.Is this President corrupt? Obasanjo`s 200 million shares in Transcorp

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[Ebe]

Transcorp, Another Titanic

By

Sam Nda-Isaiah

ndaisaiah@yahoo.com



A few months ago, the editor of one of the titles in the Leadership stable called me to say he had a bombshell of a lead story for the following day. I was out of Abuja. Transcorp, the mega company which had arrested the imagination of Nigerians, was not registered with the Corporate Affairs Commission (CAC), he said.

“That’s not possible,” I responded. But he appeared rather cocksure of the very important information he thought he had just come across. In the newspaper business, a scoop like that one is normally considered a jackpot as it could boost the credentials of any reporter.

I told the editor to “confirm again” before going to press. After a few days, he still insisted his source was impeccable. Even with that, I gave another editor and the business correspondent whose responsibility it was to cover Transcorp the instruction to give two different lawyers the assignment of finding out the truth about the registration status of Transcorp and get back to me. When they came back, they were only too glad to “confirm” that Transcorp was indeed not registered with the CAC. With that, I gave the imprimatur, and the newspaper went to town with the story.

A few days later, my friend, Ziggy Azike, an accomplished lawyer whose firm, Chibuzo N. Ziggy Azike and Co., represents Transcorp paid me a visit. Since we were used to courtesy calls, sometimes more than one a day, I didn’t think he came to register a protest about any of our stories and, besides, I didn’t know that his well-sought-after legal firm had landed the plum account of Transcorp.

He told me firmly but politely that Leadership of which I am editor-in-chief had libelled his client. I told him we checked the facts. I even told him how we did it. “Well,” he said, “you certainly erred because TRANSNATIONAL CORPORATION OF NIGERIA PLC was incorporated under the COMPANIES AND ALLIED MATTERS ACT CAP 1990 on 17th November, 2004, with the CAC and has the certificate number RC 611238.” It was clear that he knew what he was talking about. I believed him and promised that we would issue an apology to the organisation when we authenticate his claim. Beyond that, I told him, we stood by every other thing we had averred about his client. Transcorp, I told him, reeked of corruption and presidential abuse of office. We argued about that for about an hour. His expostulation was full of sophistry. He didn’t agree with my points, but we parted amicably.

Nigerians have a problem with a publicly quoted company having Dr. Ndidi Okereke-Onyuike as chairman. Even if it is not expressly declared illegal in our statute books, common sense should tell everyone that it is inappropriate, and is against the accepted mores of ethical and professional engagement. Even if the promoters of the mega company are not intelligent enough to know that her position in the company poses a potential conflict of interest, that is not an excuse. Ignorance or obtuseness has never been accepted as an alibi in exculpating felons. In more serious countries, some people would have been in handcuffs by now.

Nigeria now has people who think because of their “special” relationship with the president, they can do just about anything they like and get away with it. And the president actually gives that impression. This Stock Exchange woman first flirted with illegality when she brought together what she called “Corporate Nigeria” to raise huge sums, including foreign currencies, for Obasanjo’s presidential campaign in 2003. What she did was clearly against the extant electoral laws. She got away with it. At least then. That’s probably why her name was in the list of those who wanted Obasanjo to remain in power forever via an illegal amendment of the constitution.

The membership of Transcorp board is star-studded. There are people there who have contributed their quotas to the development of the Nigerian economy. The group managing director, Mr. Fola Adeola, is an accomplished banker and entrepreneur who can stand his own anywhere in the world. Even today, it is difficult to look at the impressive story of Guaranty Trust Bank – a bank which came from behind to overtake several others – without linking it to him. My friend, Tony Elumelu, is another big success story. The one single word that appropriately describes Elumelu is “prodigy”.

He has an impressive record that will speak for his generation for a very long time to come. But many people cannot reconcile the records of these self-made stars of the corporate world with this very dangerous contraption called Transcorp. They don’t need Transcorp. Among the promoters are top political leaders of the Obasanjo government and their cronies. The president of the Federal Republic of Nigeria who is busy “fighting corruption” is a major promoter and shareholder of this company.

As a major promoter, he started off with the ownership of 600,000,000 (six hundred million) shares at N1.00 per share. Few knew how he paid for the shares but that is not at issue today. But when the company did a private placement to raise N6 billion, it offered its shares for N6.00 per share. Which means that, without doing anything, the president who has been busy arresting other people for corruption made a whopping profit of N3.6 billion with other people’s money. Instead of N6 billion, the private placement yielded more than N17 billion. The company now wants to raise an additional N40 billion via an initial public offer (IPO). In this economy?

