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Nigeria’s Chief of Army Staff, Farouk Yahaya, Sentenced to Prison for Contempt of Court

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TEHRAN, IRAN - JULY 19: (RUSSIA OUT) Russian President Vladimir Putin leaves his presidential plane during the welcoming ceremony at the airport, on July 19, 2022 in Tehran Iran. Russian President Putin and his Turkish counterpart Erdogan arrived in Iran for the summit. (Photo by Contributor/Getty Images)

A federal high court sitting in Minna, Niger state, has ordered that the chief of army staff (COAS), Farouk Yahaya, be arrested and imprisoned for contempt of court.

The order, which was based on a suit marked NSHC/225/2019, involving Adamu Makama and 42 others versus the executive governor of Niger state and seven others, was issued due to blatant disregard of court judgment. A warrant of arrest was also issued against Olugbenga Olabanji, commandant of the training and doctrine command, Minna, over the same offence.

The motion for the issuance of the warrants was moved by Mohammed Liman, counsel to the plaintiffs/applicants.  Liman had prayed to the court to send the army chief and commandant to the correctional centre for disobeying an order made on October 12, 2022.

“An order is made committing the Nigerian Army Chief of Staff General Farouk Yahaya, and the Commander Training and Doctrine Command (TRADOC) Minna, i.e. 6th &7th respondents into the custody of the Correctional Centre for contempt of the order of this honourable court made on the 12/10/2022,” Justice Abdulmalik held in his ruling.

The judge added that they shall remain in the custody of the correctional centre until they purge themselves of the contempt.

The case has been adjourned to December 8 for continuation, follows other court orders that have seen heads of major government’s institutions sent to prison for contempt recently.

On Tuesday, the IGP was similarly sentenced to three months imprisonment by a federal high court presided by Justice Mobolaji Olajuwon for contempt of court. His sentence was as a result of a motion filed by one Patrick Okoli, a former inspector in the Nigerian Police Force, who said he was unlawfully and compulsorily retired.

In early November, a federal high court sitting in Abuja, similarly, ordered that the chairman of the Economic and Financial Crimes Commission (EFCC) be committed to prison for contempt.

The order, which was later set aside, bordered on the inability of the anti-graft agency’s head to obey an earlier judgment by the court judgment.

However, the growing trend is said to underscore the depth of total disregard for the rule of law by those in top offices in the country. It is also believed to signify a change from the status quo that has protected top public office holders from being held accountable under the law.

FTX CEO Sam Bankman-Fried Attributes Collapse of Company to Costly Mistakes

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The CEO of FTX Sam Bankman-Fried in a recent interview has attributed the collapse of his company to costly mistakes he made while debunking rumors that he committed fraud.

“We completely failed on risk. That feels pretty embarrassing, in retrospect”, he said.

Bankman-fried disclosed that he was excited about the prospects of FTX which he saw as a thriving business, stating that the recent upheaval at the company got him perplexed.

Also, he was accused of secretly transferring $10 billion client’s money to Alameda research, which led to a liquidity crunch at FTX.

He however refuted such claims, stating that he did not transfer the said amount to the research firm while noting that he did not run the firm.

According to the Ex Billionaire, he stated that the time he knew there was a big problem when the whole saga began, was on November 6, after Alameda’s sizable FTT position was exposed by Coindesk.

He said, “When we looked at that, there was a potential serious problem. Alameda had taken a huge hit by that point. We were seeing a run on the bank start.

“I was nervous [when] the Alameda balance sheet” was exposed by Coindesk, but I expected that the damage was going to be limited to Alameda, not an “existential” crisis for FTX.”

Following the widespread accusations of him using investors’ money to party, he repudiated such claims of wild partying and off-label drug use, saying that FTX functions consisted of only board games or dinner parties.

On November 11, Bankman-Fried resigned as the CEO of FTX after the firm filed for bankruptcy protection while facing a liquidity crunch, which was followed by a deluge of withdrawals from customers.

Rival cryptocurrency platform Binance had originally agreed to rescue FTX from its financial woes  but later back-tracked on the non-binding deal.

Binance disclosed that its reason for back-tracking on its initial statement was as a result of the alleged investigations that FTX was facing amongst other reasons

It said in a statement, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX”

FTX’s newly appointed CEO, John J. Ray III, in recent filings, disclosed that FTX faced a complete failure of corporate controls. He further stated that he had never seen a company in such poor shape in his 40 years of handling bankruptcies.

The collapse of FTX threw several companies into chaos, as 130 companies affiliated with the company filed for bankruptcy protection.

Crypto exchange platform BlockFi was not left out, as it filed for bankruptcy in the US, as the collapse of FTX continues to reverberate across the industry.

The company had already halted most activity on its platform, citing “significant exposure” to FTX. BlockFi said it was seeking court protection to restructure, settle its debts and recover money for investors.

The firm had earlier this year received a rescue deal from FTX as the values of cryptocurrencies plunged.

FTX collapse has also negatively impacted the crypto industry, as Bitcoin which has a market cap dominance of around 40% plunged to an all-time low, pulling down the entire crypto market with it.

The overall crypto market cap fell from over $1 trillion at the end of October to now close to $800 billion only.

This crash has made the entire ecosystem and its market participants extremely nervous, which has led to the massive withdrawal of assets.

“The Human Capital of Nations” -Ndubuisi Ekekwe To Speak in Bizpotta Conferenc

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TEHRAN, IRAN - JULY 19: (RUSSIA OUT) Russian President Vladimir Putin leaves his presidential plane during the welcoming ceremony at the airport, on July 19, 2022 in Tehran Iran. Russian President Putin and his Turkish counterpart Erdogan arrived in Iran for the summit. (Photo by Contributor/Getty Images)

Mark your calendar. I will keynote the Bizpotta Global Entrepreneurship Conference on Dec 9 2022.  My presentation is titled “The Human Capital of Nations” and  in it, I will make a fundamental point that nations rise when they develop, deepen and accelerate that capital. Then, we will explain how.

