Business
Bank Bailout: How Was The Money Spent?
Although, hundreds of well-trained eyes are watching over the $700 billion that Congress last year decided to spend bailing out the nation’s financial sector, it’s still difficult to answer some of the most basic questions about where the money went.
Despite a new oversight panel, a new special inspector-general, the existing Government Accountability Office and eight other inspectors general, those charged with minding the store say they don’t have all the weapons they need. Ten months into the Troubled Asset Relief Programme, some members of Congress say that some oversight of bailout dollars has been so lacking that it’s essentially worthless.
“TARP has become a programme in which taxpayers are not being told what most of the TARP recipients are doing with their money, have still not been told how much their substantial investments are worth, and will not be told the full details of how their money is being invested,” a special inspector-general over the programme reported last month. The “very credibility” of the programme is at stake, it said.
Access and openness have improved in recent months, watchdogs say, but the programme still has a way to go before it’s truly transparent.
For its part, the Treasury Department said it’s fully committed to transparency, and that it’s taken unprecedented steps to report the status of TARP to the public. It regularly posts information on which banks have received money, as well as details about each of those transactions. Further, Treasury said, it doesn’t agree with all of its watchdogs’ recommendations, which it said could hamper the programme’s effectiveness.
TARP was passed in the midst of last fall’s financial meltdown as a way to keep American banks from falling deeper into the abyss.
The programme was controversial from the start. Its supporters say it’s helped spark bank lending in the country, but critics say it’s unfairly rewarded the big banks and Wall Street firms that pushed the economy to the brink.
The programme also has undergone a major transformation. When the Bush administration first went to Congress for the money, TARP’s main purpose was to buy up hundreds of billions of dollars in bad mortgages and so-called mortgage-backed securities that were bought and sold on Wall Street.
Today, TARP consists of 12 programmes that sent those hundreds of billions of dollars to big banks, but it’s also bailed out auto companies, auto suppliers, individuals delinquent on their mortgages, small businesses and American International Group, the big insurance company.
The watchdogs now must oversee the maze that TARP has become.
Just because a lot of people are watching, however, doesn’t mean they get everything they want to see.
One of the most prominent watchdogs is Elizabeth Warren, a Harvard Law School professor who chairs a TARP oversight panel created by Congress.
Her panel has released 10 major reports that examine TARP’s plans and policies, finding that much of the work by the Treasury and the Federal Reserve has been opaque, with unclear or contradictory goals.
One report took Treasury to task for vastly undervaluing more than $250 billion in transactions with the country’s major banks, and another suggested several ways to revamp federal regulation over the financial sector. Other reports have criticised the Treasury for its initial defensiveness in opening its books.
Despite its mandate, however, the panel doesn’t have subpoena power. That means it can ask, but can’t compel, officials from Treasury, the Federal Reserve or the nation’s banks to testify.
Henry Paulson, the Treasury secretary under former President George W. Bush, repeatedly stiff-armed the panel. Timothy Geithner, the current secretary, has been more open, but so far has testified just once before Warren’s group. Geithner is scheduled to appear again in September, and has agreed to do so quarterly, and two other senior Treasury officials also have appeared.
The relative lack of testimony from top officials, however, is one reason why critics of Warren’s panel think it hasn’t delivered on its promise.
In June, in an otherwise mundane congressional hearing, Republican Rep. Kevin Brady of Texas surprised Warren with an aggressive critique of the panel, saying it’s failed to help taxpayers understand what Treasury is doing with the billions at its disposal.
“There’s been very little value that the panel has brought to this issue or even insight on how these bailout dollars have been used,” he said. “I frankly believe at this point, given the reports that we’ve seen again with little value, I think the panel needs to be abolished.”
Warren defended the panel’s work, saying the lack of subpoena power means we “only have the capacity to invite” witnesses.
“So you asked Secretary Paulson in the first month of existence?” Brady asked.
“I believe we asked him repeatedly,” Warren said. “We asked him in our first month, in our second month, in our third month.”
Warren said she took the criticism seriously, dropping by Brady’s congressional office as soon as the hearing adjourned. The two had never met before, she said, and “I was really surprised,” by his comments.
“He said he felt frustrated,” she said. “He wanted us to be even blunter” in the panel’s reports.