Someone should please place a call to Nuhu Ribadu. With the IPO, the president is poised to make a further killing with the people’s money. And now that the company is going to the market, can’t Madam Stock Exchange see any conflict of interest? If she still has not seen any, then she must be a wonderful woman. It takes some wonder to be this blind.
Even if the president had not committed any earth-shaking crime, this is a misdemeanour, an abuse of office in which the National Assembly should have picked more than just a passing interest.

Even then, that’s not all. Transcorp, using the president’s influence, has taken over the Abuja Hilton Hotel in a very controversial transaction. And how appropriate is it for a company that is substantially owned by the president to take over the Hilton Hotel in a privatisation competitive bidding that also had other companies owned by lesser mortals! Didn’t this same Obasanjo seize the Kaduna Durbar Hotel from the Abacha family, that he accused of acquiring the hotel through sleight of hand?

NITEL would soon be handed over to this Transcorp (substantially owned by the president, I repeat) for less than $500 million. When it was sold to IILL by Nasir el-Rufai’s BPE in 2002, it was for $1.2 billion. If the transaction failed then, it had nothing to with the price. Transcorp also plans to take over the Port Harcourt Refinery and would be awarded oil blocs by the president. Those who say President Obasanjo is living the false life of an ostrich have their point. Only an ostrich would hide its head in the sand and think that because it cannot see you, you cannot see it also.

When Obasanjo took over in 1999, he confiscated several investments and funds belonging to at least two former heads of state whom he accused of abuse of office. And today, he continues to confiscate bank accounts belonging to enemy governors. It beats me to think that the president does not think that his several investments such as in Transcorp, the Presidential Library and those in the oil industry would not be confiscated in the same manner by a future government, even if that government is headed by Gbenga, his son. And besides, to think that any incoming government, even if a puppet government installed by Obasanjo, would not pick interest in an institution like Transcorp, which was in the forefront of Obasanjo’s third term adventure, would be going too far with naivety.

And the self-serving rumour by the promoters of Transcorp that the organisation was created in the mould of the chaebols of South Korea is criminally untrue. As usual, this is one of the many lies of the Obasanjo administration. The chaebols of South Korea were not started by their nation’s political leaders or their cronies. That is a major and critical difference. The promoters of the chaebols, Samsung, Daewoo, Hyundai, LG, SK, and a few others do not operate above the law as we see people like Ndidi Okereke-Onyiuke doing today. The chaebols are run like any other legal business entity but the government only intervenes to help them get into the international market so they can compete favourably.

When their owners or directors run foul of the law, they are treated like any other citizen. The founder of Daewoo has been on the run because the South Korean government wants him on some tax-related issues. In Nigeria, his counterparts get fat tax waivers for no particular reason other than for their services to the president. Nigerians still pay astronomical prices for their imported goods in spite of the waivers. Their use - as has now become public knowledge - is to fund Obasanjo’s presidential campaigns and illegal tenure extension projects, as well as other dirty jobs that may be required of them from time to time by the president. The project that the Obasanjo government is pursuing that remotely bears a semblance to a chaebol is the African Finance Corporation, which the CBN governor, Charles Soludo, is currently cobbling together. This is a mega bank, substantially owned by the private sector but with strong government holdings and support to enable it finance mega projects around the world.

If they want to be taken seriously by the Nigerian people, the owners of Transcorp (including the president) should build their own refineries instead of snapping up the Port Harcourt Refinery; apply for their own telecommunications licence and build their own NITEL from Ground Zero instead of taking over the people’s NITEL and build their own Hilton Hotel, or even their own Jumeirah Hotel, since they claim to be that big, instead of confiscating the one built with public funds. Or else, the dilemma of Transcorp would become a major issue to unravel after May 29, 2007.




This story was published in a little known start-up newspaper called 'Leadership' about a month ago, but I guess because it was published by an obscure "Northern" paper, no one found it significant.

Now, to the substantive issue here. I am shocked that some commentators do not find anything wrong with the fact that:

1. The president bought shares of a company that does business with the government of which he is head, a prima facie evidence of abuse of office and conflict of interest.

2. That he is busy making business investments during his presidency, leaving himself open to charges of manipulations of key divestment, privatization, and investment decisions.

3. That a sitting president is founding a profit-oriented businesses, buying shares of such a company, and using executive power to rig investment decisions that shore up the share prices of such a company, thereby enriching himself.


Those who are talking about blind trusts are merely preparing a soft landing for Mr. Obasanjo. Blind trusts are established before a president takes office not during his presidency. They cover investments that a president (or any public official) made before, not after, they got elected or appointed into office, as they are not allowed to engage in business during their tenure.


