Shareholders of Lafarge Cement okay N2.25bn for 2011 dividend
SHAREHOLDERS of Lafarge
Cement WAPCO Nigeria Plc, yesterday, approved payment of 75 kobo dividend for
the year ended December 31, 2011, amounting to N2.25 billion.
In absolute terms, the 75 kobo dividend represents an increase of
200 per cent, when compared to the 25 kobo paid in the previous financial year.
The company explained that turnover for the period under review
also increased by 42 per cent to N62.2 billion, pointing out that the development
was made possible by the “approximately 37 per cent increase in the volume of cement
dispatched for the year compared with 1.6 million tonnes recorded in 2010”.
Profit after tax also increased by 75 per cent from N4.88 billion in
the previous financial year to N8.5 billion
Chairman of the company, Chief Olusegun
Osunkeye, explained that the repayments of principal and interest on
the loans for the construction of the Lakatabu capacity expansion project has
commenced, adding that “this means that in order to conserve cash for loan repayments we
need to exercise restraint in the level of increase on dividend pay-out”.
Briefing shareholders during the company’s
yearly general meeting in Lagos, Osunkeye said in order
to limit interest cost on the loans for the project, a refinancing initiative
was embarked upon in 2011.
“The first step taken was to access the Central Bank of Nigeria
(CBN) Power and Aviation Intervention Fund (PAIF) by using this window to
refinance the portion of the variable loans spent to construct the 90 Mega
Watts power plant”, said Osunkeye
He added: “The CBN through the Bank of Industry approved and disbursed the
sum of N12.46billion as loan to the company under the PAIF. The tenor of the
loan is 10 years and at a fixed interest rate of 7 per cent per annum.
“Secondly, a three year fixed rate Corporate Bond at 11. 5 per cent
Per annum was issued in October 2011. The proceeds from the bond issue (N11.88
billion) was utilised to further refinance part of the expensive existing
variable interest loan
“The two refinancing initiatives have helped to achieve a more
balance loan portfolio with significant potential for the interest cost
reduction”.
Making reference to future plans, he explained that based on
estimates from industry experts, Nigeria has an estimated deficit of 16 million
housing unit.
“Nigeria’s road network also presents a significant opportunity for the
cement sector. According to available estimates, only approximately 30 per cent
of the existing road network is paved in comparison to approximately 63 per
cent average for emerging countries.
“The completion of the Lakatabu capacity expansion project
therefore favourably position the company to benefit from these
potentials”, Osunkeye added.
National Coordinator, Independent Shareholders Association of
Nigeria (ISAN), Sir Sunny Nwosu while commending the board and management of
the company said the Lakatabu project is capable of generating more returns for
investors in future.
GSK tasks shareholders on N323m unclaimed dividend
CHAIRMAN of
GlaxoSmithKline (GSK) Consumer Nigeria Plc, Chief Olusegun Osunkeye, has advised shareholders
associations to join ongoing efforts to reduce drastically unclaimed
dividend in the company’s account.
Specifically, Osunkeye, who spoke during GSK’s
41st yearly general meeting in Lagos, urged the leadership of shareholders’
groups to proffer solutions on how to encourage their members to collect their
outstanding dividend in the books of
the company.
He disclosed that as at February 23, this
year, unclaimed dividend in the books of the company was N323 million, adding
that shareholders should make more efforts to collect returns on their
investment.
The company also advised shareholders to open bank accounts,
stockbroking accounts with Central Securities Clearing System (CSCS) accounts
for the purpose of dividend.
“This to inform all shareholders that the Registrars of the company
are holding share certificates and dividend warrants which have been returned
by the post office as unclaimed.
“Some dividend warrants sent to the shareholders’
registered addresses or their bankers are yet to presented for payments or
retuned to the Registrars office for revalidation”,
said GSK.
