The South African government Monday seized another US$5.7 million wired by the Nigerian government through a bank to an arms dealer in that country. The controversy generated by the first transaction involving movement of $9.3m cash in South Africa by agents of Nigerian government had barely subsided back home when another $5.7m was intercepted by the South African authorities.
The Street Journal can authoritatively report that the development has unsettled the Aso Rock as the presidency views it as a ploy by the Zuma administration to spite Nigeria. It was argued by the presidency sources that Jonathan views the South Africa’s action as a deliberate attempt to get back at the his administration sequel to the recent rebasing of the Nigerian economy which now places Nigeria’s economy over and above the South Africa’s economy. ‘’You know these South Africans are not happy about the rebasing of our economy, and they are probably doing this to ridicule us’’, said our source who begged for anonymity.
However, investigation by the Street Journal revealed that South African companies operating in Nigeria like MTN, DSTV and a good number of marketing communications agencies are now jittery as they panic the controversies over the seizures of the monies by the South African government might snowball into a diplomatic row that could take huge tolls on their investments in Nigeria.
It was reliably gathered that boards and managements of the companies have slated series of intervention meetings for Wednesday after the long Sallah break in Nigeria.
A source close to one the companies confided in The Street Journal that the companies were already in contact with their headquarters in Johannesburg on possible intervention in the row in order to nip it at the bud.
MTN and DSTV are two South African companies that will never toy with the Nigerian market.
The duo made several billions of naira in Nigeria though a near monopolistic business environment at their inceptions in the country. They however, remain market leaders in their respective market segments, smiling to the banks with not too satisfactory services to the Nigerian consumers.
It was argued that many anti-consumers tricks they play on the end-users of their services in Nigeria, they dare not try in South Africa due to efficient and effective regulatory control.
However, Nigeria responded with fury Monday after South African authorities confiscated a second tranche of funds meant for arms purchase to fight the extremist Boko Haram sect, denying the deal was unlawful and warning South Africa of its investment in Nigeria.
The news of the first transaction angered Nigerians; particularly as it became clear the private jet involved belonged to the head of the Christian Association of Nigeria, CAN, Ayo Ortisejafor.
South African paper, City Press, said it was the NSA, Mr. Dasuki, who personally authorised the first arms contract by issuing an end-user certificate, alongside a “shopping list” for helicopters, unmanned aircraft, rockets and ammunition.
A security source was quoted as saying “in issuing end-user certificate, the ONSA (Office of the National Security Adviser) ensures that it carries all relevant agencies and stakeholders along. Therefore, such a responsibility is not a unilateral development,” according to the military authorities.