done maximum damage. I still clearly remember a few people who went through that between 1990 and 1994. The CBN error unchecked will surely add to the unemployment time bomb.
The Unemployment Time Bomb
We have a young population. Every year they reach working age in their millions but an economy in which government action has stifled private initiative and growth appropriate to our “demographic dividend” has been unable to provide the required jobs.
In 100 days we have seen no bold initiative articulated or the implementation of our effort at putting idle hands to work and stimulate the private sector to hire many more. This is a time bomb receiving platitudes rather than action.
Rapid job creation will have to come from creative initiatives in agriculture, manufacturing recitation, and infrastructure development.
The Sovereign Wealth Fund and Governors’ Amnesia
In recent weeks governors have carried on an assault on a law so recently passed to enable us save a little for the benefit of the next generation. The excuse they offer for recovering from amnesia suffered when the issue became law is the grand norm, the law.
This idea is not new. It was raised when the excess crude account was first suggested and later implemented. I recall saying to Lagos State Finance Commissioner, Wale Edun, who worried that I supported the “illegality” of states funds being held back that I think we should quickly change that grand law rather than fail to save.
My take is that the governors perceive a weekend presidency and are deepening the politics of power erosion to take more resources to consume now. This is inspite of a “lottery effect” that has been evident with the states being less effective in serving the needs of the people with more money that comes as wind fall, relative to the wealth creating regional governments of the times of true federalism in the 1960s.
In some ways this anti-savings disposition of governors already seen as reckless spenders by the people seems so impolitic. It leaves the impression of a perverse generation of politicians that has raided the barn stored up by their fathers, are various consuming what today has brought by accidents that include little of their effort and a reaching-in to devour the patrimony of their grand children.
I have for year’s advocated constitutional reform that would allow a fiscal regime in which percentage of revenues going to the distributable pool, the federation account, the next tranche of revenues from mineral income going to stabilization fund and the balance to a future fund. The last two revenue stores would be managed like mutual funds where the bolding of each state is as per their constitutionally prescribed share.
Citizenship behaviour needs to be exercised in the direction of putting pressure on the governors to back off the track they are travelling.
Forging Consensus
Leading Nigeria out of its current state of self double, when the prospects of rapid economic growth and prosperity have never been more self evident require visionary effort to forge elite consensus. Phenomenal opportunity for that in the last 12 years has been squandered by leaders too limited to see the value of playing statesman and bringing all the valuable human assets of our country under one roof especially in a time of crisis as we have today.
With so many embittered that their country is in the firm grip of those who do not lead it well in the direction other nations are going and experiencing progress. It is no surprise that Nigeria’s core is being rocked, both violently and in terms of a sense of despair from its intellectual elite who have moral authority, if not power.
If those who are perceived to know and are committed, stay outside perceived to know and are committed, stay outside “pressing” in progress will be hard. Mahathir Mohammed discovered this in Malaysia and worked to get all into the house, pissing out.
•Professor Utomi is a Political Economist and Entrepreneur.
Still this reflection has been particularly challenging for me. It has been so for a variety of reasons. First I took the view that if our democracy is to mature, we have to cultivate what is “practiced restraint” to allow a new government a honeymoon to implement their promise so that share partisan bickering from day one, when what they are trying to do is not even clearly articulated in a legislative agenda, and the unfolding of certain policy initiatives, do not frustrate governance.
Secondly, the states of things are so fragile that a responsible statesman must be on guard, lest a statement not too well considered, produce an outcome more damaging to our collective desire for peace and progress.
Thirdly, this is a time of rapid change in the global arena making a certain delicacy in how we position, see ourselves, and project into that arena, critical for the legacy we bequeath to our children. It was important to make haste slowly at times like this in terms of rush to judgement in public comments.
All things considered, however, the grave nature of the current condition is such that failure to alert the simple, the ordinary, and the mighty and powerful about our country’s sad race towards anarchy may be a betrayal of the mission of my generation, in the Franz Fanon sense. Perhaps patriotic counsel can cause a reflection and review that may yet save us all unwarranted agony.
In this review, which is by no means exhaustive, we consider security of the governors and the sovereign wealth fund, we also reflect on failing institutions from the Judiciary to the Central Bank, the healthcare system, infrastructure in a rapidly urbanizing situation, the deepening electric power crisis and labour tensions.
Then we shall speak on the issue of constitutional reform, fiscal federalism and the competitiveness of the Nigerian economy as well as challenges with agriculture, corruption and the cost of governing.
On Security
The first demand of modern man on the Leviathan is security. Escape from the philosophical “state of nature” is pointless if the state cannot provide security. Yet to read our newspapers is to read a “manifesto” on insecurity. Kidnappings are now daily routine that attract little coverage unless high profile targets like Mikel Obi’s father and Dr. Kusamotu’s daughter are involved. Armed robbery reigns in many parts and big target hits like banks are not rare anymore.
Then there is terror. I do not have the statistics of exodus from Maiduguri but most admit that it is headed to “ghost town” status. The suicide bombing of the UN Building in Abuja, finally brought to the World, after the Police Force Headquarters bombings the phenomenon of Nigeria’s journey to Pakistan, which has already paralyzed several states in the North East of Nigeria.
To this alarming situation can be added saber rattling in the traditional Niger Delta battleground, and Plateau State’s travel on the road to Somalia.
Sadly, this has been tragedy foretold. The book by the American writer Robert Kaplan, The Coming Anarchy, in which West Africa’s descent into wantom criminality, ethnic and religious conflict and the revenge of the poor, pointed to Jos going this wayv15 years ago. But we did nothing, I was recently in Jos to speak at the National Institute for Policy and Strategic Studies in Kuru.
To encourage responsible Youth, I spent hours in Radio interviews, and in meetings to motivate Youth to consider the dignity of the human person cardinal, and human life sacrosanct. I was sad that a day after my visit one of those youth listening to me died a torturous death in these ethnic and religious orgies that have stripped beauty from once serene Jos.
In the face of all this the reaction of government has been pathetic. Every new event shows that intelligence, instead of improving, is caving in. The desperate need to rethink the structure of the police force is apparently ignored even as experience around the world suggest the imperative of decentralization and review of command structure.
I have always favoured community policing and the need for state and regional police force but the fact that no serious discussion seems to be going on about this makes one wonder what the purpose of the Federal Executive Council is. Evidence suggests that the FEC has become a tender board rather than the national operating committee engaging on our key challenges.
Failing Institutions
Central to my model for reviewing state performance for years are six critical variables. Among them, the state of Institutions, the Value System (Culture) and Leadership. The state of institutions is a veritable barometer for the health of a nation. Weak institutions have been the bane of progress in Nigeria for a long time. In the last 100 days they just got much worse.
Particularly traumatized and traumatizing for Nigeria are the immobilizing punches to the midsection of the last frontier institution, the Judiciary.
It is considered the hope of the Common Man, and the final bastion for expectation that all will get a fair, if not perfect chance to actualize in Civil Community.
The issues around the controversy over allegations by the lead judge of the Court of Appeals, Justice Salami, and the handling of the matter by the government left a sour taste about the possibilities of Justice in Nigeria. This is the dominant reason why many investors skip over Nigeria in spite of alluring market possibilities. As author of the 1998 book: Managing Uncertainty. I have evidence based reasons to be frightened about a future in which the judiciary declines so badly in the estimation of fair minded people.
Institutions are so central to progress that in dealing with them state actors must be focused on the long term good of society rather than small time transaction partisanship. Nigeria is hemmoraghly badly from the many errors of judgment of Justice Kastina-Alu and the Presidency.