Meanwhile, for the year ended December 31, 2011, shareholders who
attended yesterday’s meeting approved proposal by the board of the company to pay
N1.20 kobo amounting to N1.14 billion.
Osunkeye explained that within
the period under review, turnover was N21.52 billion, 28 per cent increase over
the previous year while profit before tax and profit
after tax were N3.50 billion and N2.30 billion, 19 per cent and 16 per cent
growth over the previous year respectively.
Explaining further, Osunkeye said: “We
remain strongly committed to our people’s development drive which aimed at achieving the aggressive
business growth agenda. We take steps to ensure that employees are equipped
with competencies and capabilities required to deliver in their various roles,
as well as handle challenges and complexities that may
arise in the course of executing their assignments.
“In order to build a strong pipeline for the continuous inflow
of agile and talented individuals, the management training scheme was
introduced and the first batch was released into different departments in
December 2011.”
He told shareholders that inline with one of the company’s
strategic priority of continuous improvement
, “we embarked on a journey to transform our business through
aggressive innovations.”
“In 2011, we launched 15 new products quality. This was quite
unprecedented in the annals of GSK. The performance of these new products
contributed significantly to the overall business growth. We are committed to
sustaining the double-digit growth of our business in 2012 with innovations
still playing a pivotal role. Lined up
for launch in 2012, are new and value-adding products that would be driven by
science and deep consumer insight”
Speaking during the meeting, the National Co-ordinator,
Independent Shareholders Association of Nigeria, Sunny Nwosu, said that the
company performed well despite challenges in the sector.
Nigeria, Brazil’s bilateral trade hits N1.4
trillion
THE bilateral trade
between Nigeria and Brazil has hit $8.9 billion (about N1.4 trillion) in the
last five years.
The bilateral trade has all along been in favour of Nigeria,
mainly because of the country’s crude oil export to
the South American country.
And to further strengthen the trade link between the two
countries, the Nigerian Brazil Chamber of Commerce has been inaugurated.
Secretary-General of the new chamber, Sorronnadi Ezebuiro stated
at the inauguration in Lagos recently that this would serve as a tool to
sustain Nigeria’s relationship with Brazil.
He listed Brazil’s exports to Nigeria to
include automobiles, chemicals, electronics, while Nigeria’s
exports are crude oil, oil palm, hide and some stones to the Samba country.
Ezebuiro, a monarch from one the South Eastern States, added that
both countries have many things in common, being biggest nations in their
respective continents, and should intensify efforts to increase bilateral
trade.
He described Brazil as the largest country in Latin America and
Nigeria, the most populous nation in Africa.
According to him, “Nigeria is the biggest
exporter to Brazil. We are Brazil’s most important
trading partner and the most important destination of investment in Africa.
“Both countries are key players in the economies of their regions.
Brazil is a leading political and economic power in Latin America. Nigeria is
equally the leading political and economic power in West Africa.
“Nigeria is the second largest trade partner of Brazil in
Sub-Saharan Africa and 11th in the world.
Brazil is the third largest importer of Nigerian crude oil after USA and India.
Nigeria’s balance of trade with Brazil is very favourable”.
He listed Brazil’s key industries to
include textiles, shoes, chemicals, cement, agriculture, motor vehicles and
parts, other machineries and equipment.
“Major export products include
aircraft, coffee, vehicles, soybean, sugar, rice, orange juice, iron ore,
steel, textiles, footwear, electrical equipment and others.
“Brazil’s current account surpluses had continued to hit record levels,
indicating that exports were growing strongly.
Its income per head is now twelve times that of India and China.
Nigeria has a great deal to learn and tap from Brazilian experience.
So come on board, let’s take advantage”, he added.
Ezebuiro explained that the chamber came into existence in 1991
and became the pioneer chamber to be formed before the emergence of other
making it the foremost.
He said that the activities of the chamber were put on hold due to
the death of the first President, Otunba T.O.S Benson.
