Major International Business Headlines Brief::: 15 May 2024

[Bulls n Bears]

 <https://bullszimbabwe.com/> 

 


 

 <http://www.bullszimbabwe.com> Bullszimbabwe.com
<mailto:info at bulls.co.zw?subject=View%20and%20Comments> Views & Comments
<https://bullszimbabwe.com/category/blogs/bullish-thoughts/> Bullish
Thoughts        <http://www.twitter.com/BullsBears2010> Twitter
<https://www.facebook.com/BullsBearsZimbabwe> Facebook
<http://www.linkedin.com/pub/bulls-n-bears-zimbabwe/57/577/72> LinkedIn
<https://chat.whatsapp.com/CF6wllAfScU9Wr6dXxoQnO> WhatsApp
<mailto:bulls at bullszimbabwe.com?subject=Unsubscribe> Unsubscribe

 


 

 


Major International Business Headlines Brief:::  15 May 2024 

 


 


 

	
 


 

 


 

ü  South Africa: Engineer Overseeing Collapsed George Building Faced
Disciplinary Probe

ü  South Africa: Shell Case in Supreme Court of Appeal

ü  Nigeria Begins Allocation of New Oil Blocks

ü  Nigerian Regulator Accuses MTN MD of Evading Court Service

ü  Nigeria: Exclusive Networks Inaugurates West African Office in Lagos

ü  Nigeria: Airport Access Fees...No More VIPs, Everybody Must Pay, Govt
Declares

ü  Nigeria: Despite PIA, Petrol Import Monopoly Persists

ü  Nigeria: Explosion Hits Shell Gas Facility in Bayelsa

ü  Nigeria: CBN, IMF and Future of Development Finance in Nigeria

ü  Kenya: Enhanced Kenya Tea Brand to Boost Farmer Income

ü  S Jaishankar: India backs port deal with Iran after US caution

ü  The illicit trade with China fuelling Mozambique's insurgency

ü  Boeing may face criminal prosecution over 737 Max crashes, US says

ü  'Corrupt ship inspectors demand our food and cargo'

ü  MDH and Everest: Indian spices face heat over global safety concerns

 


 

 


 <https://www.cloverleaf.co.zw/> South Africa: Engineer Overseeing Collapsed
George Building Faced Disciplinary Probe

Atholl Mitchell, the consulting engineer responsible for overseeing the
construction of the apartment block in George that collapsed last week, was
under investigation by the Engineering Council of South Africa (ECSA) at the
time of the deadly incident, reports  News24 .

 

The ECSA had recommended in February that Mitchell be charged with breaches
of its code of conduct following a complaint lodged in December 2022, though
details were not provided.

 

The council's disciplinary proceedings against Mitchell were ongoing, with a
hearing yet to take place.

 

Mitchell's company, Mitchell and Associates, was named as the principal
agent for the collapsed building site. The death toll from the collapse
climbed to 33 by Tuesday afternoon.

 

 

 

 

 

South Africa: Shell Case in Supreme Court of Appeal

On 17 May 2024, Wild Coast communities and supporting organisations will be
in the Supreme Court of Appeal to defend the  groundbreaking High Court
judgment   which set aside Shell's exploration right to explore for oil and
gas off the Wild Coast of South Africa.

 

In September 2022, Shell, Impact Africa, and the Minister of Mineral
Resources and Energy (DMRE)  lodged applications for leave to appeal   the
Makhanda High Court ruling, which was handed down on 1 September 2022 to
resounding celebrations.

 

The High Court case

 

The court case was brought in December 2021 by Sustaining the Wild Coast
NPC, Wild Coast communities, Wild Coast small-scale fishers and All Rise
Attorneys for Climate and the Environment NPC, represented by the Legal
Resources Centre (LRC) and Richard Spoor Incorporated. Natural Justice and
Greenpeace Africa, represented by environmental law firm, Cullinan and
Associates, subsequently joined the case.

 

 

The case sought to review the decision by the DMRE to grant an exploration
right to Shell and Impact Africa, allowing them to conduct exploration
activities off the Wild Coast coastline.

 

In the Makhanda High Court, the communities and supporting organisations
argued that the right should not have been granted because:

 

There was no consultation with affected communities and the companies'
consultations with traditional leaders was insufficient. 

The decision-makers failed to consider the potential harm to the fishers'
livelihoods, the impact on their cultural and spiritual rights and the
contribution of oil and gas exploitation to climate change. 

The decision-makers failed to comply with the requirement of the Integrated
Coastal Management Act to consider the interests of the entire community –
including fishers and ocean life. 

The High Court Judgment

 

The Makhanda High Court found in favour of the applicants on all of the
grounds of review.

 

The judgment found that there was no meaningful consultation with
communities, and that consulting traditional leadership is not sufficient.
It further found that because there was no definitive information on the
harms to the environment, when deciding whether to grant the exploration
right, the DMRE should have used a precautionary approach.

 

With regard to the harms that could be caused by the seismic testing, the
judgment acknowledged the key role of the ocean in the livelihoods, and
spiritual and cultural life of coastal communities. The harms to these
religious and ancestral beliefs and practices should have been taken into
account.

 

 

In relation to climate change as well as the issues of the right to food,
the judges found that, had the DMRE taken these issues into account, they
may have found that the project was "neither needed nor desirable".

 

The judgment also found that the decision-makers had unlawfully failed to
consider the requirements of the Integrated Coastal Management Act.

 

The judgment also rejected the arguments of Shell and the DMRE Minister that
the case should not proceed because the applicants had not used internal
processes to appeal against the granting of the exploration right. The court
agreed that by the time the applicants heard it had been granted, the
commencement of the seismic survey was imminent, and furthermore that the
DMRE Minister had shown himself to be biased in favour of Shell.

 

Notably, the judge stated that Shell's Environmental Management Programme
(EMPr) contained statements promising jobs and increased government revenue.
However, these claims were not supported by evidence in the EMPr. This was
particularly important as Shell argued that the applicant communities are
poverty-stricken and would benefit economically from oil and gas
exploitation.

 

This judgment set the decision of the DMRE aside.

 

APPEAL ARGUMENTS

 

Shell, Impact Africa and the DMRE Minister are appealing the judgment on
various grounds.

 

They argue that the public had been properly notified of the decision to
grant the exploration right and that the court should not have allowed the
decision to be challenged so long after it was made.

 

They also argue that the court was wrong to deal with exploration as a step
in a single process that culminates in the production and combustion of oil
and gas and was incorrect in applying the precautionary principle to the
expert evidence on the harms of seismic surveys.

 

Shell also argues that the court was wrong to conclude that the public
statements made by the DMRE Minister gave rise to a reasonable apprehension
of bias. The High Court found that lodging an internal appeal with the DMRE
before approaching the High Court would have been an exercise in futility.

 

THE CROSS-APPEAL

 

In the Makhanda High Court, a declarator was sought stating that Shell
needed an environmental authorisation, as required under the National
Environmental Management Act (NEMA), before commencing with the seismic
survey. Shell had argued that, because the exploration right was granted
prior to the December 2014 enactment of NEMA's listed activities requiring
environmental authorisation for exploration activities, they did not need an
environmental authorisation; and their environmental management programme
was sufficient, despite the renewal of the exploration right taking place
after the enactment of NEMA's listed activities.

 

The High Court declined to rule on the declarator as they had set aside the
exploration right and, therefore, had concluded that the applicants had
obtained a substantial part of their relief. However, the communities and
supporting organisations believe that the declarator plays an important role
in the advancement and protection of constitutional rights. They have
launched a cross-appeal in the Supreme Court of Appeal, asking the court to
rule on this, should it differ from the High Court in respect of its finding
on the exploration right.

