Monday, 18 January 2016

Oil market: More trouble as Iran's plan to increase output

Iran's economy is expected to grow 4-5.5 percent due to higher oil production [Getty File Photo]

Iran has said it plans to increase oil production by 500,000 barrels per day now that sanctions have been lifted under a nuclear deal with world powers, according to Al Jazeera.
Analysts say the decision is likely to bring down the price of oil further in the world market.
Roknoddin Javadi, deputy oil minister, said Iran is determined to retake its market share, which collapsed after the sanctions were imposed in 2012.
His comments were posted on the ministry's website on Monday.
Iran used to export 2.3 million barrels per day but its crude exports fell to one million in 2012.
Oil prices have recently fallen to about $28 a barrel, a 13-year low.
The UN nuclear agency, IAEA, certified on Saturday that Iran had met all of its commitments under last summer's agreement, prompting the lifting of sanctions.
And on Monday, Yukiya Amano, the IAEA's head, arrived in Tehran for talks with Iran's President Hassan Rouhani.
Amano will also meet the head of Iran's atomic organisation. The IAEA's monitoring and verfiying of Iran's atomic programme is expected to be on the agenda.
With the lifting of the sanctions taking centre-stage, the UAE's energy minister said in Abu Dhabi on Monday that any extra supply of crude oil would "harm the market."
In the first comments by an Arab Gulf member of OPEC about Iran since most sanctions were lifted, Suhail bin Mohammed al-Mazroui said any new production that comes into the market would delay the time for the market to balance itself.
"... Does Iran have the right to do so? Yes of course; they are a member of OPEC and are entitled to that ... but is this going to help [the] situation? No," he said.
"We are having an oversupply and anyone who will introduce more supply in current situation will make it worse."
On Monday, OPEC gave reassurance the price of oil will rebound later this year, saying non-OPEC countries will be forced to slow down production, thereby reducing supply and boosting the price globally.
Jochem Wermuth, a market analyst in Abu Dhabi, said it is "unlikely" that oil prices will ever go as high up as the levels of July 2008, when it hit $147 per barrel.
"I would think that what the market would see is a further fall in the oil price," he told Al Jazeera.
"We think that it is a structural fall in the oil price. We don't think it will swing up again soon, or ever indeed."
Moody's, the credit rating agency, said the sanctions relief will boost liquidity and economic growth in Iran.
Moody's said Iran's increased oil production "will contribute to higher growth" next year, with "positive spillover effects" on higher investment and consumption spending.
Iran's economy is expected to grow four percent to 5.5 percent in 2016 and 2017, largely due to higher oil production.

Creativity: American superstars as you've never seen them before

Dennis Owusu-Ansah is a New York-based Ghanaian artist whose pop art images are taking Instagram by storm.

Kanye and Kim West in their new Kente cloths

Reworking and reimagining some of the world's biggest artists in authentic African clothing and cultural attire, Owusu-Ansah is highlighting the beauty of Africa through his work..
With bright block colors contrasting intricate patterns, the images have transformed the likes of Drake, Rihanna and Beyonce into powerful African icons in traditional dress and with traditional names.

Beyonce As Beyonce Lankenua Carter


Chris Brown As Chris Kofi Sarpong Brown

"After witnessing my friend get teased by a group of men for wearing a kente cloth on our way to church, I figured something must be done to change the perspective of people who are not familiar with the African culture," he told CNN.

Drake As Aubrey Drake Abdul-Salam Graham

"They had no idea what my friend was wearing. One of the guys shouted 'That man has a blanket wrapped around his body like it's winter time.' I saw this incident as an opportunity to educate people about who we are, and what we stand for through my art."

Jay Z As  Chief Shawn Ugonna Jay Z Carter

After that life-changing moment, 26-year-old Owusu-Ansah decided that he wanted his art to tell a story and for his audience to learn, "that Africa isn't only about what the media portrays on television," but that it is "a continent rich in history, diversity and traditions."

Nicki Minaj As Nicki Maame Akua Amponsah

Choosing to depict celebrities trending in the entertainment business, Owusu-Ansah knows that they have an influence on their fans.

Meagan Good As Meagan Omotola Good

By illustrating them in African clothing, he hopes that it will bring awareness to traditional culture, and allow people to start educating themselves and those around them in African culture.

