Lacasera MD, Ramchandani Sushil, fired over lawless operations

Lacasera MD, Ramchandani Sushil, fired
....Over expatriate quota abuse, labour law violations as NLC threatens showdown
By Our Reporters
ExclusiveReporters has uncovered a culture of expatriate quota abuse, willful violations of Nigerian Local Content Act, 2010, serious breaches of labour laws and local workers' rights at Jotna Nig. Ltd (JNL), the manufacturers of Lacasera, a popular beverage drink.

The Managing Director and Chief Executive Officer of the Indian firm,  Mr. Ramchandani Sushil, has since been demoted a forth night ago after ExclusiveReporters commenced investigations on the activities of the company following workers' outcry. 

Consequently, organized labour threatened to shut down the firm if the management fails to take steps to unionise the workers with immediate effect.
Jolted by our enquiries, promoters of the Indian firm decided on a soft landing for Sushil who bluntly refused to comment on the allegations.However, Public Relations managers of the firm, BD Consults Limted, confired demotion of the Sushil.
"It is true Sushil has been demoted, but it has not been made official. I cannot confirm to you yet who the next MD is. I can only tell you that there is a new MD to take over from Sushil," said BD Consult chairman, Tola Bademosi. 

Fortunes of the company have been on a steady decline since the embattled Jotna boss arrived and introduced unwholesome and dehumanizing labour relations that constatntly pitched workers against management.

Declining fortunes of the company took a turn for the worst after one of the key workers (an Indian) humiliated out of the company replicated the flagship brand for his new employers, Nigerian Bottling Company (NBC) Plc, setting the stage for keen competition that has now taken huge percentage of the Lacasera market share.  
With its wide network of customers, NBC has been able to grab the Lacasera market to its new Fanta Apple brand, leaving Jotna struggling for survival with the result that management turned the heat over to workers.  
Jotna, expatriate quota abuse, employment racketeering
Our investigations uncovered a well organised employment racketeering ring operated by the company in absolute disregard for expatriate quota laws, Nigerian Local Content Act, coupled with entrenched culture of tax evasion by its tens of subsidiaries.
Our findings show that Indians occupy all positions of responsibility, from MD/CEO to personal assistant to key officers. Even young school leavers are brought into the country straight from the fore-walls of their schools to come and work in the company, if only to ensure that Nigerians are kept at arms length.

Documents available to ExclusiveReporters reveal the company has been massively bringing in Indians to work as personal assistants, accountants, business development executives, tax manager, human resource managers, insurance manager, auditors, sales managers, and a host of other positions even where local competences are in abundant supply.
Jotna management adopts a strategy of creating high-sounding official positions to secure and justify granting of expatriate quota to Indian nationals ferried into the country including fresh graduates.

Sadhu Sahoo Charan, for instance, was hired as Performance Manager on June 27, 2012 but he ended up working as Human Resource Manager, a work capacity which is in abundant supply in the country.  His residence permit (AO248585) expired on June 26, 2015.
Ramchandani Rajesh (with residence permit AO223158) was granted entry visa on expatriate quota as Head, System Support Manager, but ended up as IT Head, a work capacity that is also in abundant supply in the country. His expatriate quota was renewed on January 24, 2014, (via application letter MIA/B27014/11/201) to expire on January 23, 2016.
The expatriate quota approval for Taxation Manager (Subudhi Susanta Kumar), Management Accounts Manager (Mangesh Manikpure), and many others whose details are also available to us show serial abuse of expatriate quota, and the Nigerian Local Content Act 2010.
In some cases, expatriate quota approvals were given in anticipation of positions and offices that never existed, implying calculated complicity with immigration officials. The company has been running foul of these laws in active connivance with some Nigeria Immigration Service officials in Lagos whose names are withheld by us.
Oppressive labour policies against local workers
While Indians occupy offices of responsibilities, their Nigerian counterparts who are constantly subjected to inhuman treatment are consigned to low profile positions and are constantly harassed by a certain Yatendra Jain who was ferried into the country less than a year ago.
While the Asians enjoy the best of work conditions, Nigerians are subjected to oppressive labour policies, most of whom eventually got sacked under questionable circumstances. Termination of the appointments of local workers is a constant occurence.
Among some of the workers sacked in recent time were one Mr. Monday Okorafor who was coerced to sign his sack letter, and the personal driver attached to Yatendra Jain, the human resource manager.
The driver attached to Jain was said to have been sacked after he returned from the Muritala Mohammed International Airport, Lagos, to pick his Indian boss.
On that fateful Sunday, the driver had dropped his boss and returned back home. But his Indian boss, Jain, called him to return and take his wife to market, but he was said to have disobeyed the directive to return.
When he got to office the following day, he was sacked without pay, a development that infuriated other drivers who were already nurturing animosity for sudden withdrawal of their allowances by the same Jain.
Like the driver, Okafor was said to have been constantly harassed by Jain before finally sacking for no justifiable reason. To make sure they got rid of him in the company, management offered to pay him the sum of N500, 000 in lieu.
However, the management gave him N300, 000 and asked him to collect the balance a day after. But Okafor was never given the balance of N200, 000 even after he had been made to sign his sack letter.