 

QUOTES

 

"It's more important and urgent than ever that we safeguard Mother Earth. We
hope the SCA rules to protect her."  - Nonhle Mbuthuma, Amadiba Crisis
Committee and recent Goldman Environmental Award Prize winner

 

"In this case, we are raising very critical issues that are fundamental to
our wellbeing and the wellbeing of the planet. These are environmental
rights, the right to a safe and healthy environment as guaranteed by the
Constitution. Our right to be consulted is not only guaranteed by
legislation but also by the Constitution, and also by International law
principles, such as the right to self determination and right to Free Prior
and Informed consent. The reality of the climate change impacts we are
already experiencing are all very critical to this case. We are hopeful that
judges shall do due diligence to consider all these matters." - Sinegugu
Zukulu, Sustaining the Wild Coast and recent Goldman Environmental Award
Prize winner

 

 

"The judges of the High Court came to the aid of Wild Coast communities, to
give effect to the law in a manner that upholds and protects their human
rights. The impact of the judgment is far-reaching, advancing the rights of
many of other coastal communities. A finding any other way would be
Constitutionally regressive, and we are confident that the Supreme Court of
Appeal will uphold the decision of the High Court. The persistence by Shell,
Impact Africa and the state to overturn the judgment is a clear indication
that these entities care more about corporate gains than upholding the
rights of communities." - Melissa Groenink-Groves, Natural Justice

 

"The judgment handed down by the Makhanda High Court represents a monumental
victory for environmental justice and community empowerment. It underscores
the critical importance of meaningful consultation with affected communities
and the imperative to consider the broader ecological and social impacts of
extractive projects. This decision sends a powerful message that the rights
of coastal communities, their cultural heritage, and the integrity of our
marine ecosystems cannot be sacrificed in pursuit of profit-driven agendas.
Greenpeace Africa stands in solidarity with the Wild Coast communities and
all those fighting to protect our planet for future generations." -
Greenpeace Africa (Cynthia N Moyo, Climate and Energy Campaigner, GPAf)

 

"The High Court Judgment is a progressive judgment that will be referred to
and cited for many years to come. It confirms the need to involve
communities in decisions affecting them; to understand and accept cultural
and spiritual practices; to acknowledge the importance of protecting our
marine environment; and acknowledges the climate impact of exploration in
that it ultimately results in the production and combustion of oil and gas.
We trust that the Appeal Court will dismiss the appeal and give declaratory
relief as sought by the applicants in the cross appeal." - All Rise
Attorneys

 

"The well-reasoned judgment of the full bench of the Eastern Cape High Court
made headlines around the world. We are confident that the Appeal Court will
uphold it and reiterate that the dangers posed by climate change require
that decisions to authorise exploring for, or exploiting, oil and gas must
be made with great care and in strict compliance with the law." Ricky Stone,
Cullinan and Associates

 

 

 

Nigeria Begins Allocation of New Oil Blocks

The commission said the 2024 block licensing round would last for
approximately nine months.

 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on Tuesday,
announced the commencement of the 2024 oil block licensing round.

 

The Chief Executive of NUPRC, Gbenga Komolafe, announced this at the Miami,
Florida International Roadshow for the 2024 licensing round, hosted by the
NUPRC, in collaboration with Petroleum Technology Association of Nigeria
(PETAN).

 

The commission said the 2024 block licensing round would last for
approximately nine months.

 

 

Mr Komolafe, while unveiling the bidding round, said the exercise which was
initially announced on 29 April, was a significant leap in the strategic
hydrocarbons development initiative.

 

He said the round would introduce 12 meticulously selected blocks across
diverse geological spectra from the fertile onshore basins to the promising
continental shelves and the untapped depths of Nigeria's deep offshore
territories."Each block has been chosen for its potential to bolster our
national reserves and stimulate economic vitality.

 

"The NUPRC on behalf of the Federal Republic of Nigeria is committed to
conducting the licensing round in a fair, competitive and transparent
manner, ensuring a level playing field for both indigenous and international
investors.

 

"Our approach is underpinned by the robust legal framework of the Petroleum
Industry Act 2021 (PIA), which ensures compliance with best practices to
boost investors'confidence.

 

"In keeping with the provisions of the PIA and regulations made under the
Act, the commission has issued a licensing round guideline and published a
licensing round plan for the twelve blocks.

 

"The blocks are PPL 300-CS; PPL 301-CS, PPL 3008, PPL 3009, PPL 2001, PPL
2002, PML 51, PPL 267, PPL 268, PPL 269, PPL 270, and PPL 271," he said.

 

He said the seven deep offshore blocks from the 2022 mini-bid round exercise
which covered an area of approximately 6,700 km2 in water depths of 1,150m
to 3,100m would be concluded along with this licensing round.

 

He said rhe blocks on offer had extensive 2D and 3D seismic data coverage,
including multi-beam and analogue data.

 

"Additionally, a 3D reprocessed Pre-stack Time Migration of remarkable
quality is also available to prospective bidders.

 

"The availability of advanced seismic datasets and analytical tools via our
dedicated portals exemplifies our commitment to excellence and technological
advancement," he said.

 

According to Mr Komolafe, the licencing round is indeed expected to be a
huge success for Nigeria and is a big step towards growing the nation's oil
and gas reserves.

 

This, he said, would be through aggressive exploration and development
efforts, boosting production, expanding opportunities for gas utilisation
and end-to-end development across the value chain.

 

"In addition, the licencing round presents us with the opportunity to
reinforce Nigeria's commitment to openness and transparency in line with the
principles of the Extractive Industry Transparency Initiative (EITI)," he
said.

 

On the global scale, Mr Komolafe said the licensing round would no doubt be
beneficial to all stakeholders, adding that in the long run it would
contribute to long-term global energy sufficiency.

 

"The implementation process will, in addition to technical and commercial
considerations, pay requisite attention to strategies, processes and
implementable plans consistent with net zero carbon emission targets,
eliminating gas flares."

 

He said competitive entry fees that were responsive to prevailing realities
would be adopted in the 2024 block licensing round.

 

Mr Komolafe said that considerations for the commerciality of projects would
be made on a case-by-case basis for the determination of appropriate entry
fees.

 

The 2024 block licensing round is scheduled to last for approximately nine
months and interested parties should visit the dedicated NUPRC portal for
details on how to participate.

 

(NAN)

 

- Premium Times.

 

 

 

 

Nigerian Regulator Accuses MTN MD of Evading Court Service

"We sent our officers to the MTN office in Lagos to serve them but we were
denied access."

 

The Nigerian Copyright Commission (NCC), on Tuesday, accused the Managing
Director and Chief Executive Officer (MD/CEO) of MTN Nigeria Communications
Ltd, Karl Toriola, of evading service of court documents in an alleged
copyright infringement suit.

 

The NCC's lawyer, Gladys Ojo, made the allegation before Justice Inyang Ekwo
of a Federal High Court, Abuja.

 

The News Agency of Nigeria (NAN) reports that Justice Ekwo had, on 29 April
fixed Tuesday for Me Toriola and other co-defendants' to take their plea
following his failure to appear in court in the last adjourned date for
their arraignment.

 

 

NAN reports that the NCC had, in a charge marked: FHC/ABJ/CR/111/2024, sued
MTN Nigeria Communications Ltd; Toriola; MTN Senior Executive Officer,
Nkeakam Abhulimen; Fun Mobile Ltd, a telecommunications service provider;
and Yahaya Maibe, its CEO as 1st to 5th defendants respectively.

 

In the three count-count charge dated 19 March and filed 20 March by Emeka
Ogbonna on NCC's behalf, the prosecution alleged that the defendants,
between 2010 and 2017, "offered for sale, sold and traded for business,
infringed musical works of Maleke Moye, an artiste, without his consent and
authorisation."

 

The commission alleged that the defendants used Maleke's musical works and
sound recordings with subsisting copyright, known as "caller ring back
tunes" without the authorisation of the artiste.

 

 

The musical works and sound recordings of the musician allegedly infringed
upon include "911, Minimini-Wana Wana, Stop Racism, Ewole, 911 instrumental,
Radio, Low Waist, and No Bother."

 

The defendants were also alleged to have illegally distributed the musical
works to their subscribers, without authorisation, thereby infringing on the
rights of the artiste.