P Diddy As Sean Puffy Nana Antwi Combs 

With over 12,000 Instagram followers, Owusu-Ansah's fanbase is growing every day and he has even branched into creating unisex clothing. 

Rick Ross As Mazi Odinnaka Rosey

His work doesn't seem to be slowing down and neither does his audience in their quest for accessible African art, knowledge and tradition.

Rihanna Robyn As Rihanna Amahle Fenty



With CNN

Africa on Alert: Hunting for a home for the nation's radioactive waste

What would it take for you to accept nuclear waste in your backyard? The country has created quite a bit of the stuff and the government is searching for someone willing to take it.
Steadily produced since the end of World War Two, the question of what to do with the nuclear waste from civil, military, medical and scientific uses has been causing equal measures of fear and frustration for decades. With a new generation of nuclear power stations on the way, a fresh search is under way for a community ready to take on the challenge.
Campaigner Eddie Martin says: "It's very worrying, scary even. They have been looking for somewhere to put this material for decades and it keeps coming back to Cumbria."
Dr John Roberts, from University of Manchester's School of Physics and Astronomy, says: "Everything around us, including us, is radioactive to some extent. Your body is evolved to cope with a lot of this.
"Different materials emit different types of radiation, but also at different rates. This is the half-life - which is the time it takes for the level of radioactive to fall to half of its initial value.
"A short half-life means lots of radiation emitted but it is expended quickly. Some isotopes have a half-life of just days, or even less than a second, others can last tens of thousands of years but emit very little energy.
Radiation is transmission of energy in the form of waves or particles,
Some forms part of the electro-magnetic spectrum, which starts with radio waves, then microwaves, infra-red, visible light and ultraviolet light (UV) to X-rays and beyond.
Other types of radiation are emitted as subatomic particles.
When either the waves (beyond UV) or particles are powerful enough to start damaging the DNA of living cells, it is known as ionising radiation.
Ionising radiation itself is broken down into different types - known as alpha, beta and gamma.
Roughly speaking, alpha radiation is big and slow, meaning it can do a lot of damage to cells but cannot travel far and is easily stopped - by skin for example.
Gamma, small and fast, can pass through skin, cells and even thin metal but does relatively less harm, so a larger dose can be tolerated. Beta sits between these two.
Radiation is measured differently depending on whether you are looking at what is emitted (usually expressed in becquerels) or its effect on the body (commonly counted in sieverts).
"Something like Caesium 137, a product of nuclear reactors, has a half-life of 30 years and puts out a lot of gamma radiation, so is one of the more problematic isotopes.
"The mix of materials in nuclear waste means it could possibly need to be isolated for thousands of years.
"The radiation dose any person might get from a source depends primarily on the energy of the source, the length of exposure, the distance, which part of them the body is exposed, what they are wearing and very importantly whether it is ingested or inhaled."
Nuclear power stations have been built in 31 countries but only a handful,including Finland, Sweden, France and the US have started building permanent storage facilities.
All of these are purpose-built caves hundreds of metres below ground, known as a Geological Disposal Facility (GDF). Once the waste is treated and sealed inside containers, it is stacked in the caverns. GDFs are expected to remain secure for thousands of years.
Dr Robert says GDFs or deep boreholes are two possible options for the disposal of radioactive waste but there are still challenges to overcome, particularly in predicting their behaviour over hundreds or thousands of years.
"While there are natural examples of radiation being contained - think of the mines where uranium for nuclear fuel has been sat happily for millennia - the mix of isotopes in radioactive waste is much more complex so we need to know how the nuclear waste interacts with its storage material, be it glass, concrete or metal.
"And then, it best to put the containers in granite, clay or salt? Other countries are trying different options.
"But this is basically an engineering project like no other. Its timescale will dwarf the oldest cathedrals.
"We also need to ensure we can guarantee the records will be kept of what is down there and where. It has to last for hundreds of years and how many records have we lost since the Tudors? Or the Romans?"
So, from the carefree days of dumping it in the Irish Sea there dawned a realisation the predicted 650,000 m3 of nuclear waste needed a more permanent solution. So where are we in the process? And how did we get here?
Pete Wilkinson, environmental campaigner and member of the committee which in 2006 officially recommended underground storage, explains: "This process really started in 1976 when a report said there should be no more nuclear power without a method of disposing of the waste.
"In the 1980s there were various attempts to impose disposal on communities in Bedfordshire and what was then Cleveland but opposition was loud and well co-ordinated and people would not put up with it.
"An attempt to build an underground 'laboratory' at Sellafield in Cumbria was thrown out in 1997, with the government saying proposals represented bad science and poor stakeholder engagement.
"In 2003 they set up the Committee for Radioactive Waste Management (CoRWM) to come up with the definitive solution."
He added: "As well as recommending the deep geological solution, it came up with the idea of volunteerism - that a community had to agree to host the facility.
"But I think they have underestimated people's antipathy for having radioactive waste in their backyard.
"The first attempts to reach out to the public were inadequate - lots of talk about impact on tourism and how many jobs it would bring.
"But people are most concerned about the radioactivity. Is it safe? And that was not addressed at all."
This "first attempt" got as far as two Cumbrian borough councils, Copeland and Allerdale, both next to Sellafield nuclear facility, showing interest.
After much local protest, permission to proceed with detailed geological surveys was refused by Cumbria County Council in January 2013.
Dusting itself off, the government restarted the process, in the meantime passing legislation that left any final decision about a location in the hands of ministers.
