Sack (5)

Iwu gets the sack INEC sheds dead weight

The five-year reign of Maurice Iwu as the chairman of the Independent National Electoral Commission came to a sudden end yesterday when the Acting president, Goodluck Jonathan, ordered him to proceed on a pre-disengagement leave, with immediate effect.

Mr Jonathan’s directive was given in a terse statement signed by his spokesman, Ima Niboro and released to journalists in Abuja. “The Acting President’s directive is in consonance with Section 155(1) (c), which stipulates that the Chairman and members of the Independent Electoral Commission shall hold office for a period of five years,” the statement said.

“He has also been directed to hand over to the most senior National Commissioner, who shall oversee the activities of the commission pending the appointment of a substantive chairman”.

Mr Iwu’s tenure expires on 13th June, 2010 and he had actively lobbied for an extension of his service. But most Nigerians blame him for the controversial general election held in 2007 which produced the incumbent administration, and one of the early promises of the Yar’Adua administration was that it would reform the electoral process.

Many local and international agencies and governments have specifically asked Mr Jonathan to sack Mr Iwu if he desired a credible election next year. The acting president demurred from making any categorical statement regarding the fate of Mr Iwu until yesterday..

Wishing him success

Three weeks ago, Mr Jonathan was pointedly asked by Christianne Amanpour on a CNN programme if he was going to retain Mr Iwu. He said recent elections in Anambra and Abuja have shown that the man could organise credible polls if given the right tools.

Some civil society groups, including the Save Nigeria Group, have also organized rallies to press for the removal of Mr Iwu, although counter rallies were also organized in his favour -including a well reported one led by maverick artiste, Charles Oputa, also known as Charley Boy.

A number of senior positions will soon be vacant at the electoral commission and this gives Mr Jonathan the opportunity to nominate a new crop of Nigerians into the commission, as he told an audience in the US during his last trip.

The Acting President, in the letter announcing Mr Iwu’s disengagement, thanked the outgoing chairman for his service to the nation and wished him success in his future endeavours.

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Fresh scandal rocks Bank PHB • 2 Directors bleed bank as losses continue to rise in the latest Charge and Bail versions of Bank MDS .


If indications from CBN-managed Bank PHB are anything to go by, then the bank may not emerge from its current financial mess in a hurry even as the interim tenure of embattled Managing Director; Mr Cyril Chukwumah,
expires next year. Documents released to the Daily Sun by a group of recently- retrenched workers of the bank may have inadvertently opened another can of worms on the embattled bank.


According to the documents, the ex-workers are alleging that Chukwumah may have collected almost $100,000 in estacode having spent close to 50 days abroad since assuming office some six months ago as the Chief Executive. They say this is attributable to the MD’s choice of travelling.

The fresh scandal is rubbing off on Chukwumah, whose sacked ex-staff are now claiming has cumulatively disengaged about 1,000 professional employees in February, in what he claimed would save the bank N4.5 billion. They alleged Chukwumah travelled abroad for 50 days (including 18 days of vacation after 72 days in office), after just five months as MD. At a daily estacode (per diem) rate of $3,000 for MD as stipulated in Bank PHB’s policy, Chukwumah has so far collected a whopping $96,000, excluding the controversial $120,000 leave allowance he was alleged to have collected in December 2009. This becomes mind-boggling when it was revealed that the tenure of the embattled Managing Director expires next year..

Documents obtained by Daily Sun show that he travelled twice in November 2009 to Ghana and London; went on vacation in December/January; travelled to London in January. In February, he travelled again to UK, while so far, this month he has already travelled to London and The Gambia.

Curiously, a new dimension has been added to the newfound luxury of the CEO, as he has entered into an alliance with another director of the bank, who ironically complained to the CBN Governor in December 2009, that the MD was ignoring the board in running the bank. The bank, on the CEO’s approval, now bears the cost of the director’s travel to Boston, Massachusets, USA, on first class ticket, ostensibly in search of core investors. However, his wife also lives in Boston.

The director has also travelled on first class tickets with the Managing Director to The Gambia, London, South Africa, and Freetown, also in search of core investors. Ironically, the director is not on the board of any of the bank’s subsidiaries – Bank PHB, UK; Bank PHB, Gambia; Bank PHB, Liberia; Bank PHB, Sierra Leone; and Bank PHB, Uganda.

Meanwhile, as the MD and the said director embarked on a free-spending lifestyle of luxury and self-enrichment, the bank that the CBN Governor said would be better managed under Chukwumah, continues to post losses. Available records from the bank’s monthly returns to CBN show that it incurred a loss of N3.8 billion in January 2010.