Brady amplified his comments in an interview last month, saying that some of the panel’s work seem like a “PR ploy” and that “the moment has passed” for Warren’s group to play the role Congress envisioned.
His feelings have been partially echoed by two other members of the panel, Rep. Jeb Hensarling of Texas and former Sen. John E. Sununu of New Hampshire, both Republicans appointed by congressional GOP leaders (the other three members were appointed by Democrats).
Both have accused the panel of mission creep of straying from the central goal of determining exactly how, and how well, Treasury is doing its job.
Hensarling said that “taxpayers have not received answers as to whether the TARP programme works, how decisions are being made or what the banks are doing with the taxpayers’ money.” While he praises the “very smart people on the panel,” he said too many questions have been left unexplored.
He acknowledges that the lack of subpoena power makes things tough. “But even if we had it, I’m not sure we would have used it,” said Hensarling, who’s pushing to abolish TARP.
The other primary watchdog is Neil Barofsky, a special inspector-general named in November by Bush specifically to track TARP funds. His office does have subpoena power, and a growing staff that’s expected ultimately to have 160 people pursuing audits and criminal investigations.
It’s also made a series of recommendations to the Treasury, asking that it do more to reveal how TARP money is being spent. Treasury has adopted some of its recommendations, but rejected others including one of the most important: Giving taxpayers precise details on how TARP funds have been used by banks.
The recommendation involves one of the most visible aspects of TARP: investing $218 billion in 650 banks, helping them to strengthen their balance sheets and boost lending to American businesses and homeowners.
Barofsky’s office has long advocated that the Treasury require banks to detail how the TARP money they’ve received has been used. The department has refused, saying that once an investment is made in a big bank, it’s not possible to track how it’s used.
Barofsky’s office rejected that assertion, and did its own survey of 360 institutions, finding that most could say how they’d used the money.
“Treasury’s reasons for refusing to adopt this recommendation have been squarely refuted by the inspector general,” his office reported to Congress.
Business
Fish Production Deficit, A Major Investment Opportunity – Minister
The Minister of Marine and Blue Economy, Dr Adegboyega Oyetola, has called on investors and financial institutions to tap into Nigeria’s vast catfish industry, describing the country’s fish production deficit as a major investment opportunity capable of driving economic growth, food security and job creation.
Oyetola made the remark during a high-level roundtable on scaling sustainable catfish value chain transformation, organised under the Fisheries and Aquaculture for Africa, the Caribbean and the Pacific programme, in Abuja, Wednesday.
In a statement, Oyetola said Nigeria’s annual fish requirement stood at approximately 3.6 million metric tonnes, while domestic production from all sources is about 1.4 million metric tonnes, leaving a significant supply gap that local aquaculture operators and prospective investors could exploit.
He said “Expanding domestic fish production is an economic and food security imperative. It offers an opportunity to strengthen domestic food supply, reduce dependence on fish imports, stimulate enterprise development and create sustainable livelihoods across the country.
He noted that Nigeria is Africa’s second-largest aquaculture producer and a leading producer of farmed African catfish, stressing that the sector’s potential extends beyond fish farming to hatcheries, feed mills, equipment manufacturing, transportation, processing, cold-chain services and trading.
“Investment in aquaculture has a multiplier effect, creating opportunities and value across several interconnected sectors of the economy. Closing the production gap would require more than establishing additional fish farms”, Oyetola stated, insisting on coordinated investments across the entire value chain.
He identified access to quality fingerlings, affordable feed, appropriate financing, effective fish health management, reliable markets and modern infrastructure as essential to sustainable industry expansion.
Highlighting the contributions of FISH4ACP, the minister commended the Food and Agriculture Organisation, the European Union and the German Government for supporting Nigeria’s catfish value chain.
He said the programme had identified critical industry constraints and demonstrated practical interventions in alternative feed ingredients, including black soldier fly larvae, hatchery management, broodstock improvement, business development and digital farm management.
On access to finance, Oyetola urged lenders to develop credit arrangements that reflect the realities of fish farming.
While stating that “the timing of disbursement, repayment schedules and cost of credit must reflect the production cycle and cash-flow patterns of fish farming enterprises,”the minister added that viable businesses should not be constrained by unsuitable financing arrangements.