This summer saw the launch of a National Geological Screening Guidance consultation, a review of existing information about the suitability of sites across England and Wales, with councils and organisations invited to comment.
Eddie Martin, a former leader of Cumbria County Council and founder of the Cumbria Trust, said: "Sellafield has been filling up with other sites' waste and is it any surprise the last search ended up here?
"It's not for any pragmatic or geological reason, it's socio-economic expediency. Part of this county already relies on the nuclear industry, so it's more likely to accept some more.
"On top of that there are some cash-strapped local councils in this part of the world and the financial perks offered will seem appealing in the short term.
"The only thing which stopped it last time was the balance of local interest and scrutiny that the county council brought.
"Now they are running the same search again, which will come up with the same result, only this time they have legislation in place to make sure the county council can't stop it. It's an abuse of democracy.
"Cumbria is not the right place for this facility. First of all there is the sheer strain of building the thing. A 16-tonne lorry every three minutes for 20 years. On our small roads.
"Then the geology is wrong. Granite rocks are too fractured, they are too prone to water running through from the mountains and any number of studies back this up.
"This waste can devastate for thousands of years. It has to go somewhere but this is the wrong place. It is too important just to take the easy option."
A spokesman for Copeland Borough Council said: "The government has tentatively begun a new, national process to seek volunteers to engage in the process of considering whether those areas would wish to host a GDF.
"This would involve some preliminary work on geology (desk based) similar to that which has already taken place in west Cumbria.
"Copeland, at present, have not and have no current plans to volunteer to host a GDF, this would be a matter for full council to consider informed by our communities.
"However, we continue to follow the process, as 80% of the UK's higher activity nuclear wastes continue to be stored on the Sellafield site."
But Cumbria is not alone. Previous studies have shown a dozen areas that might - under further scrutiny - prove suitable.
One of these is Stanford on the Norfolk/Suffolk border, not far from Thetford. One expert says it "fits the international criteria very well indeed".
The area in and around the army base is about as empty as you can get in lowland England, which is likely to increase interest.
But Joan Girling, who campaigns for improved safety at Suffolk's Sizewell nuclear power plant, is uncompromising.
"By the time it is decommissioned, Sizewell will have been a nuclear site for 100 years. The area has done its bit.
"Just think of the issues bringing it here, it would be a nightmare. Imagine transporting all that waste from Sellafield, across the country, presumably by rail, then what?
"Lorries laden with 130-ton waste flasks rumbling up and down country lanes for years on end.
"And no-one has any idea if it - moving it, the construction, the hundreds of years of waiting - is really safe."
Breckland Council, which covers the area, said it referred the issue to the county council. In turn Norfolk County Council said it did not respond to the consultation as it believed no community was interested.
But not everyone treats nuclear waste like it was, well, nuclear waste. Devonport naval base in Plymouth is home to 12 old nuclear submarines, eight with fuel still on board.
In 1993 the city threw a street party when it secured long-term contracts to keep the vessels. To many the base means jobs and security.
The Nuclear Decommissioning Authority (NDA) has overall responsibility, and a £3.3bn annual budget, to clean up the UK's radioactive legacy.
While there is currently about 292,000 cubic metres of the most radioactive waste in its raw state, the volume to be stored, when future production, treatment and containment are factored in, is about 650,000 cubic metres.
The part of the NDA tasked with finding somewhere to put it all is called Radioactive Waste Management (RWM) Ltd.
Its chief scientific adviser, Prof Cherry Tweed, is clear in her belief they are on the right track.
She says: "There is a very strong international consensus that geological disposal is the safest and most practicable solution for these wastes and that it is technically feasible.
"We as a responsible developer would only want to go ahead and build a facility provided we are confident it would be safe and it won't just be on our say so, And there is the further reassurance for the public that all the safety arguments will be scrutinised by the independent nuclear regulators before they issue the necessary permits."
The GDF will certainly be an awesome undertaking. It is expected the surface buildings alone will cover 1km sq. The underground tunnels will stretch for 10-20 km sq. On a Cumbria scale, that is bigger than Carlisle.
It will take decades to build and predicted costs are almost unguessable - but most estimates agree on billions of pounds.
But before these technical issues are tested, RWM must do something that has eluded the authorities for decades. Find a volunteer community.
This has not been made an easier by the US disposal site being temporarily shut down after leaks and continued doubts over GDF designs.
Prof Tweed believes they will succeed due to lessons learnt from earlier failures.
She says: "Stakeholders told government what they wanted to know was they wanted more information upfront, on the geology in their locality and on the way in which they would be involved and represented through the process and on the investment package.
"And we have been working very closely with the American authorities to make sure we understand the causes of that accident and that we learn from it."
She also rejected the ideas the political pressures would inevitably lead again to a site in Cumbria, or a geologically unsuitable site would be selected because a financially hard-pressed community would take it.
"There is no plan to go back to Cumbria, or anywhere else in the country. Although we haven't started the formal search we have had positive responses from not just Cumbria but from many places across the country and we have this opportunity over the next 12-18 months to build awareness of what we are doing.
"If at any stage in the process we found something that told us a GDF would not be safe in that particular locality, we would walk away. However keen the community are, safety is paramount."
She adds: "We as the generation who have generated the waste have a moral and ethical responsibility to put a solution in place."