It would be recalled that the nation’s banking public was shocked in January when it was revealed in the media that Chukwumah, who had just spent 72 days as MD, as at December 18, 2009, paid himself an off-shore leave allowance of $120,000, a payment he was entitled to, only after one year in office. In an effort to ameliorate the gravity of his alleged infraction, he explained that he actually cut down the allowance from $450,000 per annum, which the former CEO usually collected, only for it to be revealed that the former CEO, Francis Atuche, never collected any leave allowance in his four-year tenure (2006-2009) as MD.

Not done with the concern for his personal welfare, Chukwumah, also in January reviewed staff emolument by cutting salaries of staff as much as 35%, while cutting his by a mere 18%, before pushing about 1,000 professionals to the labour market in February.
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LM Ericsson (Nigeria) Limited is set to embark on a mass retrenchment of its Nigerian workforce to pave way for Indian nationals which the company is currently in the process of employing en masse.

In November 2009 A publication was issued on an Impending mass sack


read article here http://www.9jabook.com/profiles/blogs/crises-rocks-lm-ericsson-as


Main Article:

More than Four hundred and thirty Nigerian employees of Ericsson will be affected by the purge because of Ericsson’s plan to engage cheaper labour from India.

About fifty Indians have already been employed and flown to Nigeria to familiarize themselves with Ericsson’s operations before the affected employees last day at work.

Those mostly affected are engineers in the Network Operations Centre (Front office and Back office support) dept of the company who were employed from Zain in August last year.

The decision to embark on the mass sack was conveyed to employees during a meeting held on7th of April 2010 at 9am at the Air Force Officers Mess, Kofo Abayomi Street, Victoria Island, Lagos by the management of the company..

investigations revealed that after the decision to sack the employees was conveyed, the management of Ericsson immediately put up vacancy availability on its web site specifically for Indians. See link http://www.ericsson.com/article/100330_opportunities_in_india_20100330101055

Further investigations revealed that Ericsson had entered into a multi-million-dollar service agreement with Zain last year, (Zain was recently acquired by India’s Barti). Part of the deal was to provide engineering and Network operations services to Zain including employing about four hundred and fifty employees in Zain’s Network Operations Centre.

Before the management of Ericsson formalized the employment of the engineers in August 2009,some key issues that were of the greatest concern to the employees were discussed. Issues like salary structures, harmonization of salaries between Ericsson and Zain staff transferring to Ericsson, promotions and salary increases, career advancement in Ericsson, possible job function changes, possible breach of contract between Zain and Ericsson, plans for redundancies, possible sale of Zain amongst others. Ericsson guaranteed the engineers secure and long-term employment.

An authoritative source at Zain confirmed that Zain has not reneged on any part of the service contract it entered with Ericsson adding that the management of Ericsson was just in search of cheaper labour from India at the detriment of Nigeria employees.

Checks at Ericsson also revealed that in total disregard to standard labour and employment regulations, the company is not offering the affected employees any severance package.

They contacted Mr. Blair Mackenzie, Ericsson’s Human Resources Director for comments on the sack but he said he is not authorized to discuss the subject. He suggested we speak to the Managing Director or the corporate communications department.

Attempts to reach Omasan Ogisi of Ericsson’s corporate communications for comments also failed.


adapted from thewillnigeria

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The Supreme Court on Friday declared the sacking of Bernard Longe as Managing Director/Chief Executive of the First Bank of Nigeria on June 13, 2002, as unlawful and void.

George Oguntade, who gave the lead judgment, said in his 28-page unanimous judgement, concurred to by four other justices that Mr. Longe's removal by the management of First Bank violated the provisions of section 266 (1) and (2) of the Companies and Allied Matters Act (CAMA).

"A declaration that in particular the decision of the defendant's board of directors held on 13th June 2002 to revoke the plaintiff's (Bernard Longe) appointment as Managing Director/Chief Executive is wrongful, unlawful, invalid, null and void, and incapable of having any legal consequence," Justice Oguntade ruled in the judgment.

Mr. Longe was consequently granted the five reliefs sought as grounds of his appeal, including that the board of directors erred in its decision to hold a meeting where Mr. Longe was sacked, without notifying him; and that any decisions taken at the meeting including any appointment to the office of Managing Director/CEO, was unlawful.

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Read the:

***Judgement delivered by George Adesola Oguntade

***Judgement delivered by Francis Fedode Tabai

***Judgemet delivered by Ibrahim Tanko Muhammad

***Judgement delivered by Olufunlola Oyelola Adekeye

***Judgement delivered by Dahiru Musdapher

First Bank, the respondent in the case, didn't make an official statement as at the time of going to press, as a senior official promised that the bank will issue a formal statement later.

However, Celine Loader, the chief marketing officer for the bank, in a text message response to NEXT enquiries, said, "As you know, a prior judgement had been in favour of First Bank, but of course, the bank respects the Supreme Court and we are internally discussing the implications of this latest ruling."