Commercial coal mining commences in Kogi
AT last, mining of coal
in commercial quantity has commenced at the Zuma site, located in Okobo/
Enejema Communities in Ankpa Local Government Area of Kogi State.
The development may have brightened hopes for the achievement of
the Federal Government’s target of 30 per cent power generation from coal, to produce
10,000 mega watts of electricity by 2015.
Until now, mining activities in the vast coal fields of Kogi State
have been on small scale, mostly by artisanal miners.
The coal deposit site alone is expected to generate about 1000 mega
watts of electricity, to be linked to the national grid, sold to Independent
Power Producers (IPPs) and small house-holds, according to the Chairman of
Western Goldmines, Dr. Innocent Ezuma, the indigenous investor exploiting coal
at the Zuma mining field.
The Minister of Mines and Steel Development, Musa Mohammed Sada,
in company of the Governor of Kogi State, Capt. Idris Wada,
visited the mining site and expressed optimism that government’s
target was realisable, giving the quantum of coal already produced and the
level of ongoing exploration and mining activities.
He said: “I am impressed by what I have seen here. It gives us hope that we
would realize our target of 10,000 Mega watts of electricity by 2015. Under the
energy source power mix, coal has been assigned the task of generating 30 per
cent while gas and hydro are to account for the balance of 70 per cent.
“Mr. President is up-beat about this. That’s
why I am here because we believe this is the kind of investment that would lead
us to the realisation of our 2015 target. Our doors remain open to this
investor and others whose operations will complement government’s
efforts in the realisation of our energy goals as well as employment generation
“The purpose of mineral exploitation is to ensure that the people
in whose place the mineral is located derive the benefits of its exploitation
through the upgrade of their livelihood, employment creation for them and
other social amenities, while government too benefits from the taxes to
be paid by the investors and workers alike.
“I therefore, implore the communities in which this mining activity
is located and the Kogi State government to cooperate with the investor to
ensure the project’s sustainability. It is also an opportunity for the state and the
community to invest in the company so that you can become part owners of the
investment.”
The Kogi State Executive Governor, Capt. Idris Wada who also
expressed delight at the investment assured of the State’s
cooperation and support to ensure the sustainability of the investment.
He declared the state’s willingness to
partner with the investor by investing in the company and called on the host
community to cooperate with the investor by not taking the laws into their
hands in the event of any disagreement but to report any issue in contention to
the state government.
“I want to implore the host community to cooperate with the
investor. Be patient with him because it takes time for investment to grow. We
are there at Lokoja and our doors are open. If there be any issues that are n
contention with the investor, don’t take the laws
into your hands, report to us and we would hand it in the best way possible,”
he added.
He pledged the immediate provision of a cottage hospital with full
medical team; a water treatment plant for potable water and the relocation and
upgrade of a primary school in the area for the benefit of the host community
as a mark of his support for the investment and called on more investors to
patronise the state.
Earlier, the Chairman of Western Goldfields, Dr. Innocent Ezuma
described the coal being mined at the site as being of the best quality in the
world and is expected to be used for power generation at the Zuma Power Plant
at Itobe, in Kogi State as well as for supplies to other interest that may have need for
it.
He said already, the investment has provided over 300 direct jobs,
with a projection of raising it to 5000 in the next two years.
The House of
Representatives has raised the alarm over the spate of vandalism of petroleum
products pipeline, and expressed fears that the issue has grave consequences on
the entire economy of the country.
Also, the house has
expressed concern about the poor state of the nation’s
refineries and argued that Nigeria can only achieve energy security if
petroleum products were refined in the country.
Chairman, House of
Representatives Committee on Petroleum (Downstream), Mr. Dakuku Peterside, made
these observations at a joint session with the management of Department of
Petroleum Resources (DPR) in Lagos.
The committee members
were in Lagos for oversight of agencies, ministries and departments under their
supervision.
