Business

MP Owen Paterson faces suspension for breaking lobbying rules

The Tory MP Owen Paterson faces a 30-day suspension from the House of Commons for an “egregious” breach of lobbying rules, raising the possibility he could lose his seat if enough constituents trigger a byelection.

The former cabinet minister was found to have breached paid advocacy rules, two years after the Guardian published documents revealing how the former environment secretary helped lobby for two firms he was paid to advise – Randox and Lynn’s Country Foods.

Paterson claimed the investigation by Kathryn Stone, the parliamentary standards commissioner, did “not comply with natural justice” and had played a “major role” in the death of his wife, Rose, who took her own life in June 2020.

Stone’s investigation, which was launched in October 2019, found Paterson had worked as a consultant to Randox, a clinical diagnostics company, since August 2015, and Lynn’s Country Foods, a processor and distributor of meat products, since December 2016.

She said he made three approaches to the Food Standards Agency relating to Randox and the testing of antibiotics in milk; seven approaches to the same agency relating to Lynn’s Country Foods; and four approaches to ministers at the Department for International Development relating to Randox and blood testing technology.

Following her investigation, the standards committee – which contains MPs from different political parties, including several Conservatives – launched its own investigation, and the results of both were published on Tuesday.

The committee revealed Paterson had failed to declare his interest and used his parliamentary office on at least 16 occasions for business meetings with his clients between October 2016 and February 2020, and sent two letters relating to his business interests on taxpayer-funded Commons-headed notepaper.

Paterson was also found to have committed “an egregious case of paid advocacy”, “repeatedly used his privileged position to benefit two companies for whom he was a paid consultant”, and brought the Commons into disrepute. It said: “No previous case of paid advocacy has seen so many breaches or such a clear pattern of behaviour in failing to separate private and public interests.”

The committee recommended Paterson be suspended from the Commons for 30 sitting days.

Under a law introduced in the wake of the MPs’ expenses scandal, any MP suspended for more than 10 days can face a trigger ballot where their constituents decide whether to force a byelection by supporting a recall petition. Ten per cent of the electors in Paterson’s seat would need to support the petition for a byelection to be called.

Paterson, who is also a former Northern Ireland secretary and prominent Brexit campaigner, claimed the investigation was biased and “offends against the basic standard of procedural fairness that no one should be found guilty until they have had a chance to be heard and to present their evidence including their witnesses”.

He said Stone did not speak to him to get his side of the story until after she had “made up her mind” and did not seek oral evidence from 17 witnesses who wanted to testify in his support. “I am not guilty and a fair process would exonerate me,” he added.

Last summer, Paterson’s wife of 40 years killed herself. “We will never know definitively what drove her to suicide, but the manner in which this investigation was conducted undoubtedly played a major role,” he said in a statement responding to the commissioner and committee’s ruling.

“Rose would ask me despairingly every weekend about the progress of the inquiry, convinced that the investigation would go to any lengths to somehow find me in the wrong. The longer the investigation went on and the more the questions went further and further from the original accusations, the more her anxiety increased.

“She felt beleaguered as I was bound by confidentiality and could not discuss this inquiry with anyone else. She became convinced that the investigation would destroy my reputation and force me to resign my North Shropshire seat that I have now served for 24 years.”

However, the standards committee said there was no evidence Stone had shown any evidence of bias and called it “completely unacceptable” for Paterson to have made “unsubstantiated, serious, and personal allegations” against the work of his scrutineers.

Questions were raised about Paterson’s business dealings in April 2019, when it was revealed he was being paid nearly £100,000 by Randox to act as a consultant, while helping lobby the government to seek contracts for the same multinational firm.

Business

NAFDAC orders recall of Dove Beauty Cream Bar soap

The National Agency for Food and Drug Administration and Control has ordered the recall of Dove Beauty Cream Bar Soap (100g) with batch number 81832M 08, produced in Germany.

In a statement released on its X handle, the agency said the recall was due to the presence of a chemical impurity.
According to NAFDAC, the product violates the Cosmetic Products Regulation by containing Butylphenyl Methylpropional, also known as Lilial, a chemical associated with serious health risks.
The agency explained that BMHCA has been banned in cosmetic products because it can harm the reproductive system and potentially affect the health of unborn children.

It added that the chemical has been linked to skin sensitisation, triggering allergic reactions in some users.

The statement reads;

“The National Agency for Food and Drug Administration and Control (NAFDAC) is alerting the public about the recall of Dove Beauty Cream Bar Soap (100g) with batch number 81832M 08, produced in Germany, due to chemical impurity. The product does not comply with the Cosmetic Products Regulation, as it contains Butylphenyl Methylpropional (BMHCA), which is prohibited due to its risks of reproductive harm, danger to unborn children, and potential for causing skin sensitization. Several regulatory authorities in the EU have already banned its marketing.”

