THE crisis presently rocking the Nigerian Ship-owners Association, (NISA) last week, took a new dimension as banks participating in the ship acquisition scheme have shunned and stopped processing loan applications for vessel acquisition by local ship operators planning to acquire ships to boost their fleet.
The move by banks to stop processing loan applications for Nigerian ship-owners is due to the fact that the banks are confused as to what group in the now factionalised body, are they to deal with in processing loan applications. The banks need a corporate guarantee for each application which the association is supposed to provide for its members. Disclosing this development last week in Lagos, Secretary General of the break away faction of the Association, Mr. Tunji Brown said that the banks are now very skeptical of dealing with any of the groups as the banks claim they do not know which of the factions is the genuine umbrella body of ship-owners in Nigeria.
According to Brown, the need to reconcile the various groups with a view to working together for the common good of the association cannot be emphasized. He blamed the President, Captain Niyi Labinjo for the crisis rocking the association.
Brown refused to disclose full details of the reason why Captain Labijo was being asked to step aside. He said that until the matter was resolved and the authorities cleared Labinjo of any wrong doing, the elected President remains suspended.
Brown who spoke at a purported Annual General Meeting of the association held at the Federal Palace Hotel in Lagos said that effort to get Labinjo to see reason for his suspension was futile as Labinjo is insisting that a private business deal with partners should not be the business of the association.
- See more at: http://www.vanguardngr.com/2015/06/banks-shun-loan-proposals-for-vessel-acquisition/#sthash.g1fPC6Sp.dpuf
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