 

In the third count, the defendants were alleged of having in their
possession, the musical works and sound recordings of the artiste, other
than for their personal or domestic use.

 

The copyright commission said the alleged offence is punishable under
Section 20 (2) (a) (b) and (c) of the Copyright Act, Cap. C28, Laws of the
Federation of Nigeria, 2004.

 

NAN reports that in the last adjourned date, Messrs Toriola and Abhulimen
were neither in court nor represented by any counsel.

 

When the case was called on Tuesday, Messrs Toriola and Abhulimen were again
not in court.

 

 

Speaking, Ms Ojo said although the matter was fixed for arraignment today,
only Maibe (5th defendant) was in court.

 

She said all efforts made to personally serve Toriola were unsuccessful.

 

The lawyer said the MTN MD allegedly refused to be served.

 

"The last time, we told my lord that we were having issues serving the MTN
CEO.

 

"We sent our officers to the MTN office in Lagos to serve them but we were
denied access. We also sent the charge via DHL," she said.

 

But Obafemi Agaba, who appeared for 1st, 2nd and 3rd defendants (MTN Ltd,
Toriola and Abhulimen), told the judge that the MD and Mr Abhulimen were yet
to be served with the charges in the suit.

 

He argued that the rules of the court is that the defendants be served
personally in criminal matter, adding that the prosecution "has not applied
for substituted service."

 

Mr Agaba also drew the attention of the court to his preliminary objection
challenging the jurisdiction of the court and the competence of the suit.

 

But Justice Ekwo advised the MTN lawyer to do everything to ensure that his
clients are served with the processes.

 

The judge also told the NCC lawyer that she ought to know the necessary
legal steps to take regarding service.

 

"Nobody can evade service except you don't know what to do," the judge told
Ms Ojo.

 

Justice Ekwo, who adjourned the matter until 27 June for arraignment, said:
"However, if the court becomes aware of any application that has been filed
before that date, parties will receive hearing notices before that date."

 

(NAN)

 

- Premium Times.

 

 

 

 

Nigeria: Exclusive Networks Inaugurates West African Office in Lagos

Exclusive Networks, a global cyber security specialist organisation,
recently, inaugurated it's West African office in Victoria Island, Lagos,
with the aim of creating job opportunities and contributing to the
technology landscape in the country.

 

Speaking with journalists at the opening ceremony, the Group Managing
Director for Africa, Anton Jacobzs explained that its goal is to be the
distributor of choice within the African region, adding that it has doing
business in Nigeria remotely in the last 15 years.

 

The inauguration of the new office, he said, was also due to its increasing
market share and clientele base.

 

"We are a cybersecurity focused entity. We will be bringing the most
relevant expertise and skills. So the experience is to help our partners
access business from a cybersecurity perspective, which add values to them.

 

"We are in Nigeria for the long run, we have been operating remotely and
people are on ground. I think that in order to be relevant, you need to be
present."

 

Jacobzs stated that the organisation boasts of highly skilled people and
partners; and in 2023, it achieved a business turnover of £5 billion.

 

"Exclusive Networks is listed on the French stock exchange. It is a
compliant organisation with 22,000 partners, offices in 43 countries and
render services in 173 countries with well over 2,000 staff."

 

He described Nigeria as a big market, saying that its job is to assist the
IT companies to exceed and ensure that users can deliver the same services.

 

The managing director however, expressed concern about the challenge of the
US dollar and the local currency saying that most times services have to be
paid for in US dollars within 30 to 40 days.

 

"That process is being reviewed extensively. We have spoken to a lot of our
partners, ultimately, we want to ensure that we do it right with our vendors
and we become a partner to work with across west Africa region," Jacobzs
stated.

 

The Regional Manager for West Africa, Wisdom Asisah emphasised on the
significance of the West African office saying, "We are a global company and
we are growing. We have been transacting for sometime remotely and we felt
the need to invest more in the country because we see a lot of potentials in
creating more jobs and opportunities and bringing solutions to bear in the
country."

 

- This Day.

 

 

 

 

Nigeria: Airport Access Fees...No More VIPs, Everybody Must Pay, Govt
Declares

In a major policy shift, the federal government has put an end to the
long-standing practice of allowing VIPs to access airports and use
facilities for free through complimentary e-tags and stickers.

 

Minister of aviation and aerospace development, Festus Keyamo, announced the
change to State House correspondents on Tuesday after the Federal Executive
Council meeting presided over by President Bola Tinubu at the Presidential
Villa, Abuja.

 

Keyamo said the previous exemptions represented an 82 percent loss in
potential revenue from the e-tag system meant to recover costs for airport
services and infrastructure maintenance.

 

 

He provided the example of one airport gate that should generate N250-N260
million monthly but was returning less than N100 million due to the
exemptions.

 

The minister argued that it was unacceptable for wealthy Nigerians to
receive free passage while ordinary citizens pay full fees, saying it is
inconceivable that in Nigeria it is Very Important Personalities (VIPs) that
do not pay for services while the poor pay.

 

He said, "The first approval that we sought was to obtain the respect of
mandatory payments of access fees by all visitors at our federal airport
tollgates nationwide; no more exemption.

 

"When we came to office, we met a tradition where at the end of the year,
all manners of VIPs would approach us for what they call complimentary
e-tags or complimentary stickers whereby you see them coming into our
airports nationwide, and they don't pay the access fees; they don't pay for
parking; they don't pay for essential services at airports, and they are
VIPs. And I told myself and my team, not on my watch. It will not happen. If
this tradition has been existing for years, I will not allow it to happen,
because it is inconceivable that in our country it is the VIPs that don't
pay for services; it is the poor men that pay for services.

 

 

"The VIPs are supposed to have money to pay for services but they compel
poor men to pay for services, and I said no. So I got my team together; I
said we need the backing of Council (FEC) to compel everybody.

 

"In fact, guess what? Our memo says 'with the exception of the president and
the vice president', and the president overruled me and said he and the vice
president will pay; he said everybody (will pay).

 

"Let me give you the shocking statistics: the negative figure that we get at
the end of the day from the complimentary e-tags is 82 percent in the
negative."

 

Federal Gov't Targets More Revenue, Ends Free Airport Services For
VIPsAccording to him, instead of earning 100 percent from printing the
e-tags, only 18 percent is sold, with the rest lost to complimentary tags.

 

 

"That is how bad it is - 18 percent; and 82 percent of these e tags are
given out free of charge to VIPs. So imagine the loss at my sector and I ask
myself: which other sector will I go to that they give me anything free?

 

Moving forward, he said the administration will issue a system-wide circular
requiring all VIPs - including those in the judiciary, legislature,
executive branches and military - to purchase yearly e-tags for their
personnel rather than permanent free access.

 

Keyamo said this policy will improve revenue for upgrading decaying airport
infrastructure.

 

Stakeholders Want Technology Deployed For Monitoring

 

The general secretary, Aviation Round Table Initiative (ARTI), Olumide
Ohunayo, applauded President Tinubu for the bold initiative, saying it will
bolster the revenue of the Federal Airports Authority of Nigeria (FAAN).

 

Ohunayo, however, urged the government to ensure that leakages are plugged
and that sensitisation is done in order to minimize frictions, especially
with military personnel.

 

"This is very commendable. That President Bola Tinubu approved everyone
using the airport to pay toll is a better way of raising revenue and I don't
think anyone will condemn this. The industry will be happy for this and I
think it's one of the reasons FAAN delayed stickers for 2024.

 

"However, to avoid friction, FAAN should advertise this so that people will
know about it. They should give it time for the message to sink through so
as to avoid friction or commotion that will come with it, especially with
military personnel

 

"The second stage is how to harness this fund maximally. They need to put
CCTV cameras and should ensure that leakages are reduced to the barest
minimum," Ohunayo stated.

 

- Leadership.