With BBC News

Taxi driver, 34, dies after electric shock at Portsmouth football pitch

A junction box at the Mountbatten Centre in Portsmouth   Photo: Paul Jacobs/pictureexclusive.com
A taxi driver has died after he was electrocuted on an artificial football pitch.
Paramedics attempted to revive Albert Xhediku, 34, who fell unconscious after he suffered an electric shock at the Mountbatten Leisure Centre in Portsmouth on Sunday night.
He was taken by ambulance to the Queen Alexandra Hospital in Cosham, where he was pronounced dead.
An investigation has been launched by Parkwood Community Leisure, which operates leisure centre where Mr Xhediku died.
Hampshire Constabulary are also invesstigating the incident, and have appealed for witnesses.
The driver, who works for private hire firm City Wide Taxis in Portsmouth, Hants, left his silver Vauxhall Vectra work vehicle in the car park, where it remains.
Passers-by saw paramedics try and give him CPR shortly after they got the call at 6.30pm.
The outdoor all weather artificial pitch is enclosed by a metal cage. It was sealed off by police after the incident.
A spokesman at Portsmouth Coroner's Office said they had been informed of Mr Xhediku's death, and that next of kin had been informed.
A spokesman for Parkwood Community Leisure, which operates the centre on behalf of Portsmouth City Council said: "We have launched a formal investigation into this incident alongside our Health and Safety consultants from the Royal Society for the Prevention of Accidents.
"We extend our deepest sympathy and condolences to the gentleman's family and friends at this difficult time."
David Williams, Portsmouth City Council's chief executive, added: "We are deeply saddened this has happened and our thoughts are with the family.
"Our centre operator Parkwood Leisure will be assisting the police with their investigations."
The Health and Safety Executive have been informed, but have no involvement at this stage, a spokesman confirmed.
The incident saw a passing police officer flagged down before he then alerted his colleagues.
Local residents paid tribute to Mr Xhediku on social media.
Emma Walker, on Facebook, wrote: "R.I.P thoughts are with family and friends.
"But how the heck did that happen? Did he walk into something? Poor guy, 35 is no age to die."
Natalie Cook added: "RIP. Thoughts are with the family and friends at this sad time, what a sad way to start the year gone too soon."
Pauline Jenkins said: "To the man I just seen having cpr on Mountbatten playing fields, hope they got you to hospital in time."
A spokeswoman for Hampshire Constabulary said: “Investigations into the incident, which happened on the outside pitch at Mountbatten Leisure Centre, are ongoing today as we try to establish the circumstances surrounding the 34-year-old’s death.
"Police were alerted to the incident at 6.40pm yesterday and he was taken to Queen Alexandra Hospital by ambulance, where he was later pronounced dead.
"Part of those investigations will include looking into the possibility that he was electrocuted.
"We are working in conjunction with Portsmouth City Council."
Detective Inspector Paul Southey said: “The area remains cordoned off and will remain so for the rest of today as our investigations continue.
“We are keen to speak to anyone who thinks they have any information which could be relevant to this incident.”
A South Central Ambulance spokeswoman said: “We got a call at 6.36pm to Mountbatten Leisure Centre. A male was reported to have had an electric shock.
“We took him to the Queen Alexandra Hospital in Portsmouth. We sent a rapid response car, an ambulance and team leader.”
The Mountbatten Centre is a large leisure complex in the centre of Portsmouth, managed by Parkwood Community Leisure on behalf of Portsmouth City Council.


