Lagos — The President and Chief Executive Officer of the Africa Finance Corporation (AFC) Mr. Austine Ometoruwa has said that the Central Bank Governor Professor Chukwuma C. Soludo no longer has no authority under law to convene an Extra-ordinary Board Meting of the Corporation.

According to him, CBN lost such right and powers as it's no longer a shareholder of the AFC from 6th May 2008 when it fully withdrew its total investment of $462.9million from AFC.

"CBN Governor can no longer act as chairman of the AFC board since CBN has ceased to be a shareholder of AFC following the return of its investments to the Federal Government," the president said in a statement.

Mr. Ometoruwa was reacting to a certain text message by the AFC company secretary Adesegun Akin-Olugbade, not authorized by him as President and Chief Executive Officer, that Professor Soludo, Chairman of AFC has convened an extraordinary Board meeting on Tuesday 22 July 2008 (today) with a formal notice to follow on Monday 21 July 2008 , (yesterday) the day before the meeting.

This, he described as an aberration because its is "inappropriate that the Board of the Corporation is convened by mobile text, at a notice period of one working day for an extraordinary meeting for which there is no agenda nor any information document to be reviewed as a basis for a reasonable deliberation," adding that "this notice breaches our rules and the best international practice for convening any Board meeting.

"That the CBN is no longer a shareholder means it can no longer have any representation on the Board of the AFC, according to best practices and our rules and precedents"

Thus on this basis, "Professor C.C.Soludo is no longer the Chairman of the AFC as he has no personal investment in the AFC and there are currently no independent directors appointed by the General Meeting in the AFC and he cannot therefore be on the Board in his personal capacity in the absence of a Central Bank of Nigeria shareholding representation in the AFC," he explained further.

He announced that "I reconfirm the cancellation of the notice for an extraordinary Board Meeting of the AFCA for Tuesday 21st July 2008 convened by Professor C.C.Soludo, previously as Chairman of the AFC representing the Central Bank of Nigeria ."

He also noted that, "the Federal Government of Nigeria has setup a Presidential committee to investigate the Central Bank's investment in the AFC and the affairs of the AFC. This panel is yet to submit its report. Therefore the action of the Governor of the Central Bank of Nigeria - an agency of the same Federal Government of Nigeria to undertake any review and/or take any decisions with regards to the AFC by convening this extraordinary Board meeting represents an unacceptable disregard and disrespect to the authority of the Federal Government of Nigeria that we all as law abiding directors of the AFC must immediately disassociate ourselves, otherwise we shall be considered individually and institutionally as undermining the authority of the Government of the Federal Republic of Nigeria."

He added that, "As the President and Chief Executive officer of the AFC, I can confirm to you that there is absolutely no crisis in the AFC except in relation to the Central Bank's investment in the AFC that is now subject to the investigation of the Presidential committee of the Federal Government of Nigeria. As advised last week, despite tough startup challenges, we achieved record profitability for a startup international financial institution (revenues of $34.5million, net income of $25.3million and new cash capital reserves of $25.4million) in our first six months of our operations ending June 30th 2008.

"Price Waterhouse Coopers, AFC's auditors have been invited to review our midyear management accounts to provide shareholders with full transparency and confidence in our operations and financial position."

Meanwhile, the presidential committee investigating CBN investment in the AFC will submit its report to the Minister of Justice Mr. Micheal Aondoakaa today.

President Umaru Musa Yar'adua had on April 15 directed the Secretary to the Government of the Federation to set up a panel to investigate who authorised the release of the funds as well as the payment.