Peterside noted that
persistent pipeline vandalism was impacting
on not just downstream operation but the upstream and mid stream operations of
the Nigerian oil and gas sector.
He said: “The
other thing is the persistent pipeline vandalism. It is having a very serious effect
on not just downstream operation but the upstream and mid stream operations. We
think that all agencies in the sector must work together to combat what I can
call terrorism of the industry. Pipeline vandalism does a lot of harm, not just
only to our people but the entire economy of the country and it deserves very
serious attention, and we think the DPR should champion that course”.
The committee noted that
most environmental challenges confronting the country today were associated
with pipeline vandalism and products handling and expressed
dissatisfaction over the current state of the Atlas Cove jetty, Nigeria’s
major reception facility . The Jetty located in Takwa Bay, Lagos, has not been
restored to full standard despite the repair work carried out on it after the
2006 fire incident.
The
lawmakers further observed that most filling stations in Lagos were located in
areas that were strictly residential, noting that apart from the environmental
consequences associated with this, the action is also against the physical
planning law of Lagos State.
“Another thing we
noticed is the location of tank farms, you need to take a second look at the
tank farm location and the accompanying environmental challenges.
Some of the environmental challenges are associated with the issue of pipeline
vandalism and the other times product handling. We were at the Atlas Cove this
morning, we are yet to take a position on what we observed or what we saw in
Atlas Cove. But again, am not quite impressed about what the government is
doing to ensure that that national asset gets the deserved attention.
He continued: “It
is unfortunate that because most of our pipelines are not functional, we use
tankers to convey products. Many of the tankers are not in very good condition
and they litter products all over the place, they further endanger the
environment and constitute serious health hazards. We think that your
regulation must extend to that area too”.
He said government must
ensure that the traditional refineries were working at optimal capacity to
ensure availability of adequate products for domestic consumption.
“ I don’t
think our refineries are in their very best states and for as long as we cannot
refine our products in- country, we cannot talk about energy security. For strategic
national consideration, we need to step efforts to refine our products in-
country to ensure that the existing refineries are working at optimal capacity,
that they produce products that meet the best quality available in the industry”,
he said.
Responding, the DPR
Director, Mr. Osten Olorunsola, noted that most of the outlet stations were
built without DPR’s approval, adding that the agency had in the past ordered the
demolition of such facilities. He said products adulteration, particular diesel,
vandalism of pipelines, product round tripping have remained major issues the
industry has continued to battle with.
He added that despite
the inadequate manpower and equipment and funding issues, the DPR ensured
adequate monitoring of crude terminals and engaged both staff, police and naval
personnel on surveillance duties at areas where there are reports that people
adulterate products.
He said: “There
has been quite a lot of adulteration of diesel very recently, and I mentioned
one, this Waziri jetty, where we have caught people mixing and mixing, and you
shut it down, you inform police, you bring in navy, but drive their around 12
mid night, they are still doing it, even guarded by their people. So is very
difficult but are working on it as much as possible.”
On price discrepancies,
Olorunsola said the agency had shut down more than 100 filling stations across
the country due to sharp practices by oil marketers.
“On price control,
indeed people have seen all sorts of pricing. This year alone, we have shut
down quite a lot stations where we saw people putting prices above the pump
price, because ones you get there, you will see it, they will put N140, they
put N150, they say is N97, they put it at N105. So when we see these,
definitely, we clamp down on them immediately. But I just also want to warn,
even when you see N97, please watch very well because you may actually be
paying more, because they can then under-deliver for you. They may be selling 0.6 of a
litre for a litre, so at the end, you are actually paying a lot more so but if
you see any please, just call us”, he added.
Respite for equities as new guidelines compel PFAs to 10% minimum
investments
The nation’s
equity market is set for a breather, typified by new sources of funds for
trading in equities and redirection to the real sector of the economy, as the
amended National Pension Commission (PENCOM) guidelines require a minimum of 10
percent investment in equities, BusinessDay can now reveal.