 

 

 

 

Nigeria: Despite PIA, Petrol Import Monopoly Persists

The Petroleum Industry Act (PIA) has failed to break the monopoly in
Nigeria's petrol import market, as the Nigerian National Petroleum Company
(NNPC) Limited continues to dominate the sector and is currently the sole
importer of petrol into the country.

 

This development comes amidst ongoing foreign exchange volatility, which has
significantly impacted the ability of major and independent oil marketers to
participate in the importation of petrol.

 

At a meeting between key oil marketers in the country and the Nigerian
Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday
to address the issues of incessant scarcity of petroleum products, the
NMDPRA chief executive officer, Farouk Ahmed, emphasised that the NNPCL is
currently the sole importer of petrol into the country.

 

 

This is as the major marketers lamented their inability to import petroleum
products, despite having active licences to import.

 

The PIA, which was signed into law in August 2021, was aimed at reforming
the country's oil and gas industry, including the downstream sector. One of
the key objectives of the PIA was to encourage competition and attract
private investment in the importation and distribution of petrol. However,
the reality paints a different picture.

 

According to industry experts, the NNPC Limited has maintained its
stranglehold on petrol imports due to its ability to access foreign
exchange. This advantage has made it difficult for independent marketers to
compete.

 

"The NNPC Limited's dominance in petrol imports is a direct result of the
forex challenges faced by independent marketers," said an industry analyst
who spoke on condition of anonymity.

 

Forex volatility has also led to a significant increase in the cost of
importing refined petroleum products, with independent marketers bearing the
brunt. This has resulted in a situation where many independent marketers
have been forced to either scale down their operations or exit the market
altogether.

 

On the recent shortage of petrol across the country, Ahmed blamed it on the
logistics problem faced by NNPC Limited in moving the product from offshore
to onshore depots.

 

He stressed that though the government was encouraging local refining of
petroleum products to reduce imports, it would compel oil marketers to buy
from Dangote Refinery as the decision was commercial.

 

"We allayed the fears of the marketers and we told them that Dangote
refinery is a major achievement in our country because in the past we were
importing every litre of petroleum products we required except those
supplied by modular refineries. And as an oil producing country, we believe
at NMDPRA that we should support our local industry. And that is why we
encourage our marketers to patronise our local refineries.

 

 

"But, at the same time, it is a commercial decision that they will have to
make between the suppliers and the clients. NMDPRA will not determine how
much it is sold or how much you are buying. It is their own decision to go
to Dangote refinery and purchase, and for Dangote refinery to determine the
price it sells.

 

As a regulator, we are only interested that the nation is well supplied", he
added.

 

Speaking on behalf of the companies, the CEO, Matrix Energy, Mr. Abdukabir
Adisa Aliu said the companies were ready to support the government in its
effort to increase energy sources for Nigerians.

 

"It is the country first and it is when you have a good country that the
marketers will be able to operate and the consumers would be able to buy. I
think the decision of the federal government supersedes all other decisions
that we have. We are all in alignment with the decisions of the government
and plead with Nigerians to be patient", he stated.

 

Meanwhile foreign exchange crisis and other operational challenges in the
downstream sector of the petroleum industry have reportedly impacted the
actual landing cost of Premium Motor Spirit (PMS), popularly called petrol.

 

Efforts to get an actual landing cost figure from the NNPCL has been
difficult as our Correspondent is yet to get feedback from the Company.

 

However, oil marketers have sought an end to the dollarisation across the
fuel supply chain whereby Nigeria Maritime Administration and Safety Agency
(NIMASA) and Nigeria Ports Authority (NPA) charges are paid in dollars,
saying the practice puts undue pressure on the naira and destabilises the
system.

 

Speaking at the Major Energies Marketers Association of Nigeria (MEMAN)
Quarterly Press Webinar and Engagement with the topic "Advantages of Autogas
(LPG and CNG) and the Evolving Price of PMS, the managing director of 11
Plc, formerly Mobil Oil Plc, Tunji Oyebanji, said "prices of gasoline
(petrol) in a fully deregulated environment would probably be closer to the
price of diesel".

 

The executive secretary of MEMAN, Clement Isong, said he wouldn't be able to
speak categorically on the landing cost of petrol because members of his
group had ceased to import fuel.

 

He expressed worry that when the market operates an exchange rate model that
is speculative, it further fuels inflation and makes the cost of replacement
difficult, saying rates have been fluctuating.

 

"With this scenario it becomes difficult for me to determine the actual
landing cost of petrol because rates have moved from N1,900 to a dollar to
N1,800 and now to N1,600. So, in this case, it becomes difficult to adopt a
particular exchange rate for the purposes of calculation.

 

 

"If I give you a number that doesn't contextualise what I am saying to you,
and I don't know the opportunities in the market because I am not in the
market, so, I want to be extremely careful in telling you what the landing
cost is. Rather, I would rather say you should direct the question to NNPC
because it is in a better place to answer since it is the one importing,".

 

The immediate past national president of IPMAN Elder Chinedu Okoronkwo, and
executive secretary of Petroleum Dealers Association of Nigeria, PEDAN,
corroborated the above position.

 

They said any figure not from NNPCL will be speculative.

 

'N200bn Debt: IPMAN shelved strike following Reps intervention'

 

Meanwhile, the Independent Petroleum Marketers Association of Nigeria,
IPMAN, has suspended its planned strike after the intervention of the
National Assembly, LEADERSHIP can report.

 

The association had a few weeks ago declared that it would shut down the
30,000 stations operated by its members across the country if the federal
government failed to pay the N200 billion it owed marketers.

 

Last month, IPMAN threatened to cripple the supply of Premium Motor Spirit
over the non-payment of N200 billion bridging claims.

 

The IPMAN specifically said the Nigerian Midstream and Downstream Petroleum
Regulatory Authority (NMDPRA) had refused to clear the debt, which had
continued to accrue since September 2022.

 

Bridging claims are payments made by the government to oil marketers for the
transportation of petroleum products loaded from depots to various states
across the country.

 

Yahaya Alhassan, chairman of the IPMAN Depot Chairmen's Forum, who delivered
the ultimatum in a communiqué issued in Abuja, declared that the
consequences of the government's inaction would be severe.

 

He warned that every IPMAN member's outlet, spanning from the northern to
the southern regions and from the east to the west, would be forced to close
its doors.

 

Despite assurances from the government, including directives from the
Minister of State for Petroleum Resources (Oil) to clear the debt within 40
days, IPMAN claims that only a fraction of the owed sum, a paltry N13
billion, had been paid.

 

However, in a chat with the LEADERSHIP on the planned action, immediate past
national president of IPMAN, Elder Chinedu Okoronkwo, said the association
would not embark on such action.

 

Okoronkwo, who is now the Association's Board of Trustees treasurer, while
offering an update on consultations among stakeholders, said the National
Assembly had already intervened in the matter.

 

He said a delegation from the association had met with the Speaker of the
House of Representatives who had assured that a committee will be
constituted to profile the companies and the debt portfolio so as to
ascertain how much the government is owing and draw up a payment plan to
offset the debt.

 

"We passionately considered the plea because we are a responsible
organisation that wouldn't want to further exacerbate the current queues at
filling stations and add to the suffering of the masses.

 

"Since the government has shown signs of mediation, I don't think the timing
of the strike is good because this country belongs to all of us, and as a
responsible organisation we will not do anything to jeopardise the fragile
peace we have at the moment," he declared.

 

NMDPRA boss, who briefed newsmen on the outcome of the meeting with key oil
marketers, assured Nigerians that depot owners and members of IPMAN will not
cut supply as the NMDPRA had started the process of paying the debt owed the
depot owners with verified documents.

 

- Leadership.

 

 

 

 

Nigeria: Explosion Hits Shell Gas Facility in Bayelsa

Multiple explosions rocked the gas processing plant operated by Shell
Petroleum Development Company of Nigeria (SPDC) at Gbarain, Yenagoa Local
Government Area of Bayelsa, were on Tuesday, raising concerns of gas export
disruptions.

 

The gas plant feeds the Nigerian Liquified Natural Gas (NLNG) export
terminal in Bonny Island, Rivers.