The above actions of Mr. Obasanjo are all offenses of corruption and abuse of office.

On the political front, do we not find it contradictory that the head of a government which is supposedly neck deep in free market reforms is founding and using state power to shore up companies' fortunes.

Finally, someone is faulting the newspaper for not supplying documentary evidence. This is a very pedestrian comment, borne of ignorance of how the media works. You have your sources and documents and publish your report on that basis. If the subject of the story disputes it and sues then you supply the necessary documents and reveal your sources if compelled to do so by a court in the course of the trial.

Mr. Obasanjo knows what awaits him after the presidency, with all these shenanigans. This may be the most important reason why he is contriving all sorts of charades to stay in power beyond May 2007. The massive theivery that is going on will come out in due time.

[BABA FOR LIFE]

Stop the non sense president does not mean business and life should come to an end. His holdings are in a blind trust which is the practice of office holders all over the world. Even the good U S of A Dick Chenney is still a director in Haliburton and the company is still getting contracts and performing. Please let us address the bigger question at hand and stop nitpicking.

[Ebe]

Stop the non sense president does not mean business and life should come to an end. His holdings are in a blind trust which is the practice of office holders all over the world. Even the good U S of A Dick Chenney is still a director in Haliburton and the company is still getting contracts and performing. Please let us address the bigger question at hand and stop nitpicking.

You're getting desperate in your attempt to defend criminality, hence the resort to outright lies.

1. Blind trusts cover business investments made before assumming political office, not during your tenure, as you are not allowed by law to make for-profit investments during your tenure. Dispute this.

2. No, Dick Cheney had to resign his directorship of Haliburton to become vice president. Even then the fact that Haliburton was given no-bid contracts in Iraq has been roundly criticized by Americans as improper.

But I guess you're saying that if Mr. Cheney, who is a very bad example by any standard, does something unethical, it is okay if Mr. Obasanjo emulates him. I hope you're not trying to justify unethical and criminal behavior by the lame excuse that other leaders have done so. That would give Mr. Obasanjo permission to behave like Idi Amin, Bokassa, and even Hitler.

[gwobezentashi]

@ Ebe 2

Mr. Obasanjo knows what awaits him after the presidency, with all these shenanigans. This may be the most important reason why he is contriving all sorts of charades to stay in power beyond May 2007. The massive theivery that is going on will come out in due time.

Gbosa! Bullseye!

Aluta!

Gwobezentashi

[Auspicious]

I second the GBOSA on that one. I hope Baba4Life will respond in kind -
with an equally enlightening issues-based response..or with a honorable
capitulation..whatever that means.

[Soul Sista]

Ebe2,

There are different kinds of blind trusts, not only the type you have identified. The main thing is that the office holder beneficiary should not have knowledge of or control over the assets in the trust once the trust is created. But even this requirement of blindness as to assets now seems like it can be waived. You may recall the wahala over Bill Frist's blind trust last year. He instructed the trustees of his blind trust to sell assets in a fledging family controlled health sector corporation and there was a fair deal of discussion as to whether the trust was really blind if he knew the assets in it and could instruct the trustees to sell. According to the relevant Senate ethics rules, and much to my surprise, it was a permissible type of blind trust!! Can you beat that?

Nothwithstanding Frist, the essence is the "blindness," not the time at which the assets were purchased as you seem to be implying. So, an office holder can transfer her assets to a blind trust at the beginning of her term. And the trustees of the blind trust may continue buying and selling different assets all through her term in office. There is nothing to be gained from preventing her blind trustees from buying choice assets during the term so long as she does not know about them or excercise any untoward influence that would be in conflict with the duties she owes. The idea is to avoid a conflict of interest not to pauperize an officeholder.

However we look at it, OBJ is wrong on Transcorp. Basically looks like his supposedly blind trust was taking purchasing instructions from him. What a joke!!

Soul Sista

[Ebe]

Soul Sista,

Thanks for your enlightening post above. There are indeed many types of blind trusts, but as you implied, none of them comes close to what OBJ is perpetrating on Nigeria using Transcorp.

Nothwithstanding Frist, the essence is the "blindness," not the time at which the assets were purchased as you seem to be implying. So, an office holder can transfer her assets to a blind trust at the beginning of her term. And the trustees of the blind trust may continue buying and selling different assets all through her term in office. There is nothing to be gained from preventing her blind trustees from buying choice assets during the term so long as she does not know about them or excercise any untoward influence that would be in conflict with the duties she owes. The idea is to avoid a conflict of interest not to pauperize an officeholder.