The
document which Business Day gathered would be released very soon, will now make
it mandatory for a minimum of 10 percent investment of the N2.6 trillion PENCOM
assets in equities, a development that will buoy the market with at least N26
billion on implementation. This is against 25 percent in the previous
guidelines, which was not complied with, due to investors’
apathy towards the equities market, as a result of its volatility. The highest
investments made, ranged between three and seven percent.
Already
some stock broking firms and other players in the capital market have commenced
repositioning strategies through strategic alliances with the Pension Fund
Administrators (PFAs) and establishment of mutual funds subsidiaries to benefit
from the new direction towards the equities market.
While
the PFAs are the licensed managers of the contributory pension scheme which
manages the largest pool of long-term investible funds, a Mutual Fund is a
collection of stocks, bonds, short-term money market instruments, other
securities, or any combination of such assets. Investors buy shares in the
fund, and a manager makes the decision to buy and sell the securities that make
up the fund’s portfolio. Besides, only 30 stocks out of the lot were being
patronised under the old dispensation, due to low valuations by stock brokers.
But with the new guidelines, investments in equities cannot fall below 10
percent of the total PenCom assets.
Albert
Okumagba, managing director of BGL Limited, recently called on PenCom to
persuade PFAs to increase their investment in equities from the current less
than 10% to up to 20%, arguing that “PFAs are the
biggest buy-side institutions in the Nigerian market and their asset pool is
the biggest in terms of long-term capital, however short term money market
instruments currently take precedence.”
Similarly,
Oscar Onyema, managing director, Nigerian Stock Exchange (NSE) recently observed
that in many cases, the PenCom regulation that PFA’s
should have a maximum of 25 percent of their portfolios in equities, has not
been complied with, saying, “As of June 2011, only 17
percent of this capital was invested in the equities market, with short-term
money market instruments taking precedence.”
However,
the PFAs, under the new dispensation, are to maintain four separate funds of
35years and below, 45years and below, above 45years and Sharia Compliant fund,
with the intention of seeking to match contributors return with their risk
profiles and ethical preferences.
With
the new development, our stock broking firm “must win more
PFAs, our Mutual Fund is in progress, proprietary trading is also in progress
but should be intensified to take advantage of the expected rally. On the new
infrastructural bonds, we will take advantage to be involved in road projects,”
says a top industry operator.
Speaking
further, he said, “The Nigerian Capital Market in the past three weeks has retained a
bullish outlook despite global economic challenges, particularly from the
Eurozone. This has triggered a level of concern among investors –
wanting to know the factors behind the rally which in our opinion is buoyed by
the activities of some speculators positioning ahead of the proposed amendment
to PenCom guidelines.”
Some
other analysts were of the opinion that the development makes the equities
market to retain its current upbeat outlook, particularly as stock valuations
remain attractive, while the bond yields are expected to contract as Pension
Fund Administrators increase their holdings in variable assets to 10 percent.
The
guidelines’ new outlets include Infrastructural Bonds, Infrastructural Fund,
Supra National Bonds and Private Equity, to complement the existing ones, which
are government securities, corporate bonds, money market instruments, ordinary
shares and mutual funds.
However,
some analysts have picked holes in the Sharia category of investment, as they
claim it failed to distinguish among the different age groups, hence the
likelihood of further amendment. This is, according to them, aside from the
risk of policy inconsistency which may materially affect market activities in the
event of policy reversals.
Fuel imports down by 27 million litres on subsidy removal
Nigeria’s
daily fuel imports are down 45 percent this year, or by 27 million litres a
day, on the back of the partial removal of petroleum subsidies by the Federal
Government.
The
amount of fuel imported into the country is running at a rate of 32 million
litres a day, down from 59 million litres a day, before the 49.2 percent hike
in fuel prices, from N67/ litre to N97/litre, and this is having a positive
effect on the value of the naira, as well as the foreign exchange (FX)
reserves.
