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NO IMPACT ON LAGOS RATINGS OVER VISIONSCAPE MISSED PAYMENTS – FITCH RATINGS

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Akinwunmi Ambode - Your Excellency, I'm not happy with you

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…Says State’s B+ Status Stable​, Unaffected​

A global credit rating agency, Fitch Ratings, has affirmed the positive economic ratings of Lagos State despite the missed contracted services payment by Visionscape Sanitation Solutions as a result of halting of the waste management agreement.

In a statement dated March 28, 2019, (See the full Fitch Statement Attached Below) Fitch said the State’s B+/(AA+(ngn)/ ratings remained stable and unaffected by the default of the SPV Municipality Waste Management Contractors Limited (MWMCL) led by Visionscape occasioned by the halt of the said contract and the subsequent resolution of the State House of Assembly.

The SPV is a private consortium led by Visionscape Sanitation Solutions (Visionscape), a company mandated to manage Lagos’ waste collection and disposal.

Early this March, the SPV is reported to have missed the semi-annual principal and coupon payments for about N800million on the N4.85billion tranche under MWMCL’s N50billion medium term note programme.

The bond was issued by MWMCL reportedly to raise funds to purchase recycling trucks and equipment, linking debt service to the proceeds coming from Lagos for the implementation of the waste recycling contract.

Some market participants had deemed MWMCL’s default to imply also the default of Lagos, given the state’s irrevocable standing payment order (ISPO) whereby a stream of its own internally generated revenue was remitted to the SPV account for debt servicing.

But the agency, in its opinion, said the ISPO, and similar arrangements in other countries, is a mechanism enhancing the predictability of payment flows from an administration, potentially enabling it to address liquidity stress by prioritizing the payment of certain liabilities.

However, such a mechanism normally falls short of the senior, unconditional, and irrevocable features qualifying it as a solvency guarantee, i.e. a guarantee of timely repayment of long-term financial liabilities, such as bonds and loans, over extended periods.

“In short, the ISPO is seen as a commitment to set aside resources for debt service, making it a risk-mitigating factor in case of liquidity stress by an administration rather than a credit enhancement.

“Fitch does not rate the defaulted bond and believes that it would not have been able to rate the state’s commitment towards Visionscape – underpinning the bond debt servicing – under its Public-Sector Counterparty Obligations in PPP Transactions Criteria. Fitch does not rate commercial liabilities, i. e. those arising from service provision, such as waste fees/utility bills,” the agency said.

Giving further details, Fitch said when the payments of commercial nature are recurrent amid the need to procure the service of an asset otherwise purchasable/funded via borrowing (i.e. hospital, energy, motorway, public transport infrastructure), Fitch tests the rateability of the commitment and cautions that the IGR of the grantor, Lagos State in this case, does not address the default risk on commercial, or quasi-debt arrangements.

The agency added that since the commitment underlying the MWMCL bond may meet the rateability tests under its PPP counterparty obligation criteria as Lagos lacks the control of the asset, and that it is the grantee (Visionscape) that appears to have the option to put to the state the waste recycling trucks in case of contract termination, rather than the state having the control that will enable it to operate them at the end of the PPP arrangement if it so chooses, then the State Government could not be held liable.

“Lagos reportedly committed itself to pay for a service but those payments were discontinued in 2018 once the waste collection halted and the State’s House of Assembly issued a subsequent resolution.

“Under Fitch’s criteria, Lagos’ ratings are not impacted because the defaulted debt is not Lagos’ direct debt, as well as because its multi-annual commitment towards Visionscape is unlikely to qualify as a PPP counterparty obligation. This would make the credit quality of the bond and its issuer detached from that of Lagos,” Fitch said in the statement.

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*Go out and vote, it’s your right – Ogun APC charges electorate*

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*Go out and vote, it’s your right - Ogun APC charges electorate*

*Go out and vote, it’s your right – Ogun APC charges electorate*

 

As the party campaigns for the 2024 Local Government election in Ogun State draws to a close midnight of today (Thursday), the All Progressives Congress, APC, has charged registered voters in Ogun State to go out and exercise their fundamentals rights on Saturday “without any fear whatsoever”.

*Go out and vote, it’s your right - Ogun APC charges electorate*

Addressing the grand finale of APC in Odogbolu Local Government, the Publicity Secretary of the party in Ogun State, Tunde Oladunjoye said, “APC has done very well under the administration of Prince Dapo Abiodun, and we are poised to win the chairmanship and councilorship elections overwhelmingly come Saturday”.

Oladunjoye, who is also Senior Media Consultant to Governor Dapo Abiodun on Media, thanked the Odogbolu people for showing massive support to the APC in the local government.

“With what I have seen here, victory is sure. I want to thank you on behalf of the Governor of Ogun State, Prince Dapo Abiodun, CON and the Chairman of APC in Ogun State, Chief Yemi Sanusi. “Come out and vote peacefully on Saturday. It is your constitutional duty and obligation.”

Oladunjoye added that people should learn from the chairmanship candidate of the party in Odogbolu local government, Dr. Babatunde Oyetola Diya, who vied for the office about three and half years ago and did not get it, but remained faithful in the party and continued to reach out to people with his humanitarian efforts.”

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Anthony Ojo congratulates Gov Okpebholo, confirms Edo Central Senate aspiration

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Anthony Ojo congratulates Gov Okpebholo, confirms Edo Central Senate aspiration

Anthony Ojo congratulates Gov Okpebholo, confirms Edo Central Senate aspiration

 

 

Influential Edo State politician, Anthony Ojo has congratulated Senator Monday Okpebholo after being sworn-in as the new Governor of the State.

