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SEC Announces New Rules on Warehousing, Collateral Management

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By Tony Obiechina, Abuja

In a bid to ensure the nation has a vibrant commodities trading ecosystem which would in turn translate into foreign exchange earnings for the country, the Securities and Exchange Commission has announced new rules covering warehousing and collateral management among others.

According to a statement by SEC Head of Public Communication, Mrs Efe Ebelo in Abuja on Sunday, every warehouse that stores commodities to be traded on a registered Exchange shall apply to be registered by the Commission, while the Commission shall maintain a Register of all registered warehouses which shall be published on its website.

 A warehouse applying for registration going by the rule, shall submit proof of ownership or registered-lease deed or rent agreement, along with disclaimer from the owner of the Warehouse/property providing waiver of ownership regarding Commodities stored in such Warehouse, in case of leased or rented Warehouse;  present evidence of construction in compliance with the National Building Code, Present evidence of compliance with relevant Federal and State regulation relating to the operation of warehouses, and have  facility(ies) appropriate for storage of commodities.

Other requirements are that the warehouse should have appropriate security arrangements in place, have adequate trained staff with expertise and knowledge of scientific storage of commodities, have requisite equipment for weighing and quality measures of commodities, as well as have comprehensive insurance cover for the building, equipment, stock and other items as may be necessary.

The Rule also states that “The warehouse should be located in a place with access to infrastructure to support its operations and have sufficient space for parking and movement of large vehicles, have an efficient system for loading/unloading of Commodity including proper mechanism for segregation of different kinds/quality of Commodity.

“They are to submit a Standard Operating Procedure (SOP) which shall cover the following among others: Procedures for acceptance of commodities to be deposited and delivery of commodities; procedures for weighing, sampling of goods to be deposited in compliance with industry standards, procedure for verification of commodities and communication to depositors, and procedure for maintaining the quality of the goods stored in line with relevant specifications.

“Others are procedure for Know your depositor, security policy for ensuring the safety of the goods, procedure for the use of modern techniques for storage of goods, procedure for determining and addressing losses due to theft, fire, burglary, fraud, negligence and force majeure events, procedure for internal verification of stock, procedure for maintenance of warehouse and preservations of Stock, Organizational structure and Job description for every staff”.

 The rules states that for a Collateral Management Company to be registered by the Commission, an application shall be filed to the SEC accompanied by the relevant documents.

Some of the documents are two sets of completed appropriate S.E.C Forms to be filed by the sponsored individuals; a copy of the Certificate of Incorporation certified by the Corporate Affairs Commission where a copy not certified is filed, the applicant shall present the original for sighting by an authorized officer of the Commission; a copy of the Memorandum and Articles of Association certified by the Corporate Affairs Commission, which shall among others, include power to act as a Collateral Manager, a copy of the appropriate CAC Form containing particulars of the directors certified by the Corporate Affairs Commission; as well as a Copy of latest audited accounts or audited statement of affairs for companies in operation for less than one (1) year.

The rule further requires Fidelity Bond representing 20% of paid-up capital; sworn undertaking to keep proper records and render returns; evidence of minimum paid-up capital of N50 million. As well as application for registration of a minimum of two sponsored individuals one of whom shall be the chief executive officer.

“The two principal officers of the Collateral Management Company who shall be registered as sponsored officers must have a minimum of a university degree or its equivalent with not less than ten (10) years relevant post-qualification experience; a list of key officers and technical experts engaged and details of their qualifications, which should capture evidence of financial, technical capabilities to carry out the functions of a Collateral Manager, a list of relevant technology systems in place as required by collateral management services; information relating to the relevant Commodities Management Facilities including: Assaying facilities, Warehousing, Aggregation, Computerization and Telephone systems and a well finalized Business Plan;

“Two copies of existing or proposed by-laws or rules, Code of Conduct, Warehousing Guidelines etc.,  instruction and inspection manuals of warehouse activities; detailed information about the promoters and principal officers of the Collateral Management Company; two copies of Warehouse Accreditation requirements of the Collateral Management Company; detailed information about the Technology system to be adopted; and an Undertaking by the CMC to always forward copies of amendments of its Guidelines for approval by the Commission”.

