Mr. Omar Osman Al-Namair
Greetings,
OnePress – International Consortium for Investigative Journalism is an independent journalistic and investigative organization, a member of international professional networks interested in investigative journalism, and operates in accordance with professional publishing standards, the right of reply and journalistic balance.
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In the framework of the investigative press series that the Agency is working on: “The Battle for Survival”, related to the default files and funding within the Bank of the Niles, and based on internal banking documents and reports obtained by the Agency, we would like to provide you with a full opportunity to respond and clarify and express your professional and legal opinion on a number of facts and questions contained in the documents, in compliance with our right of reply and professional balance.
We kindly ask you to answer the following questions:
What is your general comment on the bank reports related to the amount of liabilities and financing related to your group of companies within Nilein Bank?
Do you confirm the validity of the current figures regarding the total commitments to reach about 216 million dirhams, of which more than 212 million dirhams are classified as defaults?
According to the documents, the signs of default began in 2020, so how do you explain the continued granting of funding and subsequent facilities after that date?
What is the nature of the financing of cement of 20 million dirhams granted in February 2023? What is its actual use?
What are the reasons for adding AED 22 million of new financing to meet ADIB commitments? Was it at your own request or at the initiative of the bank?
Do you see that some of the later funding was part of a normal financial restructuring or was it used to address existing stumbling blocks?
▁AED What is the reality of the project referred to in the report under the name “Project Bank Ethiopia” and whose commitments were estimated at about 90 million dirhams?
Can you explain the nature of this project, its partners, and the cash flows expected from it?
▁Independent Have independent feasibility studies been conducted for the project? Can any associated documents or financial statements be made available?
How do you explain that the default rate within AE Contractors is about 98% of the total funding?
Were there exceptional circumstances, market or legal developments that affected the ability of companies to pay?
What is your comment on the low coverage of provisions compared to the size of the existing risks?
Regarding Faiz Al-Naim Petroleum Trading Company, how was the financing granted for the purchase of petroleum products used?
Do you? Were there existing contracts or sales to ensure financing coverage and payment of obligations?
How many? How do you explain the non-payment or rescheduling of funding after using the entire funding ceiling?
The report pointed to the existence of future collections through the oil window of the Central Bank of Sudan, were these collections actually confirmed? What's her fate?
Have you ever addressed the Bank of the Niles or the Bank of Sudan regarding the transfer or allocation of these collections in favor of settlements?
What is your current assessment of mortgages offered to the bank in the UAE and Sudan?
Are these guarantees still in place and owned by the group?
▁Safeguards Have the guarantees been evaluated by independent and accredited bodies? Do you think it covers the scale of current obligations?
What is your comment on the settlement recommendations that included a 50% down payment?
Have you ever made a formal settlement proposal to the bank? What are the reasons for the failure to reach a final agreement?
Do you confirm that some of the companies within the group were using cross-guarantees?
Were the bank departments treating each company independently or as part of a single group?
How many times have commitments been rescheduled over the years?
Was the rescheduling done at your behest or with banking initiatives from within the bank?
Do you think that some of the credit decisions within the bank contributed to the complexity of the crisis instead of addressing it?
Have you encountered any legal, administrative or regulatory difficulties that affected the implementation of the Group’s projects or cash flows?
Do you have proof that the group has financial dues with government or private entities that have affected the ability to pay?
How do you respond to those who believe that what happened is a risk management flaw in the bank rather than just a natural business failure?
Do you think there is any information or facts missing from the bank reports in circulation?
Do you want to publish a written response or a lengthy interview explaining your full view of the file?
We affirm that the Agency deals with this file from a purely professional and journalistic point of view, with full commitment to the right of reply, and to provide a fair space for all parties concerned.
Please accept the assurances of my highest consideration,
Awadullah Nowai
Director of OnePress Agency for Investigative Journalism and Media