With Telegraph News

Climate Change: Buhari wants Greater Global Cooperation

While addressing the opening of the 2016 World Future Energy Summit on Monday in Abu Dhabi, President Buhari reaffirmed Nigeria’s readiness to work with the United Arab Emirates and the rest of the world in a collective effort to mitigate the effects of climate change, according to Channel Television.
“Africa is already suffering from the consequences of climate change, which includes recurrent drought and floods. In Nigeria, the drastic drying up of the Lake Chad to just about 10% of its original size, has negatively impacted on the livelihood of millions of people and contributed in making the region a hot bed of insurgency.
“Desert encroachment in Niger (Republic), our northern neighbour and in far northern Nigeria, at the rate of several hundred meters per annum, has impacted on the existence of man, animal and vegetation, threatening to alter the whole ecological balance of the sub-region.
“In the middle and southern part of Nigeria, land erosion threatens farming, forestry, town and village peripheries and in some areas major highways. Constant and abrupt alteration between floods and droughts prove that climate change is real and therefore a global approach and cooperation to combat its effects are vital, if the human race is not to face disaster in the 21st century,” he told participants at the summit.
Noting that the summit was taking place soon after the United Nations Conference on Climate Change held in Paris late last year, the President praised the United Arab Emirates for consistently supporting international action on climate change.
“We see Abu Dhabi as a dependable partner in the collective effort to manage climate risks, including the attainment of the Sustainable Development Goals (SDGs) by 2030. Thank you Abu Dhabi, for consistently continuing to support international action in this sphere.
“We appreciate your immense contributions worth hundreds of millions of dollars in energy aid to developing countries,” he said.
President Buhari is expected back in the country on Tuesday, January 19, 2016.

The 62 Super-rich People own as much as half the world

About $7.6 trillion is hidden in havens, depriving governments of $190bn in tax revenue every year [Eric Gaillard/Reuters]


