Eucharia Anunobi, Rachael Okonkwo bag Enugu govt. portfolios

Peter Mbah, Enugu State Governor, has appointed actresses Rachael Okonkwo and Eucharia Anunobi as aides. The announcement of the appointments was made by Prof. Chidiebere Onyia, the secretary to the State Government.

The statement revealed that Governor Mbah approved the appointment of 118 aides across three categories: seven Special Advisers, six Senior Special Assistants (SSAs) and 88 Special Assistants (SAs).

Okonkwo was appointed Senior Special Assistant for Film and Creative Industry Development.

Veteran actress Eucharia Anunobi was appointed Special Assistant for Women Mobilisation for the Enugu-North Zone.

Nene Royal rocks AGT final with ‘Seven Nation Army’

Phuket local and rising global star Nene Royal lit up the stage with a rendition of The White Stripes’ ‘Seven Nation Army’ in the final round of America’s Got Talent 2026, as she vied for the competition’s coveted title, which was due to be announced on Thursday.

The judging panel for the final comprised Howie Mandel, Sofía Vergara, Mel B and KSI, who stepped in as a guest judge in place of Simon Cowell, who is still recovering from surgery.

Following the performance, the judges shared their reactions.

British influencer and musician KSI said: “This is the first time I’ve ever seen and heard you. And I am a fan. You should be so proud, that was insane.”

Former Spice Girl Mel B (Melanie Brown) said: “I’m glad that I pressed my Golden Buzzer. Because not only do you have such a mystical, mysterious stage presence, you’re from the best place in the world — Phuket, Thailand. What you’re bringing to this competition is so unique. And you’re only 16 years old. If you don’t win this, I’m going to sell Howie’s new house!”

Sofía Vergara said: “The world is going crazy because there is nothing like you right now. You’re unique. And we can’t get enough of you. Good job. Thank you for coming to AGT.”

Howie Mandel said: “The biggest, most talented, most viral talent to be on that stage. I was standing with your father. This is unbelievable. You should win. Give her the million, America. Give her the million.”

Nene Royal said her dream had come true, recalling that she picked up a guitar at a young age and had always wanted to become a rock star. She said she was glad to have reached the AGT final and achieved her aspirations

Although the judges offered their opinions on each performance, the outcome of the round is to be decided by the audience vote.

After all the 10 acts had performed, eligible viewers in the United States were called upon to cast their votes, with the winner due to be announced on the night of Sept 23 US time — the morning of Sept 24 in Thailand.

After attracting widespread attention with her first performance, ‘Zombie’, by The Cranberries in the audition round, the Thai teenager, whose real name is Rattikarn ‘Praew’ Amloy, delivered an electrifying rendition of Soundgarden’s ‘Black Hole Sun’, earning an enthusiastic response from the judging panel.

During the Judges’ Callbacks for the NBC talent show, Nene performed Muse’s ‘Hysteria’, thrilling the audience with a guitar solo featuring percussive techniques and showcasing her strengths as a singer, guitarist and performer.

Bombers beat Blazers for lead

There was a championship feel in the St. Benilde-Jose Rizal U duel.

It was evident by how the two battled, shot after shot, possession after possession.

But in the end, it was the Bombers who made things happen when it mattered most as they turned back the Blazers, 73-69, yesterday in a duel between the Group A leaders in NCAA Season 102 at the Filoil Center.

Spitfire guard Lawrence Mangubat took charge late while Chris Hubilla did the heavy lifting in defense in helping snare JRU the solo lead with a pristine 2-0 record while sending CSB sprawling to second with a 2-1 mark after occupying the pedestal for a brief time.

In Group B action, Arellano U outlasted Emilio Aguinaldo, 91-87, to catch up on Letran on top with a 2-0 card. The Generals sputtered to 0-2.

FG’s N180bn student data plan faces network, sustainability risks

The Federal Government’s plan to provide five million students with 100 megabytes (MB) of free mobile data daily is facing concerns over network capacity, the adequacy of the allocation, funding, monitoring, and whether the intervention can deliver meaningful educational outcomes.

The initiative, scheduled to commence on October 1, 2026, will provide students in public senior secondary schools and tertiary institutions with zero-rated access to approved educational websites and digital learning platforms.

The programme, being implemented by the Nigerian Communications Commission (NCC), the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Federal Ministry of Education, is estimated to cost about N15 billion monthly, or N180 billion annually, based on an estimated N100 daily allocation per beneficiary.

While experts welcomed the intervention as a potentially important step toward reducing the cost of digital learning, they said its effectiveness would depend largely on how access is controlled, the capacity of telecommunications networks, the accuracy of student records, funding arrangements and the government’s ability to monitor usage.

Olujimi Dada, chairperson of the Academic Staff Union of Universities (ASUU), LAUTECH chapter, said the data allocation should be specifically targeted at educational content to prevent students from diverting the benefit to social media and other non-academic activities.

‘If the government is going to do such a thing, it should be streamlined so that there is a way of doing it,’ Dada said.