I agree with this. I have italicized and bolded the part that corroborates and is consistent with the main thrust of my argument, which is that:

1. Blind trusts are created at the beginning of one's term of office, not during the term, and

2. That it is wrong for a sitting president or public official (not his blind trust managers) to publicly purchase share prices of a company. This becomes an egregious crime when such a company does business with the government of which is is head.

Thanks again for a very insightful post.

[gwobezentashi]

Tower of babel
The plan by the federal government to build a so called ‘Millennium Tower’ at a cost of N53 billion does not deserve to succeed. Here we are with the various sectors of the economy in shambles and with poverty stalking the streets – and all our government can think of is a millennium tower. We don’t need a tower of any description at this stage of our development. Instead of putting more money in the pockets of foreign contractors, the government ought to be told to face its responsibilities in the educational, health and energy sectors more seriously. A nation in need of a good network of motorable roads is planning to build a tower to satiate overbloated egos. The National Assembly should not appropriate funds for the ill-conceived project. What our people need are good schools, well-paved roads, functional hospitals, security of lives and property, employment opportunities, uninterrupted electricity supply, NOT a tower of any description.

There is a sense in which some of the activities of the outgoing government can be seen as an attempt to execute all the executables so that after this government there would be nothing for the coming government to do again. But it is all a lie. And a trick. Just likeany 99th hour sleight of hand.
http://www.newage-online.com/backpage/article01

Is he listening? No. Another contract awarding opportunity shall not go amiss. Watch out for due process.

QUOTE:

The National Assembly should not appropriate funds for the ill-conceived project.

Even if they don't, he will still do it. What will they do to him? Him ke? Remember Confab?
Nna N53(or 43)bn plenty o. For what? Another white elephant. Meanwhile no light to power the lift and diesel can scarce from time to time. Maybe Transcorp go provide. Barawo!

Aluta!

Gwobezentashi

[Obugi]

All,

There is nothing wrong with OBJ owning a big stake in Transcorp. The main thing is that the company should be run profitably and efficiently, and also that it help develope the Nigerian economy. TransCorp is also a public company, so those who want to join Baba in buying shares, who is stopping you?

OBJ & the Gang are not doing anything that Shell and other Western investors are not doing in Nigeria. Many Nigerians right now would give an arm, leg and probably their children if it would get them a job with Shell, and we KNOW that Shell has directly and indirectly killed people in Nigeria.

So what is the problem now? That OBJ is an African?

Again the question is, will TransCorp benefit the economy? No one knows, so let's wait and see.

Over and above all that, who is willing to do anything about the matter? Come now, where did everybody go? Una dey hide? It's alright, I know we won't do anything. OBJ could steal the foreign reserve and announce it on National TV and none of us will do anything, so make una go rest jare!

Obugi.

[SBI]

Ahem mmm...
My people...... I would like to say........eh ehmmm
Baba Aremu.... (I dey Kamkpe) ..hmm.. is a Saint.
Hmm... he means well for Nigeria.....Yes o.

That is why...... I am saying that... all of us wey love Nigeria
MUST give him... our ... Blind Trust Ooo.
Na so. Remember Baba is a born-again Christian

Nobody loves Nigeria pass Baba.

Therefore, ...my dear NVS parapo...umu nnem
I must warn..that...as Baba is leading us Nigeria in prayer
let nobody ...nobody!..open his or her EYES.

We must give him and all the other prophets of anti-corrruption our Blind Trust
What is this yeye argument aboout Baba for? Ah ah... afterall there is nothing new under the sun. Transcorp ko,Transcorp ni. No be our people say...man wey dey blow horn since morning go still blow him own nose.

Naija na Naija. dont let this reform thing come become disease o. My people na mechanic cloth no gree us sabi who be mad man again. As NOI don clear for road now, make we relax do the thing wey we sabi well. Sebi economist talk say na focusing on area of core competence.
Transparency International say na we get gold medal in 2002, but since all these reformniks and due processors carry their wahala come, we dont seem to know what we are doing again. I even hear say we dey no 6 or 7 now. Haba!

Abeg, leave the man, he is working for Nigeria to redeem our lost glory.
Abi, shay na ogogoro talk say.... man wey think say he-goat no dey go church, he should take style look his knees.

SBI

[oluye]

We will be fooling ourselves if we think anyone will go into government and not make any investment that will safegaurd his future. Find out who benefits from arms sales and oil transactions by the US and you will discover that this happens everywhere in the world and it affects government policies.
However, to minimise abuse questioning such investments is in order. These are the questions I think should be uppermost in our minds:
(1) When Nigerians who have access to funds (stolen, earned or borrowed) invest in Nigeria, is it good for Nigeria or not?
(2) Would we rather that a foreign company should buy Nitel? What about the resulting economic and security impact?
(3) Does any of us also have a right to buy shares in a company like Transcorp too or is it the exclusive preserve of a few?
(4) Does the President have a right to invest in a company like Transcorp? (Not forgeting that before now he's had shares in companies like Julius Berger and several oil companies and no one talked).
(5) Was the money so invested legitimately earned?