Workers' petitions made available to us, painted graphic details of other oppressive labour policies against Nigerians, and urged the authorities to investigate the operations of the subsidiary companies, none of which the petitioners alleged has any offices.
The petitioners who did not put down their names for fear of a sack alleged that their Indian counterparts enjoy the luxury of traveling back to India at will to attend to domestic issues and repatriate huge sums of money from Nigeria. But Nigerians are denied their annual leave without payment of any allowances in lieu.
Jotna, numerous subsidiaries and shady deals

The parent company (JNL) was discovered to have registered over ten different subsidiaries including Kogi United Ltd, Victory Nigeria Ltd, LMH Ltd, PCL Ltd, TLCL Ltd, CBTI Ltd which are implicated in questionable, shady businesses. All the companies have constantly evaded tax payment to government.
 The parent company (JNL) has over ten different subsidiaries including Kogi United Ltd, Victory Nigeria Ltd, LMH Ltd, PCL Ltd, TLCL Ltd, CBTI Ltd and a host of others through which the company carries out shady businesses.
It was alleged that the subsidiary companies constantly evaded tax payment to government as they hide under the umbrella of the parent company to do genuine businesses but stand alone in carrying out shady businesses.
To demonstrate total disdain for constituted authorities, the company is said to empty human waste drainage pipes into public mains drainage system without any form of treatment, posing health and environmental risks to the general public in violation of the Lagos State Environmental Protection Edict under the LASEPA.
It was gathered that the company claimed to have the authority of LASEPA to channel human waste pipes to the gutters.
Efforts to get the manufacturers of Lacasera react to the weighty allegations proved abortive as the Managing Director and Chief Executive Officer, Ramchandani Sushil, shunned all efforts to get him react several weeks after he was repeatedly contacted to comment.
When the issues the board of directors learnt that dirty issues about the company were leaked to the press, they quickly announced removal of the leadership of the management as a punitive measure and ploy to cover up the issues.
Efforts to get the NIS to react to the allegations of aiding the Indians to violate expatriate quota laws also failed as the public relations officer, Mr. Obuah, failed to pick calls or respond to text message sent over a month ago.