Anthony Ojo congratulates Gov Okpebholo, confirms Edo Central Senate aspiration
In his congratulatory message, Ojo expressed confidence in the abilities of Gov Okpebholo to bring the dividends of democracy close to the people of Edo State.

“The people of Edo State have total trust in your five-point agenda, capacity as a leader, and this is evident with their immense show of love. We have no single doubt that under you, this state will progress to the promised land,” the statement reads.

Meanwhile, Anthony Ojo has confirmed his aspiration to contest the Edo Central senatorial seat under the flagship of the All Progressives Congress (APC), a position previously held by Senator Okpebholo before he was elected governor.

He cited that sharing the same leadership ideologies with Governor Okpebholo, and the keen desire for transformative human and capacity developments in Edo State are the reasons behind his ambition.

He promised to work closely with the Governor to provide succour to Edo citizens.

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Appeal Court Further Affirms Udeze-led NEC Of Action Alliance As Valid, Authentic

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Appeal Court Further Affirms Udeze-led NEC Of Action Alliance As Valid, Authentic

Appeal Court Further Affirms Udeze-led NEC Of Action Alliance As Valid, Authentic

 

ABUJA – The Appeal Court sitting in Abuja has further affirmed Chief Barr. Kenneth Udeze-led National Executive Committee (NEC) of Action Alliance (AA) elected on 14th March 2021 National Convention of the party as valid and authentic.

 

Appeal Court Further Affirms Udeze-led NEC Of Action Alliance As Valid, Authentic

Action Alliance, in a statement by its National Secretary, Vernimbe A James said, “the court of appeal Abuja Division today in Appeal Number; CA/ABJ/CV/1163/2024 in a lead Judgement delivered by Hon.Justics Abba Mohammed which was concord by the other two Justices dismissed the appeal filed by Adekunle Omoaje faction through one Miller C.Orgwu ( on behalf of himself and all NEC Members Elected at Action Alliance Elective National Convention of 7th of October,2023, held at OOPL Abeokuta, Ogun State ) against 1, INEC, 2, Kenneth Udeze,3, James Vernimbe, 4, Akinuli Fred Omolere.

“The Court also awarded N400,000 cost against the appellants in favor of the Respondents.

The appeal was about the validity of the powers of Action Alliance NEC under Chief Kenneth Udeze led executive to conduct the party Governorship primary in Ondo State for the upcoming Saturday 16th November 2024, Governorship Election.

“The Federal High Court Abuja Division had earlier In Suit Number; FHC/ABJ/ CS/626/2024 Between Miller Orgwu and others (Omoaje faction) claiming to be authentic NEC of the party against 1, INEC, 2, KENNETH UDEZE,3, JAMES VERNIMBE, 4, AKINULI FRED OMOLERE presided by HON. JUSTICE JOYCE O.ABDULMALIK on 24th, September 2024 dismissed their Claim and validated the Ondo State Governorship Primary Election Conducted by Chief Barr Kenneth Udeze led Action Alliance NEC as valid and authentic, thereby Confirming the Ondo State Governorship Candidate of the party AKINULI FRED OMOLERE as the valid Candidate of the party for the 16th, November 2024 Governorship Election in Ondo State.”

The statement further said: “On 28 March 2022, the FCT High Court Abuja had affirmed and validated the Action Alliance National Convention held on 14th, March 2021 wherein Chief Barr Kenneth Udeze led NEC of the party were elected.

“Dissatisfied with the said Judgement, one Adekunle Rufai Omoaje and others were granted leave of the court of appeal to appeal same Judgement.

“On the 26th, January 2024, the Court of Appeal Abuja Division in Appeal Number; CA/ ABJ/ CV/ 955/22 Between Adekunle Rufai Omoaje and others and Chief Uzewuru Nwachukwu and others further Affirmed the FCT High Court Judgement that earlier validated the Action Alliance National Convention of 14th March,2021 wherein Chief Barr Kenneth Udeze led Action Alliance (AA) NEC of the party was elected.

“Dissatisfied with the appeal court Judgement one Adekunle Rufai Omoaje and others have appealed the Judgement to the Supreme Court of Nigeria in appeal Number: SC/ CV/162/2024 Between Adekunle Rufai Omoaje and others and Chief Uzewuru Nwachukwu and others, the matter is still pending at the Supreme Court of Nigeria which he has abandoned but desperately looking for how to come through the back door to claim the leadership of Action Alliance.”

The statement also explained that “INEC has since Complied with the Judgements validating the 14th, March 2021 National Convention of the party wherein Chief Barr Kenneth Udeze led Action Alliance NEC of the party was elected and uploaded on its website the Name of Chief Barr Kenneth Udeze- National Chairman, Vernimbe A James -National Secretary and other Elected NEC of the party as authentic.

“There is no court ruling or Judgement that Affirmed or validated any other National Convention of Action Alliance (AA) held on any other date apart from the 14th, March 2021 National Convention of the party which Courts have already and variously validated.”

Ezenwa Ibegbunam, who is the Counsel to Chief Fred Omolere, the governorship candidate of the party affirmed by the Court, noted that the judgment has further restated the correct position of the law and a vindication of the previous decision of the Court of Appeal which had earlier affirmed Chief Udeze led executive as the authentic leadership of the Action Alliance.

On his part, Chief Kenneth Udeze has praised the Court of Appeal as a citadel of justice and urged the party members across the country to remain focused.

He further noted that the Judgment has cleared the way for the victory of the party in the Ondo State gubernatorial election.

Source: Daily Independent

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