BusinessDay... the voice of business: “Wonder Banks”: SEC gives Treasureline approval to resume operations “Wonder Banks”: SEC gives Treasureline approval to resume operations ================================================================================ The approval on 03 October, 2007 12:00:00 The recent consent by the Securities and Exchange Commission to Treasureline; hitherto branded ‘voodoo’ bank may have removed the stigma and open a new vista for finance houses business. BLESSING ANARO spoke with WALIU OYENIRAN OYEKALE, executive chairman, Treasureline Interlink Limited. Treasureline is still on course but we plead for understanding from our subscribers. Due to the confusion in the sector we’ve suspended operation temporarily. We shall surely be back by God’s grace. And I also have good news for our subscribers, of all the 51 operators we’re the only one that has just been registered by the Securities and Exchange Commission. In a letter of approval dated August 8, 2007 and signed by L. S. Stores, Director of Registration of SEC we’re duly registered as Fund Manager. But SEC said that our scheme would have to be re-structured under the supervision of SEC. And it is that restructuring process that we’re going through now. I’ve also recently completed a course on capital market operations and renewal strategy at the Nigerian Capital Market Institute, Abuja. This is also part of the restructuring process. So we’ll surely bounce back after SEC has endorsed our new structure. Approval and sanity I think very soon there’s going to be sanity in the sector. Especially now that the regulatory bodies like the SEC, EFCC are interested in our activities. For example, of all the 51 operators we’ve just been registered by the Security and Exchange Commission after we submitted ourselves for examination and following full disclosure of our operations and after series of interviews. Although, it’s not easy to get SEC approval but that’s the best way to go. It’s either one does it right or get out of the business. I therefore implore my fellow operators to try and walk on the right side of the law by submitting themselves to the regulatory authorities just as Treasureline has done. This would go a long way to sanitise the sector. Once upon a time wonder bank? It’s a pity that people we’ve tried to lift up in life have now turned against us saying we’re ‘wonder banks’, ‘voodoo banks’ and 419. But I can equivocally tell you that those who have benefited from this scheme know that we’re neither voodoo bankers nor wonder bankers. We are only Fund Managers filling a vacuum to grow the economy of the country and empower the people. For example, at Treasureline in one particular trading season we’ve paid out dividends up to 25 times. Pray, how many months or even weeks are there in a year that we paid subscribers dividends 25 times in one single year. But that’s the beauty of the scheme. It helps to create wealth and reduce poverty. Treasureline subscribers and stakeholders I implore them to study and understand the operation of the scheme. They should also show greater understanding in this hour of need. Subscribers should display a good sense of belonging since everyone who had invested is a stakeholder a co-owner of the business. They should stop disrupting our operations because one day disruption of our operation has a ripple effects of three weeks. Arresting us or our staff, writing petitions against us, attacking us and harassing us with security agents and passing around dissenting information about the scheme will only aggravate the present problem and frustrate the operators further. Rather, a collective resolution and positive input by subscribers will go a long way to repose confidence in the scheme. All subscribers have been paid up to week 25. Anybody that has not been paid either does not submit his or her account number or submitted wrong account number or name. However, all this set of people would be paid as soon as we resume operations. Advice to potential subscribers I’ll only read to him the disclaimer notice of the United States of America Mutual Investment Funds which states: "All forms of business investments carry along with it a substantial level of risk just like it also delivers enormous returns depending on invested funds. Therefore your investment decision should be based on personal conviction to risk and either gain or lose. Never invest any amount you cannot afford to lose. Do not steal to invest or borrow to do so. It is advisable to start with personal investment savings. Start small and build it…" Inspiration I started small about ten years in 1996. I am a teacher by training. I’m from a humble background and went through school with hardship. So I hate poverty with passion. It’s the poverty that I saw around me as a teacher that prompted me to go into investments scheme. Originally, I started on a very small scale in Ibadan because the scheme was originally designed for the poor in the rural and the sub urban areas. But when it grew so large I decided to fine-tune the scheme and refocus it. And on seeing the success of the refocused scheme some of my staff and agents decided to start a similar scheme without having the total and rudimentary ideas that I have. This led to the proliferation and bastardization of the whole idea. How would you define your operational week? Unlike the calender week, our operational week is the time frame alloted or expected that certain number of units would sell out. So unlike the seven days of the week in the calendar, market forces determine our own operational week. For example, say we have 500,000 units to be sold in an operational week, if the 500,000 units sell out in 2 days, that’s the end of that operational week. Conversely, if it takes us 15 days to sell the 500,000 units, it means that operational week is 15 days. So in case one, an operational week can take two days while in case two, an operational week could be 15 days. So, you can see that market forces and only market forces alone determine our operational week and not the calendar. I’m making this clear now because there’s been a lot of controversy and misconception by subscribers and even some operators over the definition of operational week. Also, it is only at the end of an operational week that dividends can be paid out. Since you started