MTN , Stanbic IBTC in $8Billion Money Laundering Scam

MTN , Stanbic IBTC in $8bn money laundering scam
    (Agency Report)
TELECOMS giant MTN Nigeria has been accused of engaging in large scale money laundering which has helped in not only depleting Nigeria's Foreign Exchange (Forex) reserves but also has negatively affected the country's economy over the last five years, National Daily can authoritatively reveal.
Presidency sources who did not want to be mentioned disclosed to this newspaper that an anonymous petition sent to President Goodluck Jonathan by someone who claims to be in the know of the transactions, had triggered what they described as a special investigation into humongous economic sabotage activities embarked upon by the actors. Accordingly, the telecom company has allegedly since February 7, 2008 engaged in practices that clearly constitute economic sabotage against the Federal Republic of Nigeria.
Our sources highlighted that all the transactions were done in collusion with top officials of the Central Bank of Nigeria and that petitions sent to the Central Bank Governor over this fraudulent transfer of funds from Nigeria to safe havens abroad were ignored by the Governor because he has interest to protect.
In the said petition a copy of which National Daily obtained with supporting documents that exposed the monumental act of money laundering, it was noted that MTN Nigeria in concert with Standard Chartered Bank and Stanbic IBTC Bank illegally remitted the sum of USD 936,017,265.89 to the Cayman Island, British Virgin Island and Mauritius. He also explained how MTN fraudulently used 20 copies of forged Certificates of Capital Importation allegedly used by a foreign investors who brought in foreign capital investment on February 7,2008 through Standard Chartered Bank and on February 8,2008 the said Capital had yielded proceeds that were repatriated to the tune of USD936,017,265.89.
The petitioner carefully itemized all the transactions starting with the one made on behalf of N-Cell Limited with office address at Geneva Water Front Drive, British Virgin Islands. This company had the sum of $31,057,339.23 remitted on their behalf to Barclays Private Bank, Hans Crescent, London (account number withheld). The second remittance was made on behalf of SASPV limited located at Port Louis, Mauritius  (account number withheld), domiciled at the same Barclays Private Bank London. The next transfer was the sum of $590,574,488.17 made on behalf Of MTN International Mauritius Limited with office address at Suite 525 Barley Wharf, Port Louis Mauritius. Our sources equally provided evidence with account numbers, names of banks and transaction details of other similar numerous transactions made on behalf of MTN Nigeria by Stanbic IBTC and Standard Chartered Bank.
The highlighted that these transactions were funds generated in Nigeria from MTN operations in Nigeria and the sum of $314,420,108.60 being proceeds generated from Nigeria through private placements of MTN shares.
On the role played by both Standard Chartered Bank and Stanbic IBTC in all these, our sources noted that it is disturbing that Stanbic IBTC which facilitated all these illegal transfers had between October, 1, 2007 and May 31, 2009 carried out similar questionable capital repatriation through its invincible transactions for the sum of $7,705,890,581.13 out of Nigeria. This fraudulent transaction was made known to both Central Bank and Nigeria Deposit Insurance Corporation (NDIC) examiners when they visited Stanbic IBTC in 2009 and 2010 but they did nothing about this huge infringement.
Standard Chartered Bank according to the petition that is said to be giving President Jonathan sleepless nights had in its MTR202 for the period ended May 2009, understated the balance in its Capital Importation Inflows for which Certificate were used to the tune of $314,420,108.60 representing acquisition of MTNs link units by Nigerians for which the Bank issued CCIs. The said inflows were classified as over the counter transactions by IBTC.
The investors and beneficiaries of the CCIs were all nonresident in Nigeria and resides in the following countries, Mauritius, British Virgin Islands, Cayman Island, thus the need for Nigeria Investment Promotion Council registration certificates. These certificates were not provided by IBTC on request. There was no evidence that the CCI's were transferred to IBTC by Standard Chartered Bank. Stanbic IBTC did not obtain any indemnity from Standard Chattered Bank before transferring the said proceeds to private placements. Stanbic IBTC did not indemnify CBN before embarking on the forex transfer as requested by the forex manual. Moreso, the beneficiaries of these capital repatriation proceeds communicated their bank account details to Stanbic IBTC, same day their respective CCI's were issued which was on February 7, 2008.
It was discovered that MTN Nigeria had transferred various sums to its shareholders both individuals and organisations, who bought MTN shares through its private offer. Investigation revealed that these sums in some cases represent the actual investments into the telecom giant by these individuals and organisations numbering about 35. They include but not limited to the Oba of Lagos, HRM Oba Rilwan Akiolu (203,500 units of shares for which $5m was illegally transferred to an offshore account for him), Mr. Reginald Ihejiahi of Fidelity Bank (203,500 units of shares for which $5m was illegally transferred to an offshore account for him), Governor-elect of Anambra State Chief Willie Obiano (203,583 units of shares for which $5m was illegally transferred to an offshore account for him), Mrs Olufunke Osibodu (203,500 units of shares for which $5m was illegally transferred to an offshore account for her) and Cherroots Nigeria Ltd (2,035,830 units of shares for which $50m was illegally transferred to an offshore account for it).
FUSL Nominees Ltd got $30m for its 1,221,498 units, Mr. Olusola Adeeyo got $10m for his 407,000 units of shares, Tele SPV Ltd got $20.5m for its 834,690 units, Yoram Ltd ((407,166 units of shares for which $10m was illegally transferred to an offshore account for it), Sterling asset Mgt and Trust Ltd for its 407,166 units got $9,995,920.00, Mr Bismarck J. Rewane for his 203,583 units got $5m, Mr Adebayo Olawale Edun for his 610,500 shares got $15m among others.
It was gathered from some the named shareholders that the said amounts actually represent the value of the shares as at the time of investment but deny receiving such funds in their accounts as payment from MTN.
According to some of them, they have received between 10 to 15 per cent dividends from MTN in the last four to five years but denied that it amounted to the amount captured against their names. This is one of the many puzzles that the investigators will need to answer – how did these figures come up against the supposed beneficiaries when in actual fact most of them are not aware of such transfers. Who did these transfers eventually get to?
“It is however believed that between MTN, Stanbic IBTC and CBN, these particulars were simply used to provide for these funds to shipped by the telecom giant out of Nigeria. If this is true, then it means that the funds invested by these individuals and organisations were immediately laundered out of Nigeria, and that without their knowledge. Therefore, MTN Nigeria has been using funds generated from its Nigerian operations to both run the network and pay dividends to supposed shareholders who are not even aware that their funds were never used for the company but laundered abroad,” one of our sources added.
National Daily can also authoritatively reveal that the Presidency will also look into the role of Bureau de Change registered by Mallam Sanusi Lamido Sanusi as they were part of this scam. The petitioner expressed assurance that if this issues raised are adequately investigated, Nigerians will be shocked as to the level of rot in the system, especially how those employed to watch over the nations resources are also colluding with foreign interests to defraud this country by engaging in acts of economic sabotage.
Finance Minister, Dr. Ngozi Okonjo-Iweala, has already distanced her ministry from the transactions as there are no corresponding records to date.
Efforts to get an official reaction from the CBN, MTN and Stanbic IBTC proved abortive. Calls text messages to CBN Governor Mallam Sanusi Lamido Sanusi, Mr. Ugo Okoroafor Director of CBN Corporate Communications, were not returned. After series of calls and text messages to MTN Senior officials, one of them responded with a call and asked that we sent a mail to the relevant head of corporate communications for an official response, which we promptly did. But as at the time of going to the press no response was received.
Presidency sources told this newspaper that a thorough investigation has been ordered into the allegations. It therefore remains to be seen how the already embattled CBN Governor, Stanbic IBTC and MTN will exonerate themselves from this allegations of monumental fraudulent depletion of Nigeria's External Reserves in the light of the available documented evidences.
According to the whistle blower, our sources revealed, Nigerians are in for a grave shock by the time this investigation is concluded and details made public.