If this is the kind of revelations Atiku was boasting to reveal let him know he needs to go and buy Transcorp shares too if he hasn't. The legitimate prosperity of any Nigerian potentially boosts my prosperity because it implies that more people will eventually be able to afford my services. Many more millionaires will be made through their investments. Thank God the president and his likes behind Transcorp are not stashing their funds idly in foreign banks or investing it in India- as some"rich men" would rather do.

What I am saying is that for the common good of Nigeria, the rich must be encouraged to legitimately invest in Nigeria without undue victimisation.

[Auspicious]

I would love to see Oluye take a strong stand against something wrong
he finds with the Obasanjo Administration for just ONCE..just ONCE! No
doubt Obasanjo must have at least erred at one time or the other. So will
Oluye please stand up? Good. Can you make your stand known on this
issue - wether it is ok for the President to have done what he is accused
of? Indulge 'us' now willya? ;-)

[N.A.R.]

There is nothing wrong with OBJ owning a big stake in Transcorp. The main thing is that the company should be run profitably and efficiently, and also that it help develope the Nigerian economy. TransCorp is also a public company, so those who want to join Baba in buying shares, who is stopping you?

OBJ & the Gang are not doing anything that Shell and other Western investors are not doing in Nigeria. Many Nigerians right now would give an arm, leg and probably their children if it would get them a job with Shell, and we KNOW that Shell has directly and indirectly killed people in Nigeria.

So what is the problem now? That OBJ is an African?

Again the question is, will TransCorp benefit the economy? No one knows, so let's wait and see.

Over and above all that, who is willing to do anything about the matter? Come now, where did everybody go? Una dey hide? It's alright, I know we won't do anything. OBJ could steal the foreign reserve and announce it on National TV and none of us will do anything, so make una go rest jare!

Sometimes, I cannot but love dis Obugi chap. Right on the money my friend. We need to keep our eye on the ball and not the player. if not after dem do you "bodi" you no go see ball again! Sometimes people air opinions with so much passion they forget the bottom line. What is the bottom line? The success of Transcorp. Whosoever buys NITEL and at whatever the hell price, would they finally provide satisfactory telecommunication services for its clients?

Of course its a conflict of interest if the president has shares in the company, and I certainly think that was a pretty stupid thing to do, shows the man does not trust anybody, but as has been pointed out in the Bill Frist and Cheney examples, it is common practice. What I think is more important is to watch and see what Transcorp does with all the special favor they are getting.

And as regards special favors, I think possibly many of you are unaware of how mega businesses work in some capitalist economies. Its all about concessions and tax insentives. It is not un heard of for government to give certain companies special concessions to stimulate economc growth, these are considered insentives to investors to entice them to invest in cities or industries. Government can choose to sell land it owes valued at $100,000 for $1, if that concession would promote growth and investments. If government does not want to owe assests, they sell off their assests to capable companies that run them and pay the government taxes. So government reduces its overhead / running costs and increases its revenues. I am sure you all know that.

So finally the question really is not what concessions that Transcorp is given, but what does Transcorp do with the consessions they get? Will they hire Nigerians to run The Hilton? Will they give indegineous oil service companies contracts to maintain Port Harcourt refinery? Will the set up maintainance and product shops for NITEL in Nigeria managed and run by Nigerians? Will they strike partnersgips with local manufacturers for goods and services? These are the type of questions we need to be asking, that is except you are a socialist (or social democrat) and are simply pissed at the fact that these institutions have been sold off to private concerens.

[DaBishop]

Originally Posted by N.A.R.

Of course its a conflict of interest if the president has shares in the company, and I certainly think that was a pretty stupid thing to do, shows the man does not trust anybody, but as has been pointed out in the Bill Frist and Cheney examples, it is common practice. What I think is more important is to watch and see what Transcorp does with all the special favor they are getting.

I have always respected your views but I find this one so out of character it SCREAMS OUT!

1. Bill Frist and Cheneys misbehavior if any should not be conduct worth emulating; we might as well say Enron, a megacorp did same so should Trancorp-play with peoples investment; since it has been done elsewhere.