out what have been the achievements of your organization? And what benefits have your subscribers derived? By the grace of God, we have contributed a lot to the alleviation of poverty in the land through this scheme. From students to traders, from artisans to market women and from professionals to aspiring businessmen, they’ve all benefitted immensely from this scheme. From example, on campuses, Treasureline has empowered most female undergraduates through this scheme so much that they need not go about on the streets working as scarlet ladies to pay school fees or make ends meet. With this scheme we have made people who had never before stepped the banking halls to become proud bank account owners with credit balance through into dividends paid out. And this is because due to the volume of funds we generated and dividends pay out banks have turned Treasureline offices across the land into a Mecca. All the banks in the country come to our offices to source for customers. Since we started we’ve generated more awareness for banking in the country than the banks themselves. And I’m saying this with every sense of responsibility and modesty. And this is because you can’t subscribe to our scheme without having a bank account. Besides, we don’t deal with cash but rather we transact our businesses via the banks. So we’ve deepening the banking culture in the country by bringing the unbanked people to the banks. So rather than seeing us as competitors or a threat I think the bank should give kudos to us and partner with us. I’ll also want to add that bankers should note that we are not bankers but fund managers bringing customers and huge funds to them. Competition In reality, we don’t think we have any competitor or competition in this scheme. And this is because we’re the pioneer or what you’ll call pathfinder. Majority of the soc-called competitors are not doing what we’re doing. They don’t even know the nitty-gritty of funds management. And that is why we are having this current problem and confusion. Recently, the authorities clamped down on operators of your scheme and most of you have gone underground. With huge subscribers funds trapped in your accounts. What is the cause of this crash? Indeed there’s a lot of confusions in our sector. And this is owing to the infiltration of the sector by a large number of fakes who claimed to be fund managers but who know next to nothing about funds management. Also, a lot of subscribers in search of quick return have fallen victims of these fake operators. And that’s the genesis of this problem. But I believe we’ll get over the current problem. And I can confidently tell you that not everyone of us has gone underground. If Treasureline has gone underground I wouldn’t be here talking with you journalists. Sterling Bank to help make Lagos mega city Even as the country is guaranteeing international loans to help build Lagos, Sterling Bank has pledged support for the project as well. On-going efforts to make Lagos State a mega city has received a boost as Sterling Bank Plc has pledged to support the state in achieving her dream. Already, the Bank has set up a special projects/ infrastructure financing unit to work with the state government and collaborate with the various stakeholders in ensuring the realization of a people friendly and vibrant Lagos mega city. Managing Director/Chief Executive Officer, Sterling Bank Plc, Babatunde Dabiri who spoke on "The Case for Lagos Mega City", made these disclosures recently. Noting that Sterling Bank has since been working with Lagos State Government to source international, multilateral and bilateral financing, he listed some of the projects being financed by the bank to include the on-going transportation project (BRT), the automation of vehicle registration and lands registry. The Sterling Bank boss also listed some of the challenges in Lagos State to include catering for a population of over 15 people; infrastructure requirements – roads, bridges, waste management, energy, water etc.; environmental issues – industrial pollution, drainage systems and education/health – to build capacity to support the world class institutions (manufacturing & service) to be attracted to the State. Acknowledging that the State still has a long way to go in terms of security, he commended the renewed efforts by the State, noting that it still needs both private and Federal Government support. Other sectors requiring urgent attention according to Dabiri include the real estate, which requires new residential houses and commercial properties; the tourism & hospitality that needs more conferencing facilities, more hotel rooms; restaurants and recreation facilities like beaches, parks, tourist attractions. Restating that the banking sector is ready to play its role in making Lagos the financial hub of the African Continent, he maintained that the Nigerian banking sector has now been re-energized through consolidation, which produced 25 strong institutions with regional and international ambitions. "Consequently, there has been foreign interest in majority of the 25 banks, there have been investments in several banks by foreign financial institutions, some have become subsidiaries of international banks, several banks have employed foreign bankers in key positions i.e. credit, consumer banking, retail banking, I.T etc. and there have also been adverts in The Economist for international staff. "Besides, various forms of corporate social responsibility initiatives by banks e.g. roads reconstruction, donation of IT centre at LASU, donation of hostel accommodation at universities and initiative on security. "That Lagos will be a mega city is not in doubt. It would continue to be the commercial capital of Nigeria and should be the financial hub of Africa by 2020. "The financial system particularly the banking sector is geared up in ensuring that this objective is achieved. The sector continues to strengthen itself and has the capability to finance and ensure the attraction of foreign capital to handle the various infrastructure financing requirements," he stressed. For Lagos to be a mega city, he maintained that there has to be massive local and international financing. He also added that creative solutions would also be required and multilateral agencies would also have a significant role to play in this regard.