UK detectives shun Diamond Bank N6b bad loan case

UK detectives shun Diamond Bank N6b bad loan case

…As contractors move to sue Bank, liquidators for criminal confiscation
By Kelechi Mgboji
The Serious Fraud Office (SFO) United Kingdom (UK) has distanced itself from the N6 billion fraud case in which Allan Dick West Africa (ADWA) Limited (now liquidated) made away with the unsecured loan granted to them by Diamond Bank Plc.

Joint liquidators of the UK firm, Akinwunmi & Busari and Ihegwoazu & Co had pocketed N200 million out of the N850 million paid by MTN Nigeria to settle debts owed local contractors by Allan Dick, claiming that they would use the money to pursue the case in the UK against the parent company, Allan Dick Company Limited, UK.

But in exclusive interview, Principal Partners of the two law firms, Akinwunmi and Ihegwoazu, told ExclusiveNews that the cost of prosecuting a law suit in the UK is costlier than they could afford with N200million and decided on the option to work with the Serious Fraud Office (SFO) UK believed to be the Nigerian equivalent of Economic and Financial Crimes Commission (EFCC).

When ExclusiveNews contacted the SFO UK, the financial crime busters said they could not confirm having any interest in the so called fraud case which the Nigerian lawyers claimed they had reported soliciting for their expert assistance.

In an emailed inquiry to the SFO UK, our reporter had written to Nilima Fox, Head of the Media Department thus: “Joint liquidators of Allan Dick West Africa, Akinwunmi & Busari and Ihegwoazu & Co, both legal practitioners in Nigeria, said they have since applied to your office for assistance to bring the suspects to book.

“Please kindly oblige us with information on the progress you have made in your investigation. We requests for facts, figures and statements on the case. Or is the case closed?”

But Fox quickly replied that he was out of the office until much later date in December and advised that we contact his colleague Susan Givens, a member of the SFO press office.

Eventually, it was Jina Roe who responded to our enquiry. The tacit response reads: “Without wishing to be unhelpful, I can neither confirm nor deny SFO interest in this matter”.

When we pressed further for more precise information in the classic case of cross border fraud where the UK based firm transferred huge sums of money into personal accounts of individuals as well as corporate accounts at a time when it claimed to be insolvent, the SFO office stated “We have no further comment.” 

Against this backdrop, the managing director and chief executive officer, West and Gate (W&G) Limited, Chief Paul Okogbule, and other local contractors in the telecommunication sector, whose firms are at receiving end of the fraud decided on a legal action against the joint liquidators,  Akinwunmi & Busari and Ihegwoazu & Co and the Diamond Bank and all those involved in a web of the fraud controversy.

A letter to the Joint Liquidators of ADWA, Akinwunmi and Ihegwoazu, by Citi Lawyers, solicitors to West and Gate and the distraught contractors of Allan Dick, the local subcontractors demanded for a refund of N200m only to subcontractors of distressed Allan Dick and Company West Africa Limited.

In similar letter to Diamond Bank, the contractors also demanded for a refund of N150m only to the subcontractors.

Both letters dated December 19th 2013 and obtained exclusively by ExclusiveNews, read in part: “We hereby unequivocally demand from You on behalf of our clients, the refund of said sum of N200 million being the amount illegally deducted by Yourself and Mr. Victor Ihekweazu of the firm of Akinwunmi & Busari and Ihekweazu and Co respectively from the amount paid by MTN to our clients.

“Your failure to comply with the above demand within seven clear days of your receipt of this letter will leave us with the options of taking the appropriate legal steps in a competent court of law.”

The letter to Diamond Bank partly reads: “We hereby unequivocally demand from your bank on behalf of our clients, the refund of said sum of N150 million being the amount illegally deducted by your bank officials from the amount paid by MTN to our clients.

“Your bank’s failure to comply with the above demand within seven clear days of your receipt of this letter will leave us with the options of forwarding our petitions to the appropriate authorities and instituting legal action in a competent court of law.”

