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N1.04trn fine: Court bars MTN from moving money out of Nigeria

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… As S. Korea leader calls for Chinese help to punish North Korea

Federal High Court in Lagos on Tuesday barred MTN Nigeria Communications Limited from moving any funds abroad it may have in Nigerian banks until the hearing of its suit challenging the N1.4 trillion fine imposed on it by the Nigerian Communications Commission (NCC).

The Federal Government brought a motion to restrain the 21 commercial banks, in which MTN has funds, from releasing money to the telecommunications giant.

“The FG seeks an order of Mareva injunction [a court order which requests assets be frozen] restraining the aforementioned banks from releasing, making a sale, transferring, or paying any of the monies maintained by the plaintiff MTN,” the motion read in part.

In October, the telecommunications giant was originally hit with a massive $5.2 billion fine by the NCC for failing to disconnect unregistered subscribers.This failure was in direct violation of regulations put in place by the NCC in order to combat the uptick in kidnappings and the Boko Haram insurgency, both of which often involve the usage of cell phones.

The fine was eventually reduced to $3.9 billion in December. However, MTN is suing the NCC and the Attorney General of Nigeria, Abubakar Malami, contending that as a regulatory body the NCC does not have the right to assume all the functions of the state.

The Court however refused an application filed by the Federal Government seeking to freeze the account of MTN Nigeria Communications Limited in 21 commercial banks in Nigeria.

The application of mareva injunction, filed by Attorney-General of the Federation and Minister of Justice, Abubakar Malami (SAN), was to stop MTN from boycotting payment of the N1.04trn fine imposed on it by the Nigerian Communications Commission, NCC, for its failure to deactivate unregistered subscribers.

Justice Idris Mohammed turned down the application on ground that the AGF had not shown enough facts to prove that MTN was about to empty its bank accounts and move its funds out of the country. The AGF had expressed fear that MTN could move all its funds out of the country before the N1.04tn fine could be enforced.

Consequently, he sought an order directing all the 21 banks to open a special interest- yielding account in the name of the Chief Registrar of the Federal High Court and move N1.04tn out of whatever funds that was standing to MTN’s credit in their possession.

Counsel to the AGF, Mr. Dipo Okpeseyi (SAN), in a 14-paragraph affidavit deposed to by his junior, Steve Nwabueze, had argued that MTN was in the habit of regularly repatriating its funds out of Nigeria.

He noted that between October 2007 and May 2009, a period of 19 months, MTN moved over $7.7bn of the money made in Nigeria to a foreign account.

He further pointed the court’s attention to an instance when in one day, specifically on February 8, 2008, MTN transferred over $936m out of Nigeria to accounts in Mauritius, Cayman Island and British Virgin Island.

Okpeseyi maintained that MTN was under an obligation to pay the N1.04tn fine, because it was NCC’s administrative decision, which remained final unless it was reviewed by the commission or nullified by the court.

He said though NCC had earlier given MTN concession on the fine and reduced it to N780bn, but since MTN had neglected or failed to pay on or before December 31, 2015, the fine remained N1.04tn.

Okpeseyi urged the court to grant the application in the interest of justice to prevent the court’s decision from being rendered nugatory if it went in the favour of NCC and AGF.

In his ruling, Justice Mohammed held that the case was sensitive and of public interest, adding that he would rather hear the case filed by MTN to challenge the fine and give a judgment within a short time.

Justice Mohammed ordered parties to maintain status quo ante bellum pending the determination of the suit and adjourned till January 22 for hearing.

MTN had assembled seven Senior Advocates of Nigeria, led by Chief Wole Olanipekun, to challenge the N1.04tn fine imposed on it by NC

In the meantime, South Korea’s president on Wednesday urged North Korea’s only major ally, China, to help punish Pyongyang’s recent nuclear test with the strongest possible international sanctions.

Park Geun-hye’s comments came as Seoul said North Korea had flown leaflets across the border describing her and her government as “mad dogs” as Cold War-style propaganda warfare continued between the rivals.

South Korea, the United States and others are pushing hard to impose fresh sanctions and other punitive measures on the North for what Pyongyang said was a hydrogen bomb test one week ago.

There is widespread skepticism over the H-bomb claim, but whatever the North detonated underground will likely push the country closer toward a fully functional nuclear arsenal, which it still is not thought to have.

