Connect with us

Featured

Oando Crisis: London Tribunal Asks Tinubu, Boyo to Pay Volpi N208bn

Published

on

Amid accusations by aggrieved shareholders of attempts to suppress the report of the ongoing forensic audit of its operation, Oando PLC Chief Executive, Wale Tinubu, and his deputy, Mofe Boyo, have been asked to pay Ansbury Investments Inc. about $680 million (about N207.9 billion @ N305.8/dollar).

Ansbury was incorporated in Panama as part of a family trust by an Italian-Nigerian businessman, Gabriele Volpi.

The three-member London Court of International Arbitration (LCIA) presided by David Midon on July 6 gave the partial award against the two embattled top officials of Nigeria’s indigenous oil company.

In the ruling, affirmed by two other co-arbitrators, Marco Frigessi di Rattalma and Harry Matovu, the tribunal upheld Mr Volpi’s application that Ocean and Oil Development Partners (OODP) was indebted to Ansbury by about $600 million (about N183.5 billion).

OODP Limited, incorporated in the British Virgin Islands, controls 55.96 per cent equity in Oando PLC through a holding company, Ocean and Oil Development Partners (OODP) Nigeria Ltd.

The company was established at a time Oando PLC was preparing to acquire ConocoPhillips’ upstream oil and gas assets in Nigeria.

According to a copy of the tribunal ruling sent to PREMIUM TIMES on Sunday by counsel to Ansbury Investment, Andrea Moja, the court also held that Whitmore Asset Management Limited was liable for another debt of $80 million (N24.5 billion).

Whitmore, incorporated in the British Virgin Islands as a single purpose investment vehicle, belongs to Messrs Tinubu and Boyo.

Court documents seen by PREMIUM TIMES showed initial agreement signed on June 17, 2013 gave 60 per cent equity in the venture to Ansbury and 40 per cent to Whitmore.

However, the source of dispute was whether there was a legally binding agreement for Ansbury to transfer 20 per cent share of its equity in the venture to Whitmore, such that OODP BVI equity would change to 60 per cent for Whitmore and 40 per cent for Ansbury.

Besides, the court was confronted with the decision whether the parties made a legally binding agreement to convert an outstanding loan of $150 million (plus interest) into shares in Oando E&P Holdings Limited.

In its ruling, the court said the draft amended loan agreement as well as the draft “Put and Call Option Agreements” never became effective.

“Whitmore is in breach of the repayment obligation in the First Loan Agreement,” the tribunal ruled. “The alleged oral agreement to switch the parties’ respective shareholdings in OODP BVI is not binding on the parties. The alleged oral agreement to extend the term of the loans to 1 January 2020 is not binding on the parties.”

Mr Moja said the final award was expected to follow in the next few days whereby the tribunal would make definite pronouncements on accrued interests on the debts owed and legal expenses.

He said the tribunal’s ruling is in respect of a debt Mr Tinubu is owing, and does not affect Mr Volpi’s status in Oando as its majority shareholder.

He said in line with the tribunal processes, details of the award have since been communicated to all the parties concerned since July 9. The ruling is, however, subject to appeal.

How Crisis Started

In 2012, Ansbury said it invested about $700 million in OODP BVI, by acquiring a 61.9 per cent stake in the firm, with Withmore Limited holding 38.10 per cent.

According to Mr. Volpi, Mr Tinubu approached him to invest in the company at a time Oando PLC was mobilising $1.5 billion to acquire assets in ConocoPhillips’ upstream oil and gas in Nigeria.

Similarly, OODP BVI, which controls 99.99 per cent equity in OODP Nigeria, holds 55.96 per cent of the stakes in Oando.

When the dispute broke out in 2017, Ansbury said it equally petitioned the Nigerian capital market regulatory authorities, the Securities and Exchange Commission (SEC) in May accusing the management of Oando PLC of mismanagement, “insider dealings, manipulation of the company’s shareholding structure and huge indebtedness”.

The petition culminated in the forensic audit of Oando PLC operations ordered by SEC in October 18, 2017.

But, the exercise did not take off several months after following the suspension from the office of the former Director General of SEC, Mounir Gwarzo.

Although Abdul Zubair was appointed acting DG to succeed Mr Gwarzo, he was redeployed on April 13 and replaced by Mary Uduk, whom critics say was brought by the minister to do her bidding.

Months after the audit by KPMG commenced, aggrieved shareholders under the platform of Proactive Shareholders Association of Nigeria (PROSAN) accused the management of the company, a fortnight ago, of working with the Minister of Finance, Kemi Adeosun and Mrs Uduk, to frustrate the release of the audit report.

The shareholders blamed the long delay in releasing the audit report on Mrs Adeosun and Ms Uduk’s alleged clandestine activities “to shield Oando management from criminal prosecution”.