The contractors detailed how Diamond Bank Plc lost N6 billion (or 18.1 per cent above its Profit after Tax in its last financial year) to Allan Dick West Africa Limited, a telecommunications services firm promoted by its parent company in United Kingdom (UK) known as ADC.
Chief Paul Okogbule who earlier briefed select newsmen in Lagos on the issue recounted how the portfolio investors obtained an unsecured loan amounting to N6 billion from Diamond Bank Plc in 2007, which the bank also helped the expatriates to launder back to the United Kingdom.
ADWA also known as ADC eventually commenced a process of liquidation without repaying the loan to the bank and some subcontractors it contracted to work on MTN Communications Limited base stations.
The aggrieved local contractor said that Diamond Bank and its appointed liquidators connived to short-change the subcontractors of ADWA that executed work for MTN, whom they paid about N4 million each no matter how much they were being owed.
The contractors alleged that contrary to bank rules, Diamond Bank instead of going after its N6billion loan took a lion share from the N850 million paid by MTN to local subcontractors of ADWA, after it claimed to have written off the loan or sold it to AMCON.
ExclusiveNews gathered that the liquidators of ADC gave Diamond Bank N150 million out of the N850 million payout, and concealed the recovered N150million without declaring it the bank's financial statement of 2011 and 2012.

Mindful of its consequences, the bank had earlier in 2009 during the banking industry audit concealed the unsecured loan from the Central Bank of Nigeria (CBN) and as a result failed to sell same to the Assets Management Corporation of Nigeria (AMCON).
A look at Diamond bank's last financial result showed that no mention was made in respect of the loan as it neither wrote it off nor sold it to AMCON at the wake of CBN reforms initiated by Sanusi Lamido Sanusi.
The bank's financial results for 2011 and 2012, indicates that there was nowhere in its books where the N150 million recovery was also reported, an act which some financial experts said can only be possible if there is a practice of creative accounting.
Despite appropriating N200 million of the N850 million paid by MTN Nigeria, the liquidators of Allan Dick  never initiated any legal proceedings against ADC in the UK who are promoters of ADWA.
The joint liquidators who met in April last year with creditors of ADWA told ExclusiveNews in an interview that they could not initiate legal proceedings in the UK against British directors of Allan Dick because it would require huge sums of money to do so.
Okogbule whose contract sum is valued above N17million said that Diamond Bank may have decided to let the sleeping dog lie as it lost interest in the recovery of the loan, a reason why it did not fund the legal cost to initiate a suit for recovery proceedings in the UK.
He disclosed that two of the local contractors have since died due to their inability to repay loans they secured in executing the contracts for MTN on behalf of ADWA who refused to pay them for work done.
Efforts to get Diamond Bank to respond to our inquiries yielded no result. The bank after a meeting between select group of journalists and a team of corporate communication executives of the bank as well as  TPT, the Bank’s media consultants, late  December 2013, said it will give official response which it never did till date.

Sanusi warns against depletion of oil savings

… Says successor's main challenge will be independence

Agency Report

Central Bank of Nigeria Governor Lamido Sanusi on Thursday raised the alarm that Nigeria's oil savings were rapidly running out, and that his successor’s main challenge will be to maintain the independence of the institution as any undermining of that may hurt the economy.

According to him, Nigeria's oil savings in the Excess Crude Account (ECA) had now fallen to just $2.5 billion, compared with $11.5 billion a year ago, and that until they were replenished, there would be little room for a policy rate cut below the current 12 percent benchmark.

"We should continue to seek a stable exchange rate for as long as the reserves and monetary conditions can support this,’ Sanusi said.

On the independence of the apex regulatory institution, the banking guru stated that:

“If anyone tampered with it the markets would punish the economy. It’s extremely important from the fiscal side, it’s extremely important from the governance side, that the governor of the central bank is able to speak independently of political authority and raise an alarm and concerns and give constructive criticism and advice,” Sanusi told journalists in an interview with   at the World Economic Forum in Davos.

He ruled out a devaluation of the naira because it would "not affect the current account balance, given the highly inelastic nature of our imports and the dominance of oil".

The governor said he has “no fears” of tightening monetary policy further to keep inflation down and to stabilize the currency. The bank can increase its key interest rate from 12 percent and the cash reserve requirement on public sector funds to 100 percent if needed, he said.

“I don’t think we are at the end of possible tightening cycles, but I do think that the scope for further tightening is getting narrower and narrower,” he said. “We do need to rely more on other instruments.

"My strong view is that a stable currency is absolutely critical for price stability and financial stability in general," he said.

Central bank lifted the cash reserve requirement on public sector deposits held by banks on Tuesday, seeking to stabilise the naira and reflecting its concern about loose fiscal policy ahead of elections next year.

Nigeria's fiscal position always slips around election time, when spending on patronage to secure seats surges, but this one is expected to be the most closely fought since the end of military rule in 1999.