Diplomats at a U.N. Security Council emergency session last week pledged to swiftly pursue new sanctions. For current sanctions and any new penalties to work, better cooperation and stronger implementation from China, the North’s diplomatic and economic protector and a veto-wielding permanent member of the Security Council, is seen as key.

On Wednesday, Park said in a nationally televised news conference that South Korea will push as hard as it can for strong sanctions that can force change in North Korea. But, she said, Chinese help is crucial.

“Holding the hands of someone in a difficult situation is the mark of the best partner,” Park said, referring to China and South Korea’s need to punish the North.

Beijing is seen as reluctant to clamp down on the North in part because of fears that a toppled government in Pyongyang would see millions of desperate North Koreans flooding across the border with China and a U.S.-backed South Korean government in control of the Korean Peninsula.

In the wake of the nuclear test a week ago, the two Koreas have settled into a Cold War-era standoff. Since Friday, South Korea has been blasting anti-Pyongyang propaganda from huge speakers along the border, and the North is using speakers of its own in an attempt to keep its soldiers from hearing the South Korean messages.

Park said South Korea will continue its loudspeaker campaign, calling it “the surest and most effective psychological warfare tool.” Her military announced it has found hundreds of anti-Seoul leaflets near the western portion of the Koreas’ border. The Defense Ministry believes those leaflets were floated over by the North’s military.

Similar North Korea-sent propaganda leaflets were discovered on a South Korea border island between late 2013 and early 2014. Such leafleting, however, by the North is still rare.

South Korean activists occasionally send anti-Pyongyang leaflets in balloons across the border.

The leaflets found earlier Wednesday included such messages as “Let’s knock down the Park Geun-hye group like we do mad dogs” and “The U.S. must immediately stop its anachronistic hostile policy on North Korea.”

It may take weeks or longer to confirm or refute the North’s claim that it successfully tested a hydrogen bomb, which would mark a major and unanticipated advance for its still-limited nuclear arsenal.

The test has provoked global outrage, but it has also been a gift of sorts for Park, who has faced several mass protests condemning her leadership in recent weeks.

National Mirror with additional report from MSN

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WAIVER CESSATION: Igbokwe urges NIMASA to evolve stronger collaboration with Ships owners

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…Stresses the need for timely disbursement of N44.6billion CVFF***

Highly revered Nigerian Maritime Lawyer, and Senior Advocate of Nigeria (SAN), Mike Igbokwe has urged the Nigeria Maritime Administration and safety Agency (NIMASA) to partner with ship owners and relevant association in the industry to evolving a more vibrant merchant shipping and cabotage trade regime.

Igbokwe gave the counsel during his paper presentation at the just concluded two-day stakeholders’ meeting on Cabotage waiver restrictions, organized by NIMASA.

“NIMASA and shipowners should develop merchant shipping including cabotage trade. A good start is to partner with the relevant associations in this field, such as the Nigeria Indigenous Shipowners Association (NISA), Shipowners Association of Nigeria (SOAN), Oil Trade Group & Maritime Trade Group of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

“A cursory look at their vision, mission and objectives, show that they are willing to improve the maritime sector, not just for their members but for stakeholders in the maritime economy and the country”.

Adding that it is of utmost importance for NIMASA to have a through briefing and regular consultation with ships owners, in other to have insight on the challenges facing the ship owners.

“It is of utmost importance for NIMASA to have a thorough briefing and regular consultations with shipowners, to receive insight on the challenges they face, and how the Agency can assist in solving them and encouraging them to invest and participate in the maritime sector, for its development. 

“NIMASA should see them as partners in progress because, if they do not invest in buying ships and registering them in Nigeria, there would be no Nigerian-owned ships in its Register and NIMASA would be unable to discharge its main objective.

The Maritime lawyer also urged NIMASA  to disburse the Cabotage Vessel Financing Fund (CVFF)that currently stands at about N44.6 billion.

“Lest it be forgotten, what is on the lips of almost every shipowner, is the need to disburse the Cabotage Vessel Financing Fund (the CVFF’), which was established by the Coastal and Inland Shipping Act, 2003. It was established to promote the development of indigenous ship acquisition capacity, by providing financial assistance to Nigerian citizens and shipping companies wholly owned by Nigerian operating in the domestic coastal shipping, to purchase and maintain vessels and build shipping capacity. 