He identified high feed and energy costs, inconsistent supplies of quality fingerlings, inadequate fish health management, weak biosecurity and insufficient processing and cold-storage facilities as major challenges confronting the industry, describing these constraints as investment opportunities, particularly in feed manufacturing, modern hatcheries, processing facilities and cold-chain infrastructure.
Business
NCDMB, NLNG Unveil $9m For Professorial Endowment Research Chairs In Six Varsities
The Nigerian Content Development and Monitoring Board (NCDMB), and the Nigeria Liquified Natural Gas Limited (NLNG) have launched a US$9 million professorial chair endowment programme across six Nigerian universities to develop commercially viable solutions to industry challenges, strengthen local research capacity and advance technological innovation.
To this end, the Board in a statement said under the Nigerian Content Research and Development (NC-R&D) Professorial Chair Endowment Programme, each university is to receive US$1.5 million to establish a specialised professorial chair focused on agreed industry research priorities.
The Tide gathered that the initiative was being implemented in partnership with the NCDMB, under the supervision of its Planning, Research and Statistics Directorate.
The beneficiary institutions include the University of Ibadan, Oyo State, Rivers State University, Port Harcourt, Modibbo Adama University, Yola, Adamawa State, Aliko Dangote University of Science and Technology, Kano State, University of Nigeria, Nsukka, Enugu State, and Yakubu Gowon University(formerly University of Abuja).
Speaking at the kick-off ceremony, NLNG’s Managing Director and Chief Executive Officer, Adeleye Falade, described the programme as an investment in Nigeria’s capacity to translate academic knowledge into practical solutions.
In his keynote address, titled ‘Reshaping Nigeria’s Future Through Innovation, Research and Capacity Development,’ Falade emphasised the importance of sustained collaboration between government, industry and academia.
“In the energy industry, we understand that technology and energy systems are evolving and the requirement for sustained research cannot be overemphasised,” he said.
The NLNG’S boss noted that the programme would support research into challenges central to the energy industry’s future, including improving operational efficiency, managing emissions, strengthening safety, maintaining critical infrastructure and making industrial processes more sustainable.
Beyond the research endowments, he outlined opportunities for a “triple helix” approach that brings government, industry and academia together through specialised programmes, sabbaticals, exchange opportunities, practical testing of research assumptions and the joint development of postgraduate curricula.
A Statement from the Corporate Communications Division of the NCDMB further stated that the six beneficiary universities will undertake research in distinct areas while the NLNG Research and Innovation Centre for Computer and Electrical Engineering (RICCEE) at the Rivers State University was envisaged as the coordinating point for these collaborations among the universities.
Falade added that discussions were already under way with the Rivers State University on implementation arrangements and commended its Vice-Chancellor, Professor Isaac Zeb-Obipi, for his role in advancing the proposed collaboration.
“We’ve already gotten indications of other partners like Google, Cisco and MTN who are showing interest to support this initiative, he noted.
He also highlighted the opportunities for younger researchers to deepen their expertise, investigate industry problems and learn from experienced academics and practitioners, urging the beneficiary institutions to build on the endowments by strengthening research partnerships and attract additional funding and pursue the commercialisation of intellectual property.
“Expand the scope, reach for more grants and funding which can push the frontiers of knowledge and commercialisation of intellectual property,” he added.
Acknowledging NCDMB’s role in bringing the initiative to fruition, the LNG helmsman called for sustained commitment to technology transfer and the development of home-grown solutions without compromising quality assurance or safety.
He averred that the programme’s lasting value would lie on stronger institutions, research outcomes deployed in the field and the development of the next generation of Nigerian researchers and industry professionals.
In his remarks, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe said the US$9 million for the endowment programme represents a strategic investment in the future of Nigeria’s research and innovation ecosystem.
The initiative, he said, complements the Board’s ongoing investments in research infrastructure, including the establishment of specialized Research and Development (R&D) Centres of Excellence across six universities in the country.
He added that when taken together, these interventions demonstrate the Nigerian oil and gas industry’s commitment to creating an integrated research ecosystem that connects academic expertise, modern research infrastructure, industry requirements, and commercialisation opportunities.
