BusinessDay 26 Feb 2018

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Monday 26 February 2018 10 BUSINESS DAY C002D5556 COMMENT BASHORUN J.K RANDLE Randle is Chairman/Chief ExecutiveJK Randle Professional Services Chartered Accountants As Ambassador (Dr.) Olatokunbo Awolowo-Dosunmu gracefully glides into the platinum age of 70 years, it is tempting to overlook the fact that she is a doughty survivor and formidable combatant. Even if the scars are not visible, she has survived the loss of two brothers Barrister Olusegun Awolowo (who graduated from University of Cambridge) in 1963 and Chief Oluwole Awolowo as well as a sister, Mrs. Ayodele Soyode (mother of Mrs. Dolapo Osinbajo - the wife of the Vice-President of Nigeria, Professor Yemi Osinbajo SAN). All these in addition to the demise of both parents – the sage Chief Obafemi Awolowo in 1987 and his jewel Chief (Mrs.) H.I.D. Awolowo in 2015. Rather than indulge in suffocating self-pity, Olatokunbo has opted to be a nimble combatant in the battle to rescue others by caring for the underprivileged; the aged; the homeless and most especially those who would otherwise be denied access to medical facilities (through the aegis of Obafemi Awolowo Foundation/Dideolu Hospital). It is selfevident that it is her caring disposition that influenced her choice of a career in medicine which was interrupted by her sojourn into diplomacy as our beloved nation’s Ambassador at The Hague, in The Netherlands, from 2000 to 2003. I commend her warmly for her granite steadfastness and exceptional faithfulness which she has consistently demonstrated in sustaining the inimitable legacy of selfless public service and indomitable spirit of her illustrious parents. Having regard to her tenacity of purpose, fierce determination and steely persistence, she is surely already on the comment is free Send 800word comments to comment@businessdayonline.com Tribute to a survivor and combatant Indeed, she has restrained herself through reticence and circumspection from venturing into the vortex of controversy in the affairs of our nation. Not for her the temptation to throw her hat into the ring as a potential first female President or Vice-President of Nigeria gedness and force of personality. Meetings at Dr. Akerele’s residence would sometimes drag on till late at night. However, first thing the following morning, Awolowo would have distributed flawless minutes of the proceedings of the previous evening to the astonishment of other members. That in itself is a story for another day. It is sufficient to record that our celebrant’s father displayed uncommon leadership as well as sagacity combined with vision and discipline. The followership adored him. A special chapter would have to be devoted to how “Awo” charmed the post Victorianage elite of Lagos into rewarding him with unprecedented respect and deference. They adored “Awo” their former protégé who was now their charismatic leader with his signature fez “Awo” cap and round rim pebble glasses. In physical stature, both Dr. Nnamdi Azikiwe (Premier of the Eastern Region) and Sir Ahmadu Bello, (The Sardauna of Sokoto and Premier of the Northern Region) towered above Chief Obafemi Awolowo. However, in the political arena and strategic thinking he was more than their equal match. My late father Chief J.K. Randle was a friend of Chief Obafemi Awolowo, as well as his rivals – Dr. Nnamdi Azikiwe and Alhaji Ahmadu Bello. I am obliged to reveal the other side of “Awo” which is rarely ever mentioned – he had a terrific sense of humour, gaiety and great sense of fun which were only on display when he was amongst a very close circle of friends. It was there for all to see on the few occasions when he visited the Lagos Island Club or Lagos Race Club where my father was the Chairman of both premier clubs. Somewhere in the archives of the clubs are iconic photographs of Chief Obafemi Awolowo looking very relaxed, jovial and savouring the company of friends and foes alike. Regardless, the dominant trait and enduring legacy were his stern mien, seriousness of purpose and dedication to the pursuit of excellence as well as the upliftment of Nigeria. He made no excuses for being a thoroughbred Yoruba first and foremost but it did not preclude him from his duty to Nigeria and Africa. He was ever ready to work from the crack of dawn till late into the night. The free education policy which was launched in Western Nigeria in 1955 remains his most enduring legacy. Knowledge became the key to freedom and liberty for the many rather than the few – in the pursuit of his catchy slogan: “Life More Abundant.” He was never awed by intellectuals and scholars. On the contrary, he cultivated them. According to the World Bank report of 1963, under the leadership of Chief Obafemi Awolowo, the Western Region of Nigeria was destined to surpass Singapore; South Korea; Indonesia and Hong Kong in economic and human capital development. The prediction is yet to manifest into reality. Time and space will not permit us to dwell on the irony of history when the feud between Chief Awolowo and his deputy Chief S. L. Akintola erupted at Mapo Hall in Ibadan in 1962 and changed the course of history as well as the destiny of Nigeria. Thankfully, the children of Chief S. O. Adebo (Head of Service, Western Region) are here to confirm that Chief Awolowo was fortunate to enjoy the support and loyalty of dedicated and incorruptible civil servants. Elder Statesman Chief Folarin Coker, former civil servant in the Western Region and Lagos State, is still