“Research shows that this fund has grown to about N44.6billion; and that due to its non-disbursement, financial institutions have repossessed some vessels, resulting in a 43% reduction of the number of operational indigenous shipping companies in Nigeria, in the past few years. 

“Without beating around the bush, to promote indigenous maritime development, prompt action must be taken by NIMASA to commence the disbursement of this Fund to qualified shipowners pursuant to the extant Cabotage Vessel Financing Fund (“CVFF”) Regulations.

Mike Igbokwe (SAN)

“Indeed, as part of its statutory functions, NIMASA is to enforce and administer the provisions of the Cabotage Act 2003 and develop and implement policies and programmes which will facilitate the growth of local capacity in ownership, manning and construction of ships and other maritime infrastructure. Disbursing the CVFF is one of the ways NIMASA can fulfill this mandate.

“To assist in this task, there must be collaboration between NIMASA, financial institutions, the Minister of Transportation, as contained in the CVFF Regulations that are yet to be implemented”, the legal guru highlighted further. 

He urged the agency to create the right environment for its stakeholders to build on and engender the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders.

“Lastly, which is the main reason why we are all here, cessation of ministerial waivers on some cabotage requirements, which I believe is worth applause in favour of NIMASA. 

“This is because it appears that the readiness to obtain/grant waivers had made some of the vessels and their owners engaged in cabotage trade, to become complacent and indifferent in quickly ensuring that they updated their capacities, so as not to require the waivers. 

“The cessation of waivers is a way of forcing the relevant stakeholders of the maritime sector, to find workable solutions within, for maritime development and fill the gaps in the local capacities in 100% Nigerian crewing, ship ownership, and ship building, that had necessitated the existence of the waivers since about 15 years ago, when the Cabotage Act came into being. 

“However, NIMASA must ensure that the right environment is provided for its stakeholders to build and possess the needed capacities to fill the gaps; and ensure that steps are being taken to solve the challenges being faced by stakeholders. Or better still, that they are solved within the next 5 years of its intention to stop granting waivers”, he further explained. 

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Breaking News: The Funeral Rites of Matriarch C. Ogbeifun is Live

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The Burial Ceremony of Engr. Greg Ogbeifun’s mother is live. Watch on the website: www.maritimefirstnewspaper.com and on Youtube: Maritimefirst Newspaper.

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Wind Farm Vessel Collision Leaves 15 Injured

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…As Valles Steamship Orders 112,000 dwt Tanker from South Korea***

A wind farm supply vessel and a cargo ship collided in the Baltic Sea on Tuesday leaving 15 injured.

The Cyprus-flagged 80-meter general cargo ship Raba collided with Denmark-flagged 31-meter wind farm supply vessel World Bora near Rügen Island, about three nautical miles off the coast of Hamburg. 

Many of those injured were service engineers on the wind farm vessel, and 10 were seriously hurt. 

They were headed to Iberdrola’s 350MW Wikinger wind farm. Nine of the people on board the World Bora were employees of Siemens Gamesa, two were employees of Iberdrola and four were crew.

The cause of the incident is not yet known, and no pollution has been reported.

After the collision, the two ships were able to proceed to Rügen under their own power, and the injured were then taken to hospital. 

Lifeboat crews from the German Maritime Search and Rescue Service tended to them prior to their transport to hospital via ambulance and helicopter.

“Iberdrola wishes to thank the rescue services for their diligence and professionalism,” the company said in a statement.

In the meantime, the Hong Kong-based shipowner Valles Steamship has ordered a new 112,000 dwt crude oil tanker from South Korea’s Sumitomo Heavy Industries Marine & Engineering.

Sumitomo is to deliver the Aframax to Valles Steamship by the end of 2020, according to data provided by Asiasis.

The newbuild Aframax will join seven other Aframaxes in Valles Steamship’s fleet. Other ships operated by the company include Panamax bulkers and medium and long range product tankers.

The company’s most-recently delivered unit is the 114,426 dwt Aframax tanker Seagalaxy. The naming and delivery of the tanker took place in February 2019, at Namura Shipbuilding’s yard in Japan.

Maritime Executive with additional report from World Maritime News

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