I recall that in my response when the story first broke I had suggested that both Kastina-Alu and Salami resign graciously, not because they were right or wrong but because the responsibility of high office which they had attained, made saving the institution more important than establishing who was right or wrong.
Just as troubling is the case of the Central Bank stumbling from one set of questionable decisions to another. I have to confess that each time I think of the actions of the CBN in the last two and half years the metaphors that strike me are Adolph Hitler in Germany and Juan Peron in Argentina. Both men enjoyed public acclaim in populist jingoism of their style but the effort in the end was the near destruction of their countries.
Argentina went from being more or less at par with the United States in 1939, as Allan Beattie lucidly shows in his surprising Economic history of the World, False Economy, to West Africa level GDP by the 1990s, thanks to Peron’s nationalism. Hitler brought utter devastation to the Third Reich.
The description by someone of the CBN functioning like an Animal farm of mental asylum run by raving lunatics, is an extreme parody of George Orwell. What I am more saddened by is that we will wake up 10 years from now and realize this CBN has done more damages to the Nigerian economy than all the corrupt bank executives removed and left behind through some of the most arbitrary choices I have ever encountered as a student of the public policy process around the world, put together.
Even more ridiculous than the disruption of the financial system is the Islamic Banking matter that could result in the breakup of Nigeria. There is nothing peculiar about non-interest banking of even one of an Islamic flavour. I had collaborated with Alhaji Umaru Mutallab and others in trying to explain it, several years ago, including featuring the subjects on Patito’s Gang. But this CBN, staying in character, to score cheap points has made it polarising.
What is troubling is not that CBN is the way it is, the matter is that the administration has watched unconcerned as it is dealing death blows to the economy. A sick and enfeebled Umaru Yar’Adua could stop the decimalisation programme of CBN so why is autonomy an excuse to hand cheques to people working at dismantling the economy.
The National Assembly is quick to claim the powers of appropriation, so how much have they done to check tax payer’s monies being recklessly disbursed in the name of banking reform. One illegality after the other has gone on and the Attorney – General office has pursed shadows elsewhere.
If government is serious it should invite independent international analysts to review every decision of CBN from the stress test to nationalization to establish if the protest travesty has not been inflicted on investors and citizens. What seems sure is a decline of the sector and the economy for whose sake SAP sought financial deepening and the banking sector liberalization that was to be its processor.
Suddenly we are back to those times when people bribed to be appointed bank executives by a public sector in which we have a “tragedy of the commons” writ large.
In one year before better connected people replace the successful bribers from one round of executive changes, the appointed would have done maximum damage. I still clearly remember a few people who went through that between 1990 and 1994. The CBN error unchecked will surely add to the unemployment time bomb.
The Unemployment Time Bomb
We have a young population. Every year they reach working age in their millions but an economy in which government action has stifled private initiative and growth appropriate to our “demographic dividend” has been unable to provide the required jobs.
In 100 days we have seen no bold initiative articulated or the implementation of our effort at putting idle hands to work and stimulate the private sector to hire many more. This is a time bomb receiving platitudes rather than action.
Rapid job creation will have to come from creative initiatives in agriculture, manufacturing recitation, and infrastructure development.
The Sovereign Wealth Fund and Governors’ Amnesia
In recent weeks governors have carried on an assault on a law so recently passed to enable us save a little for the benefit of the next generation. The excuse they offer for recovering from amnesia suffered when the issue became law is the grand norm, the law.
This idea is not new. It was raised when the excess crude account was first suggested and later implemented. I recall saying to Lagos State Finance Commissioner, Wale Edun, who worried that I supported the “illegality” of states funds being held back that I think we should quickly change that grand law rather than fail to save.
My take is that the governors perceive a weekend presidency and are deepening the politics of power erosion to take more resources to consume now. This is inspite of a “lottery effect” that has been evident with the states being less effective in serving the needs of the people with more money that comes as wind fall, relative to the wealth creating regional governments of the times of true federalism in the 1960s.
In some ways this anti-savings disposition of governors already seen as reckless spenders by the people seems so impolitic. It leaves the impression of a perverse generation of politicians that has raided the barn stored up by their fathers, are various consuming what today has brought by accidents that include little of their effort and a reaching-in to devour the patrimony of their grand children.
I have for year’s advocated constitutional reform that would allow a fiscal regime in which percentage of revenues going to the distributable pool, the federation account, the next tranche of revenues from mineral income going to stabilization fund and the balance to a future fund. The last two revenue stores would be managed like mutual funds where the bolding of each state is as per their constitutionally prescribed share.
Citizenship behaviour needs to be exercised in the direction of putting pressure on the governors to back off the track they are travelling.
Forging Consensus
Leading Nigeria out of its current state of self double, when the prospects of rapid economic growth and prosperity have never been more self evident require visionary effort to forge elite consensus. Phenomenal opportunity for that in the last 12 years has been squandered by leaders too limited to see the value of playing statesman and bringing all the valuable human assets of our country under one roof especially in a time of crisis as we have today.
With so many embittered that their country is in the firm grip of those who do not lead it well in the direction other nations are going and experiencing progress. It is no surprise that Nigeria’s core is being rocked, both violently and in terms of a sense of despair from its intellectual elite who have moral authority, if not power.
If those who are perceived to know and are committed, stay outside perceived to know and are committed, stay outside “pressing” in progress will be hard. Mahathir Mohammed discovered this in Malaysia and worked to get all into the house, pissing out.
•Professor Utomi is a Political Economist and Entrepreneur.
Thursday, September 15, 2011
Fashola hands over 336 rent-to-own housing units
On September 15, 2011 · In News
By OLASUNKANMI AKONI & MONSUR OLOWOOPEJO
LAGOS-Governor Babatunde Fashola of Lagos State, has handed over to the public, the pilot home ownership scheme at Epe. He also urged the Federal Government to embark on the repeal of Primary Mortgage Institutions, PMI, Act and replace same with a new law that will guarantee mass housing initiative in the country.
This came as Commissioner for Commerce and Industry, Mrs. Olusola Oworu, said that 93.7 per cent of the businesses in the state were in the informal sector.
Fashola, speaking at the commissioning of 336 units of Sir Michael Otedola Housing Estate in Odoguranshin, Epe, said his administration set up the mortgage board to give hope to Nigerians to own homes of their own and ensure that low income earners have access to own homes.
He said the Federal Government should, as a matter of urgency, look into the Primary Housing Mortgage Institution, PMI Act, with a view to repealing it and replace same with a law that would guarantee the needed capital to fund mass housing initiatives in the country.
He said: ”With competing demands for other social services, we are convinced that the future for mass housing delivery should be private sector-driven with government strengthening the operational environment and legal framework for such participation.
“The result is that the public gets quality and affordable houses while the private sector gets new business opportunities.”
He noted that the problem of housing was not that of building alone but of sustainability, which manifests itself in various forms, such as the congestion of ports, which compounds the cost of imported components of building materials, the rate of foreign exchange, which adds to cost of building, the absence of long-term mortgages and funding, exacerbated by high interest rates which force citizens to desperate situations in order to raise money to pay for houses in one single payment.
Maputo 2011 - Medals Table as at 12/9/11
According to the table published on the website of the Games Organising Committee (COJA), so far 466 medals have been awarded at the 10th All-Africa Games in Maputo.
Of these, 131 (28 per cent) have been won by South Africa, due largely to South Africa prowess in the swimming pool, where it won 74 medals.
Algeria is still in second position, with 51 medals, but Nigeria has now moved into third position, with 47 medals. This is partly due to Nigerian dominance of the badminton tournament, in which Nigerian players won 12 medals.