He suggested that the government establish or partner with repositories containing course materials and other approved educational resources, with the free data configured to work only on such platforms.

According to him, restricting the allocation to approved educational websites would make the intervention more meaningful and ensure that public funds allocated to the programme achieve their intended purpose.

‘People should be able to do TikTok and Snapchat and whatever, but if there is a way they can streamline the usage, that could be my contribution to the topic,’ he said.

Dada also questioned whether 100MB would be sufficient for students who need to download assignments and other learning materials, noting that the government should consider how the allowance would work in practice.

The concerns come as the government and telecommunications operators seek to balance the scale of the intervention with the capacity of mobile networks to accommodate additional traffic.

Gbenga Adebayo, chairman of ALTON, said the 100MB daily threshold was arrived at after an industry assessment of the number of potential beneficiaries, network capacity and the need to prevent the intervention from affecting commercial services.

He said an industry working committee was constituted to assess the feasibility of the programme, including the number of beneficiaries and the amount of data that could be sustainably provided.

‘We came up with this minimum threshold of saying, if we allocate 100 megabytes per subscriber per day, given the number of people who are in that age bracket who will be needing that intervention, what will it be that will not impact on our ability to deliver good quality commercial services?’ Adebayo said.

According to him, the industry could provide a higher allocation, but existing network capacity would make a much larger daily allowance difficult to sustain without affecting service quality.

Adebayo said the 100MB allocation translates to about 3GB per month and should be sufficient for the intended educational activities, which he said generally consume less data than video streaming, gaming and other entertainment services.

‘From analysis, this will do about an average of two to one and a half hours of learning a day,’ he said.

He explained that the programme is not designed to support full qualification courses but to assist students with activities such as reviewing assignments and searching for additional educational information.

Adebayo also said the free data would be restricted to approved educational websites, meaning beneficiaries would not be able to use the allocation for streaming, gaming or unrelated online activities.

The NCC said the commission and the Ministry of Education would jointly approve platforms to be whitelisted under the initiative.

Ayuba Shuaibu, director of policy, competition and economic analysis at the NCC, said eligible platforms would include learning management systems, digital libraries, educational repositories, teacher development platforms, and technical and vocational training platforms.

‘The framework also adopts the operator’s consult model for the initial rollout of the initiative. Under this model, a daily zero-rated data allowance of 100 MB will be provided by the participating MNOs for usage on approved websites and platforms,’ Shuaibu said.

Tunji Alausa, minister of education, had said the initiative was designed to address the cost of internet access, which remains a barrier to digital learning, particularly for students from low-income households.

He said the government’s ambition was for no Nigerian learner to be denied access to quality educational content because of an inability to afford data.

The scheme will initially cover students in public senior secondary schools and public tertiary institutions, with plans to extend the intervention to other categories of learners.

Adesina Sodiya, professor of computer science and immediate past president of the Nigerian Computer Society (NCS), described the initiative as good and commendable but warned that the 100MB daily allocation could be too small to have a meaningful impact on students’ academic activities.

He also raised concerns that increased data consumption could put additional pressure on telecommunications infrastructure, particularly in areas with large concentrations of students.

‘I would also advise that instead of doing it monthly, I mean, it is better to put all these things together and do it monthly, so that the students can plan and utilize this data for something that is meaningful to their programme,’ Sodiya said.

According to him, a monthly allocation would give students greater flexibility to determine how and when to deploy the data, rather than being compelled to use a relatively small daily allowance.

‘100 megs in a day is actually nothing. By the time they open the document and so on and so forth, it’s gone,’ he said.

Sodiya said students often have to make difficult choices about internet usage because of the cost of data, with some unable to access academic materials or participate in online activities when they run out of data.

‘Sometimes I will send messages to them. They will tell you that I didn’t have data to read the details. They buy data when they need to do something,’ he said.

He noted that access to affordable data had become particularly important as universities and students increasingly rely on digital resources and online learning.

‘Access to data for students in tertiary institutions is actually a good thing,’ Sodiya said, adding that some universities already provide internet access within their campuses, although students still face difficulties when they leave campus.

He therefore described the proposed government intervention as commendable, saying it could help bridge part of the digital access gap confronting students.

‘It is actually supported. Although it is small, I mean, it is a good way to start with,’ he said.

Sodiya, however, warned that the intervention could add pressure to an already strained telecommunications infrastructure, particularly in student-dominated areas.

‘The network is really a major [issue]. And again, the student area is really congested,’ he said.

He said the government would need to consider how increased data consumption by students would affect telecommunications networks and address existing infrastructure challenges alongside the programme.

‘What are they doing? How are they going to get the telcos to enhance, to improve on their current infrastructure so that this programme will also be [effective]? That is also another area that government should look at,’ he said.

Sodiya also called for greater clarity on how the initiative would be funded and sustained.

While he could not confirm the funding structure, he said collaboration with telecommunications companies would be a more sustainable approach than placing the entire financial burden on government.

