Business News
Scandal: Another blow on Nissan as CEO steps aside
Having admitted to overpayment without due knowledge of Japanese automaker, Nissan, Hiroto Saikawa has resigned as the Chief Executive Officer (CEO) of the company.
Having admitted to being overpaid without the knowledge of Japanese automaker, Nissan, Hiroto Saikawa has resigned as the Chief Executive Officer (CEO) of the company.
Nairametrics understands that this is a major blow for Nissan whose former chairman, Carlos Ghosn got arrested on charges of understating his income by nearly half and burdening Nissan with personal investment losses amongst other financial misconducts.
The scandal: Ghosn’s case with Nissan seems to have implicated Saikawa, and other executive members of the company. An audit report uncovered that the duo had been receiving excess pay under a scheme in which directors can earn a bonus if their company’s share price rises above a certain level within a set period.
[READ MORE: Just like Facebook, Google is under investigation]
Saikawa, however, admitted to the offence, stating that he had received nearly half a million dollars in 2013 when he was the company’s Executive Vice President, in stock options which he wasn’t entitled to.
According to Nissan, former representative director Greg Kelly was said to have been deeply involved in the scandal. Kelly forged documents that showed Saikawa exercising his stock a week after he had already done so, which boosted his after-tax stock payment by 47 million yen (about $472,000 at the September 2013 exchange rate).
Nissan stated that it would not charge Saikawa or any of the directors with misconduct because they were unaware of the improper methods used by Kelly. Moreover, Saikawa has indicated that the overpaid amounts would be repaid. The other individuals who benefited from such overpayments are also being asked to repay.
Nissan is also holding Kelly responsible for approving and hiding Ghosn’s alleged illegitimate retirement payments to increase his compensation.
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Meanwhile, there are speculations that Nissan will sack some of its executive staff members as reports have surfaced that Christina Murray, the executive member who led the company’s audit, is also resigning. However, neither Murray nor Nissan has given details about the subject matter.
The Central Bank of Nigeria (CBN) has revealed that the Coalition Alliance Against COVID-19 (CACOVID) has so far incurred an expenditure of N43.27billion on the acquisition of, not only medical equipment and supplies but also food palliatives for vulnerable Nigerians.
The recent press release noted that the funds raised by CACOVID was used to support 3 key priorities – Medical facilities and equipment, food relief programs and communications plans.
The breakdown of the expenditure in the aforementioned areas are:
- Medical Facilities and equipment: In collaboration with other stakeholders, CACOVID developed 39 fully equipped isolation centers across the 36 States of the Country including the Federal Capital Territory (FCT). The sum of N4.19billion was spent in Building Isolation Centers. In addition, medical equipment such as PCR test kits for suspected cases of COVID-19 were procured along with other required medical items at a cost of N9.02billion.
- Food relief programs: As a way of cushioning the impact of the lockdown on vulnerable citizens, CACOVID provided palliatives in the form of essential food items to 1.7million households, which is equivalent to supporting 8 million Nigerians. A total of N28.76billion was spent procuring these food supplies.
- Communication plans: CACOVID also worked to improve awareness in rural communities on the COVID-19 virus, and the measures community health workers and other members of society should take when someone in the community is suspected of having symptoms similar to that of COVID-19. In lieu of this, expenses were incurred on Print, TV, radio, and social media as part of CACOVID communication plans.
Why this matters
The recent disclosure is in line with the principle of accountability and transparency, as the organization seeks to lay bare facts regarding expenditure incurred so far; thereby, nipping in the bud, suspicions and unfounded rumor.
What you should know
Due to the sudden global health challenge (COVID-19), which wreaked havoc on most economies of the world, coupled with declining oil prices and declined government revenue; the Bankers Committee, comprising the Central Bank of Nigeria and the Deposit Money Banks, as well as key stakeholders in the private sector came together to set up an alliance in March 2020, known as the Coalition Alliance Against COVID-19 (CACOVID).
The ultimate objective is working with the government to provide support in areas that would result in improved health and welfare for vulnerable Nigerians.
Companies
PZ Cusson announces retirement of Chairman, Kola Jamodu
PZ has announced the retirement Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.
The Board of Directors of PZ Cussons Nigeria Plc has announced the retirement of Chief Kola Jamodu as Non-Executive Director and Chairman of the Board of the company.
This disclosure was made in a notification signed by the Company’s Secretary, Jacqueline Ezeokwelume, and sent to the floor of the Nigerian Stock Exchange.
According to the notification issued by Mrs. Ezeokwelume, Chief Kola Jamodu will retire as a Non-Executive Director and Chairman of the Board effective 11 December 2020 to enable him to pursue other personal endeavours.
What you should know
Chief Jamodu joined PZ Cussons Group in 1974 and served in Executive positions for 24 years rising to the position of Chief Executive Officer of the Company, a position he held until he retired in 1999.
He thereafter continued as a Non-Executive Chairman of the Board until 2001 when he was appointed as the Honourable Minister of Industry of the Federal Republic of Nigeria, a position he held until 2003.
He was reappointed as the Chairman of the Board of PZ Cussons Nigeria Plc in November 2014.
Appointments
Abbey Mortgage Bank announces appointment of 6 Directors
The Central Bank of Nigeria has approved the appointment of 6 Directors of Abbey Mortgage Bank.
Abbey Mortgage Bank has announced the appointment of 6 Directors, including Mr. Madu Hamman as the substantive Managing Director.
The disclosure is contained in a notification, signed by the Bank’s Secretary, Geoff Amaghereon Esq. and sent to the Nigerian Stock Exchange market today, as seen by Nairametrics.
What you should know
Five (5) other Directors were appointed by the CBN – 2 Executive and 3 Non-Executive Directors.
The names and portfolios of the Directors are; Mr. Mobolaji Adewumi – Executive Director; Mr. Oladipupo Ayodele Adeoye – Executive Director; Mr. Nonso Okpala – Non-Executive Director; Professor Marius N. Umego – Non-Executive Director; and Brigadier-General John Obasa (rtd) – Non-Executive Director.
The notice also mentioned that all appointments have been approved by the Central Bank of Nigeria.
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