Represented by his Senior Technical Adviser, Engr. Austin Uzoka, the Executive Secretary said by supporting specialised professorial chairs in critical areas of the industry operations, NLNG and NCDMB were creating opportunities to bridge the longstanding gap between academic research and industrial application.
He further charged the universities to deliberately transition from research for publication to research for application, and from innovation as an academic pursuit to innovation as a driver of industrial transformation.
“The beneficiary universities must see this endowment as both an opportunity and a responsibility and they would be expected to deliver clearly defined research objectives, measurable outcomes, prudent resource utilisation, effective stakeholder engagement, and sustained collaboration with industry partners.
“These Professorial chairs will generate commercially viable solutions, strengthen local technological capabilities, support industrial competitiveness, and contribute meaningfully to the long-term sustainability of Nigeria’s oil and gas industry”, he said.
The Tide reports that further details contained in the NCDMB’S Corporate Communications Division States that the University of Ibadan will focus on natural gas processing, pollution control and environmental management, while Rivers State University will concentrate on digital engineering, intelligent energy systems, automation and asset integrity.
Modibbo Adama University will undertake research in energy transition and the environment, while Aliko Dangote University of Science and Technology will focus on sustainable energy innovation and climate-resilient food systems.
In the same vein, the University of Nigeria, Nsukka, will specialise in green energy production and geoenvironmental engineering, while Yakubu Gowon University(formerly the University of Abuja) will focus on geoscience and satellite intelligence for resilient gas infrastructure.
Other terms contained in the endorsement document indicates that each of the beneficiary universities will work towards agreed research targets and commercialisation pathways, providing a framework for measuring progress and translating findings into practical applications.
The institutions, according to the Board will also jointly host an information management hub to support knowledge sharing and exchange programmes.
Ariwera Ibibo-Howells, Bayelsa
Business
‘NUJ, NPA’s Partnership Would Boost Port Producrivity, Economic Growth’
The Chairman of Rivers State Council of the Nigeria Union of Journalists (NUJ), Comrade Paul Bazia, has said the proposed partnership between the union and the Nigerian Ports Authority (NPA), Rivers Port, would promote effective information dissemination, boost productivity and enhance economic growth.
Bazia gave the assurance during a courtesy visit by the leadership of the NUJ Rivers State Council to the management of NPA, Rivers Port, in Port Harcourt, within the week.
Comrade Bazia said the proposed collaboration was informed by the strategic importance of port operations to national economic development, particularly Rivers Port, which he described as the cradle of maritime operations in the Eastern Maritime Corridor.
He explained that current leadership of the union had, upon assumption of office, resolved to promote constructive and development-oriented journalism capable of improving the public perception of Rivers State and attracting investors.
Bazia said the visit was also intended to familiarise the union with the achievements and operational challenges of the port management, while identifying areas of collaboration that would enhance its efficiency and contribute to national economic growth.
According to him, Rivers Port occupies a significant position in the maritime industry and deserves adequate media attention to showcase its contributions to commerce, trade and the nation’s economy.
The NUJ chairman said the union was committed to changing the narrative through positive and balanced reportage, noting that effective media engagement would help project the activities of the port and attract the needed investment.
He further disclosed that the NUJ had correspondents covering different sectors of the economy, including the maritime industry, and was prepared to deploy specialised maritime reporters to the authority whenever the need arose.
Bazia urged the port management to sustain its relationship with the union by informing it of important developments, activities and programmes requiring media coverage, assuring that the NUJ would provide the necessary publicity.
In her response , the Port Manager of NPA, Rivers Port, Mrs Edith Okezie, described the NUJ as a critical partner in information dissemination and the promotion of national economic development.
Okezie highlighted some of the achievements recorded under her administration in the last three years, including the rehabilitation of internal roads within the port complex and measures taken to strengthen security around the facility.
She also disclosed that port’s water channels had been dredged to facilitate the smooth movement of vessels, while rehabilitation work was ongoing on some of the berths to improve operational efficiency and service delivery.
The port manager further noted that the Federal Government was currently undertaking rehabilitation of ports in the Western region, expressing optimism that the exercise would be extended to ports in the Eastern region. She thanked the NUJ delegation for the visit and welcomed the union’s readiness to collaborate with the authority.
King Onunwor
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