But the medals table published by COJA is woefully out of date. It does not include any of the medals won on Tuesday, or even on Monday evening. It is thus 48 hours behind the reality of the games.
For example, it does not include the Nigerian triumph in the women’s 100 metres on Monday night, in which Nigerian sprinters took all three medals. And it does not include the latest bronze medals won by Mozambique in chess and athletics.
So, with the proviso that it only covers events up to Monday afternoon, here is the latest COJA medals table:
South Africa: 131 (57 gold, 40 silver, 34 bronze)
Algeria: 51 (11 gold, 19 silver, 21 bronze)
Nigeria: 47 (11 gold, 16 silver, 20 bronze)
Tunisia 45: (17 gold, 19 silver, 9 bronze)
Egypt 30: (14 gold, 7 silver, 9 bronze)
Kenya: 28 (7 gold, 7 silver, 14 bronze)
Senegal: 20 (6 gold, 3 silver, 11 bronze)
Cameroon: 14 (4 gold, 1 silver, 9 bronze)
Mauritius: 13 (4 gold, 2 silver, 7 bronze)
Angola: 12 (2 gold, 4 silver, 6 bronze)
Seychelles: 12 (1 gold, 4 silver, 7 bronze)
Zimbabwe: 11 (4 gold, 6 silver, 1 bronze)
Ethiopia: 9 (2 gold, 3 silver, 4 bronze)
Botswana: 8 (1 gold, 2 silver and 5 bronze)
Ghana: 7 (1 gold, 6 bronze)
Mozambique: 7 (2 silver, 5 bronze)
Congo: 6 (1 silver, 5 bronze)
Uganda: 4 (1 gold, 1 silver, 2 bronze)
DR Congo: 3 bronze
Ivory Coast: 2 silver
Madagascar: 1 silver
Mali: 1 silver
Namibia: 1 silver
Rwanda: 1 silver
Lesotho: 1 bronze
Sao Tome and Principe: 1 bronze.
Wednesday, September 14, 2011
Tuesday, September 13, 2011
Nigerian Prophet Predicts Impending World War Three
Some people see him as the Nostradamus of our time because of his previous powerful predictions that have come into reality. Apostle Perez Oluyemi In his recent prediction warned nations of the earth of the mysterious things that would envelope the world in years to come. Once again, he is now calling on all nations of the earth to rise up to fight terrorism.
“The spate at which terrorism is going might lead to another world war if not properly handled.
The man of God that made reference to restiveness in virtually all nations of the world warned that world might annihilate itself if terrorism is not adequately addressed”.
Apostle Perez Oluyemi who spoke on the skyrocketing level at which some nations of the world are developing weapons of mass destruction to the detriment of other nations criticized this trend which he said United Nation (UN) may not be able to handle in years to come.
“It is pathetically shocking and horridly unfortunate that at this age and time that some counties or countries assume in error that they are free terror or rather ‘terrorism and from what the world is about it. Goof! I say it is time now we all realized that terrorism is an horrendously odd war declared against the entire human race or races, leaving no race or colour out”
In his world: “Terrorism is deadlier and much more devastatingly lethal than the long spoken about the world most dreaded monster, ‘AIDS’ or even any other. It is exterminating force in geometrical order rather than arithmetical”.
He stated that terrorism is a heinous crime against the entire creation of God, human race, and that the whole world must team up to fight it before it leads to another war world war three.
“If your Haman live in the book of Esther, which is a standing terror, systematically terrorism in ceaseless…. Surreptitiously moves and adamantly tenaciously in an ever increasing strife to rule your world and ours; is properly taken care of, then our established lifting prosperity and promotion together in eschaton is assured.
He further stated that if the world lose the war on terror the end results would be calamitous not just to one nation but the entire nations of the world.
“If we lose this war; we are going down the drain together. So it is truly the war of the whole world. It is the unnamed world war 3”, he stated.
“There are only 37 years for the end time grand agenda. By the grace of God I can open the details of this mystery to the whole at the right for it is only hidden in the world of God. Apostle Philip also unraveled a mystery to Eunuch of Ethiopia. What I am doing now is solely biblical-so that the world do not annihilate or exterminate until He that letteth lets”.
“The spate at which terrorism is going might lead to another world war if not properly handled.
The man of God that made reference to restiveness in virtually all nations of the world warned that world might annihilate itself if terrorism is not adequately addressed”.
Apostle Perez Oluyemi who spoke on the skyrocketing level at which some nations of the world are developing weapons of mass destruction to the detriment of other nations criticized this trend which he said United Nation (UN) may not be able to handle in years to come.
“It is pathetically shocking and horridly unfortunate that at this age and time that some counties or countries assume in error that they are free terror or rather ‘terrorism and from what the world is about it. Goof! I say it is time now we all realized that terrorism is an horrendously odd war declared against the entire human race or races, leaving no race or colour out”
In his world: “Terrorism is deadlier and much more devastatingly lethal than the long spoken about the world most dreaded monster, ‘AIDS’ or even any other. It is exterminating force in geometrical order rather than arithmetical”.
He stated that terrorism is a heinous crime against the entire creation of God, human race, and that the whole world must team up to fight it before it leads to another war world war three.
“If your Haman live in the book of Esther, which is a standing terror, systematically terrorism in ceaseless…. Surreptitiously moves and adamantly tenaciously in an ever increasing strife to rule your world and ours; is properly taken care of, then our established lifting prosperity and promotion together in eschaton is assured.
He further stated that if the world lose the war on terror the end results would be calamitous not just to one nation but the entire nations of the world.
“If we lose this war; we are going down the drain together. So it is truly the war of the whole world. It is the unnamed world war 3”, he stated.
“There are only 37 years for the end time grand agenda. By the grace of God I can open the details of this mystery to the whole at the right for it is only hidden in the world of God. Apostle Philip also unraveled a mystery to Eunuch of Ethiopia. What I am doing now is solely biblical-so that the world do not annihilate or exterminate until He that letteth lets”.
Wikileaks’ Report A Fiction, Says Okonjo-Iweala
Sunday, 11 September 2011 00:00 Editor News - National
THE report — “WikiLeaks: Okonjo-Iweala Ferried $50 Million Jobs To Brother” — which was published by Sahara Reporters has been described as baseless fiction that is “totally devoid of even a semblance of truth.”
A statement signed by the Senior Special Assistant to Coordinating Minister for the Economy/Minister of Finance, Mr. Paul Nwabuikwu, which was made available to The Guardian yesterday, the reference to Dr. Okonjo-Iweala in the story lacked substance and credibility.
“The story,”according to Nwabuikwu, “is based on two sentences in the alleged Wikileaks cable allegedly uttered by an unidentified person alleging that Dr Okonjo-Iweala “steered” contracts worth $50m to her brother for “consulting work in 2004.
“First, the minister has no brother called Jon-Jon, as the alleged “brother” is identified in the story.
Second, no brother of the Minister was awarded any such “consulting” contract as alleged.
“Third, as Minister of Finance in the Obasanjo government, Dr Okonjo-Iweala earned a name as a high-performing public servant of impeccable integrity.
“Fourth, this “revelation” obviously refers to a previous allegation about one of her brothers, which was thoroughly investigated and discredited because it was found to have originated from vested interests. It is shocking that something that was discredited so long ago is being rehashed.
“It is clear that this is another ploy by vested interests, who are desperate to stop her from contributing to the realisation of an improved Nigeria . They will fail again.
“It would, therefore, be extremely unwise to give credence to such a flippant statement by an unknown and unconfirmed source. The story is simply a“tale by moonlight” account by an unknown source about something that never happened.