Also, their lawyer, Richard Akinjide, a senior advocate and former Attorney General of Nigeria, refused to comment saying, "I have not seen the judgement. I was not in court today so I can't comment."

Seeking redress

Mr. Longe had gone to court to challenge his sack in 2002 for granting $131.7 million to Investors International (London) Limited (IILL) in the company's bid to purchase 51 per cent equity stake in Nigeria Telecommunications Limited (NITEL), which the bank board said did not to follow due process.

In addition, the amount was said to have exceeded the bank's single obligor limit at the time, even as the London telecoms firm lost out on the bid to acquire NITEL and so lost the non-refundable sum after the firm failed to secure the $1.185billion balance within the 90 days deadline set by the Bureau for Public Enterprises (BPE).

While the bank blamed Longe for the heavy loss it incurred in the deal, Longe in his statement of claim, said all the decisions taken in the failed deal, including the loan, was with the full consent and approval of all the directors of the bank.

He, therefore, prayed the court to declare his removal after the bank's extraordinary board meeting on June 13, 2002, null and void.

Victor Ogiemwonyi, managing director of Partnership Investment Limited, a stockbroking firm, described the judgement as wonderful news, saying, "They will have to pay him damages now. He cannot become managing director again."

Meanwhile, Femi Awoyemi, a financial analyst and chief executive officer of Proshare, said the landmark judgement will provide new insights into the relationship between employers and employees.

"It represents a major dimension in human relations law in Nigeria," Mr. Awoyemi said.

"That means those who were removed by the Central Bank of Nigeria also have a case," Mr. Awoyemi said, adding that both parties are likely to settle out of court.

He can't go back

At the time of going to press, it was still unclear what this judgment means in practical terms for both Mr. Longe and First Bank.

Bismarck Rewane, managing director, Financial Derivatives and a member, National Economic Steering Committee, said that the development will not negatively impact on the company's reputation.

"He cannot go back. They would pay him," Mr. Rewane. "No, no, no, this would not have implications or otherwise on the bank; he would just get paid for the damages," he said.

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More banks are sacking their workers as they struggle to adapt to the new corporate governance instituted by the Central Bank of Nigeria in its move to clean up the industry. Yesterday, Wema Bank Plc sacked about 500 workers nationwide, including 25 top management staff, while First Bank of Nigeria Plc is also involved in a dispute with a labour union for allegedly forcing workers to resign.
NEWSBLOGSTODAY..NAIJA POLITICS TODAY
Tunde Olofintila, a spokesperson for Wema Bank, who confirmed that the bank had sacked some workers, said the number was less than 500. He however refuse to disclose the number of workers affected. "Some people have been disengaged already, and as I speak, some are still receiving their letters," he said. "I cannot tell you how many people would be affected. This is because letters are still being distributed to various people and I won't want to give you a figure that would later be incorrect. The whole process would have to be completed before an accurate number can be gotten, but I can assure you that it is not up to that number that you are talking about" he said. New management Mr. Olofintila also said that the development followed efforts by the new management that resumed in June 2009, to sanitise the bank. "When the new management took over, all the staff members were called together and addressed at the management's inaugural gathering. There, we were told that processes would be streamlined, and roles will be matched to ensure effective production," he sai. "Apparently, there are roles that overlap, but we were assured that the streamlining process would lead to a more effective operation and service delivery." On June 10, a new management team led by Segun Oloketuyi, who is a former Executive Director, Skye Bank Plc, took over to be assisted by Ademola Adebise (formerly of Accenture) and Taiwo Adeniji (of Africa Finance Corporation) as executive directors. While emphasising that the immediate challenge facing the new management is the institution of corporate governance in the bank, Mr. Oloketuyi also said that the new team intends to pursue a strategic and sustained transformation plan, which will reverse the fortunes of the bank. He said these would be accomplished in three phases - stabilising the bank, preparing it for growth and finally growing the bank to take its rightful place at the fore of the financial services industry. First Bank denies allegation First Bank, however, denied forcing its workers to resign under the guise of voluntary resignation. A top official of the bank who spoke under anonymity said, "nothing strange has taken place, only the usual movement because, some people just came in and some people have left; there's nothing extraordinary in staff movement so far." The Union comes calling In reaction to the development,bank unions have indicated their readiness to challenge any bank that indulges in indiscriminate sacking of its workers. Peter Esele , the president of the Trade Union Congress said that the union had already issued a statement on the layoff, after hearing that First Bank was planning a huge staff lay off. "What we addressed in the statement was on the basis that they were planning to. The management of the bank has, however, replied that there is nothing like that in their agenda," he said. "One of the things that give us the leverage to challenge bank actions pertaining to their staff is that the bank staff must have an extension of this union in their bank. Bank officials must be members of the union before we can talk on their behalf."
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