Other Dove cosmetic products recalled/banned in other countries due to the presence of BMHCA are Derma Spa Goodness, Men Care, Men Care+ Sensitive Shield, Natural Touch, Nourishing Body Care Light Hydro, Pampering Body Lotion, Go Fresh, Talco con Crema, Go fresh Pera, Extra Fresh, Goodness3 Skincare Ritual, invisible dry antiperspirant spray + Go Fresh Revitalize nourishing shower gel, Caring hand wash and invisible dry.

The agency said the soaps are not on its database. NAFDAC urged the public to be cautious and vigilant within the supply chain to avoid the importation, distribution, sale and use of the products.

“Importation of soaps is prohibited in Nigeria as per the restricted and import prohibition list. Beyond the import restrictions soaps and cosmetics are parts of the items ineligible for foreign exchange to import in Nigeria. These products are also not available in the NAFDAC database. Importers, distributors, retailers and consumers are advised to exercise caution and vigilance within the supply chain to avoid the importation, distribution, sale and use of the above-mentioned products. Members of the public in possession of the product should discontinue the sale or use and submit stock to the nearest NAFDAC office.”

NAFDAC also urged health experts to report adverse events experienced with the use of regulated products to its nearest office.

The statement added

“Healthcare professionals and consumers are encouraged to report adverse events experienced with the use of regulated products to the nearest NAFDAC office, via pharmacovigilance@nafdac.gov.ng, E-reporting platforms available at www.nafdac.gov.ng or via the Med-safety application for download on android and IOS stores.”

Business

FG denies report of increasing VAT to 10% despite hardship in Nigeria

The Finance Minister and Coordinating Minister of the Economy, Wale Edun, has denied a report of a potential hike in the Value-Added Tax (VAT) rate from 7.5% to 10%.

In a statement released Monday, Edun clarified that the VAT rate is still firmly set at 7.5%, as outlined in Nigeria’s tax laws.

“The current VAT rate is 7.5% and this is what the government is charging on a spectrum of goods and services to which the tax is applicable. Therefore, neither the Federal Government nor any of its agencies will act contrary to what our laws stipulate,” Edun affirmed.

He elaborated on the need for a balanced tax system, emphasizing that Nigeria’s tax framework operates on three key components: tax policy, tax law, and tax administration.

“The tax system stands on a tripod, namely tax policy, tax laws, and tax administration. All the three must combine well to give us a sound system that gives vitality to the fiscal position of the government,” the minister explained.

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Edun addressed concerns from the public about policies that might seem burdensome, assuring that fiscal measures are designed to foster sustainable growth and reduce poverty, not the opposite.

“Our focus as a government is to use fiscal policy in a manner that promotes and enhances strong and sustainable economic growth, reduces poverty as well as makes businesses flourish,” Edun stated.

In response to media reports suggesting the government is imposing undue hardship on citizens, Edun refuted such claims.

Edun also pointed out recent government actions aimed at reducing the financial strain on Nigerians, particularly by eliminating import duties on key food items like rice, wheat, and beans.

“The imputation in some media reports on the issue of VAT and the opinion articles that have sprouted from them seem to wrongly convey the impression that the government is out to make life difficult for Nigerians. That is not correct. If anything, the Federal Government has, through its policies, demonstrated that it is committed to creating a congenial environment for businesses to thrive.

“In fact, it is on record that the Federal Government, as part of efforts to bring relief to Nigerians and businesses, recently ordered the stoppage of import duties, tariffs, and taxes on rice, wheat, beans, and other food items,” Edun noted.

Edun reiterated that the VAT rate remains at 7.5% and will continue to apply to all eligible goods and services.

“For emphasis, as of today, VAT remains 7.5% and that is what will be charged on all the goods and services that are VAT-able,” he concluded.

Business

FG imposes levy on transactions above N10,000 on Opay, others

The federal government has imposed a N50 deduction for every electronic money transfer (EMTL) of N10,000 and above, affecting customers of fintech platforms such as Opay and Moniepoint.

The deduction, which is in line with the Federal Inland Revenue Service (FIRS) regulations, is set to take effect from September 9, 2024.

The announcement was made by the fintech companies through notifications to their customers.

In a statement, Opay informed its customers, “Dear valued customers, please be informed that starting September 9, 2024, a one-time fee of N50 will be applied for electronic transfer of N10,000 and above paid into your personal or business account in compliance with the Federal Inland Revenue Service regulations.”

The company clarified that these deductions are part of the government’s requirements and not a revenue stream for fintech companies. “It is important to note that OPay does not benefit from these charges in any way as it is directed entirely to the Federal Government,” the statement added.

Similarly, Moniepoint, another major fintech platform, issued a brief notice, stating: “A N50 fee would be charged on inflows you receive of N10,000 and above from Monday, September 9, 2024. Your BRM is available to answer questions you might have.”