“A similar report by Pointblanknews, a disreputable online website quoting a disreputable “former” presidential candidate, also made the totally laughable claim that Dr Okonjo-Iweala was “fired” by former President Olusegun Obasanjo because she benefitted from the historic debt deal with the Paris Club, which she contributed so much to achieving. The allegation makes it clear that the vested interests are not only desperate but very unintelligent as well.
“ It is a fact of history that when Dr Okonjo-Iweala resigned from the Obasanjo government, the administration eulogised her for her high competence and professionalism because she did justice to every single assignment she was given.
One of the many reasons Dr Okonjo-Iweala enjoys such a high standing internationally is the fact that she has been thoroughly investigated and cleared by the most respected security agencies in the world.
“With Okonjo-Iweala what you see is what you get. Anything else is fiction,” Nwabuikwu concluded.
Human capital development still holds the ace to economic growth, says Ugwoha
Monday, 12 September 2011 00:00 BY DELE FANIMO AND DAMILOLA OSUNSANYA Business Services - Business News
Chibuzor Ugwoha is the Managing Director of Niger Delta Development Commission, created by the Federal Government as an intervention agency to fast-track development and ameliorate ecological and physical degradation in the Niger Delta region. In this interview with DELE FANIMO and DAMILOLA OSUNSANYA, he explains the current focus on human capital development as a catalyst for sustainable growth and how the agency has evolved to key into the local content policy of government, among other issues. Excerpts.
WHAT are the achievements of NDDC viewed against your mandate?
FIRST, NDDC has done a lot in terms of providing infrastructural development in its targeted areas, that is, the nine oil producing states. We have provided agricultural training for youths and also raised micro-credit facilities in partnership with financial institutions to create easy access to loans for persons who wish to do their own businesses. NDDC has, also been able to address the issues of shore protection, road construction, water supply, electricity, and transportation among others in the Niger Delta. Having done these over the years, we now thought about developing human capital in the region.
You and I know that the major problem in the country today is youth restiveness, which translates to unemployment and poverty. We recognise that if the mandate of the commission is to be achieved, which is transforming the area and making it peaceful, economically viable and regenerative, we need to redefine transformation in the context of human capital development. Even at that, we quite appreciate the enormity of the task and know too well that the NDDC alone cannot do it all.
We have, therefore, gone into strategic partnerships with the public and private sectors, as well as international agencies in order to achieve this vision.
For instance, we are in partnership with the Cross River State government to provide top rate facilities that will enhance poultry business in the region. As I speak, our partnership with the Nigeria Institute of Welding has produced 25 internationally certified welders in the region. The 25 persons were trained in Nigeria at the Petroleum Training Institute (PTI) Effurun and at the South Africa Welding Institute in Johannesburg . To underscore the point, we have only about 38 certified welders in Nigeria today of whom 25 are from the Niger Delta. I mean the kind of welders that can handle effectively the welding jobs that the oil companies operating in the Niger Delta which they bring Asians and all manners of artisans outside the country to do for them. A second level of that training programme has just been completed at the German Welding Institute in Instanbul , Turkey where 40 persons have been trained in welding inspection, thus making it a complete package of quality workers and quality inspectors in welding engineering.
We are also in partnership with the United Nations Institute for Training and Research (UNITAR) to train youths in various drilling and marine skills required in the oil and gas industry. We are into something similar with the Nigerian Maritime Academy , Oron and Nigeria Maritime Administration and Safety Agency (NIMASA) to train thousands of youths from the region as mariners and seafarers.
You may ask why this drastic shift in emphasis. People have to drive every process of development. Therefore, if you go about building infrastructure without a corresponding enhancement of the human factor, you shall enthrone a metrics that will be extremely difficult to sustain. Whatever resources you have in your environment including the human beings should blend harmoniously to make life more meaningful.
What other areas of human capital development is the commission targeting?
I was talking about welding. Let me say more that welding is central to all fields of engineering. Whether you are building or you are running an oil company, you will need to weld. We were able to establish that and then did an assessment that further revealed that the type of welding I am talking about is very crucial in the oil and gas sector. And so what we have done in that area is most articulate, need-driven and targeted at placements in the oil and gas industry. Beneficiaries of previous trainings usually return to block NDDC gates and hunt the commission, because the employment component of the programme was never clearly thought out.
Even now, those 25 specially trained welders are themselves engaged in training other welders. About 700 more welders are being trained at certified training centres around the Niger Delta region. At the completion of these programmes, 700 youths would have been certified fillet, plate and pipe welders. You know the oil and gas company is capital intensive and they would not want to place their activities in the hands of quacks.
Essentially, what we are doing is to align ourselves with the local content policy of the Federal Government. We also believe that not everybody would join the group of engineers. If you look at film making, it is the fastest growing industry in Nigeria . If somebody is not in science, he could be good in the entertainment business. There are a whole lot of stories to be told and things to be discovered using the medium of film. We do not want our youths to be left behind and so, last year, we sponsored the training of 250 people in acting, directing and other aspects of film production and as I speak with you, another 250 are undergoing training in Lagos with the New York Film Academy, which also did last year’s training.
I have spoken of our on-going training programmes in maritime skills here in Nigeria and abroad. We have also concluded arrangements to send 50 youths to Dubai for similar training and let me add that we are not just sending people out for the fun of it but following up effectively to ensure that those being sent acquire the knowledge that will give them employment in the competitive labour market.
I should also say that not only engineers work in the oil industry, Accountants and other professionals do work there too. But in whatever area, the current high level of office automation has made ICT indispensable in career growth across board. Thus, engineers, accountants, doctors and even lawyers and artists all need computer to function optimally. We decided therefore to introduce computer-training programmes to specific packages to specific professionals. For instance, instead of the usual general computer appreciation, the accountant should be trained in the specific ICT package that should help him in his accounting job. Same goes for the architect, engineer, town planner, medical doctor and so on. By so doing, we sharpen their delivery capabilities and put them in a stead to compete with those that have studied in the best schools in the world. As I speak to you, 2,500 youths are undergoing the NDDC computer training.
We have gone beyond this to create an online database of professionals in the Niger Delta region. People are registering and if you are an employer and interested in Niger Delta, you can go to the website we have developed, type in your job request and it will throw up the list of all qualified persons with their detail resumes in the area of your request. From there, you can pick the ones you wish to invite for interview.
I understand human capital development as the quality and marketability of the people being trained and education is the foremost instrument in this regard. Take for instance, when the late Ken Saro-Wiwa was commissioner for education in the old Rivers State , he studied and applied the Late Chief Obafemi Awolowos concept on education. He gave scholarships to a lot of his Ogoni people to study within and outside Nigeria at a time when the old Ogonis were considered backward in the then sociological framework of Rivers State . Today, the story has changed and the Ogonis are about the most educated and progressive in Rivers State .
The benefits of that initiative just as the free education of the old Western Region under Pa Awolowo were not immediate. They took good time to manifest. Today, the NDDC is doing something in that direction with its oversea scholarship scheme for postgraduate studies (Masters and Doctorates) in Medicine, Engineering, Architecture, ICT, Environmental and Geo-sciences in reputable universities abroad. Last year, 200 people benefited and the process of selecting the same number for this year’s award is nearing conclusion. The selection is by a committee of reputable academics and it is strictly based on merit. In fact, only holders of first class and second-class upper division degrees are eligible to apply in the first place.
For now, these highly laudable efforts may not add up to anything tangible, but the benefits shall start tumbling in a couple of years from now. I am happy to announce that FirstBank Plc has been encouraged to support the scholarship scheme with 20 per cent of the total money expendable by the commission on the award.
Any synergy with the amnesty programme?