2. The context in which this is introduced is against the backdrop of the much taunted anti-coruption fight with Alams and Dariye and the challenge that we should provide evidence of wrongdoing against all - no one is above the law as per OBJ

3. Nigeria is governed by the constitution and this government properly introduced the code of conduct as reporduced above. Specifically the issue of conduucting their affairs not only in compliance with the letter of the law but also the spirit of the law. If I had converted the shares of NNPC to my family trust, I would be locked up. The police I-G was tried for doing the same thing, why is OBJ giving of oil wells to his company; giving NITEL to himself and NICON Hilton to himself different from Abacha's.

4. If the facts of the insider dealings and influence peddling is true, OBJ needs to apologise to Nigeria for preaching one thing and doing another.

5. Did Clinton raise money for his Library while in office too? While Clinton was President, WHITEWATER INVESTIGATION was initiated. Who owns the BELL UNIVERSITY too, the Blind Trust? Who has been running OFN and with what resources? OBJ's pay check? This is a democracy; we need to know all in the spirit o transparency and accountability.

We are not that desperate to develop that we would close our eyes and wait for results. We now understand why he wants to be life President.

[gwobezentashi]

Thank God the president and his likes behind Transcorp are not stashing their funds idly in foreign banks or investing it in India- as some"rich men" would rather do
OLUYE

.
Presumably that does not include Femi Otedola(Zenon) and his £18m recent acquisition in London. Afterall it is his money "legitimately" acquired in Nigeria. Abi?

Is it not amazing that the same people who are quick to allege that the VP is a thief without proof are here defending kro kro corruption with mealy mouthed rationalisations and asking to see copies of share certificates etc? You just have to scratch your head and wonder if some people will ever gree that this dem hero "anti-corruption fighter" is anything but a dyed in the wool hypocrite. Whether they will ever agree that this emperor ain't got no clothes because his nakedness is there for all to see.


Aluta!


Gwobezentashi

[gwobezentashi]

Transcorp: Transparency International Flays Obasanjo’s Role
10th August
By Tunde Abatan and Rita Smith (Lagos)

•ACD Asks NASS To Probe Allegations

Transparency International (TI), the globally acclaimed anti-corruption watchdog has condemned the role of President Olusegun Obasanjo’s company, Obasanjo Holdings Limited, in the alleged purchase of 200 million shares of the Trasnational Corporation of Nigeria (Transcorp). The President was a co-founder of the organisation.

Secretary of TI in Nigeria, Major-General Ishola Williams (rtd), gave the knock in a telephone interview in Lagos on Wednesday.

But reacting on telephone, Remi Oyo, Special Assistant to the President on Media Matters said Obasanjo has nothing to do with the shares, having divested his interets in the companies after he became President.

Said she; "I dont know where Thisday got their story from but all I know is that before Obasanjo became the President, he had companies, which had diverse interests everywhere, but when he became President, he divested his interests in those companies as required by law and they are run by other people.

"So, if those companies decide to go into gold mining, coal mining or whatever, it is their legitimate business, which has nothing to do with the President."

Transcorp bought the controlling shares in the recently privatised Nigeria Telecommunications Limited (NITEL). Before now, they had acquired other hitherto government owned businesses including the former Nicon Hilton Hotel, Abuja.

Williams said Obasanjo is the richest President in Africa just as the Advanced Congress of Democrats (ACD) said the effort to portray Obasanjo as being transparent in his private and public life will generate more controversy than it is meant to achieve.

Former Minister of Communications, Dapo Sarumi, also described the deal as very sad and an unfortunate thing, which should not have happened considering the anti-corruption posture of the President.

The ACD argued that while the claim that the shares are being kept in a Blind Trust is meant to portray Obasanjo as being transparent in his private and public dealings, "unfortunately this disclosure is definitely going to generate more controversy than it was meant to resolve.

"This trust is no longer blind if the disclosure in ThisDay publication of today (Wednesday) to the effect that the 200 million shares owned by Obasanjo in Transnational Corporation are being held in a Blind Trust on his behalf by Obasanjo Holdings was meant to portray (the President) as being transparent in his private and public dealings," ACD said in a statement on Wednesday.

"The whole essence of the Blind Trust has therefore been defeated. Nothing is hidden any longer, as the trust has now regained its eyesight. Certain consequences must follow," it added.

The ACD also called on the National Assembly to probe the allegation concerning Obasanjo’s interest in the corporation.

Both Williams and Sarumi said Obasanjo and the Federal Government should come out with an explanation on the issue. They added that the allegation is capable of bringing into ridicule the President’s war against corruption.

Williams urged government to empower anti-graft agencies like the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Other Offences Commission (ICPC) and the Code of Conduct Bureau. This, he said, will show government’s seriousness in combating corruption.