The world's richest 62 people now own as much wealth as half of the world's population, according to a report by the charity Oxfam, according to Aljazeera. 
Super-rich individuals saw an increase of 44 percent since 2010, taking their cumulative wealth to $1.76 trillion - equivalent to the total owned by 3.5 billion of the world's poorest people.  
The UK-based charity on Monday also said tax havens were helping corporations and individuals to stash away about $7.6 trillion, depriving governments of $190bn in tax revenue every year.
Oxfam Australia's Chief Executive Helen Szoke said there were no appropriate mechanisms to check if wealth was being shared appropriately.
"We believe there is a need for commitments from global business leaders and political leaders for major tax reform to get rid of the tax havens," Szoke said.
"There's too much leakage of what should be paid in taxation exacerbating this gap [between rich and poor]."
Referring to economic growth in Western countries, such as her native Australia, Szoke said little wealth was reaching the impoverished.
"The startling figure in our domestic context in Australia is that where there has been wealth generation in the past decade, none of that has actually trickled down to some of the Australians who are poor."
Oxfam said wealth was being concentrated in the hands of increasingly fewer people, while the world's poorest continued to get poorer. In 2010, 388 people owned as much as the world's poorest 50 percent. 
Mark Goldring, Oxfam chief executive in the United Kingdom, said the stated concern of world leaders over escalating inequality was not being matched with action.
"It is simply unacceptable that the poorest half of the world population owns no more than a small group of the global super-rich, so few you could fit them all on a single coach. 
"In a world where one-in-nine people go to bed hungry every night, we cannot afford to carry on giving the richest an ever-bigger slice of the cake," Goldring said.
The organisation is calling on world leaders meeting for the World Economic Forum in the Swiss city of Davos later this month to crack down on tax havens, ensure fair wages, and invest in public services.


With Aljazeera

PDP defectors plans exposed by Chief Bisi Akande



Chief Bisi Akande
Former interim Chairman of the All Progressives Congress, APC, Chief Bisi Akande, has charged the All Progressives Congress, APC, to be weary of those defecting from the Peoples Democratic Party, PDP, stressing that they are parasites coming to destroy the ruling party if allowed, according to Daily Post..
Akande gave the note of caution while speaking with newsmen at his residence in Ila Orangun, Osun State on his 77 birthday.
He called on the ruling party to be watchful of the new members so that they do not end up killing the APC like they did to the PDP.
Akande said, “We in the APC should be careful, the defection is not a strange thing but I know it is always done by parasites. I have always remained in one line of politics. I have never defected and I will never defect; I will remain in that progressive polity.
“But those who are defecting from one party to the other, by nature, they are political parasites. They have killed the original host, which was the PDP, and they are now coming to the APC, which is the new host. It is for the APC to gird its own loins and prevent the parasites from killing the party, because a parasite has no root of its own but feeds on the little food that the host has.
“So, running away from the PDP to the APC looks good but the APC must be careful in dealing with those parasites.”audget to be more discipline, stating that such a story coming from the Senate was not shocking because its leadership was not a disciplined one.
“Only the budget of the Senate was missing, so that leaves a complication into what is happening. You know, it is borne out of the same indiscipline that led to the hijack of the National Assembly. When the foundation of an assembly is indiscipline- until you remove the cause, you will continue to have this kind of problem in your hands.
“That assembly was not constituted the way my party planned it. It was by hijack and indiscipline which constitutes the way it is. So, you can expect any kind of dissatisfactory stories from such an assembly,” he said.