Basically, the amnesty progamme is a kind of direct intervention by Federal Government to tackle the issues in the Niger Delta. The NDDC by the law establishing it, is an interventionist agency, created to also intervene and offer solutions to the perennial questions of the Niger Delta. And so, there is a partnership but while the Amnesty Programme is focusing on ex-militants, any Niger Delta youth either militant or non-militant is free to come into our programme provided he or she follows the right channel.
Any guarantee that all your trained welders, for instance, will be absorbed in the end by the oil companies?
Welding is not only needed in the oil companies. When you are building bridges, you need welders. Some of them may even establish on their own. For well-trained artisans generally, the employment market is never saturated in Nigeria and even if the market becomes saturated, they can be exported to other parts of Africa . Foreigners have been coming to Nigeria to do work that can be effectively done by Nigerians. If we have the right type of people, I believe other African countries would prefer having Nigerian to having European or Asian expatriates.
The Nigerian Institute of Management just gave you an award, what is it all about?
The NIM gave the NDDC an award not me in person. I only received the award on behalf of the commission as the chief executive. They call it Management Excellence Award and in presenting the plague to me, the President of NIM, Dr. (Mrs.) Sally Nkem Adukwu Bolujoko said that the institute was specially thrilled by the NDDC’s initiatives in building the capacities of youths in the Niger Delta region. My happiness is that even when we think we still have so much to do in the area of human capacity building, people watching us from outside, are already expressing satisfaction. I feel honoured and I give all the glory to God and also thank the board, management and staff of the NDDC for making it possible for us to drive in this direction.
What are the specific challenges in driving an agency as yours?
I was coming from a private sector background to the public sector. The environments are different and there must be some learning process so that both ends can fuse into a new creative force that has begun manifesting in the way the NDDC currently conducts its businesses. In the end, I want to be remembered for causing those changes which truly brought the NDDC most close to its mandate as an agency created by government to bring development in the Niger Delta.
A Wild WikiLeaks Week
Sunday, 11 September 2011 00:00 Sonala Olumhense
IT is a cruel coincidence that in a week in which awful revelations have been tumbling out from WikiLeaks, much of it about the filthy nature of Nigeria ’s political elite, the Goodluck Jonathan government insisted on inserting a 100 Days celebration.
I would have counseled a policy of silence, but perhaps, in their wisdom, they imagined such a celebration would deflect attention from the lamentable revelations.
The Presidency’s statement, 100 Days of Promising Less and Delivering More: The Jonathan Transformational Agenda,” was penned by Reuben Abati, who is President Jonathan’s spokesman. There may be no better omen that this government has a conceptual problem.
The Jonathan government must understand that appointing people to office is not an achievement.
Organizing a seminar is not an achievement.
Receiving a guest, whether he journeyed from Maiduguri or Mars, is not an achievement.
Setting up a committee is not an achievement.
Launching a campaign is not an achievement.
Being recognized by whoever as the second largest oil exporter on earth is not an achievement.
“Approving funds” or “awarding contracts” is not an achievement; demonstrating that a project has been completed, especially ahead of time and under budget, that is.
Assenting to a bill is not an achievement; demonstrating how that bill has had an immediate impact on the fortunes of some citizens, for instance, would be an achievement.
Receiving repatriated funds is not an achievement; immediately using such funds to fulfill a demonstrable public need, would be.
Making “stellar appointments” is not an achievement; using average appointments to accomplish stellar objectives would be.
Generating power at Nigeria ’s “highest level ever” would be an achievement, if we knew exactly what that meant, and if its impact can be demonstrated.
“Promising less,” is not is not the equivalent of delivering anything, let alone delivering more of anything. The truth is that, if we are talking about the Jonathan administration, nothing has yet been delivered or achieved.
Did anyone expect Jonathan to “achieve” a lot in 100 days? To rise up and demonstrate seriousness, yes, but to actually accomplish critical targets, not really. The question is whether Mr. Jonathan is prepared to rise to the challenge, or whether he will always attempt to market the aroma as the food.
In 2004, in the Introduction to the book, “The Whole Truth,” a collection of editorials by The Guardian, Mr. Abati noted how the newspaper’s editorials had for 20 years had to deal with the same themes of governance, development and human conduct. “He watches as Nigeria moves, while remaining on the same spot and yet time moves ahead as the people are left behind...,” he wrote. “But the question, the big question is: do Nigerian leaders read? Do they listen?”
Today, not only is Abati in a position to answer that question, he is in a position to ensure that Nigeria ’s ruler works for, and is answerable to the people.
To do that, the first thing that the government of which he is now a part must do is to avoid taking the people for granted through the kind of insulting list of “achievements” he has just published.
If Jonathan wants to be considered an achiever, he must take up the list of promises he made to the Nigerian people in the months he was begging for their votes. If he is not working with that list, he has already let the people down.
If he is working with that list, the ongoing WikiLeaks revelations ought to shock and sadden him, for various reasons. What all the revelations lead to is whether Jonathan believes he can move the nation forward without first clearing the debris, including those being unveiled by WikiLeaks.
Not only do the stories confirm much of what we have always known about the malfeasance in our country’s governance, they also confirm why we continue to be an under-developing country.
All the WikiLeaks stories are, of course, readily deniable, and last week, the denials began to flow. According to Mr. Abati, in one, “... Jonathan has never been on any EFCC list of corrupt governors and we challenge anyone to prove otherwise.”
Not true. Although Nigeria is a very forgetful country, in mid-2006 Jonathan was indeed listed and recommended for prosecution, along with several other governors, by a Joint Task Force (JTF) set up by President Obasanjo to fight corruption. The JTF comprised the Independent Corrupt Practices and Other Related Offences Commission (ICPC); the EFCC; the Code of Conduct Bureau (CCB); the Department of State Services (DSS), and the Nigerian Police. Each of those organizations contributed five members to the JTF, and Nuhu Ribadu was its chairman.
As Governor of Bayelsa State, the JTF cited Jonathan for false declaration of assets that included an N18 million Lexus Jeep he claimed to have acquired in 2004 through personal savings, and a BMW 7351 Series bought for N5.5 million in 2005. The JTF established that he had received them as gifts, in violation of the CCB Act of 1990. There were also properties in Abuja and Otuke Ogbia LGA that were reportedly acquired outside his legitimate income.
That was 2006, the same year Jonathan’s wife was cited by the same Ribadu in his report to the Senate on 27 September. That may also have been why, when he became Vice-President, Jonathan release his assets declaration only after intense pressure. Now that he is the President, he has completely refused to do so!
That is simply the short answer to Abati’s question. The more important issue is where Jonathan is going now. Is he going to get things done, or merely compile lists of his staff and the stationery supplied?
For me, one of the most fascinating of last week’s leaks was Ambassador Campbell’s 2006 cable to the US State Department: “Corruption: Nigeria “Improves” to Sixth-Worst In The World...What Can We Do About It?”
Think about it: “Sixth-Worst.” Read the cable and see how they laughed at Obasanjo’s celebration of our “rise” to sixth-worst in the corruption sweepstakes!
The ambassador proposed using denial of visas to corrupt Nigerian officials as a tool for forcing change, a point which tallies with President Barack Obama’s speech in Accra a couple of years later. Campbell said the US would compile such a list, which I am sure they now have. Imagine if the industrialized nations were to implement such a policy!
But let us begin with the United States being so two-faced. Many of the figures on that list have used Nigeria ’s funds to buy expensive property in some of the most fascinating neighborhoods in the US . Unlike in the United Kingdom , unfortunately, the US is taking action against none of them.