Foreign exchange reserves were $43.26 billion as of Jan. 20, down 4.4 percent from 45.26 billion a year ago, despite continued high oil prices. Sanusi has repeatedly urged the government to do more to rein in spending.

Earlier, Nigeria’s Finance Minister Ngozi Okonjo-Iweala expressed similar concern on  declining oil savings which she said have increased risk in the Nigerian economy, echoing concerns from the central bank Governor.

“We’re a little more vulnerable now than we were in the past,” Okonjo-Iweala, said in an interview from the same World Economic Forum in Davos.

The Excess Crude Account, used to cushion the economy against volatility, has been “spent down” to about $2.5 billion and needs to be increased this year, she said.

The Excess Crude Account, which holds the savings the nation makes when the oil price is above the benchmark price estimated in the budget, has been depleted just as Nigeria’s foreign-currency reserves have dropped 11 percent from last year’s peak of $48.85 billion in May.

N13bn transnational fraud exposes Nigeria’s corporate governance deficit

…As FIRS loses N1.6bn to ADWA 

...Forensic evidence nails MTN as debtors

By KELECHI MGBOJI

Facts have emerged how a British firm, Allan Dick West Africa (ADWA) Limited, a subsidiary of Allan Dick Company (ADC) United Kingdom, capitalized on weak corporate governance culture in the country to defraud local companies, banks and institutions of about N13 billion.

The UK firm which came as portfolio investors raised substantial funds through Nigerian financial institutions (names withheld) and subsequently transferred the money to companies and individuals’ bank accounts in the United Kingdom within short period of operation as telecommunications services provider.

To make matters worse, on the eve of their departure, the UK firm whose case files are currently being investigated by the Serious Fraud Office of London and the Economic and Financial Crimes Commission (EFCC) Nigeria, was discovered by liquidators to have destroyed every trace of their transactions in the country to cover up their tracks.

Court-appointed joint liquidators, Akinwumi & Busari and Ihekwazu &Co, both legal practitioners, told Exclusive Reporters which exclusively has been tracking the scandalous development that it was a classic case of transnational fraud that exposes the country’s weak governance culture.

The liquidators who confirmed they had petitioned the Serious Fraud Office, UK, and other relevant authorities both international and local are now working hard to muster evidence for subsequent prosecution of the parent company based in UK.

The firm incorporated in Nigeria on February 22, 2001 as a wholly owned subsidiary of Alan Dick & Company Limited UK, had obtained unsecured credit in the sum of N6 billion and N5 billion from two lenders whose platform they eventually used to transfer the funds back to their home country in the wake of the financial meltdown in 2008.

With huge liabilities hanging on their neck, by June 2008, directors of the firm initiated a members’ voluntary winding-up process which was contested in court by creditors and on December 17, 2008, the members’ voluntary winding up was substituted with a court-ordered liquidation on the application of the banks.  

In exclusive interview, the liquidators disclosed that they discovered that directors of Alan Dick carried out considerable number of fraudulent transfers of funds from Nigeria to the UK. According to them, financial department of Alan Dick West Africa (ADWA) was substantially run from the UK and documents were consciously destroyed.

Besides, the coincidence in the timing of the movement of funds from Nigeria to England and the period in which the English company was in financial difficulties raises a lot of questions and doubts.  

Furthermore, it was uncovered that dividend of N1.296 billion for the financial year ended 31 March 31, 2005, was paid at a time when the firm was operating at a loss and had negative shareholders’ funds.

Based on their findings, liquidators concluded that there was no need for the credit facilities (loan) of over N8 billion from the banks in view of the fact that ADWA was paid in advance for majority of its contracts.

During the period, it was discovered that the firm did not pay tax during the period, leaving a tax liability of about N1.6 billion without molestation by the Federal Inland Revenue Service (FIRS) whose staffers are believed to have compromised their status as federal government's revenue collectors.
FIRS was said to have gone to court challenging refusal of liquidators to pay to them tax liabilities of Allan Dick which liquidators contested in court.

When contacted, FIRS Director of Corporate Communications, Mr. Emmanuel Obeta, refused to comment on why and how the Service alolowed tax liability of N1.6 billion over five year period, saying that the matter is in a Lagos High Court.

But determined to pursue this classic case of cross-border insolvency to a logical conclusion, and ensure that the ADWA directors are held accountable for any fraudulent activities and ensure that they contribute to offsetting the liabilities of the firm, liquidators have petitioned the Serious Fraud Office, UK, and also enlisted the services of some authorities in the UK including international forensic accountants.

MTN connection

Our investigations authoritatively reveal how MTN filed credit claims to the liquidators, seeking to recover alleged debt of about N13 billion purportedly owed it by ADWA in liquidation which also failed to settle local sub-contractors for services rendered to its client, MTN Nigeria.