with us at the age of 95 years. He is ever ready to remind us that there was a moral dimension to Chief Awolowo’s superlative performance. Mrs. Apinke Coker was Awo’s personal secretary but when she accompanied him on his trip to London to negotiate Nigeria’s Independence, Chief Awolowo as Premier of the Western Region personally paid the fare of Chief Coker so that he could accompany his wife. The celebrant was a teenager then. Here she is, fifty-five years later – still charming, vibrant, radiant and determined to keep the flag flying at full mast. She was previously the Co-Chairman of African Newspapers of Nigeria Plc, publishers of “The Tribune” group of newspapers. The mantle of leadership as the sole Chairman has fallen on her shoulders. At the time when the fortunes of the newspapers were dwindling it was the then Chairman, Chief (Mrs.) H.I.D Awolowo, the matriarch of the Awolowo dynasty who engaged the services of my firm, J.K. Randle Professional Services to provide consultancy services which we successfully executed. The company is evidently thriving and has been restored to the front rank of our nation’s media. At a time when the J.K. Randle family is under threat, assault, invasion and siege by the government (and its demolition squad which is on a rampage) we may have ignored the incisive observation of Chief (Mrs.) Awolowo which she shared with me – no matter the complexion of the government, you must replenish your wealth, your power and your prestige, otherwise you would be in peril. I remain eternally grateful to her well-grounded wisdom and profound knowledge. At close to 100 years old, she was still mentally alert and genuinely concerned about the future of Nigeria. As Olatokunbo steps into those mega-sized shoes of her parents, we have every reason to believe that she would rise up to the challenge. Happy birthday. Send reactions to: comment@businessdayonline.com EMMANUEL UNAEGBU Unaegbu, an Environmental Protection and Sustainable Energy Expert, works with CLIMATTERS and writes from Abuja. He Tweets @emmalysis Coal as a natural resource may havebeen the pillar upon which many countries generated wealthbut that was fifty years and not without consequences.Importantly, the use of coal for power was based on the level of knowledge at the time. As has been established beyond doubt, coal is the dirtiest of the fossil fuels. And it is not cheap as is usually described. The aftermath costs are often irreparable. The entire process from mining to coal cleaning, transportation to electricity generation and waste disposal, coal releases numerous toxic pollutants into the air, water and land. In a 2001 publication titled “cradle to the grave: the environmental impacts from coal” the author posited that coal causes cancer, damages the nervous and immune systems, and impedes reproduction and development. The Coal mines and a distorted future for host communities publication was based on evidence from coal mining sites and coal power plants in the United States. In essence, even with all the technical knowhow and efficient medical facilities coal processing portends ahealth threat. In fact, new conventional coal plants are described as “imprudent financial investments.” Few years after Nigeria’s renewed push for coal power development(a decision that takes Nigeria back to 1906 when coal was first discovered in the country), it seems we are already witnessing the destructive and life threating impacts of coal mining inOkobo, Kogi state and Maiganga, Gombe state. According to Global Rights (a Nigerian NGO that advocates for sustainable justice), coal mining in these locations is by surface mining otherwise called opencast mining. This method of mining requires large expanse on land with the overlaying soil covering removed using explosives and heavy duty machinery. These sites form craters that scar the landscape irreparably, destroying entire ecosystem of plants and animals. Weathering and leaching of the host rock result in heavy metals dissolving into nearby water bodies making them highly toxic and acidic. It is more worrying considering that these mines are only a few years old. For example, the Okobo site is 6 years old while in Maiganga, mining activities started in 2007.If current poor mining practices continue, these areas will be ruined beyond any use. Global Rights in the report titled “power at all cost: the opportunity cost” which was unveiled to the public on January 11, 2018 stated that in Maiganga, dust, smoke and fire are a normal. The inhalation of the hazardous coal dust and smoke from spontaneous combustion of coal in the mining site disrupts ambient air quality, causing respiratory diseases. This is exacerbated by the proximity of the community to the mine site. The community people say they have witnessed increased number of miscarriages in both humans and domestic animals since mining operations began. Thus to avoid being victims, pregnant women leave the community for some distant community until they put to bed. Child development defects have also be recorded. In particular is a 4 years old girl, Bibi Saidu who suffers partial paralysis. The doctors diagnosed that her health condition is as a direct effect of consuming nitrate polluted water which comes from the on-going mining activities in Maiganga. Now, she can only move and play with one side of her body. Other predominant health complaints are gastrointestinal disease like unexplainable stomach ache, typhoid and appendicitis; ocular irritation and; blood urine especially during dry