 

A community source who spoke to newsmen on telephone, said that the
explosion occurred on a pipeline feeding the gas plant.

 

A resident of the area, Mr Jessie David, said the explosion was traced to a
pipeline attacked by suspected vandals which led to explosions and eruption
of thick smoke and gaseous emission.

 

He explained that the operator of the plant was alerted and the line was
isolated and the pressure came down.

 

SPDC Spokesman, Mr Michael Adande, who confirmed the incident, noted that it
occurred near the facility and that the cause was yet to be ascertained.

 

He said: "We are actively monitoring reports of smoke detected near our
Gbaran Central Processing Facility in Bayelsa State. While the source
appears to be external to our facility, we are in close communication with
regulatory authorities to investigate the incident and ensure the safety of
the surrounding communities."

 

- Daily Trust.

 

 

 

 

 

Nigeria: CBN, IMF and Future of Development Finance in Nigeria

When the Central Bank of Nigeria began a massive sack of some of its staff
in the Development Finance Department while redeploying others, the message
was clear that something was amiss in that unit. These events made the
headlines in the press, but the actions went on quietly until they were
completed. Now the reason for those disengagements is clear: CBN has
transferred the development finance function to the regular banks and the
Development Finance Institutions.

 

Development Finance as a strategy in national economic management assumed an
elevated status under the former leadership of the CBN. The concept simply
says that in a developing country like Nigeria, authorities can or should
make capital available at lower than the market cost to some critical
sectors of the economy. This could go on until a critical mass or threshold
is achieved in those areas and the sectors could be weaned.

 

 

Its activities straddled a wide range of sectors, from agriculture to power;
from manufacturing to infrastructure. In short, it became so pervasive in
operation that almost the entire economy became its area of coverage.

 

Now we know why CBN embarked on that mass sack in its Development Finance
Department. It is excising that function from its functions, and returning
or taking it to the regular banks and Development Finance Institutions. By
their nature, development institutions must apply below-market metrics in
their operations, otherwise projects will fail acceptability tests. The
focus on development financing by the central bank did receive much
opprobrium from those who said the institution had abandoned its
constitutional monetary policy role to dabble into the fiscal region.

 

 

So, it is quite commendable that the CBN did not throw the baby away with
the bathwater. Indeed, wrong or defective implementation of a programme does
invalidate that programme. What was eventually implemented was not the exact
design that should have been implemented. And the blame goes to both sides -
the implementers and beneficiaries. Besides the faults on the implementation
side, the beneficiaries chose to see the funds given to them at low costs as
their share of the national cake. With that mindset, they became clogs in
the wheel of development as the funds could not revolve. That is not the
spirit of development financing.

 

At our stage of economic and perhaps political development, development
financing is critical because of widespread market failures and even
outright absence of markets in some areas. Development banking is hinged on
relatively cheap capital being channelled to selected sectors of the
economy. The cost of the funds for this purpose has to be lower than the
average cost of funds in the market. Many nations have employed this
strategy to drive growth and development in their economies although they
may not apply the term development banking. One of such countries is Japan.

 

 

Japan today is known to have the highest savings rate in the world. From the
1960s to about the mid-1990s, this rate never fell below 31 per cent of
gross domestic product, reaching as high as 35.5 per cent in the period
between 1990 and 1994, about two times the 15.4 per cent for the United
States within that period.

 

This extremely high savings rate provides a massive pool of funds that the
Japanese government puts to purposeful use. Richard C. Longworth, says in
his 1998 book, Global Squeeze: The Coming Crisis for First-World Nations
that "The Ministry of Finance sees to it that much of these savings goes to
Japanese industry at preferential interest rates".

 

This policy on preferential use of savings funds is in part responsible for
Japan's meteoric technological and economic rise. It has aided the emergence
and growth of gigantic industrial groups whose products today dominate their
markets globally. "It (the pool of funds) gives Japanese industry a terrific
war chest and has enabled Japan to be the leading creditor to the world,"
notes Longworth.

 

Long before the failure of the development finance model became evident, I
had argued that in pursuit of the policy of development financing, the
central bank will need the cooperation of such development finance
institutions as the Bank of Industry and the Bank of Agriculture.

 

I pointed out that these institutions will play pivotal roles in channelling
funds to identified sectors and groups of businesses at subsidised rates.
Those roles have become more evident and urgent now. And this is squarely
the central bank's work. This is the only way the Nigerian economy in this
third decade of the 21st century can create enough jobs to absorb the rising
number of unemployed citizens.

 

The structure for a functional development financing model for Nigeria has
to be created. How, for instance, should DBN, BoI, and BoA originate loans
to operators in critical sectors, so that such funds will get to the
intended borrowers and produce the expected results? If we do not provide
answers to this question, we might as well remain a nation of people who
spend billions of dollars on power and still dwell in the region of
darkness; who spend trillions on agriculture and yet suffer from food
insecurity.

 

Application of this model of financing should lead to a focus on credit
allocation and direct intervention in selected sectors that can lift this
economy from this low-level existence where we are now. These include power,
agriculture, medium-and-small-scale enterprises, oil and gas, and health
sectors.

 

In agriculture, the bank's intervention should aim to improve productivity
in the six priority food crop value chains identified by the government.
These are cassava, rice, maize, soybean, yam, and tomatoes, as well as the
poultry, fisheries, and dairy value chains.

 

- Daily Trust.

 

 

 

 

Kenya: Enhanced Kenya Tea Brand to Boost Farmer Income

Nairobi — Kenya must develop a tea brand that will fetch the best prices for
farmers, President William Ruto has said.

 

The President said Kenya's tea should be branded to increase its visibility
in the global market and labelling it with a mark of origin.

 

Saying Kenya's tea industry is a significant contributor to the economy, the
President pointed out that brand sustainability is very crucial in a
competitive business environment.

 

Speaking at State House Nairobi when he met Kenya Tea Development Agency
factory chairmen and directors on Tuesday, President Ruto expressed
dissatisfaction with the current state of affairs, saying Kenya continues to
sell unprocessed tea and denying farmers the best prices in the market.

 

 

"We are the largest tea producer in the world, yet we don't have a Kenyan
tea brand and, therefore, our product gets lower prices than countries that
produce less than we do," said President Ruto.

 

He told the leaders of tea factories to set up common user facilities and
told them he expects the country to be exporting at least 60 per cent of
processed and branded tea in between three and five years.

 

"Last year, we did away with taxes on packaging materials for tea. We,
therefore, have to expand common user facilities and add value to our tea,"
President Ruto said.

 

He added: "We cannot continue exporting our tea in sacks. In three years, we
must export 60 per cent of value-added and branded tea. KTDA and the Tea
Board of Kenya must work together in branding our tea."

 

Responding to issues raised by the leaders, the President promised to
operationalise the Tea Tribunal within three months.

 

 

President Ruto agreed with the leaders that tea factories which have
invested in hydro- power stations must be paid for the power they sell Kenya
Power and Lighting Company.

 

He also said the Kenya Forest Service and KTDA will sign an agreement
through which tea factories will take part in the country's 15 billion
tree-planting programme, and also be able to harvest trees in various
forests for their wood fule.

 

He said KTDA cannot continue to charge farmers a management fee of 2.5 per
cent and directed that it be reduced to 1.5 per cent.

 

"We will meet here in three months to assess the progress in resolving all
the issues you have raised," he told the tea leaders.

 

The Head of State asked KTDA to hold free and fair elections, and emphasised
that the government has no preferred candidates.

 

Present at the meeting were Senate Majority Leader Aaron Cheruiyot
(Kericho), Senator Kamau Murango (Kirinyaga) and MPs GG Kagombe (Gatundu
South), Gitonga Mukunji (Manyatta), Brighton Yegon (Konoin) and Zaheer
Jhanda (Nyaribari Chache), among others.