Liquidators said that forensic documents obtained by experts from Ghana which showed some of the financial transactions serially cleaned up, helped to nail MTN, and it turned out that MTN was actually a debtor to the UK firm.

Rest of the story and raging controversy over sharing of dividends of realized assets of Allan Dick is for next edition. Keep date with our next edition.

Caller tunez: MTN defrauds subscribers over N2.7bn monthly
By KELECHI MGBOJI
Nigeria’s telecommunication giant, MTN, has come under widespread criticism in the last two months, over allegations that it is its caller tunes service with the code number 4100 to defraud over 55.6 million GSM subscribers.
Under the guise of giving subscribers the opportunity to subscribe to any caller tunes of their choice at the rate of N50 per month, the telecoms giant is raking in about N2.7billion monthly and approximately N33.4 billion yearly through the auto-subscription service to about 55.6 million subscribers.
In its latest subscriber statistics for third quarter released October 23, the Nigerian arm of South Africa-based MTN group claimed its leading role in the telecommunication sector with active subscriber base estimated at 55.6 million. 
In response to widespread complaints by MTN subscribers, our correspondent registered the number 08162708919 with the pseudo name Titus Bygold by mid day, Friday November 8.

By 11:36 pm Saturday, November 9, a message from 4100 hit the newly registered number saying that the monthly caller tunes subscription would expire in two days.
The short message reads: “Your caller tunez service will expire 2013-11-12. To renew the service at N50 monthly, take no action. For information on how to cancel, text  HELP.”

However, it is interesting to know that the SIM card had not been used to subscribe to any monthly callertunez plan when the message registered the following day, raising the question as to whether the service is being manned by human beings or a programmed robot which automatically deducts subscribers’ money whether they subscribed or not. 
When our correspondent contacted MTN for explanations, the General Manager Corporate Affairs, Corporate Service Division, Funmilayo Onajide explained that for every new MTN SIM purchased, there is free Callertunez as value added service for the first month.

According to her, “Two days to the expiration of the free subscription, customers will get a message telling them that it would cost N50 monthly to renew the service.
“The same message also advises those who want to unsubscribe from the service to text HELP to 4100, after which the customer would be prompted on how to discontinue subscription.” However, she did not address the issue of existing MTN SIM cards which the owners have not used for once to subscribe to Callertunez but are still being charged the same N50 monthly.
By saying “to renew the service at N50 monthly, take no action,” it invariably means that MTN automatically subscribes for customers without giving them opportunity to choose the tune or to opt out.
“When I text HELP on Friday at 1:16 pm, instead of a message signifying that I have unsubscribed, I got the following message: “Y’ello! To register, text ‘reg’ to 4100. To download a tune, text the tune code (e.g.010001) to 4100; To present text, present+tunecode+phonenumber’ to 4100. To cancel…” 
A brief survey conducted by our correspondent who asked some MTN subscribers to text HELP or DELETE to 4100 showed that they got the same message above without any sign that they unsubscribed.

Reacting to media inquiries over the widespread complaints by victims, the General Manager, Onajide further wrote: “It is important to note that apart from the cost of subscription, every tune in a subscriber’s library costs N50 per month. Every tune has a name and a code. Two days to the expiration of every tune in a customer’s library, we will send a text message that the tunes would be renewed automatically for N50.00, and that those who want to unsubscribe from a particular tune should send ‘delete’ (followed by the particular callertunez code) to 4100, and the tune would be deleted from their library.
“If after all these messages, a customer does not text HELP or DELETE to the provided short code, at the expiration of the deadline, the system would automatically renew the service. We hope that you use your platform to educate the public appropriately. This would be a far more positive contribution to public discourse and enlightenment than your sensational headline...” the Corporate Affairs boss wrote in an e-mail message.
Wondering what code a subscriber who had not subscribed for any tune could use to ‘DELETE’  MTN subscribers and victims want the Nigeria Telecommunication Commission, the Consumer Protection Council (CPC) and other government agencies under whose regulatory purview this high-handedness of MTN Nigeria falls, to exert appropriate sanction against the company.
For instance, after receiving several unsolicited messages, one of the subscriber victims (name with held by us) confronted MTN office in Egbeda, Lagos where he was directed to call Mr. Funso Aina of the Corporate Communications department. 
When Aina was contacted, he was full of apologies but the following day the subscriber got a message to the effect that he had been ‘un-subscribed’ from the service which he never subscribed to in the first instance. When he demanded for a refund of his N50, he was merely told to “forget that one.” 
Another victim, Chigozie, with a number that has last four digits as ..7141, lamented that MTN has in the last three months continuously subscribed him (unsolicited) and make deductions from his call credit, a development over which he expressed helplessness. 
Similarly, Miss Uche who has MTN number that ends in ..2866 is not happy with MTN for automatically subscribing her number to a Callertunez without giving her the option to opt out or choose the tune of her choice.
Another loyal subscriber who has been using MTN number 08032637535, for 9 years said his own message on the 12th of October, 2013 at 5:12am reads: “Your service will expire on 2013-10-15. To renew the service @N50 monthly, take no action. For information on how to cancel, text HELP to 4100.” 
On the 16th the same subscriber without taking any action got another message that reads: “Yello, you have been charged N50 and your callertunez service has been extended to 2013-11-15 successfully. Reply TOP5 or’ # SongName’ to search tunez. For more info, text HELP to 4100.” 