season. Beyond the health challenges, the community has also had to endure violent suppression. In March 2014, follow- march to greatness in her own right in addition to her devotion to the sustenance and reinforcement of the legend and legacy of her father and mother. In this endeavour, she has the benefit of the support of her only surviving sibling – Rev. (Mrs.) Tola Oyediran. Tokunbo deserves kudos for the resilience she has demonstrated in coping with the travails of the Awolowo family together with the triumphs. She is manifestly endowed with robust shock absorbers. At a very tender age, she went through the trauma of witnessing her beloved father in the dock for “treasonable felony”. The tragedy was further compounded by the betrayal and treachery of former allies particularly the son of a long standing family friend (Dr. Ladipo Maja) who turned out to be the “prosecution witness”. In politics, she has played her cards close to her chest, ever ready to welcome whoever wants to pay homage to the late sage and supplicate the blessings of the Awolowo family. Indeed, she has restrained herself through reticence and circumspection from venturing into the vortex of controversy in the affairs of our nation. Not for her the temptation to throw her hat into the ring as a potential first female President or Vice-President of Nigeria. She is of course entitled to conclude that the family has already over-sacrificed and overinvested in the pursuit of a vision which has been thoroughly savaged, bastardised, frustrated and compromised. At the age of 70, she is welcome to reflect on how her father gravitated from being the humble, assiduous and committed secretary of “Egbe Omo Oduduwa” (a Yoruba Cultural Organisation) with its secretariat at 51, Messina Avenue, West Hampstead, London (the home of Dr. Oni Akerele who was the President) to becoming the leader of the same group which had transformed from being a cultural organisation into the Action Group, as a fully-fledged political party in Nigeria. He did it by a combination of zeal, dedication, doging their frustration, the community staged a peaceful protest to the company. In response, the company used mobile police men to disperse the people with teargas. Several members of the community were later arrested, detained for a whole week without charges and were released with strict warning never to repeat same. Unfortunately, the people of Maiganga consented to the establishment of the mine but did so from an uninformed position. While the ECOWAS mining directive to which Nigeria is a signatory clearly proscribes ‘Free, Prior and Informed Consent’, it was not the case for the people of Maiganga. In fact, they were not involved in the environmental impact assessment process. Till this day, a community development agreement which is a requisite has not been signed. Instead they were verbally promised schools, water boreholes, hospitals and jobs. So, they danced at the opportunity. But 10 years on, it is pain, tears and sorrow. These many troubles for the community has led to mistrust of the mining company and a feeling of abandonment by the government at both the state and federal levels. It leaves the querying mind with questions. Why will the company (with international repute) act with such irresponsibility? But even if the company has decided to be irresponsible, don’t our officials have a duty? Is it that there are no standards? It is that they don’t understand their mandated function of ensuring that mining operations are conducted in a manner that protects the environment and host communities? One thing is clear though, the Federal Ministry of Mines and Steel Development saddled with this responsibility have to wake up. Enough of the slumber; lifestyle, livelihoods and living conditions are being disrupted on a daily basis from coal mining. It is recommended that: • Government should as a matter of priority reevaluate its position on coal power generation. Beyond sending us hundred years behind, there are existential threats to human health as well as environmental cost. • Government should urgently investigate the human rights violation in coal mining communities and sanction offenders to forestall reoccurrence. • Operational mining companies should be made to deposit a determined clean-up amount which will be used to remediate the mining site as nature will have it. Finally, we have to ask the hard question. Do we really need coal power to develop? If there is any iota of doubt, then it is important we leave coal in the ground. Our future is at stake. We have the sun, water and natural gas. We cannot gamble with coal. Send reactions to: comment@businessdayonline.com
Monday 26 February 2018 COMMENT DAN STEINBOCK Dr Dan Steinbock is the founder of Difference Group and has served as research director at the India, China and America Institute (USA) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net/ To avoid cost overruns, South Korea’s 2018 Winter Games was located in Pyeongchang, the smallest city to host the Olympics since Lillehammer 1994 in Norway. Nevertheless, South Korea is expected to spend $13 billion on the games; nearly double the $7 billion originally projected, which has again ignited public debate about Olympic cost overruns. In 2022, Beijing will become the first city to host both Winter and Summer Olympics. Can the costs be contained? C002D5556 In the Cost-Control Scenario, a track-record of successful planning, rigorous cost-control and ability to repurpose the Olympic facilities will play the key role BUSINESS