TTB’s majority owners faults Obazee’s report, say didn’t use govt money to acquire Bank  

Tropical General Investment Group, the majority owner of Titan Trust and Union Bank has faulted the report of the Special investigator appointed by President Bola Tinubu to probe the Central Bank of Nigeria under the immediate past Governor, Mr Godwin Emefiele.

The company’s explanation was in response to the report of the special investigation into the activities of the CBN and other related entities by the Special Investigator, Jim Obazee.

The final report, submitted to President Bola Tinubu on Wednesday, accused the immediate past Governor of the CBN, Godwin Emefiele, of using ill-gotten wealth to acquire Union Bank and Keystone Bank through proxies.

But the group said in a statement that Union Bank and Titan Trust Banks are not owned by government and no government money (CBN or AMCON) was used to buy it.

It said that the process for the acquisition of the banks was diligently followed as captured in the report of the investigator.

The group denied any wrongdoing in the acquisition of the latter by the former, adding that the purported investigative report recommending the takeover of the banks by the federal government portrayed Nigeria negatively.

The Head of Corporate Communications, Rafiat Gawat, in a statement on Sunday, said the $500m capital used to pay for the transaction was transparent and unimpeachable and was managed by highly reputed global financial institutions including Rothschild and Citibank. She added that the process took years to complete.

The statement read in part, “We want to categorically state that some of the assumptions made in the purported document were incorrect, thereby resulting in a conclusion that may not necessarily reflect the actual reality.

“The purported investigation report recommended that the Federal Government should take over the banks. Such declarations based on incorrect assumptions portray Nigeria negatively, especially when the President is tirelessly seeking and courting foreign investments into the country.

“The true facts of the case are as follows: Tropical General Investment Group is the majority owner of Titan Trust and Union Bank. We have been doing business in Nigeria for close to 45 years and have evolved into one of the largest companies in West Africa and the acquisition of Union Bank by Titan Trust Bank followed all the laid down rules and regulations.

“The approximately $500m capital used to pay for the transaction was transparent and unimpeachable. The entire transaction was managed by highly reputed global financial institutions, including Rothschild and Citibank. And like most major acquisitions, the process took years to complete.”

According to her, the rest of the capital was sourced from the proceeds of TGI’s sales of its Chi Limited business to Coca-Cola, all to finance the acquisition of Union Bank.

“A $300m loan was sourced from African Export-Import Bank and the rest of the capital was sourced from the proceeds of TGI’s sales of its Chi Limited business to Coca-Cola, all to finance the acquisition of Union Bank.”

Debunking claims that the bank didn’t respond to enquiries, Gawat explained that “The investigator’s claim that Union Bank did not respond to his request for information was misleading as all the information requested was submitted on September 1, 2023. It’s a well-known fact that Mr Vink, who has been in Nigeria since 1978, is an elderly person and has recently been medically advised to limit his movements. This was duly communicated to the investigator with supporting documents.

“TGI’s capital, ownership and selling of Chi to a multinational such as Coca cola is proof that Mr Vink is not a proxy. The group’s ability to engage and work with reputable international financial advisors and bankers attests to the group’s global credibility. Union Bank was not owned by government and no government money (CBN or AMCON) was used to buy it. The process was diligently followed as captured in the report of the investigator.”

Ends

Govt policy to reduce coking gas price yet to be felt – Expert

In spite of the federal government’s policy aimed at reducing the price of Liquified Petroleum Gas (LPG) also known as cooking gas, the price has continued to increase.

However, an Economist, Dr Ayo Anthony told the News Agency of Nigeria (NAN) in Abuja on Sunday that it takes time for the impact of government policies to be felt on the economy.

The Federal Government announced the removal of customs duty and Value-Added Tax (VAT) on the importation of LPG and its associated equipment.

This is contained in a letter dated November 28, 2023, signed by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy.

Presently, 5kg cooking gas is currently being sold at N4,750 to N4,900 and 12.5kg is sold at N11,875 to N12,300 in the Federal Capital Territory (FCT).

Anthony said the delay in seeing government policies materialise was caused by what was referred to as inside and outside lag.

“In economics, we have what we call lag. Lag is the time it takes for government policy to materialise, and we have inside lag and outside lag.

“Inside lag is the time it takes the government to make a decision when there is a problem. It is not immediately when a problem emanates that the government takes a decision on it,” he said.

Anthony said a contributing factor to the high cost of cooking gas in spite of the government’s policy to remove VAT from its importation was the issue of old gas stock.

He said that cooking gas that had been stocked by marketers before the policy pronouncement would still be sold at the old price to cover the cost of importation.