Callertunez: NCC should investigate MTN auto-subscription ­–stakeholders

By KELECHI MGBOJI

Following revelation that MTN defraud Nigerians a whopping N2.7billion monthly through its automatic subscription to callertunez on behalf of subscribers, stakeholders have called on the National Communications Commission (NCC) to investigate subscribers’ dilemma in opting out of the service.

The regulatory body was also told to investigate why network providers apply auto-subscription device to compel subscribers’ patronage of the service without giving them any chance to determine the choice of tunes.

Wondering what code a subscriber who did not subscribe for any tune could use to opt out, some industry stakeholders who commented on the development deplored MTN’s highhandedness regarding subscribers’ difficulty in opting out of the caller tune service, stressing that the process need not be a complex one.

Subscribers and victims of rip-off also called on the NCC, the Consumer Protection Council (CPC) and other government agencies under whose regulatory purview this high-handedness of MTN Nigeria falls, to exert appropriate sanction against the company.

In a telephone interview over the weekend, the National President of Nigeria Association of Telecom subscribers, (NATCOMS), Chief Deolu Ogunbanjo, said there must be a system resolution that should be put in place to manage such issues arising from subscribers’ complains.

According to him, “if the subscribers are enjoying the service, then it is okay. But where there is no satisfaction in the callertunez service, the resolution of such complain now becomes vital,” stressing if a subscriber is not satisfied with it or he does not want it any more, he should be able to opt out with ease.

“On the issue of having difficulties in opting out of callertunez service, that is where NCC should come in as a regulator, so there must be a system put in place that anytime a subscriber wants to opt out he should be able to do so.

“Why must MTN force us to continue to subscribe to callertunez. If I have used a callertunez for three months and I don’t want it any longer, I should be able to quit. Talking of the ability to get off through callertunez service when we feel like, we will take that up with NCC when we meet”. Deolu added

Similarly, the president, Association of Telecommunications Companies of Nigeria (ATCON), Mr. Lanre Ajayi, expressed serious concern over difficulties which customers encounter trying to unsubscribe from callertunez service.

He said: “There should be a simpler way of subscribing and unsubscribing. This is a serious issue if subscribers are facing this kind of problem, and the regulators (NCC) should be informed about it and something should be done”.

In his response the Chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, declined to comment on the development saying: “I cannot hold brief for any operator, am not for and not against. As the chairman of the association, I can’t speak on behalf of any operator or an individual. If there are issues of any kind, channel it to MTN”.

But responding to the widespread calls for sanctions against MTN, NCC's director of public affairs Dr. Tony Ojobo, said that “if MTN is raking N2.7billion through the service, what has that got to do with NCC?

“On the issue of the inability to unsubscribe from callertunez, it is MTN that should be asked the question, which has nothing to do with NCC.”Ojobo said

MTN has come under widespread criticism in recent time over allegations that it is using its caller tunes service with the code number 4100 to defraud over 55.6 million GSM subscribers of a whopping N2.7 billion monthly.
Under the guise of giving subscribers the opportunity to subscribe to any caller tunes of their choice at the rate of N50 per month, the telecoms giant is raking in about N2.7billion monthly and approximately N33.4 billion yearly through the auto-subscription service to about 55.6 million subscribers.

But subscribers complain that they are being ripped off. For instance, after receiving several unsolicited messages, one of the subscriber victims (name with held by us) confronted MTN office in Egbeda, Lagos where he was directed to call Mr. Funso Aina of the Corporate Communications department.
When Aina was contacted, he was full of apologies but the following day the subscriber got a message to the effect that he had been ‘un-subscribed’ from the service which he never subscribed to in the first instance. When he demanded for a refund of his N50, he was merely told to “forget that one.”
Another victim, Chigozie, with a number that has last four digits as ..7141, lamented that MTN has in the last three months continuously subscribed him (unsolicited) and make deductions from his call credit, a development over which he expressed helplessness.
Similarly, Miss Uche who has MTN number that ends in ..2866 is not happy with MTN for automatically subscribing her number to a Callertunez without giving her the option to opt out or choose the tune of her choice.
Another loyal subscriber who has been using MTN number 08032637535, for 9 years said his own message on the 12th of October, 2013 at 5:12am reads: “Your service will expire on 2013-10-15. To renew the service @N50 monthly, take no action. For information on how to cancel, text HELP to 4100.”