“We are calling on the Acting Director-General of SEC to immediately release the report of the forensic audit conducted on the company since last year although we believe the result will be compromised since they have failed to suspend the management of the company while the so-called forensic audit lasted,” National Coordinator of PROSAN, Taiwo Oderinde, said on Sunday in a statement sent to PREMIUM TIMES.

Oando Speaks

When contacted, the spokesperson of Oando, Alero Balogun, said on Monday that she does not have the authority to react to the debt issue.

She, however, Oando or Mr Tinubu’s lawyers would do so at the appropriate time.

Ms Balogun denied the allegation by Oando shareholders that the management was sitting on the forensic audit report.

“We (Oando PLC) are not sitting on any audit report. We went to court to challenge the audit, because we said SEC would not be fair. We lost. Now the the audit has begun and they are saying it is taking too long. We are also waiting for the report of the audit like every other person,” she said.

When PREMIUM TIMES contacted the minister for her response to the allegation she was frustrating the audit, her spokesperson, Oluyinka Akintunde, said his boss had no comment on the allegation.

Mr Akintunde directed this reporter to SEC, which he explained was the agency that ordered the forensic audit.

When this reporter contacted the acting director general of SEC for her response, the acting spokesperson of the commission, Efe Ebelo, assured that Ms Uduk would respond to PREMIUM TIMES’ enquiry.

About a day later, no response has been received from the regulator.

The firm conducting the audit, KPMG, also declined comment on the status.

A representative of the firm, who answered the telephone when the company’s official telephone was called, said KPMG is not obliged to speak to the media on any of its clients’ briefs.

Premium Times

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured

Current Hardship in Nigeria, a Result of Lack of Leadership, Says Atiku

Published

on

By

Former Vice President Atiku Abubakar has attributed Nigeria’s worsening hardship to lack of effective leadership, emphasising the need for sacrifices by political leaders for the collective good.

The former presidential candidate of the Peoples Democratic Party (PDP), in his Christmas message to Nigerians, called on the nation to confront the root causes of its struggles while embracing unity and love during the festive season.

Atiku extended warm greetings to Christians celebrating the birth of Jesus Christ, urging Nigerians to reflect on the significance of the season.

“It is a blessing that we can once again celebrate the events leading to the birth of Christ, despite the adversity we face,” Atiku said.

He acknowledged the resilience of Nigerians in the face of unprecedented economic and social challenges but lamented the widespread suffering and preventable deaths resulting from poor governance.

“The failure of our leaders to make necessary sacrifices has deepened the hardship and widened the gap between the people and those in power,” he said.

Atiku criticized the lack of visionary leadership in the country, blaming it for the deteriorating quality of life for millions of Nigerians.

He highlighted how poor governance has exacerbated economic difficulties, leaving citizens to bear the brunt of inflation, unemployment, and insecurity.

“Our current struggles are not insurmountable,” Atiku noted, “but addressing them requires leadership that prioritizes the well-being of the people over political expediency.”

Despite his critique of the current administration, Atiku’s message carried a tone of hope and encouragement.

He called on Nigerians to remain united and to confront their shared challenges with love and compassion for one another.

“With love and unity, there is no obstacle too great to overcome. Let us, therefore, come together to share love and joy with all people of goodwill,” he urged.

Atiku also reminded Nigerians of the spirit of Christmas as a time for reflection, gratitude, and selflessness. He encouraged citizens to draw inspiration from the life of Jesus Christ, whose birth symbolizes hope and renewal.

As Nigerians continue to grapple with economic and social instability, Atiku expressed hope for a brighter future, urging all citizens to work together to create a nation that prioritizes the welfare of its people.

“We must not lose sight of our collective strength and potential. With the right leadership and shared determination, Nigeria can rise above its challenges,” he stated.

The PDP chieftain wished all Nigerians a blessed Christmas filled with peace, happiness, and renewed hope for the future.

Continue Reading

Featured

Akwa Ibom Gov Disburses N750m Business Grant to 15,000 Youths

Published

on

By

In a historic move to tackle unemployment and empower Akwa Ibom’s youth, Governor Umo Eno has disbursed ₦750 million in unemployment business grants to 15,000 youths across the state. This innovative programme provides ₦50,000 monthly grant to 5,000 beneficiaries, with plans to expand the initiative to a total of 60,000 youths drawn from all 31 Local Government Areas (LGAs) over the next 12 months.

Speaking during the official presentation of the grants at Banquet Hall of Government House, Uyo, Gov Eno described the initiative as a cornerstone of his administration’s commitment to youth empowerment and capacity building.

He urged beneficiaries to utilize the grants for productive ventures that will enhance their personal growth and contribute meaningfully to the state’s economy.