 

About The Author

 

PRESIDENTIAL COMMUNICATION SERVICE

 

 

 

 

 

S Jaishankar: India backs port deal with Iran after US caution

India has urged the US not to take a "narrow view" of its port agreement
with Iran, a day after Washington warned that countries doing business deals
with Tehran risked sanctions.

 

On Monday, India signed a 10-year deal with Iran to develop the
strategically important Chabahar port.

 

The US said any country considering business deals with Iran "needs to be
aware of the potential risks".

 

But Delhi has backed the move and said the agreement would benefit the
region.

 

"I think it's a question of communicating, convincing and getting people to
understand that this is actually for everyone's benefit. I don't think
people should take a narrow view of it," Foreign Minister S Jaishankar told
reporters on Tuesday. He was responding to a question about Washington's
remarks on the deal.

 

Mr Jaishankar added that in the past, the US too had been "appreciative of
the fact that Chabahar has a larger relevance" and that a long-term
agreement with Iran was necessary to improve the port's operations.

 

"And the port operation, we believe, will benefit the entire region," he
said.

 

 

India first entered an agreement to develop the Chabahar port, which is
close to Iran's border with Pakistan, in 2016. It took over operations at
the end of 2018.

 

The port opened a transit route for Indian goods and products to Afghanistan
and Central Asia, avoiding the land route through Pakistan - neighbours
India and Pakistan share a tense relationship.

 

So far, 2.5m tonnes of wheat and 2,000 tonnes of pulses have been shipped
from India to Afghanistan through Chabahar port, officials say.

 

Under the new deal, India is set to develop the port further by investing
about $370 million in the project.

 

The country's shipping minister called it a "historic moment in India-Iran
ties".

 

But US State Department Deputy Spokesperson Vedant Patel said on Tuesday in
response to a question that Washington would continue to impose sanctions on
Iran.

 

"Any entity, anyone considering business deals with Iran - they need to be
aware of the potential risks that they are opening themselves up to and the
potential risk of sanctions," Mr Patel added.

 

 

A crucial ally of India, Washington has strained ties with Tehran. The
country has imposed more than 600 sanctions against Iran-related entities
over the past three years.-BBC

 

 

The illicit trade with China fuelling Mozambique's insurgency

Timber smuggling, estimated to be worth $23m (£18m) a year, from
Mozambique’s ancient forests to China is helping to fund a brutal Islamist
insurgency as well as a large criminal network in the north of the southern
African country.

 

This illicit trade in rosewood is linked to the financing of Mozambique’s
violent militants with links to Islamic State in the northernmost province
of Cabo Delgado, according to data seen by the BBC from the Environmental
Investigation Agency (EIA), an NGO that campaigns against alleged
environmental crime.

 

Rosewood is a catch-all trade term for a wide range of tropical hardwoods
that are highly prized for luxury furniture in China.

 

Mozambique’s rosewood is protected under an international treaty, meaning
only very limited trade that does not threaten the species is allowed.

 

However, a four-year undercover investigation by the EIA in both countries
has revealed that poor management of officially sanctioned forest
concessions, illegal logging and corruption among port officials is allowing
the trade to expand unchecked in insurgent controlled areas.

 

The revelation comes at the same time as a significant resurgence in
fighting in the north of Mozambique. On Friday, at least 100 insurgents
staged their boldest attack in three years on the town of Macomia, which was
eventually stopped by the army.

 

The location of the attack confirms that the insurgency has moved its bases
further south due to the increased presence of soldiers in the north. It
“has also gained enough funds to recruit in neighbouring Nampula province
further south”, according to Mozambique analyst Joe Hanlon.

 

A Mozambique government report published earlier this year and seen by the
BBC - the National Risk Assessment on Terrorism Finance Report - says
al-Shebab insurgents have taken advantage of the illicit timber trade to
“fuel and finance the reproduction of violence”.

 

The report says the insurgents’ involvement in the “smuggling of fauna and
flora products”, including wood, and the “exploitation of forest and
wildlife resources” is contributing to a “very high level of fundraising”
for the insurgency group. It estimated its revenue from these activities
amounted to $1.9m a month.

 

Given the challenge in accessing the Cabo Delgado region it is hard to
quantify the insurgents’ level of day-to-day involvement in the timber trade
but there have been reports of firms paying a 10% protection fee to
insurgent groups to carry out illegal logging in forest areas.

 

Environmental Investigation Agency Rosewood logs in ShanghaiEnvironmental
Investigation Agency

This picture supplied by the EIA shows unprocessed rosewood logs in Shaghai
port

Forests with valuable trees – not just rosewood - are divided up in to
chunks, or concessions. Anyone who wants to log these areas must pay a fee
to the authorities. These are typically licensed to a Mozambican national -
the middleman - and rented out to Chinese logging firms.

 

Trading sources who did not want to be named estimate that 30% of the timber
logged in Cabo Delgado is at high risk of coming from insurgency-occupied
forests.

 

There are thought to be three main forested areas in Cabo Delgado where
logging and timber sales take place: Nairoto; Muidumbe and Mueda, plus one
more in Napai, in neighbouring Nampula province.

 

While the Chinese authorities have made it illegal to log rosewood in their
own country, huge quantities continue to be imported.

 

Rosewood is given a customs code for hongmu (meaning red wood in Chinese) on
arrival in the country, which allows researchers to trace it.

 

Mozambique was China's top African supplier of hongmu wood last year,
providing over 20,000 tonnes worth $11.7m, according to Trade Data Monitor,
a commercial company that tracks global trade.

 

It has overtaken other countries like Senegal, Nigeria and Madagascar as
their rosewood species have been stripped or depleted, or laws banning
exports have been more strictly enforced.

 

As part of its undercover investigation, the EIA tracked a huge rosewood
shipment out of Mozambique.

 

Between October 2023 and March 2024, investigators traced around 300
containers of a type of rosewood known as pau preto from the port of Beira
to China.

 

Pau preto rosewood, which is found in the north of Mozambique and in
Tanzania, is classed as a threatened species on the International Union for
Conservation of Nature (IUCN) red list.

 

These 300 containers were transporting 10,000 tonnes of the rosewood. Trader
estimates value each container at around $60,000, putting the value of the
total shipment at around $18m.

 

EIA undercover footage seen by the BBC shows some of this specific shipment
was also in raw log form - rather than planks that had been processed
through sawmills. This breaks Mozambique's own 2017 law on exporting any
unprocessed timber.

 

The containers also held processed planks.

 

Map showing the trading route of rosewood from Mozambique to Shanghai in
china

The rosewood is shipped many thousand of miles to Shanghai after making
sefveral stops along the way, researchers found

Industry sources say that typically when trees are cut down by loggers in
Cabo Delgado’s forests - either at concessions operated largely by Chinese
firms, or illegally beyond these boundaries – the timber is taken to be
processed at sawmills around Montepuez, a large town in Cabo Delgado.

 

This timber from multiple sources is then mixed up and moved from the
Montepuez mills by trucks to the ports of Pemba or Beira.

 

At these ports the cargo should be inspected by Mozambican authorities and
receive a permit or export licence. But the EIA says the logs are often
mis-reported or not declared at all in customs paperwork.

 

Rosewood transported between Mozambique and China is carried by two of the
world’s biggest global shipping lines, Maersk and CMA-CGM, according to the
EIA investigation.

 

A spokesperson from Maersk said in a statement to the BBC that it is
“committed to combatting illegal wildlife trade and will not knowingly
accept bookings of wildlife or wildlife products, where such trade is
contrary to CITES or otherwise illegal. We request our customers to
correctly declare the content of their cargo and we are dependent on customs
authorities to verify the declarations and certificates. Shipments can only
take place against CITES certificates and authority approval.”

 

The statement explained that it is common in shipping for customers to load
and seal their containers before handing them over to the shipping line.

 

A CMA-CGM spokesperson said it transports goods belonging to customers
compliant with local and international regulations and is “not responsible
and has no way to control the origin of the goods which are all shipped into
sealed containers".