DAY 11 comment is free Send 800word comments to comment@businessdayonline.com Ensuring Olympic success – after the games Rising economic costs Hefty price tags and cost overruns have become all too common in Olympic Games. The $15 billion costs of London 2012 Summer Olympics (76% cost overruns) and the $22 billion Sochi Winter Olympics (289% cost overrun) contributed to heavy indebtedness in the pre-Brexit UK and economic erosion in Russia. In Brazil 2016, costs were projected to be less than $5 billion, yet reportedly more than doubled amid economic, political and security challenges. Moreover, the Olympic building frenzy has left too many cities with decaying stadiums and empty transit systems, as evidenced by Athens’s dilapidated venues and $11 billion in debt that contributed to the Greek debt crisis; and the recession that swept Nagano, Japan, after the 1998 Winter Olympics. Nevertheless, there are positive examples as well. In the Los Angeles 1984 Summer Olympics, budget awareness showed that the games can generate actual profit. Moreover, in summer games, only few hosts - including Beijing in 2008 – have managed to keep cost overruns reasonable. In the 2022 Winter Olympics, the estimated budget in Beijing will be $3.9 billion, less than one-tenth of the 2008 Summer Olympics financing. That illustrates the new objectives. Preconditions for success Cost control is the first economic precondition for Olympic success. In 1984, the L.A. Summer Olympics committee rejected the idea of new sporting structures and focused on modified and upgraded existing venues. Other success stories involve new structures that have been repurposed after the Olympics. The second precondition is environmental sustainability. In 2014, the International Olympic Committee (IOC) introduced the Olympic Agenda 2020, which promotes sustainability and cost control to control economic and environmental damage. The quest for sustainability requires new competition venues to be built with renewable technologies, as well as energy saving and environmentally-friendly materials. The third precondition rests on successful media deals to finance the games. In 1984, the L.A. Olympics sought to make the games a global TV event; an objective that was supported not just by Hollywood and the industry mecca, but efforts to sprinkle more than 40 venues throughout almost 500 square kilometres. It was Olympic branding that fostered continuity across very different locations. Fourth, to promote sports economy, China is rolling out a national campaign to encourage 300 million people to participate in winter sports by 2022. The venues will be distributed in three zones which will foster winter sports in and around Beijing after the Olympics. If successful, this would be an important investment in long-term human capital: “Healthy mind in a healthy body,” as educators put it. Fifth, Olympics can provide critical “seed funding” to local tourism in need for sustained investment. Even though Brazil’s Olympics suffered from cost overruns, it did attract a record 6.6 million international tourists. To avoid waste of resources, local governments and property developers should consider a sustained focus on local tourism and infrastructure, accommodations and environmental protection. The final precondition involves a lasting legacy. Under a 1979 agreement, 40 percent of the surplus created in the 1984 L.A. Olympics would stay in Southern California. As the surplus amounted to $233 million, the local share was $93 million. Thanks to the great seed fund for the future, the LA84 Foundation has awarded more than $230 million in grants to youth organizations ever since 1984. Olympic scenarios for the future In the future, the probable scenarios for Olympic Games include three basic trajectories. In the Dead-End Scenario, the Olympics will continue as before in which case the historical pattern of soaring costs and cost overruns are likely to contribute to major economic losses, social divides and environmental damage. In the Cost-Control Scenario, a track-record of successful planning, rigorous cost-control and ability to repurpose the Olympic facilities will play the key role. Despite noble goals, Pyeongchang 2018 failed to achieve such cost-consciousness. Beijing 2022 seeks success in such efforts. The Regional Scenario could be an option for smaller emerging economies. Today, Olympics take place in several cities but one country. Why not organize the games in multiple cities across borders? If countries seek scale economies through regional trade agreements, why couldn’t they celebrate sports regionally as well? It is not the size of the stadium that matters but the audacity of our dreams in our quest for excellence. * The original, slightly shorter commentary was published by China Daily on February 22, 2018 Send reactions to: comment@businessdayonline.com BISI ADEYEMI Adeyemi is managing director, DCSL Corporate Services Limited badeyemi@dcsl.com.ng The effective director: Personal attributes It is acknowledged that the office of a Director is a “high calling”. It is oftentimes challenging and requires of the individual certain attributes to achieve effectiveness. Whilst each Board has its own peculiarities, being possessed of certain attributes will contribute to the effectiveness of a Director and by extension the effectiveness of the Board. These include the following: Strong Interpersonal and Communications Skills: This key attribute is relevant in and out of the Boardroom. An effective Director should be able to relate