He reaffirmed his administration’s focus on creating opportunities that enable youths to thrive and unlock their full potential, adding that this programme is part of a broader charter to highlight and support the immense talent and resilience of Akwa Ibom youth.

Gov. Eno also announced plans for civil service recruitment through the State Youth Employment Portal.

He encouraged youths to register on the portal, which has been designed to simplify access to jobs and other employment-related initiatives, underscoring his administration’s commitment to transparency and inclusivity in public service recruitment.

Additionally, the governor highlighted several complementary programmes aimed at building youth capacity, including Ibom LED, the Dakkada Skills Acquisition Centre, and the Ibom Community Watch initiative. These initiatives provide vital training, mentorship, and job creation opportunities for young people, equipping them with the skills needed to succeed in today’s competitive economy.

Describing the selection process, SSA on ICT, Dr. Frank Ekpenyong said beneficiaries where chosen through an unbiased and thorough process.

Continue Reading

Featured

Ahead Christmas, It’s Glo’s Feliz Navidad All the Way on TVCs

Published

on

By

Celebratory seasons, such as Christmas and New Year, are times when corporate organisations churn out new television commercials (TVCs) to connect with their customers and share the fun,  euphoria and uncommon conviviality of such seasons.

One such organization which has over the years used this strategy to great effect is Nigeria’s top telecommunications brand, Globacom.

The exciting commercials that the technology company keeps rolling out fan the delight and elation of the season of goodwill. The brand employs the occasion not only to   promote brand awareness but to felicitate its customers and the nation at large.

It is a tradition Glo has established. Since it started operations  in 2003, it has always used television commercials as veritable tools of ensuring brand presence, marketing products and services and spreading joy among its various targets.

The 2024 Yuletide adverts it rolled out recently are not different. The two unique yet powerful commercials serve dual purposes. They felicitate the Nigerian people and spread mirth, which the season typifies, around existing and prospective customers.

Expectedly, the two new  commercials have dominated the airwaves, and kept viewers talking and relishing  the joy that Christmas brings.

The first commercial features juju music maestro, King Sunday Adegeye, popularly called King Sunny Ade, who parades a full ensemble of dancers and a rich, talented band in the TVC tagged “Merry Christmas”. The percussions, rhythm and dance merge to foster affability and enchanting memories of the season of glad tidings.

Before the party celebration where King Sunny and his band entertain guests, the TVC takes viewers back to the 1970s and 1980s when Christmas was celebrated with so much fanfare. It paints a vivid picture of rural Nigeria during Christmas where the warmth of tradition and community fills the air. The village with lush green vegetation is buzzing with excitement, with children playing, women cooking delicious meals in open-air kitchens, the aroma of local dishes (you can literally perceive it) mixing with the sounds of Afro Juju music. Families and friends gather around, dancing joyfully to the rhythmic beats, their faces beaming with happiness as they celebrate the festive season. A woman bearing the Aso ebi for the party is shown coming down from a Peugeot 504 car which also reinforces the advert as being set in the 1980s.

The television commercial by the telecom company captures the essence of togetherness, blending the cultural richness of rural life with the spirit of Christmas, all while subtly underscoring the telecom brand’s role in connecting loved ones, no matter how far apart they may be. It ends with “Better don come. Merry Christmas, Nigeria” further underscoring the reason for the commercial.

The second commercial tagged “Feliz Navidad” uses a galaxy of known artistes including  Nollywood star, Timini Egbuson, as well as Uche Nwaefuna (Uchemontana), Chigozie Stephanie Alichi (Chizzy Alichi), Tomi Ojo, Eronini Osinachim, Kiki Bakare and Tope Adenibuyan (Teddy A)  to pass across the message of Christmas.

At the heart of the Christmas party, the energy is electric as tap dancers take center stage, their feet tapping out intricate rhythms that blend seamlessly with the upbeat melody of Feliz Navidad. The sound of their shoes striking the floor creates a lively pulse, complementing the lively tunes of the music band performers who bring the festive song to life with vibrant instruments and harmonious vocals. Laughter and cheer fill the air as all come together to toast the season, sharing in the joy of music, movement, and the warmth of the Christmas spirit. The scene is a vibrant celebration of culture, unity, and festive joy, all set to the timeless sounds of Feliz Navidad.

These commercials  have further endeared  the Glo brand to its subscribers and the general Nigerian public as they enjoy the geniality of the season of love, hope, gifts and celebrations.

Talking about the Yuletide commercials, Ademide Gafar, an industry watcher opined that churning out great TVCs is one of the selling points of the Glo brand while John Michael, a marketing communications expert, noted that Globacom is not just a leader in the telecommunications sector but a prominent creator of unforgettable commercials. From the nation’s pride in telecommunications, it’s Feliz Navidad-Merry Christmas!

Continue Reading

Trending