 

The spokesperson also said that “CMA-CGM does not transport unprocessed wood
anymore, and has introduced a rule forbidding the reservation of space on
board the group's vessels for unprocessed wood leaving Mozambique”.

 

Deforestation in Mozambique is continuing apace. The country is losing the
equivalent of around 1,000 football pitches of forest cover every day,
according to NGO Global Forest Watch.

 

The trade of rosewood is supposed to be restricted under Cites, yet it has
become the most trafficked wildlife product in the world, according to the
United Nations Office on Drugs and Crime. In terms of value, it now far out
paces trade in elephant ivory and rhino horn.

 

Pau preto rosewood is listed on Cites Appendix II, for it to be exported
legally the Mozambique government must complete a thorough scientific
investigation called a non-detriment funding study (NDF) to ensure trade
does not threaten its survival.

 

The BBC asked the Mozambican representative to Cites Cornelio Miguel, who
works for the National Administration of Conservation Areas, if an NDF on
pau preto had ever been carried out. He did not provide a comment.

 

Without this assessment, any trade violates the international treaty. China,
as a signatory, would be breaking the treaty’s terms in accepting
non-compliant imports.

 

The BBC contacted some of the Chinese trading firms cited in the EIA report,
but none were willing to comment on whether they were being supplied with
timber from Mozambique.

 

For environmentalists like Dr Annah Lake Zhu from Wageningen University,
this treaty can only ever be as robust as the governments enforcing it. She
believes sustainable management of the rosewood trade needs a total
rethink.-BBC

 

 

Boeing may face criminal prosecution over 737 Max crashes, US says

The US Department of Justice (DOJ) says it is considering whether to
prosecute Boeing over two deadly crashes involving its 737 Max aircraft.

 

The aviation giant breached the terms of an agreement made in 2021 that
shielded the firm from criminal charges linked to the incidents, the DOJ
said.

 

Boeing has denied that it violated the agreement.

 

The crashes - one in Indonesia in 2018, and another in Ethiopia in 2019 -
killed a total of 346 people.

 

The plane maker failed to "design, implement, and enforce a compliance and
ethics program to prevent and detect violations of the US fraud laws
throughout its operations," the DOJ said.

 

Boeing said it was looking forward to the opportunity to respond to the
Justice Department and "believes it honoured the terms of that agreement".

 

Under the deal, Boeing paid a $2.5bn (£1.98bn) settlement, while prosecutors
agreed to ask the court to drop a criminal charge after a period of three
years.

 

The DOJ said Boeing has until 13 June to respond to the allegations and that
what it said would be taken into consideration as it decides what to do
next.

 

Relatives of the victims have called for criminal action against the
company.

 

“This is a positive first step, and for the families, a long time coming.
But we need to see further action from DOJ to hold Boeing accountable", a
lawyer for victims' families Paul G Cassell said in a statement.

 

Boeing has continued to face intense scrutiny over the safety of its
aircraft after an unused door came off a new 737 Max shortly after take-off
in January, leaving a gaping hole in the side of the plane.-BBC

 

 

 

'Corrupt ship inspectors demand our food and cargo'

Seafarers have told the BBC port officials routinely demand cash,
cigarettes, food and drink as bribes before allowing ships through.

 

So-called "gratuities" are against international anti-corruption laws. But
the Maritime Anti-Corruption Network said it received 5,183 reports in 2023.

 

The International Association of Ports and Harbours is working to tackle it.

 

Ex-captain Stephen Gudgeon said he was once held at gunpoint after refusing
to hand over cigarettes at a port in Asia.

 

"They took me ashore at gunpoint and I was locked up. I was photographed and
fingerprinted, and I was interviewed by two officials in an empty room with
just a chair, which I was locked into," he told the BBC.

 

"And it was when they said to me, 'Would you like us to inform your family
of your detention?' that I really got quite worried."

 

Mr Gudgeon said eventually he was released with a $1,500 (£1,200) fine to
pay for paperwork irregularities, which he believed were spurious and in
retaliation for not handing over the cigarettes. The BBC has been unable to
reach the ports authority in question to ask about the allegations.

 

The MACN told the BBC it had received 61,000 reports in more than 1,000
ports across 150 countries since it opened an anonymous helpline in 2011.

 

Cecilia Muller Torbrand, the head of the MACN, said experiences as
intimidating as Mr Gudgeon's were uncommon but that the shipping industry
was "quite exposed to corruption risks", and that the number of incidents
reported would be "the tip of the iceberg".

 

She said this was due to "the combination of frequent government
interaction, shipping across multiple jurisdictions and the time element of
sailing in and out of ports".

 

Difficult decision

Mr Gudgeon added that some crew are too afraid to report incidents because
they are on contracts and fear they will be blacklisted and unable to get
another job.

 

The former captain, who sailed for more than 40 years before retiring in
2022 and who is on the council of the Nautilus International union and
volunteers for the International Seafarers Welfare and Assistance Network,
said crews met with bribery demands faced a difficult decision.

 

"If the company found out you'd done it, you could be in real trouble. They
could discipline you for forgiving gratuities when they quite clearly state
that you shouldn't be doing it. But if you want the ship to be able to enter
and leave port smoothly, then often these things happen."

 

He said he had witnessed officials whose demands for gratuities had been
refused helping themselves to the ship's food provisions.

 

Stephen Gudgeon

Mr Gudgeon sailed for more than 40 years before retiring in 2022

Filipino officer John Soria told the BBC that when the container ship he was
sailing on came into port in Eastern Europe in 2018, inspectors came on
board and tried to take a large 5kg block of cheese that was to last the
crew of 17 half a month.

 

"He asked me, 'Is it possible to take this home?' I couldn't say no because
he was already putting the cheese in the bag."

 

Mr Soria said he called over the cook who negotiated to cut the cheese in
half. "Half is for the vessel, half for him - so we settled with that."

 

Prof Helen Sampson, director of the Seafarers International Research Centre
at Cardiff University, said: "Sometimes when [crews have] had their
provisions raided, they will sail and there won't be enough food left on
board for everybody before the next port where they have a chance to
resupply."

 

Red Sea 'scary' for ships' crews, says captain

Third of UK firms affected by Red Sea crisis

Guy Platten is the secretary general of the International Chamber of
Shipping, which is made up of national ship-owning associations,
collectively representing 80% of the world's merchant fleet.

 

He said he was aware that bribery demands were "very distressing for
seafarers".

 

"What we would encourage them to do is contact their company if they're
getting these demands, and then the company can take it from there and can
explain that there is not going to be any payment," he said.

 

"We try and make sure that we act as one and progress is being made, but
obviously it still happens."

 

Taking action

The MACN told the BBC it was working with governments in nine countries to
tackle corrupt officials, but conceded there was still much to do.

 

Ms Muller Torbrand said the only way it could be stopped was if a majority
of companies took a zero-tolerance approach.

 

"[Captains] should not [say], 'You need to do whatever it takes to get the
vessel out.' No, we challenge these practices as an industry."

 

She said the MACN was working to help companies understand the risks, have
better articulated policies and better internal escalation channels.

 

The International Association of Ports and Harbours said it was working in
partnership with the MACN.

 

In a statement, it said: "Ports and their communities are endeavouring to
work with their key stakeholders.

 

"Tangible progress has been made in places such as the Gulf of Suez, the
Indian subcontinent and in African countries such as Nigeria, as well as in
South America such as Argentina.

 

"This work alone is not enough as corruption in and around ports concerns
many stakeholders. Port authorities can be involved, but so can customs
authorities, shipping agents, freight forwarders, ship suppliers, pilots,
surveyors and in fact any member of a particular port community.

 

"It is only through a deep-rooted approach at combatting corruption across
entire port communities and at the interface between ship and shore that an
impact can be made in the long term."

 

You can hear more about corruption at ports in Business Daily on the BBC
World Service.

 

And find out more about why some seafarers are going hungry in The Food
Chain podcast.-BBC

 

 

 

MDH and Everest: Indian spices face heat over global safety concerns

"For Indians, spices are like paints in a paint box", says Indian
actor-turned-food writer Madhur Jaffrey. "We get different shades from the
same spice by doing something to the spice."