He added that the organisations should be allowed to keep a sizeable percentage of the money they recovered from their crusade in an account to serve as their emoluments out of the control of any government.

"Let President Obasanjo show his seriousness by making this provision in the nation’s Constitution such that no leader can remove it or bend the rules to favour him without amending the Constitution," he said.

Sarumi also expressed the same sentiments. "The fact that this government is an apostle of the war against corruption and an advocate of transparency and accountability makes it an unfortunate incident which has made one to be very sad. This is why I still believe that the Federal Government should have some explanations to make."

http://www.independentngonline.com/n...006-08-10.html

[Naija for life]

This issue simply demonstrates why that troubled country needs to be decentralized pronto. Considering all the pies Obasanjo has his stubby fingers firmly embedded it, one would be forgiven for concluding that Nigeria was a buka or a market stall, rather than a major oil exporter currently administering oil receipts in excess of $70 dollars a day. So Obasanjo's involvement in Transcorp has your boxers or panties knotted into an inextricable twist? And exactly what is it that happens in Nigeria that does not go through Abuja? If you want a permit to operate as a shade tree mechanic, Obasanjo has to sign it. You want to sell guguru? To Aso Rock you must go. Building permit, Nko? Have no fear. Obasanjo is ready to approve your location permit, termite permit, security permit, owambe parties permit, extra room for the eighteen year old concubine permit, and hole under the foundation for stashing all your kola permit. Nobody takes a piss in Nigeria without permission from Abuja. And you think a company of the magnitude of Transcorp would be left to its own devices without the long arm of the executhief at Aso Rock? Well, if you believe that, by all means please notify me. I have this incredibly enchanting ocean front property in Oklahoma, you see...

[N.A.R.]

Ula-lisa,
Perhaps I should shed some light on my thinking. So let me respond below:

1. Bill Frist and Cheneys misbehavior if any should not be conduct worth emulating; we might as well say Enron, a megacorp did same so should Trancorp-play with peoples investment; since it has been done elsewhere.

The point I am trying to make is that it is apparenly common practice for politicians while in office to plan for life after office via investments through 3rd parties and other known and unknown activities. As evidence of this, take a look at a great number of Ex legislators that practically walk out of office from the Capitol, right into some office previously arranged for them on K street. They become lobbyists and automatically have a healthy list of clients, an equally healthy salary and benefits, in most cases businesses they have invested in or have dealings with.

So not that this is proper, but its the reality of life for most politicians. And I would argue in a great many democracies around the world this is the norm. How would you explain for example the late PM or Lebanon, Rafik Hariri being a billionaire where he served as Prime Minister for five terms and was one of the most richest men in the world!? When did he do all that business? Did anyone ask where the wealth actually came from? But Forbes magazine did have him on their list of the worlds richest men!

2. The context in which this is introduced is against the backdrop of the much taunted anti-coruption fight with Alams and Dariye and the challenge that we should provide evidence of wrongdoing against all - no one is above the law as per OBJ

Certainly if there is evidence then it should be tendered. By all means lets see it and indict the president. As some have wisely said, it is difficult to indict a sitting president. It would take a mounumental investigation to probably unearth any real wrongdoing which would at the end of the day be absolutely convincing. For example, let us read in the reports those who were the facilitatrs for the funds used to buy the 200 millions shares. I mean if the reporter has found out that it was Obasanjo Holdings that paid for the shares, I suppose he got some bank account numbers and persons involved in the transactions?

3. Nigeria is governed by the constitution and this government properly introduced the code of conduct as reporduced above. Specifically the issue of conduucting their affairs not only in compliance with the letter of the law but also the spirit of the law. If I had converted the shares of NNPC to my family trust, I would be locked up. The police I-G was tried for doing the same thing, why is OBJ giving of oil wells to his company; giving NITEL to himself and NICON Hilton to himself different from Abacha's.

While in the broad sense I will agree with you, permit me to say this. What you refer to as Obasanjo's company is a publicly traded company, you and I can tomorrow go and buy shares in Transcorp and we would get a piece of every Naira it makes. This I believe is different from me diverting state funds and resources to my families personal accounts for the exclusive use of myself and nobody else, or I set up privately owed companies with state owed funds. So essentially it can probably be argued (if true) that Obasanjo is giving NITEL not just to himself but also any other Nigerian that has choosen to invest like him in Transcorp.

4. If the facts of the insider dealings and influence peddling is true, OBJ needs to apologise to Nigeria for preaching one thing and doing another.

He actually need not apologize, he needs to be investigated and if found guilty should face the consequences according to the constitution.