well with his/her peers, be approachable and communicate clearly. Striking an appropriate balance between talking too much and too little at Board meetings is also critical to achieving effectiveness. An effective Director will be able to clearly articulate the key issues and provide critical insight. He will speak to the issues before the Board rather than attack the persons involved. Furthermore, whilst Executive Directors are required to engage with third parties as part of their day job, Non-Executive Directors will occasionally have to represent the company at meetings and in discussions with third parties including the media. Thus the ability to clearly articulate the Company’s position even at short notice is desirable. Independent Judgement: Managers are expected to be “team-players” and sometimes get knocked when they criticize a decision made by their peers or superiors. However, the Director’s role (whether as an Executive or Non-Executive) is to take a step back and critically assess the motivation and consequences of a decision, and where necessary, put forward a reasoned view – even if it is unpopular. A Director is expected to apply independent judgement to all issues before the Board. This requires the Director putting the overall interest of the Company at the forefront. Directors for the most part, find themselves being swayed by narrow or short-term considerations when faced with certain decisions. An independent mindset will enable the Director take a stand when he/she is of the view that the company’s long term future is not being prioritized, no matter the consequences. Analytical: Directors are often presented with problems that have a number of potential solu- tions, and the ability to analyze, sift through data and make sense of it to find the appropriate solution is an invaluable personality trait. Not Sweating the Small Things: Strategic thinking is a key attribute of an effective Director as Directors are not expected to waste time and effort on the small stuff. Sometimes in a bid to demonstrate their competence and area of expertise (show off) they tend to distract the Board’s attention and dwell on less critical issues. The ability to stay focused on those matters strictly within the Board’s purview is a desirable attribute. For Non-Executive Directors, this also means respecting the professional and technical competencies of the Executive Directors and not seeking to micro-manage. Staying Power: Companies are bound to face pressure from regulators, short-term focused shareholders, the media and competition, particularly during periods of perceived poor performance, or significant structural changes. An effective Director should have the strength of character to stay calm in the face of pressure to provide the much needed stability to the Board and the Company. Respect for Alternative Viewpoints: There are “many ways to skin a cat” or execute a given strategy. At the height of Board effectiveness is diversity of skill set, experience and perspectives. A Director should recognize that the overall interest of the organization will be better served if multiple perspectives are considered before arriving at a decision on any issue before the Board. The Director should not attempt to force his/her viewpoint on the Board on the oft wrong assumption that it is the way to go. This also requires appropriate listening skills – a sincere attempt to actually “hear” what another Director has to say as opposed to waiting to counter that position. Integrity: A significant attribute of an effective Director is integrity. Integrity connotes sound ethical values, transparency, accountability, consistency, commitment and courage to set an appropriate “tone at the top”. Transparency and accountability that ensure all actions pass the test of public scrutiny. Enough time and attention committed to making a good job of it and courage to ask the right questions – or to walk away if that becomes necessary. In addition to personal attributes, certain experiential factors also contribute to the effectiveness of a Director. These include: International Exposure: Companies have embraced regional and global expansion which come with unique challenges. A Director that brings to the Board an international perspective and exposure to global benchmarks is an asset to the Board. An effective Director is one who keeps abreast of global issues that would have direct or remote implications for the business. Industry Expertise: The Board is enriched by a Director that can contribute knowledge of the particular industry when evaluating issues and decisions before the Board. This need not be the industry in which the Company is operating as expertise in a sector in which the Company necessarily interfaces with is always desirable. Financial Knowledge: Whilst not required to be a financial expert or an Accountant, the ability to interpret financial reports and evaluate the financial implications of an action or decision is definitely an advantage. Directors should not shy away from seeking help in this regard. Bringing it all together, it is important for Directors to always be reminded that the leadership and direction they provide to the enterprise is invaluable and it behooves upon them to continuously self-develop to ensure impactful stewardship. Bisi Adeyemi is the Managing Director of DCSL Corporate Services Limited. Kindly send reactions and comments to badeyemi@dcsl.com.ng Send reactions to: comment@businessdayonline.com
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