“Over
the period of many weeks, the naira exchange rate has firmed on the back of a
sharp fall in imports of petroleum products,” said FBN capital
analysts, in a research note released yesterday.
“A
reduction in the subsidy does not reduce the total cost of the import but does
reallocate the split between the consumer and the provider of the subsidy. A
reduction in the volume of imports, by contrast has a positive impact on FX
demand and on the public finances.”, the note said.
The
naira has been relatively stable at the N157 to the dollar level for most of
the year, and has advanced 3.2 percent this year, versus the dollar. Nigeria’s
FX reserves rose to $37.3 billion, a 21-month high, last week, after ending
2011 flat on the year. The reserves are up 13.3 percent year-to-date.
FBN
capital says the cut in the subsidy on premium motor spirit (PMS) in January
has led to a number of changes in the market and in market practice. The
Petroleum Products Pricing Regulatory Agency (PPPRA) has introduced changes in
the import regime, such as the appointment of certified cargo inspectors and
the launch of a new inspection system, which has helped to cut the number of
companies benefitting from the subsidy scheme to 42 from 128 last year. The
changes have brought about “striking progress”
according to sources at the Presidency, helping to curb fraudulent imports.
In
a debate in the National Assembly in February, it emerged that imports had been
running last year at 59 million litres while consumption was estimated at 35
million litres. A detailed report by the House of Representatives ad-hoc
committee on fuel subsidy recently alleged fraud totaling the equivalent of
N1.07 trillion (about $ 6.8billion). Payments totaling N2.6 trillion ($16 billion)
in fuel subsidies were made in 2011 through a fraudulent process, the committee
said.
“Nigeria
consumes about 35million litres of petrol a day. If we assume that all of the
petrol consumed in Nigeria is imported and by implication subsidised, then the government
should be spending about N1.1 trillion ($7 billion) on petrol subsidies per
annum, instead, the government is estimated to have spent more than double
that, up to $16billion, on petrol subsidies in 2011.”
Yvonne Mhango, Renaissance Capital Sub-Saharan Africa, economist, wrote in a
recent research note.
The
Central Bank of Nigeria’s (CBN) Monetary Policy Committee, (MPC) met this week, and
referred to the “reduction in arbitrage opportunities”
in the industry, as a result of the partial removal of the fuel subsidy. CBN
Governor, Sanusi Lamido Sanusi, in a statement made after the MPC meeting
hinted at the need for structural reforms to take place in the Nigerian
economy, including perhaps a total phase out of the subsidy.
“Our
view on fuel subsidy has always been very clear: that we cannot spend 4 percent
of our Gross Domestic Product (GDP) on petroleum subsidies. There are of course
other issues. These incude issues around the transparency of the entire
process, which have come into light, and which are being investigated,”
he said.
President
Goodluck Jonathan this week submitted a report on the $6.8 billion fuel subsidy
fraud to the Economic and Financial Crimes Commission (EFCC) for investigation
and possible prosecution of oil company officials behind the scam.
The
real solution though, would be to move to full price deregulation, according to
FBN capital, “This would yield substantial fiscal savings, attract investment in
refining, remove the need of the PPPRA and several other public bodies, and in
time, improve supplies across the country.”
FRC blasts Forte Oil over N24.7bn phantom shares, asks ICAN to
postpone AGM
The Financial Reporting
Council of Nigeria, the nation’s accounting and
financial reporting standards custodian, yesterday refused to spare the rod
against the Institute of Chartered Accountants of Nigeria (ICAN), Forte Oil
plc, Alliance & General Insurance Limited and General Life Assurance
Limited, for contravention of corporate governance rules.
Jim
Obazee, executive secretary of the FRC who spoke with a select group of
journalists in Lagos said ICAN was directed to postpone its annual general
meeting (AGM) scheduled for May 25, 2012 “because of issues
from its corporate governance and financial reporting”.