 On Management of the CMC, THE SEC rule stipulates that Board of directors and the chief executive should be appointed with prior approval of the Commission;  key officers are to fulfil the fit and proper criteria as provided in these regulations;  the CMC is expected to maintain the eligibility criteria provided by the Commission and notify the Commission immediately if it ceases to fulfil any of the conditions provided in these rules; 

“Maintain high standard of integrity and fairness in discharging its functions and its dealing with other persons with whom it has agreed in writing to render services as CMC; Fulfil its obligations in a fair, efficient, transparent and ethical manner;  and act with due skill, care and diligence in performing all its functions and discharging all its obligations and responsibilities; 

“Upon Registration, the CMC is expected to display such license, in a conspicuous place, in the principal place of its business; establish the procedure for pledging, in favor of a financial institution, the Depositor’s commodities held with the Warehouse against which Electronic Warehouse Receipt has been issued; and certify a Warehouse”.

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Anglican Bishop, Wife, Children Regain Freedom after Bandits Take Ransome

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By Mike Odiakose, Abuja

Anglican bishop, Rev. Canon Olowolagba, his wife and two children have regained freedom after their kidnappers collected ransom, a family source said.

The Commander of the Ondo State Security Network (Amotekun), Adetunji Adeleye confirmed the release of Canon Olowolagba along with his wife and two girls.

“The pastor and family have been released,” Adeleye said in a short message on Sunday.

He was kidnapped on Saturday while travelling with his wife, their 16-year-old daughter and a nine-year-old girl living with them, along the Iboropa Road in Akoko North-East Local Government Area of Ondo State.

A source disclosed that they were released after a ransom amounting to millions of naira was paid.

The money, according to family sources, was raised through contributions from the family, the church, and associations.

The kidnappers initially demanded N75 million but later reduced it.

The Amotekun commander did not give details on how the victims were released.

The police did not to comment on the incident saying the matter was not reported to them.

Armed groups have been seizing Nigerians for ransom especially in the northern part of the country.

President Bola Tinubu has however expressed optimism about the progress made in addressing insecurity across the country.

In his maiden Presidential Media Chat in Lagos penultimate Monday, Tinubu said Nigerians are now safer travelling by road.

In his words, “Today, I have confidence in the security architecture of this country.

“You can still travel on the roads. Before now, it was impossible. It takes just one incident to disrupt an organized environment, but we cannot undermine the efforts of our military because of isolated attacks, such as the one on the Brigade Battalion.”

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Innovation Key to Commodities Development – SEC

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The Securities and Exchange Commission (SEC) said it was committed to promoting innovation and collaboration to position commodities exchanges as vital drivers of economic growth.

This was contained in a notice by the Director-General of SEC, Dr Emomotimi Agama, said on Sunday in Abuja.

Agama said the commission would innovate in capacity building, infrastructure development and partnership with stakeholders to improve and sustain commodities markets.

“Our role in sustaining commodities exchanges in Nigeria cannot be overlooked because at the heart of these exchanges’ functionality is the SEC whose regulatory oversight plays a pivotal role in ensuring their sustainability and credibility.

”Commodities exchanges in Nigeria facilitate the buying and selling of commodities in a structured and transparent environment.

”They provide farmers, traders, and investors with standardised contracts, enabling market efficiency and mitigating risks,” he said.

Agama said the vision of SEC was to provide an enabling environment, to protect investors, and to create a developmental strategy that would bring the commodities market into an enviable state.

”Nigeria is a commodity space; every state of this country has commodities in commercial quantities, so we are working to build that ecosystem in such a way that we are able to meet all of the blocks within the value chain.

”This will help us to achieve economic development, prosperity and a level playing field for every practitioner in this space,” Agama said. (NAN).

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South Korea Plane  Crash Claims 179 as Air Canada Skids Runway

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By David Torough, Abuja

A Jeju Air plane carrying 181 people from Thailand to South Korea crashed on arrival yesterday, smashing into a barrier and bursting into flames, killing everyone aboard except for two flight attendants plucked from the wreckage.

According to AFP, a bird strike was cited by authorities as the likely cause of the crash — the worst ever aviation disaster on South Korean soil.

Similarly, a PAL Airlines aircraft, operating as Air Canada flight AC2259, executed an emergency landing at Halifax Airport, Canada, following a landing gear malfunction.

The incident, which occurred around 9:30 PM AT, was reported by CBC News yesterday.

Passengers on the Jeju Air plane were flung out of the plane and it was “almost completely destroyed”, according to fire officials.

Video showed the Jeju Air Boeing 737-800 landing on its belly at Muan International Airport, skidding off the runway as smoke streamed out from the engines, before crashing into a wall and exploding in flames.

“Of the 179 dead, 65 have been identified,” the country’s fire agency said, adding that DNA retrieval had begun.

