While popular Nigerian pastor Chris Oyakhilome and his wife, Anita are making the headlines over their imminent divorce saga, more trouble may be in the offing as a commission in the United Kingdom (UK) is investigating the UK branch of their church, Believers Love World (BLW),popularly known as Christ Embassy over suspicious payments
The United Kingdom Charity Commission according to reports, have begun investigating the transfer of about N941 million (£3.6 million) between 2008 and 2012.
According to a statement by the commission on Wednesday, September 3, 2014, it had opened a statutory inquiry to look into Christ Embassy over “a number of serious concerns relating to the use of charitable funds, in particular large connected party payments and the potential misapplication of grant funding.”
Thisday reports:
According to the Charity Commission, which is the regulator of charities in England and Wales, statutory inquiries are only opened to investigate “the most serious” regulatory breaches.
The commission said the purpose of the inquiry is to “determine whether there has been any mismanagement or misconduct on behalf of the charity trustees; to establish whether charitable funds have been properly applied and take appropriate remedial action if necessary.”
The investigation was initiated in July 2013, but after interviewing members of the board of trustees and perusing the records and books of the church for a year, the commission was still not convinced that the church has been prudent in managing its finances.
Subsequently, the UK tax authority, HM Revenue and Customs, has withheld N711.4 million (£ 2.7 million) due to the church in donation between 2008 and 2012 until the conclusion is resolved.
On Monday, August 11, 2014 the commission effectively sidelined the church’s board of trustees and appointed an interim manager to take over the management of the church.
In what it described as a “temporary and protective measure,” the commission appointed Rod Weston of the international audit and accounting firm, Mazars, to take over the running of the church.
Until investigation is concluded, Weston would “take over the management of the charity, including its staff, assets, interests, and relations with third parties,” the commission said.
He is also expected to discharge the functions of the church’s trustees and take steps necessary to secure and take control of the assets of the church.
The commission however added that the activities of the church would not be suspended by the appointment as the interim manager is expected to work with the pastors of the church to ensure its religious and charity activities continue as before.
Although the Charity Commission said it did not provide details of ongoing cases so as not to jeopardise the investigations, the assessment of the case however revealed that the church might have made curious payment worth at least N941 million ((£3.6 million) to individuals and companies closely connected with it.
A study of the church’s financial statements from 2009 to 2012 posted on the Charity Commission’s websites, show that approximately N403 million (£1,572,047) was paid to Love World Limited from the transmission of the church’s broadcast.
Curiously, the sole director of Love World Limited and sole shareholder is one Pastor Obiora Chiemeka who is also listed as a trustee of the church.
Chiemeka was appointed a trustee in 2009, the year the church began to make the payment to his company.
The church also paid an estimated N538.5 million (£2.1 million) as grants to mostly Nigerian partner organisations between 2008 and 2012.
On a closer look, it was discovered that some of the charges the payments were said to cover were arbitrary, suggesting they might have been used for other purposes other than what they were listed for.
For instance, between 2010 and 2012 a total of N320.4 million (£1.24 million) was paid to Love World Television Ministry (LTM).
These payments appear to be a duplication of the payment for transmission of television broadcast paid to Love World Limited.
Though the church’s dedicated television station is called Love World Television, it is not clear how Love World Television Ministry differs from Love World Limited. Love World Television Ministry is not listed on the church’s website among the ministries Christ Embassy runs.
Also, in 2009, N9.6 million (£37,785) was paid to the church’s healing ministry known as Healing School. In 2010, N20.5 million (£97,850) was paid to the same school.
However, the amount paid to the ministry dropped drastically in 2011 to N346,072 (£1,350). Then the payment to the ministry shot up astronomically to N25.6 million (£100,000) in 2012.
When efforts were made to reach Christ Embassy’s international office for comments, an official who answered the phone said those who could speak on the issue were not in the office.
The interim manager did not responded to enquiries either.
The investigation into Christ Embassy’s finances is the second time the Charity Commission would be carrying out statutory inquiry into the UK branch of a Nigerian Church.
Between 2002 and 2005, the commission appointed KPMG to act as interim managers to another Nigerian church in the UK, Kingsway International Christian Centre (KICC), founded by Matthew Ashimolowo.
A report released in October 2005 revealed serious misconduct and mismanagement of the church’s finances.
The investigation discovered that Ashimolowo approved payments and benefits for himself and his wife, Yemisi, totalling £384,000.
The commission ordered him to repay £200,000.
Oyakhilome is locked in a divorce battle with his estranged wife, Anita, who has filed an action at a UK court to end their 20-year-old marriage.
Mrs. Oyakhilome accused her husband of “adultery” and “unreasonable behaviour,” charges her husband has denied.
Access Bank Meets Investors over Possible Rights issue
Raising capital to meet regulatory requirements First Bank, UBA, Skye to follow suit
Access Bank has been meeting with domestic investors over the past week to gauge interest in a possible rights issue of 60-70 billion naira ($369-$431 million) by the fourth quarter, a fund manager and a banking source with knowledge of the roadshow, said yesterday.
The lender, which raised $400 million in Eurobond in June, wants to bolster its core capital, the fund manager who attended the meetings in Lagos told Reuters, declining to be named.
Access Bank has also been discussing with investors in Abuja.
An official from Access Bank declined to comment.
Banks in Africa’s biggest economy have been boosting their capital levels in recent months, as the industry this year adopts new international capital requirements.
The Chief Executive Officer of the bank, Herbert Wigwe, told an analysts’ conference call last week while presenting the bank’s half-year results that he anticipated that bank would need to raise more capital as a result of the new regulations.
A source at Access Bank said the bank was meeting with stakeholders and would determine the amount of the fundraising after the meetings.
Adesoji Solanke, banking analyst at Renaissance Capital, expects First Bank of Nigeria Limited (FirstBank), which recently raised a Eurobond, to follow with plans for extra capital as well as United Bank for Africa (UBA) and Skye Bank Plc.
He said most lenders had seen capital levels drop by 100-400 basis points to near the regulatory minimum of 16 per cent under the stricter international requirements, adding some would have to lower dividends and loan growth this year to conserve cash.
Diamond Bank Plc, which has just concluded a N50.3 billion rights issue, issued a $200 million in Eurobond in May. Stanbic IBTC Bank has also announced plans to raise N30 billion.