Obazee
stated that the council of ICAN did not approve the institute’s
financial statement when it met on January 18, 2012 and that the report of the
honourary treasurer also noted that the financial statement which is subject to
ratification of the council was not done.
In
addition to ordering the postponement of the AGM, the FRC directed that ICAN
hold the event not earlier than 21 days after the ratification of the 2011
financial statement by its council, in accordance with section 217 (1) and 217
(2b) of the Companies and Allied Matters Act CAP C20 LFN, 2004.
He
also noted that the actions of ICAN confronted legal requirements of the CAMA
and Financial Reporting Council of Nigeria Act No.6, 2011.
The
FRC, he said, had directed ICAN to explain why the management allowed their
external auditors to report on the 2011 financial statements that were not
ratified by the council.
Obazee
said Forte Oil plc was also being indicted for allotting 102 million shares
valued at N24.7 billion to certain shareholders during the company’s
hybrid offer (public and rights issues) in 2008.
He
explained that the share holders did not only refuse to pay for the shares but
also received dividends to the tune of N259 million as shareholders on the
shares, which they later dumped.
The
FRC boss said, quoting from the 2010 annual report of the oil firm: “We
draw attention to Note 9 to the consolidated financial statements on the hybrid
offer (public offer and rights issue) in 2008 for which the majority of
proceeds were received in 2009. The proceeds for 102 million ordinary shares
allotted to certain shareholders of the group amounting to N24.7 billion have
not been received by the company as at date of this report. Full provision for
this amount has not been charged directly to shareholders’
funds in these consolidated financial statements.”
He
also noted dividends amounting to N530 million were released for payment to the
registrar in respect of the unpaid shares, as part of the dividends declared
for the year ended 31 December 2008, and approved by the shareholders on 22
July 2009. Of this amount, only N271 million unpresented cheques have been
recovered from this amount, he added.
Obazee
said the FRC had requested Forte to provide it with all the details of the
hybrid offer, including but not limited to circumstances under which the
company allotted shares to group directors and shareholders without payment for
the shares; the accounting policies the board approved to address such
allotment of shares that were not cash-backed and ‘on
dividends not recovered’.
Due
to this development, the company’s issued share capital
is less than 25 per cent of the authorised capital prescribed by section 99 of
the Companies and Allied Matters Act, Cap C20 LFN 2004.
The
FRC also want to know the circumstances in which share capital account was
credited with un-received payment for the said allotted shares; the accounting
policy the board adopted to address dividends paid on capital that was not
raised; the reason the said ‘dividends not recovered ‘
was treated as memorandum as against contingency.
“
Council also directed that as an interim measure, Forte Oil plc should
write-off the yet to be recovered portion of the dividend paid on the said
allotted shares, but furnish the FRC with the details of the beneficiaries of
the dividends, and report the said beneficiaries to the Securities and Exchange
Commission (SEC). A copy of the report should be forwarded to FRC”,
he said.
Alliance
and General Insurance Limited and Alliance and General Life Assurance Limited
are indicted for preparing two financial statements for the same year end.
“The
FRC, in collaboration with NAICOM, is currently investigating the 2010 audited
financial statements of the two companies referenced above, wherein the
companies prepared two sets of financial statements for the same year end . In
the course of NAICOM’s review of the 2010 audited accounts submitted to the commission
by the above named companies, some errors /lapses were observed and
communicated accordingly. Rather than deal with the issues raised in the
accounts, the companies provided entirely different sets of accounts ,
incorporating items that were not originally included in the accounts under
review. Curiously, the different sets of accounts were signed by the same
auditor – AAE Professionals”, he said.
Obazee
noted that NAICOM must review and approve the financial statements of these
entities before it gets to the FRC.
The
FRC has of recent come under fire for not taking serious action against
corporate governance infractions, with the Federal Government threatening to
withdraw its support for the council.
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