Inside the airport terminal, tearful family members gathered to wait for news.

An official began calling out the names of the 65 victims who had been identified, with each name triggering fresh cries of grief from waiting relatives.

Only two people — both flight attendants — were rescued from the crash, the fire department said.

“Passengers were ejected from the aircraft after it collided with the wall, leaving little chance of survival,” a local fire official told families at a briefing, according to a statement released by the fire brigade.

Both black boxes — the flight data recorder and the cockpit voice recorder — have been found, deputy transport minister Joo Jong-wan said at a briefing.

Under floodlights, rescue workers used a giant yellow crane to lift the burned-out fuselage of the orange-and-white aircraft on the runway at Muan — some 288 kilometres (about 180 miles) southwest of Seoul.

Bits of plane seats and luggage were strewn across the field next to the runway, not far from the charred tail, offering a glimpse into the catastrophic impact of the crash.

 ‘Mayday’

All of the passengers were Korean apart from two Thais, with the youngest a three-year-old boy and the oldest a 78-year-old, authorities said.

“I had a son on board that plane,” an elderly man waiting in the airport lounge, who asked not to be named, said.

“My younger sister went to heaven today,” a 65-year-old woman, who gave only her surname Jo, said.

Boeing said in a statement that it was in touch with Jeju Air and stood “ready to support them”.

 Engulfed in flames

South Korea’s acting President Choi Sang-mok, who only took office Friday, convened an emergency cabinet meeting and then visited the crash site at Muan.

“The entire government is working closely together to manage the aftermath of the accident… making every effort to ensure thorough support for the bereaved families,” he said.

The country declared a seven-day national mourning period effective from Sunday, with memorial altars to be set up nationwide.

It is the first fatal accident in the history of Jeju Air, one of South Korea’s largest low-cost carriers, which was set up in 2005.

On August 12, 2007, a Bombardier Q400 operated by Jeju Air carrying 74 passengers came off the runway due to strong winds at the southern Busan-Gimhae airport, resulting in a dozen injuries.

South Korea’s aviation industry has a solid track record for safety, experts say.

A number of fatal aviation accidents have occurred globally due to bird strikes, which can cause a loss of power if the animals are sucked into the air intakes.

In 2009, a US Airways Airbus A320 famously landed in New York’s Hudson River after bird strikes on both of its engines, in an incident widely known as the “Miracle on the Hudson” because there was no loss of life.

The PAL Airlines aircraft

The PAL Airlines aircraft incident, which occurred around 9:30 PM AT, was reported by CBC News yesterday.

During the landing, the plane skidded along the pavement, triggering panic among passengers.

Nikki Valentine, a passenger onboard, recounted the harrowing experience, describing how the aircraft tilted approximately 20 degrees to the left, accompanied by a loud crash-like noise.

“The plane started to sit at about a 20-degree angle to the left and, as that happened, we heard a pretty loud—what almost sounded like a crash sound—as the wing of the plane started to skid along the pavement, along with what I presume was the engine,” Valentine told CBC News.

Viral footage from the incident captured the aircraft’s wings scraping the runway, causing a fire during the landing. Fortunately, no casualties were reported among passengers or crew.

The emergency landing at Halifax Airport ignited discussions on social media, with users drawing comparisons to a deadly incident in South Korea.

A flight from Thailand to Muan International Airport crashed after veering off the runway and bursting into flames, resulting in 120 fatalities.

“Unbelievable. Thankfully it landed with everyone surviving it appears,” one user remarked about the Halifax incident.

Another expressed concerns over the frequency of aviation mishaps, writing, “Two catastrophic landing gear failures in a matter of hours? What’s happening in aviation right now? Mechanical issues or something more sinister? Questions need answers—fast.”

Adding to the series of recent aviation accidents, an Embraer 190 aircraft operated by Azerbaijan Airlines crashed in Aktau, Kazakhstan, claiming 38 lives while 29 survived.

Deccan Chronicles reported that the flight from St. John’s, Newfoundland, skidded along the runway at Halifax Airport in Goffs, Nova Scotia.

The airport was temporarily closed on Saturday night, though one runway was reopened shortly after.

According to a passenger interviewed by CBC News, one of the aircraft’s tyres failed to deploy properly during the landing, causing the plane to tilt and skid for a significant distance.

“The plane shook quite a bit and we started seeing fire on the left side of the plane and smoke started coming in the windows,” she described.

Emergency crews responded swiftly, ensuring the safety of all onboard.

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