Corruption: Osinbajo queries BPE chief on N1.5b ‘curious’ contracts

Oluyemi Oluleke Osinbajo 

Disturbed by the alleged N1.45billion legal and consultancy fees scandal in the Bureau of Public Enterprises(BPE), Vice President Yemi Osinbajo has queried the Director-General of the agency, Benjamin Dikki, on the award of such contracts, according to The Nation.
The controversial contracts include a curious N950million job for the liquidation of the Power Holding Company of Nigeria(PHCN) when the company had seized to exist and N500million as consultancy fees to a government department.
The report shown that, the DG is also expected to clarify the alleged payment of N27,188,232,208:20 billion as premium for group life and group personal accident insurance for former staff of the defunct Power Holding Company of Nigeria(PHCN).
Another issue is the alleged diversion of N455,266,618;23 meant for the payment of retirement benefits to entertainment allowance for the staff.
The query followed a petition to the Office of the Vice President by a former director of the BPE, Ibrahim Muhammad Kashim.
Kashim said the N950million contract for the winding up of PHCN was unnecessary because PHCN was already a “shell” company.
Before the action of the Vice President, the Bureau of Public Procurement (BPP) had asked the Economic and Financial Crimes Commission (EFCC) to probe the contracts.
The contracts were awarded contrary to the advice of the immediate past Attorney-General of the Federation, Mr. Mohammed Bello Adoke (SAN) and the BPP, it was learnt.
The BPP requested the EFCC to investigate the payment scandal in a June 27, 2015 letter to the anti-graft agency.
But a fresh petition by the ex-BPE director to the Office of the Vice President sparked the Presidency’s interest.
A letter by the Office of the Vice President to the ex-director reads in part: “I am directed to acknowledge with thanks, the receipt of your letter dated 3rd November 2015 on the above stated subject.
“His Excellency, Prof. Yemi Osinbajo, SAN, GCON, Vice President, Federal Republic of Nigeria has further directed that the said document be forwarded to Director-General, Bureau of Public Enterprises (BPE) for his due consideration and response.
“Please accept the assurances of His Excellency, the Vice President’s warm regards.”
Earlier in his petition, Kashim said there was rot in the BPE which should be investigated by the Vice President, who is the Chairman of the National Council on Privatisation(NCP).
He said: “Your Excellency, the former DG Miss Bolanle Onagoruwa, was removed partly because she refused to accept the appointment of a prominent PDP lawyer to wind up PHCN for an amount exceeding N1.5bn. ( When the proposal was sent to her, I was one of the Directors she confided in.)
“ As lawyers, we reckoned that it was unthinkable, more so as all the assets of PHCN had been transferred through a presidential order to the Discos and Gencos while all the liabilities were to be handled by Nigeria Electricity Liability Management Company ( NEMLCO). PHCN is therefore a shell company.
“Immediately after her removal, the current DG established a committee that awarded the assignment to the preferred law firm. I publicly expressed my disagreement. The DG sent for me and solicited for my support as it was from our bosses. I maintained my position, as a result of which the matter was never tabled at, or brought to the management committee for deliberation and approval before going to NCP.
“ I still maintain that PHCN was a shell company that had no assets and or liabilities. Winding up a shell company surely cannot be done for close to a billion naira. It was fraudulent.
Regarding the payment of over N27billion for insurance premium, the ex-director said at the time, PHCN had no more staff.
He added: “The DG one day invited me to his office. He informed me of a memo that would be sent to Management Committee for its consideration and approval. He suggested that we should pass it, since I was the one that usually chaired such meetings. It was to approve for transmission to the chairman of NCP the payment of N27,188,232,208:20 billionas premium to Great Nigeria Insurance Plc for group life and group personal accident insurance for PHCN staff. I told him it cannot pass, for even a law 101 student knows the cliche ‘No premium No cover’.
“And in any case at that time PHCN had no staff. However, I learnt later that the same paper came to BPE with all the necessary approvals, and I believe the money was paid.”
On retirement benefits, Kashim alleged that the amount approved for BPE staff was converted to Entertainment Allowance.
He said: “ One of the items approved by the NCP was Terminal Benefits for exiting staff. It was to take effect from 2015. For that purpose NCP approved for inclusion into 2015 national budget the sum of N455,266,618:23. The staff due to retire in 2015 are:(1)Ibrahim Muhammad Kashim(Director), (2)Hajiya Fati Abubakar (Director);and (3) Afolabi Mathew(Deputy Director).
“ The amount approved by the NCP as terminal benefit was meant only for three of us retiring in 2015. It meant that BPE should in 2015 seek NCP’s approval for staff retiring in 2016. (As a matter of fact there will be only one retiring staff in 2016).
“The DG by these acts has wrongly converted our terminal benefits to pay management staff entertainment allowances. This he did to calm the restiveness of the management staff as he had completely spent the internally generated revenue on his weekly trips to Zuru in Kebbi State to campaign for a political party (in deed he  even bought a pilot vehicle fitted with a siren to facilitate the trips).