Better yet, the US should sponsor a new international development methodology where acceding countries receive development assistance that is channeled directly to projects and schemes agreed with that country. They would then be bilaterally implemented and supervised by the BiNational Commission and the United Nations Development Programme. I am sure that in just a few years, poor Nigerian kids can go to good schools; citizens can avoid dying in routine highway crashes; and powerful Nigerians need not go abroad to find a decent hospital in which to die.
Until then, we must be grateful to WikiLeaks for the new understanding of our land with which we are being empowered. It was somewhat funny last week hearing Abati reject some tumultuous cables, because it was only last January that The Guardian made WikiLeaks founder Julian Assange its “Man of the Year.”
The citation was penned by Abati himself. Among others, he wrote, “Assange is in the eyes of the ordinary man across boundaries more of a hero than villain, more of a champion than a pest, an achiever and flag-bearer for the open society ideal, not an anarchist, but a progressive.”
Despite the questionable 100 days past, I have a feeling these are going to be four remarkable years.
"PDP Will Rule Nigeria Forever": Nigerians Wake Up! Enough Is Enough!
Posted: September 11, 2011 - 13:55
By Osita Okechukwu
‘We will continue to make it and PDP will continue forever as the dominant political party in Nigeria .’
----Chairman of Peoples Democratic Party {PDP}, Alhaji Kawu Baraje, Wednesday 7 September 2011.
Nigerians Wake-Up; the Peoples Democratic Party {PDP} is at again with the Riot Act; traditional proclamation which regrettably reminds us that PDP has captured our commonwealth, subverted our electoral process, undermined our judiciary and hence fuels the dangerous slide of Nigeria into a failed state.
Our dear country men, if Nigeria fails as predicted or remains underdeveloped; we should look nowhere but hold those who on one hand want to rule Nigeria forever and on the other hand have an incurable Free- Election- Phobia responsible.
We recall that two former chairmen of the Peoples Democratic Party {PDP}, Dr Ahmadu Ali and Chief Vincent Ogbulafor at different fora publicly issued the Riot Act when they boasted and proclaimed that PDP will rule Nigeria for 60 years.
To confirm this unholy alliance the former president and chairman of PDP Board of Trustees, Chief Olusegun Obasanjo reaffirmed the Riot Act in the presence of his supporters at Hillview Hall, Government House Abeokuta when in 2006 he declared the 2007 election - a Do-or-Die Election. True to the Riot Act the 2007 election was rated the worst in the history of Nigeria ; where over one thousand lives were lost and over one thousand post- election petitions filed at the Election Tribunals.
Few days ago, the chairman of the PDP, Alhaji Kawu Baraje has not only followed the ignoble foot- steps of his predecessors, but has gone further to raise the bar of the Riot Act when he proclaimed that PDP will rule Nigeria forever.
Questions! Questions! Questions! – Whereas the prevailing consensus is that most Nigerians pray that democracy endures and thrives in Nigeria ; while PDP wants to rule at all cost, but the questions are, does PDP merit to rule forever? Is Nigeria a one party state? How did we come to this sordid pass? Lastly how do we get out of this rot?
How PDP Manipulate its victory?
The Earth-Shaking-Wikileaks’ revelations on massive corruption in Nigeria have confirmed the home truths of how we came to this sordid pass, how PDP leadership became lawless, manipulated the electoral process, purchased justice and corrupted the judiciary.
Apart from the Wikileaks disclosures we recall that the $57m bribe judgment was a split decision of 4-3; where the then Chief Justice of Nigeria, Justice L. Kutigi and three others validated unserialised ballot papers used to compile the presidential election which is substantially at variance with the provisions of the 2006 Electoral Act.
This time around PDP in an unholy alliance with Independent National Electoral Commission {INEC} knowing fully well that National Voters Registration Software, hence the Voter Database used for 2011 Elections is an amateur 1,260 matches per second as against world best standard for elections which is 1,000,000 matches per second; had once again manipulated the newly assembled Appeal Court to reverse an earlier order granted by the same Appeal Court on May 24th 2011 in the following terms:-
‘An Order that INEC shall grant the Petitioner and any other party in the Petition, their Counsel, agents or experts access to Biometric Data Base created by the DDC machines for register of voters, used for the Presidential Election held on the 16th April 2011’.
If INEC is confident enough that they conducted the 2011 presidential elections in substantial compliance with the Constitution and the 2010 Electoral Act, why refuse this Mission-Critical of access to the Biometric Data Base? INEC why subvert the Constitution, 2010 Electoral Act and the Evidence Act?
Enough is Enough Nigerians, every dog has its day, PDP must not rule Nigeria forever; for is it not paradoxical that a political party which squandered the unprecedented oil receipts of our dear country without commensurate service delivery and which failed woefully in the provision of neither security nor welfare, has the temerity of boasting of ruling forever?
Conference of Nigerians Political Parties {CNPP}, therefore calls on President Goodluck Jonathan to as a matter of urgent national importance to nip in the bud the dangerous slide of Nigeria into a failed state:-
1} by calling his party hawks to order, as per the inordinate ambition to rule Nigeria forever
2} set up a high powered inquiry to investigate the Wikileaks allegations
3} forward an Executive Bill for devolution of powers to the National Assembly and
4} stop interfering with the judiciary and indeed reverse the untidy suspension of Justice Ayo Salami, President of the Appeal Court .
Osita Okechukwu
National Publicity Secretary
CNPP
Nigeria Police Opens Up: “We Lack Training, Bomb Dogs, Explosive Detectors To Check Terrorism”
Posted: September 12, 2011 - 12:21
By Saharareporters , New York
The Nigeria police lack the capacity to check the current wave of terrorist bombings across the country, the top hierarchy of the force has admitted to American officials in Abuja .
A report by Nigeria Police Watch, a website that exposes police inefficiency, quoted top police chiefs as telling American embassy officials that their force lacked trained dogs, explosive detectors, bomb suits and other equipment necessary to confront the kind of security challenge the insurgent group, Boko Haram, has foisted on the nation.
NIGERIAN POLICE OFFICERS COLLECTING BRIBE AT CHECKPOINTS
“The NPF (Nigeria Police Force) does not have the capability to respond to a WMD Weapons of Mass Destruction) scenario,” embassy officials informed Washington hours after the July 20, 2001 meeting, as reported by a leaked diplomatic cable, made available by WikiLeaks.
“The NPF does not have an emergency plan, equipment, logistics or training to respond to a WMD incident. The NPF officials expressed a strong interest in receiving training and assistance in this area.”
In the meeting, convened by the US embassy in Abuja , to assess the training need of Nigeria police personnel, officers opened up and spoke frankly, declaring categorically that their force lacked even the basic resources to effectively respond to Nigeria ’s “overwhelming crime situation”.
“The NPF officials on the panel advised their agency does not possess adequate forensic capabilities, equipment and training required to conduct an investigation of a major terrorist incident,” the cable said. “The NPF officials expressed a strong interest to receive assistance in this area.”
The document did not list the names of the officers at the meeting. But it did indicate that they were very senior officials of the force.
Based on the extensive interaction with the police team, the US security officials at the meeting sent a report to Washington , making a case for extensive training and equipment support for the Nigeria police.
The cable reported, “The NPF has several late model Mercedes Benz bomb squad trucks equipped with bomb handling robots and bomb containment trailers.
“However, the NPF officials on the panel advised they are in dire need of bomb suits, explosive detectors and portable x-ray devices. The NPF bomb squad also lacks trained bomb dogs.
“The NPF bomb squad does not have significant experience responding to actual bomb threats requiring them to "render safe."
“The Nigerian Police lacks adequate resources (vehicles, communications, etc.) to effectively respond to an overwhelming crime situation.