 

In other words, you can roast the spices or grind them into powders. The
diversity of their flavours is mind-boggling. Indian spices enhance pickles
and season meat. They flavour savouries and street food. Zesty spices
energise local fruit drinks and add a tangy twist to fruits and salads.

 

Unsurprisingly, India has emerged as a global spice powerhouse. It exports
more than 200 spices and value-added products to some 180 countries, worth
$4bn (£.1bn), according to the Spices Board of India. The domestic market
alone is worth a staggering $10bn, making it the world's largest consumer of
spices.

 

But now, concerns are emerging regarding the safety of these renowned
spices. Last month, Singapore and Hong Kong halted sales of some spices
produced by Indian companies MDH and Everest over suspected elevated levels
of ethylene oxide, a cancer-causing pesticide.

 

That's not all. The US Food and Drug Administration (FDA) is also
investigating products from the two popular brands for potentially
containing the pesticide, an FDA spokesperson told Reuters. An analysis done
by the news agency of the US regulatory data found that since 2021, an
average of 14.5% of US shipments of MDH spices were rejected due to presence
of bacteria. Both brands insist that their products are safe.

 

 

The European Union (EU) has raised concerns of its own, discovering the same
cancer-causing substance in samples of chilli peppers and peppercorns from
India. Reports say that the Maldives, Bangladesh and Australian food
regulators have also launched investigations.

 

Clearly, it is a disturbing development. For one, both the brands are
popular and trusted ones. Delhi-based MDH, an iconic 105-year-old family-run
firm, offers a range of more than 60 blended and ground spices. The
57-year-old Everest Food Products, launched by a spice trader, claims to be
India's "largest manufacturer of pure and blended spices", exporting to over
80 countries. Amitabh Bachchan and Shah Rukh Khan, Bollywood superstars,
have served as Everest's brand ambassadors.

 

To be sure, this is not the first time Indian spices have been found to be
contaminated. In 2014, Ipsita Mazumdar, a biochemistry expert, tested
popular spice brands in Kolkata which made chilli, cumin, curry powder, and
garam masala. She found lead in the food colouring used to give the spices
vibrant orange or red hues. And more recently in April, food and drugs
control authorities in Gujarat seized more than 60,000kg of adulterated
spices - chilli powder, turmeric and coriander power and pickle masala.

 

Reuters A view of the logo of MDH, an Indian spice manufacturing company, on
a shop in the old quarters of Delhi, India, May 3, 2024.Reuters

Delhi-based MDH, an iconic 105-year-old family-run firm, offers a range of
more than 60 spices

So are Indian spices safe? The federal government has instructed all state
governments to conduct quality tests. The Spices Board - which has five
quality evaluation labs - has issued guidelines to exporters to check for
use of ethylene oxide. The Food Safety and Standards Authority of India
(FSSAI) is also testing samples.

 

 

India's health ministry claims the country has one of the world's strictest
Maximum Residue Limits (MRLs) standards, with pesticides' MRLs varying by
food commodity and determined through rigorous risk assessments. But
something is clearly amiss: in 2022, the FDA highlighted inadequate sanitary
facilities, accommodation, and equipment cleanliness standards at a premier
Indian spice plant.

 

"India has been a spice exporter for centuries. But this image has been
declining in the last few years, with the government's inadequate attention.
We do not yet know at which stage the contamination is happening. Ethylene
oxide is not used by farmers. It is most probably a post-harvest,
post-processing residue," says Narasimha Reddy Donthi, an independent
researcher and environmental justice activist.

 

"It is not only the negative attention. Repeated cases of excessive residues
can have a long-term effect. In the past, mango exports to the US suffered
for years due to pesticide residues," Mr Reddy adds.

 

Delhi-based think tank Global Trade Research Initiative (GTRI) believes the
recent quality concerns could threaten half of India's spice exports due to
"cascading regulatory actions in many countries".

 

If China questions the quality of Indian spices, over half of India's global
exports could be affected, joining five other countries, the GTRI said in a
recent report. "The situation could worsen if the EU, which regularly
rejects Indian spice consignments over quality issues, follows suits."

 

 

For spice enthusiasts in the West, the origin of the spices in their food
remains unclear.

 

"I don't think most people are aware of where their spices come from. I
certainly don't, and I use spices a lot! I live a few blocks from Chicago's
main Indian shopping district, Devon Avenue, which is where I buy my spice.
l assume they come from India but have never looked into this," Colleen
Taylor Sen, an author specialising in Indian cuisine, told me.

 

In the end, experts say, India must fundamentally overhaul its approach to
food safety, prioritising transparency, stringent enforcement and clear
communication to safeguard the integrity of its exports.-BBC

 

 

 


 


 


 Invest Wisely!

Bulls n Bears 

 

Cellphone:         +263 71 944 1674 | +27 79 993 5557 

Email:                <mailto:bulls at bullszimbabwe.com>
bulls at bullszimbabwe.com

Website:             <http://www.bullszimbabwe.com> www.bullszimbabwe.com 

Blog:                  <http://www.bullszimbabwe.com/blog>
www.bullszimbabwe.com/blog

Twitter (X):        @bullsbears2010

LinkedIn:           Bulls n Bears Zimbabwe

Facebook:           <http://www.facebook.com/BullsBearsZimbabwe>
www.facebook.com/BullsBearsZimbabwe



 

 

 


 

INVESTORS DIARY 2024

 


Company

Event

Venue

Date & Time

 


 

 

 

 

 


NMB

AGM

Head Office 19207 Liberation Legacy Way

15 May 2024 | 3pm

 


Old Mutual Zimbabwe

AGM

 

22 May 2024 | 3pm

 


Nampak

EGM (to approve the change of auditors to Axcentium)

Virtual

23 May 2024 | 9am

 


 

Africa Day

 

25 May 2024

 


Companies under Cautionary

 

 

 


 

 

 

 


CBZH

GetBucks

EcoCash

 


Padenga

Econet

RTG

 


Fidelity

TSL

FMHL

 


 

 

 

 


 <mailto:info at bulls.co.zw> 

 


 

 


DISCLAIMER: This report has been prepared by Bulls ‘n Bears, a division of
Faith Capital (Pvt) Ltd for general information purposes only and does not
constitute an offer to sell or the solicitation of an offer to buy or
subscribe for any securities. The information contained in this report has
been compiled from s believed to be reliable, but no representation or
warranty is made or guarantee given as to its accuracy or completeness. All
opinions expressed and recommendations made are subject to change without
notice. Securities or financial instruments mentioned herein may not be
suitable for all investors. Securities of emerging and mid-size growth
companies typically involve a higher degree of risk and more volatility than
the securities of more established companies. Neither Faith Capital nor any
other member of Bulls ‘n Bears nor any other person, accepts any liability
whatsoever for any loss howsoever arising from any use of this report or its
contents or otherwise arising in connection therewith. Recipients of this
report shall be solely responsible for making their own independent
investigation into the business, financial condition and future prospects of
any companies referred to in this report. Other  Indices quoted herein are
for guideline purposes only and d from third parties.

 


 

 


 (c) 2024 Web:  <http://www.bullszimbabwe.com> www.bullszimbabwe.com Email:
<mailto:bulls at bullszimbabwe.com> bulls at bullszimbabwe.com Tel: +27 79 993
5557 | +263 71 944 1674

 


 

 

 

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 9458 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0003.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 141517 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0004.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image004.png
Type: image/png
Size: 34378 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0005.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: oledata.mso
Type: application/octet-stream
Size: 65564 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0001.obj>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image007.jpg
Type: image/jpeg
Size: 37052 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0002.jpg>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image008.jpg
Type: image/jpeg
Size: 29361 bytes
Desc: not available
URL: <http://listmail.bulls.co.zw/pipermail/bulls/attachments/20240515/8bb68019/attachment-0003.jpg>