“Let the DG BPE Mr. Benjamin Ezra Dikki tell Nigerians by publicising the minutes of meetings where in those matters were presented to the management committee of the BPE and that it deliberated and recommended to the NCP for approval in line with the extant law. The BPE is the secretariat of the NCP. Matters going to NCP have to be discussed and approved by the management committee. Why none of the payments in question came before the committee was because I objected to it, so the DG went elsewhere and got the memos approved after which he disbursed the money. And it was my stance that made the DG in an attempt to pay me back, to circumvent NCPs approval that amended the BPE Staff Condition of Service, just to ensure that I don’t get my terminal benefits.
“Not only that, he equally converted the approved sum for retiring staff in 2015 to be converted into recurrent management staff entertainment allowance.”
In its defence, the BPE said its ex-director lied and misled the public in his petition to the Vice President.
The BPE, in a statement by its Head, Public Communications, Alex E. Okoh, said: “Kashim lied when he stated,  “….. The former DG Ms Bolanle Onagoruwa was removed partly because she has refused to accept the appointment of a prominent PDP lawyer to wind up PHCN for an amount  exceeding N1.5billion… immediately after her removal the current DG established a committee that awarded the assignment to the preferred law firm.”
“The fact is that the National Council on Privatisation at its 3rd Meeting of 2013 held on Thursday May 9, 2013 had approved the engagement of Messrs J K Gadzama as the consultant for winding up of PHCN.  Benjamin Ezra Dikki was appointed acting DG on 27th November, 2013, over six months later.”
On insurance premium, the BPE added: “The provision of Group Life Insurance Policy for employees is mandatory and compulsory under Section 4(1) (5&6) of the Pension Reform Act 2004. The maxim of no premium no cover does not apply here where the law explicitly provides, ‘Every employer shall maintain Group Life Insurance Policy in favour of each employee for a minimum of three times the total annual emoluments of the employee and premium shall be paid not later than the date of commencement of the cover’.
“Thus, PHCN Successor Companies as employers of labour before privatisation were mandated by law to provide these classes of insurance to its employee in compliance with the Pension Act.
“It was established that there was an Insurance Policy between GNIP and PHCN.  Premiums were outstanding  for year 2011/2012 amounting to N13,607,151,141.10 and renewable for the year 2012/2013 at the sums of N13,581,080,774.10, totalling  N27,188,232,208.20 for which payment was outstanding.  PHCN had already filed claims with GNIP for 267 staff that died in active service for compensation to the relations/widows of the deceased.
“GNIP did not pay the claim because PHCN did not pay premiums due for 2011/2012 and 2012/2013. PHCN submitted these claims to the Implementation Committee set up by the National Council on Privatisation for the processing of entitlements to PHCN Staff  that  then made representations to the then Minister of Power.
“The Minister of Power presented the matter to the Vice President in a memo dated 23/12/2013.   It was subsequently presented to and approved by the National Council on Privatisation at its 3rd meeting held on August 4th, 2014, for payment.  BPE transferred the sum to the Office of the Accountant General of the Federation for further action.
“As mentioned earlier, at a special meeting held, on January 12, 2013 the NCP set up an Implementation Committee, chaired by the Minister of State for Power to handle the processing and payment of entitlements of PHCN Staff based on the approvals given at the same meeting.
“This Implementation Committee chaired by a Minister comprised of representatives of various Ministries and Agencies, was superior to BPE management.  Thus no single one of the forty tranches of payments to PHCN Staff ever came to the BPE management for consideration.
“It is in compliance to the same process that the Insurance premium payment did not have to come to BPE management as insinuated by Ibrahim Kashim.
“Once the implementation Committee processed and verified PHCN Staff entitlements, it advised BPE and BPE remitted the relevant sums to the office of Accountant General of the Federation that effected payments as appropriate.”
The BPE denied allegation of diversion of retirement benefits of BPE staff including the entitlements of Kashim.
It said: “The Bureau in its desire to ameliorate the plight of its former staff who retired and the financial dislocation they went through before they could access payments from their RSA, decided to explore the provision of Section 4(4) (a) on the Pension Act which gives employers the discretion to make additional payments of benefits to its retiring employees.
“It was intended to provide a cushion of funding for retiring staff pending when they were able to process and access their RSA’s.  Consequently, the National Council on Privatisation approval was sought to create terminal benefits for the Bureau’s staff who are retiring.
“This was, however, subject to the approval of the Salaries and Wages Commission, the body that has the statutory powers to approve Salaries and Allowance of Public Servants.  The Salaries and Wages Commission declined approval of the Terminal Benefits on the grounds that the Bureau cannot be singled out of the entire Public Service for such special treatment.  Once the Salaries and Wages Commission does not approve the benefits, such cannot be included in the budget template and be funded.
“By the provisions of the Pension Act and the determination of the Salaries and Wages Commission, there is no terminal benefit payable to Mallam Ibrahim M Kashim or any staff.
“We wish to emphasise that all retirement benefits are paid by PENCOM in line with the Pension Act and all the ex-director’s records have been forwarded to PENCOM for payment. He has been advised to follow up with PENCOM for payment.”

With The Nation