“The NPF has not received any outside training in hostage negotiation, roadblocks and response to high threat crimes in progress. The NPF officials on the panel expressed a strong interest to receive additional training in these areas.”
The police chiefs also confessed to the American team that there were “serious inadequacies in the force’s training program, especially in the area of firearms training.
“Most recruits,” they admitted, “are lucky if they have the opportunity to fire more than a dozen rounds while in training. There is no requirement to pass with a minimum score, and targets are hardly every evaluated.”
It also came out of the meeting that the police did not have a dedicated Crisis Reaction Team.
In the event of a crisis situation, the US team was reportedly told, the NPF draw officers from regular police units.
“These NPF officers,” the cable said, “do not receive any special Crises Reaction training or equipment. The NPF officials on the panel expressed a strong interest in receiving assistance in this area.”
The document also reported that Nigeria 's borders were porous because the special NPF marine units that patrol waterways, and enforce maritime law (in cooperation with the Nigerian Navy and Coast Guard) are “ill prepared, equipped and trained to adequately perform their duties.”
Gani: A Flame that Glows Eternally
12 Sep 2011
After about four months on active duty in the Far-Eastern country of Afghanistan and returning home to the warm embrace of family and friends, the just ended holy month of Ramadan was an opportunity to reflect again on our past and the future of our country.
What struck me most in the recurring discourses was how everyone found a way to anchor their reflections in pain and regret that the great solicitor and advocate, Chief Gani Oyesola Fawehinmi (SAN), is no more. Especially at this time when the judiciary, touted as the last hope of the common man, has allowed itself to be mired in avoidable and needless controversies.
The belief was strong that if Gani were with us today, all the dimness of vision regarding how to push our fortunes forward as a nation will not be here. This generous outpouring of Gani-feelings allowed me to see clearly what the wisdom of our fathers meant when they said: “an honourable person is the majority of one.”
The truth is that for those who project Gani today in all their dreams of progress, and in all their expectations of a solution, the simple message is that: the one who is not forgotten is not dead.
As I write this very personal tribute, my thoughts jerk back to some of the many words of wisdom I picked from him in our years of association. Gani, for me, represented what I could call an “anecdotal imagination”, always spicing our discussions with anecdotes and wise cracks all laced in lessons of life.
One of such thoughts grips me today as it did the day it was offered in 2003, before commencing my assignment as the pioneer Executive Chairman of the Economic and Financial Crimes Commission (EFCC), as Gani held me to a corner muttering that “if one man guards a narrow pass, 10 thousand others cannot get in”. This thought, that he kept repeating till he became very ill, meant to him that a day would make a week, that a tree would make a forest, and that the challenge, always, is to construct the logic of progress in a strategic way to make the achievement of the impossible seem easy.
The truth about Gani’s situation, however, is that although the man who passed away represented our armour against injustice, our shield against evil, he left a legacy of honour and hope that is best captured in saying that “when a leopard dies he leaves his coat, when a man dies he leaves his name.” Today in many homes, schools, institutions, law offices and courts across the country, the name of Gani is a daily sacrament, and a reminder of a flame destined to glow eternally.
Today again, as on the first day that I met this titan and enigma, I doff my hat and salute someone who cheerfully mentored me, a man who many Nigerians remember for his extraordinary strength, versatility and character, for his passion, love and service to the poor, his genuine compassion, intelligence, transparent honesty, thoughtfulness, thoroughness; a man with a heart of gold!
Gani’s family and friends will remember him for different things, but as a youthful National Youth Service Corps (NYSC) pupil lawyer, my memory of Gani goes back to 1984. I first met him during the Special Military Tribunals of 1984-85, when I worked on the prosecution team. The then Nigeria Bar Association (NBA) had ordered the boycott of the tribunals, but Gani, full of daring as ever, defied the order, and in one of his appearances, openly thundered what struck my youthful imagination as an ethic of valued living. “If you are standing upright, do not be concerned if your shadow is crooked,” Gani said, reiterating that if one stands upright, always, posterity will judge one rightly.
Later in my legal career, I appeared three times against Gani in court. In one of the appearances, before the late Justice Junaid of the Federal High Court (FHC) in Lagos, after what turned out to be a knockout session, Gani turned kindly to me and said: “Nuhu, to chop a tree quickly spend twice the time sharpening your axe”, stressing the value of preparation to me and confessing that “I am always extra prepared before any court appearance.” That would become an abiding advice that helped me greatly in my future court responsibilities.
Evidence of a connected principle in our fate came by way of our appearance before Justice Okeke, also of the FHC. We were part of a team led by the former Inspector General of Police (IG), Sunday Ehindero, in a case where Gani was leading a young partner, Adegboruwa. Although we won the case at the High Court and the Court of Appeal, Gani eventually gave us a bloody nose at the Supreme Court. Ironically, however, it was his victory that I later relied on to investigate serving governors and other constitutionally immune public office holders when I led the EFCC.
Years later, when the EFCC was set up, it was the same Gani who offered the philosophical template to guide our work. “To move a big mountain begins by removing the small stones and with diligence and purpose you will achieve the impossible,” he told me.
Towards his very last days, Kayode Komolafe and I visited him at the terminal stage of his illness in London . For us, it was a visit of homage, appreciation and honour but Gani still spared time to care. This was during my days in exile and it was so kind to hear him lift my spirit. As he looked up and spoke softly, his thoughts were deep as ever: “A paper tiger cannot bear a close scrutiny,” he said, dismissing those who build a career to malign me, urging me humorously to write in the sand the bad things done to me, but carve in stones the good things I want to remember.
Today in homage to the man I truly regard as a master, I say in response to your charge, it is your thoughts and vision that I have chosen to carve in stones. To this rare and true Nigerian hero, while wishing you eternal rest, I want to say, “Sleep well, sir.”
And FourOther Things...
They Jos Love Bloodshed
I always try to refrain from commenting on the Jos crises because I realised long ago that it is an emotional issue we are trying to solve with logic. No matter what you suggest, there are people waiting to tear you apart for “taking sides” or for “playing safe”. It’s a different world out there. The indigene/settler, Berom/Fulani, Christian/Muslim wars will continue until their leaders come to their senses and say enough is enough. The latest round of killings was sparked off by a dispute over whether or not Muslims could say their eid-el-fitri prayers at Rukuba. In a matter of days, over 70 lives had been lost, with two families completely wiped out. As soon as the dispute erupted over the Rukuba praying ground, anyone with half a sense knew that trouble was in the making. Yet nothing was done to prevent it. Nigeria has again let down its defenceless citizens.
Jos and Justice
There is a lot of buck-passing over the Jos killings. There always is. Plateau State Governor David Jang said he got reports before he went on a medical trip abroad that there was going to be trouble and he alerted the security agencies. He said his warning was ignored. The National Security Adviser, Gen. Owoye Azazi, has hit back, saying it was Jang who ignored security advice. He asked Jang to behave like a leader and take responsibility. Jang too has blamed the Federal Government for the recurring crises because of failure to bring the culprits to book. While the blame game continues, the blood of thousands who have been slain in the last three years continues to cry for justice. When, indeed, will enough be enough?
A Lasting Peace
Finally on the Jos crises: are we saying there is no solution? The only thing I’ve seen the government do so far is put soldiers on the streets. But for how long? Will the soldiers be there till eternity? I agree that soldiers must be deployed—at least to curtail the blood-letting. In spite of that, however, the blood continues to flow.