5. Did Clinton raise money for his Library while in office too?

Actually, he did....read the following clip I found

Soon after Mr Clinton announced plans for the library in 1997, critics howled that it was inappropriate to raise funds to build it while he was still in office. A House of Representatives panel inquired into last-minute presidential pardons granted to people linked to library donors. There was even a lawsuit over a disputed land deal that threatened to derail construction.

So thats 3 years before he left office.

While Clinton was President, WHITEWATER INVESTIGATION was initiated. Who owns the BELL UNIVERSITY too, the Blind Trust? Who has been running OFN and with what resources? OBJ's pay check? This is a democracy; we need to know all in the spirit o transparency and accountability.

I am not quite sure about Bells University, but I know that Obasanjo has owed The Bells Secondary school for a while, probably over 10 years ago. One of my former principals was one of the past founding principals of the school if I am not mistaken.

We are not that desperate to develop that we would close our eyes and wait for results. We now understand why he wants to be life President.

But the problem here is that you are free to challenge his moves. You can actually form a group of investors and buy controlling shares in Transcorp and then have a say in how the company does business. And by the way, why close your eyes? Remember I said if we take out eyes off the ball, we will end up with a basket full of goals. and loose the game.

[Ebe]

Only those newbies who do not know N.A.R would be shocked at his latest pronouncement rationalizing corruption and arguing basically that the end justifies the means. Ula-Lisa, please save yourself the shock. With N.A.R there are no principles, values, or codes of ethics. It is anything-goes, do-nothing fatalism.


One can understand Obugi's sarcasm and underhanded commentary. That's his style. And he likes to provoke with hyperboles. Sometimes he likes to be contrarian for the fun of it. But N.A.R actually believes what he says, which is scary. And of course, he is never man enough to say it himself, hiding behind people to make his obnoxious pro-OBJ pronouncements.

Sometimes, I cannot but love dis Obugi chap. Right on the money my friend. We need to keep our eye on the ball and not the player. if not after dem do you "bodi" you no go see ball again! Sometimes people air opinions with so much passion they forget the bottom line. What is the bottom line? The success of Transcorp. Whosoever buys NITEL and at whatever the hell price, would they finally provide satisfactory telecommunication services for its clients?

In other words, the law does not matter. And corruption should not be punished or disavowed as long as its proceeds "benefit the economy." So let OBJ and his gang steal Nigeria blind; it does not matter as long as Transcorp, which hides their loot, provides telecoms services to Nigeria, it is okay according to N.A.R. It also does not matter that the president is effectively cornering for himself, through Transcorp, juicy privatization buyouts at rock bottom bargains and using his influence to reject bids that are probably better for Nigeria. I thought I had heard the worst from N.A.R, but this is a new low of hagiography. And when I say N.A.R has no moral core, he comes howling at me.

Of course its a conflict of interest if the president has shares in the company, and I certainly think that was a pretty stupid thing to do, shows the man does not trust anybody, but as has been pointed out in the Bill Frist and Cheney examples, it is common practice. What I think is more important is to watch and see what Transcorp does with all the special favor they are getting.

You don't have to resort to lies to defend the indefensible. It is not common practice. And as Ula-Lisa has point out, there is no equivalence between what OBJ did and what Frist did.

1. Frist's blind trust was set up before he assumed office.

2. Frist did not found for-profit companies and/or buy their shares as senate majority leader.

3. Frist was accused of instructing his agents to sell existing shares that he acquired before becoming a senator.

4. Cheney was never accused of buying shares of companies during his vice presidency, or of founding a company and proceeding to sell off government assets to such a company thereby enriching himself while in office. Chenney's accusation was that his former company was getting no-bid contracts in Iraq and that the company may have been favored because of his past links with it.

Once again, N.A.R has characteristically latched unto insinuations by others, especially Baba4life, to try to justify these brazen acts of corruption by OBJ.

I am happy though that the pretenses are gradually fading and the OBJ worshipper in him has surfaced. Even the nonsense about caring about benefits to the economy rather than OBJ's corrupt entanglements in Transcorp is a classic N.A.R maneuver. He is using it to justify the crminal behavior of his man, OBJ. Let's be vigilant against these OBJ men. I know I will.

[N.A.R.]

Sometimes Nigerians are masters of jest in the English language...

"The whole essence of the Blind Trust has therefore been defeated. Nothing is hidden any longer, as the trust has now regained its eyesight. Certain consequences must follow," it added.

Ah! A miracle, the blind can now see! I guess its becasue the trust was blind that it missed road and found itself in Thisday newpapers office instead of bayan gidan Oga bigi belle!