Practically, the Adam Smith’s “The Wealth of Nations” is actually “The Human Capital of Nations” because in that tripod of processes, tools and people, the human system remains the most catalytic element in the production process.

Bizpotta is “a company working towards bridging the skill gap in Nigeria and Africa and providing resources to help MSMEs develop and manage their businesses”.  Tekedia Institute recognizes such noble visions, and I will join them to make that case: Africa needs Mines of Knowledge to execute, and bring to pass that lofty aspiration of University of Nigeria Nsukka -“to restore the dignity of man (and woman)”.

Liberate the minds, climb further than any ladder. Chijindu Umunnakwe  and Bizpotta team will share the Zoom link.

TEHRAN, IRAN – JULY 19: (RUSSIA OUT) Russian President Vladimir Putin leaves his presidential plane during the welcoming ceremony at the airport, on July 19, 2022 in Tehran Iran. Russian President Putin and his Turkish counterpart Erdogan arrived in Iran for the summit. (Photo by Contributor/Getty Images)

Come to the Startup Education Temple – This is Tekedia Startup Masterclass

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Tekedia Startup Masterclass: from Start-Up to Unicorn is designed to help founders, entrepreneurs, and those generally working in the startup ecosystems, to master the mechanics of building category-king startups. The program runs for 8 weeks. Besides pre-recorded courses for the 8 weeks, the program includes a live Zoom session with me. This is our fastest growing product. I invite you to become a master on business by attending Tekedia Startup Masterclass. Cost is N180,000 or $400. Register here 

Tekedia Startup Masterclass: from Start-Up to Unicorn is designed to help founders, entrepreneurs, and those generally working in the startup ecosystems, to master the mechanics of building category-king startups. The program runs for 8 weeks. Besides some pre-recorded courses for the 8 weeks, the program includes an hour-long one-on-one live Zoom session every week, per participant, with Tekedia Institute’s Lead Faculty, Prof Ndubuisi Ekekwe.

Participants can enroll and begin anytime. In other words, there is no specific start date as it is customized for the learner via the one-on-one live Zoom sessions. If you pay today, you will begin  immediately.

The goal of the Masterclass is to help the participant master modern business mechanics which are used to scale and blitzscale ideas into unicorns (startups with a minimum of $1 billion in valuation).

Nigerian Government Blames State Governors for Nigeria’s Rising Poverty Rate

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Muhammadu Buhari’s administration has blamed state governors for the rising poverty rate in Nigeria, saying that they are not doing enough to alleviate poverty in their various states.

The statement, which was issued on Wednesday, comes on the heels of a report by the National Bureau of Statistics (NBS), which said that 133 million Nigerians (63% of the population) live in multidimensional poverty.

Speaking after the Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari at the Presidential Villa, Abuja, the Minister of State for Budget and National Planning, Clement Agba, said that the governors, instead of investing in human capital development that will improve lives, especially in the rural areas of their states where the poverty rate is as high as 72%, are busy building airports and flyovers.

“They would rather build skyscrapers in a city where people will see and clap but the skyscrapers do not put food on the table,” Agba said.

The minister absorbed the federal government of blame, arguing that it has done its best to alleviate poverty. He indicated that federal government’s efforts to reduce poverty have not yielded positive result because the governors are not complementing them.

Agba said for instance, while states are in charge of land for agriculture, they do not invest in them for the desired effect on their rural citizens.

“When you say government, we should be able to specify which government we are talking about. Is it the Federal Government, state government or local government? Because we all have different responsibilities.

“It is for this reason that we last year started some work on the multidimensional poverty index, for which we recently released the report.

“In the past, we’ve always looked at monetary poverty, but poverty has different pieces, different intensity and different causes. And it is for this reason; I went around the 109 senatorial districts in Nigeria, to carry out those surveys and to be able to say specifically, where this hardship is.

“The result clearly shows that 72 per cent of poverty is in rural areas. It also showed clearly, that Sokoto State is leading in poverty with 91 per cent. But the surprising thing is Bayelsa is the second in terms of poverty rating in the country.

“So, you see the issue is not about the availability of money. But it has to do with the application of money.

“At the Federal level, the government is putting out so much money into National Social Investment Programmes, but not seeing so much reflection in terms of alleviating poverty.

“But if the Federal Government puts the entire income that it earns into all of this without some form of complementarity from state governments in playing their part, it will seem as if we are throwing money in the pond because the governors basically are only functioning in their state capitals.

“Democracy that we preach about is delivering the greatest goods to the greatest number of people. And from our demography, it shows that the greatest number of our people live in rural areas, but the governors are not working in the rural areas,” he explained.

The Nigerian poverty rate has risen significantly since 2015 despite intervention programmes by Buhari’s administration. Experts have attributed the increase to the federal government’s economic policies, which they say to be unprogressive.

Despite this backdrop, the federal government has always given itself pass marks while it shifts the blame to others. But the bombshell report by the NBS has discredited every credit the federal government has given itself on poverty alleviation, including that it is working to lift 100 million Nigerians from poverty by 2023.

Critics believe that the federal government’s decision to shift the blame to state governors this time means that it has run out of ideas on how to address the country’s poverty crisis.

Agba said that the state governors should focus on initiatives that can lift the majority of the people out of poverty, rather than building skyscrapers, flyovers and bridges among other gigantic projects in the city centers.