There is also the cry for justice, since many panels have indicted people in the past. Again, I agree with that. But what about genuine reconciliation? What about getting the traditional, religious and political leaders of the warring communities to sit together and mutually work out the terms for peace? If the communities don’t trust the state or federal government to broker the talks, there is nothing wrong with involving international mediators and conflict managers. Soldiers will only offer temporary relief; only the people can work out a lasting solution by themselves.
Wiki-ness
People talk about Wikileaks as if it is a form of revelation from God. As a newspaper editor, I’m always in a fix over the cables. Is everything therein true? If the principal characters decide to go to court, can we successfully defend ourselves against libel? Much of the gist is low-level gossip, hearsay and conjectures which should be put in context: what is the motive of saying those things to the American ambassador? If the ambassador asks any member of President Goodluck Jonathan’s government to speak on Gen. Muhammadu Buhari today, you can guess what they would say. Ask any Buhari supporter to talk on Jonathan and hear what he would say. Then the cables would be sent to Washington DC . Does that mean it is the truth and nothing but the truth? The thing I like most about Wikileaks, however, is the way our people are being embarrassed. We talk too much to foreigners. It is because of colonial mentality.
A New War Must Start Today
11 Sep 2011
Simon Kolawole Live!: Email: simonkolawole@thisdayonline.com
In our discussion last week, I proposed that the time has come for us to begin to isolate and treat religious extremists as a different breed of human beings who are a threat to both Christians and Muslims. The war against extremists will be difficult to fight as long as we lump all Muslims together and refuse to acknowledge that many, if not most, of them are genuinely embarrassed by the activities of terrorists who are tarnishing the image of their religion. I argued that every religion has its own “lunatic fringe”—and although Christians are successfully dealing with their own lunatics, making them virtually irrelevant, the words of the Bible are nonetheless subject to manipulation the same way a few Muslims are twisting the Qur’an to justify suicide-bombing and mass murder.
Predictably, while many Muslims said they agreed with my analysis and expressed their disgust at the activities of the extremists, some Christians accused me of trying to play a “balancing game” by not “calling a spade a spade”. Someone wrote: “I seriously thought you needed to read some books from Muslim converts, ‘Unveiling Islam’ by Ergun Mchmet Caner and Emir Fethi Caner, ‘The Unseen face of Islam’ by Bill Musk, ‘Islamic Banking System’ by Shomer Ishmol.” He then added a cheeky parting shot: “It is a pity that we so-called Christians lack wisdom. Well, it is written that ‘my people die of lack of knowledge’.”
Another accused me of trying to be “a true Nigerian” by “compromising”, adding: “The instances you gave of the different acts carried out by some Christians are acts they submitted themselves to willingly; not by force, but by the choices they made as to what they believe in. But not with any intent to hurt or harm people who do not share their beliefs. The Norwegian who took the lives of about 77 people is sick. I say so because if his grudge is or was against Islam and the Islamisation of Europe as he alleges, he ought to have taken his war to the Arab nations. For Jesu Oyingbo, whatever each member or members passed through at the ‘supposed’ church was definitely what they believed in and did out of their own volition. That brings us to the beauty of Christianity—the fact that Christians are able to take criticisms openly from one another and even from non-Christians without the heavens falling down.”
Nevertheless, I was a bit disappointed by some respondents who are unable to rise above certain sentiments. For instance, if anyone argues that followers of Jesu Oyingbo did so voluntarily, are people being forced to join Boko Haram? Of the estimated 60-70 million Muslims in Nigeria , how many are members of Boko Haram or Al Qaeda? On what ground can we conclude that every single Muslim subscribes to the philosophy of terrorism? On what ground can we conclude that because it is very rare to see Christians take to terrorism, then all Christians are “good guys” and do not contribute in any form to fuelling ethno-religious crises in Nigeria ? I don’t think name-calling, stereo-typing and blame-trading can ever resolve any conflict.
By far the most touching and encouraging response I got to my article last week was from a Muslim journalist, whom I will simply call Jummai, who works with an international radio station. She wrote: “I read your article on ‘We are all victims of terrorism’. I wish everybody, whereever they are, would read this article. Do you know my most trusted friend is a Christian? She has a praying mat for me in her house. If we know that God created all of us, black, white, Christians, Moslems, Yoruba, Igbo, Hausa, Fulani, Kanuri, Nupe etc etc [then] we can understand our differences and live in harmony with one another.”
As we mark the 10th anniversary of the 9/11 attacks today, I want to expand three critical aspects of Jummai’s email, in the interest of love and harmony. The first is the fact that we all believe we were all created by the same God. This is very key. Muslims and Christians have different beliefs that can never align. Christians say Jesus is the only begotten son of God; Muslims say God does not beget and therefore does not have a son. We can never come to an agreement on that. Christians say Jesus is the only way to God; Muslims say Islam is the true way to God. On this, again, we can never agree. However, even the most extremist Christian and the most fanatical Muslim agree that all human beings were created by the same God, no matter your religion or colour or race. That is a very important fact in this discourse. We were all created by the same God. Even extremists cannot deny it.
The second message from Jummai’s letter is “accommodation” or “tolerance”. Her most trusted friend is a Christian! Extremists will not like this. A Muslim extremist will even quote the Qur’an: “O you who believe, take not the Jew and Christian as friends” (Surah 5:51). But what of several verses from the Qu’ran where Christians and Jews (“people of the book”) are called believers and Muslims are urged to love them? A Christian fanatic will also open the Bible to 2 Corinthians 6:14: “Do not be yoked together with unbelievers… What does a believer have in common with an unbeliever?” But what of Bible passages that say we should love our neighbours as ourselves and that we should live in peace with all men?That is what I mean when I say you can quote the Bible or the Qur’an to justify anything. All you need to do is quote verses out of context simply ignore the circumstances, ignore the audience, ignore the intent and ignore the historical background. That is how extremism works. Extremism thrives on proclaiming differences above similarities, hate above love, war above peace and destruction above salvation. Extremists conveniently avoid scriptures that preach that say we were all created by the same God, that we are all brothers and sisters irrespective of our differences. And, sadly, the extremists always have the upper hand. So if 1.2 billion Muslims are ready to live in peace with Christians, it is the one or two million who engage in terrorism that get heard. And it is this tiny minority causing havoc that gets all the publicity.
The third message from Jummai’s email, which is the crux of the matter, is: we can understand our differences and live in harmony with one another! That is the philosophy that drives me in life. We cannot all be Christians; we cannot all be Igbo; we cannot all be white; we cannot all be women; we cannot all be PDP. The diversity we have in the world today was created by God himself. So having differences is not the problem. The real question is: how may we live in peace and harmony in spite of our differences? I’m not interested in being a Muslim; you’re not interested in being a Christian. Should that be the end of the world? Why don’t you stick to your Islam and allow me to stick to my Christianity? Why should we be preaching and promoting bigotry and hate in the name of religion and ethnicity?
Someone told me recently that Muslims are violent by nature. I replied: “But my Muslim cousins are not violent! My Muslim in-laws are not violent!” He replied in a similar manner, saying his own Muslim cousins are not violent too. So if he knew that, why make such a sweeping statement? I was reflecting on the issue of integration recently and it dawned on me that my inner circle of friends is made up of people from different religions and ethnic groups. There are millions of Nigerians with a similar story. I know Muslims who are married to Christians, Igbos married to Yorubas, and so on. How come then that it is the divisive agents that control the public sphere? Are we not yielding too much space to the bigots and ethic chauvinists such that they now appear to be more in number?
We who believe in living peace and harmony must begin to speak out now. We must begin to raise our voices to condemn extremism in any form. We must hijack the airwaves from the bigots. Now is the time for us to start our own war—what I call the “war for peace”—by pushing these lunatic bigots to where they belong: history.
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