‘I’m thinking maybe the government has been able to get the telcos to also make contributions to the development of education in Nigeria,’ he said.

He warned that financing the initiative entirely from government resources could create a significant additional expenditure, particularly given the size of Nigeria’s tertiary student population.

‘If the telcos will be charging the money they are supposed to be charging daily, it’s actually going to be a lot of money,’ he said.

The professor stressed that important details of the programme remained unclear, including how the government intends to implement and sustain it after its proposed commencement.

‘I mean, we still see their implementation plan. We have not seen the implementation. They have not said they want to start the programme,’ he said.

Sodiya said that although the government had indicated that the programme would begin on October 1, stakeholders were still waiting for further information on how it would work in practice.

Another concern raised by Sodiya is whether the government has an accurate and current database of students who are actually enrolled in tertiary institutions.

He acknowledged that admission records may be available through relevant systems covering universities, polytechnics, monotechnics and other tertiary institutions.

But he questioned whether those records accurately reflect students who remain enrolled.

‘Are they still in those institutions? We have information that some of them have also travelled. Some of them have failed out of the university or polytechnic and so on and so forth. We still don’t know how they are going to implement it,’ he said.

He said this would be an important issue for the government to resolve before the programme is fully implemented.

Sodiya also called for a mechanism to monitor how students use the data allocation to ensure that the intervention achieves its intended educational purpose.

He suggested that the government create a system to monitor usage and assess whether the initiative is delivering value.

‘This is a way to also monitor and ensure that this initiative from government is actually utilised the way it is supposed to be utilised,’ he said.

He also questioned the precise rules governing the allocation, including whether unused daily data would roll over to the following day or expire.

‘We don’t even know that whether if you don’t use it in a day, it should be activated for you the next day,’ he said.

He also questioned whether the government would restrict the use of the data to particular periods of the day.

‘We don’t know whether this data is going to be timed to a particular period and so on and so forth,’ he said.

On whether the timing of the policy could be politically motivated, Sodiya said the circumstances surrounding an initiative should not overshadow its potential benefits to students.

‘Whether it is done because of politics or not, when an election is coming, anything can come up. But what is important to us is that it is something that is good for these students in school,’ he said.

NGO to honour healthcare heroes, train 10,000 providers

4Breath4Life, a Nigerian non-governmental organisation focused on maternal and child health, will host its 2026 Heroes Award and Fundraiser on October 3 in Lagos, with a target of raising support to train and equip 10,000 healthcare providers across Nigeria’s six geopolitical zones.

The event will bring together healthcare professionals, corporate organisations, philanthropists, development partners and other stakeholders to recognise individuals and organisations contributing to healthcare and community development.

The fundraiser will support the organisation’s healthcare training programmes, building on its work in healthcare education, community outreach and support for mothers and children.

4Breath4Life said it has trained and equipped more than 5,000 healthcare providers since its inception, with support from partners including members of the Paediatric Association of Nigeria (PAN) and the Nigerian Society of Neonatal Medicine (NISONM).

The organisation has also implemented community-focused initiatives, including birth-kit distribution, maternal health outreach in Makoko, healthcare education and support programmes.

Its programmes include Every Baby Lives, which focuses on training health workers to prevent newborn deaths, and Heart 4 Nigeria, which supports heart surgeries for children and adults.

The founder of 4Breath4Life, Dr Oyefeso, said the organisation’s focus was on strengthening the capacity of healthcare providers to deliver quality care.

‘We believe that saving lives is not only about what happens in an emergency; it is also about whether the person providing care has the right knowledge, skills and support,’ Oyefeso said.

‘Our goal of training 10,000 healthcare providers is ambitious, but it reflects the scale of the need. The Heroes Award is our opportunity to celebrate those already doing this work while bringing more people into the mission.’

The Heroes Award will recognise individuals and organisations whose work, service and commitment have contributed to healthcare and stronger communities.

Through the fundraiser, 4Breath4Life is seeking support from individuals, businesses, philanthropists and development partners to expand its healthcare training programmes and reach more providers nationwide.

The 4Breath4Life Heroes Award and Fundraiser 2026 will hold on Saturday, October 3, at Landmark Event Centre, Victoria Island, Lagos.

4Breath4Life (4B4L) is a non-profit organisation working to improve maternal and child health through healthcare training, community outreach and support programmes for mothers, children and vulnerable communities.

STRONGER PHL-JAPAN TIES

Executive Secretary Ralph G. Recto welcomed Japan’s Senate Vice President Tetsuro Fukuyama. During his visit to Manila, Fukuyama advanced parliamentary exchanges and reaffirmed the Comprehensive Strategic Partnership between the Philippines and Japan. Building on the momentum of President Ferdinand R. Marcos Jr.’s State Visit to Japan last May, both sides reaffirmed their commitment to deepen cooperation in defense and maritime security, energy, infrastructure and development, trade and investment, and people-to-people ties.

Expect Congress to defy SC, thwart anti-dynasty initiative

A hundred political dynasties have ruled for a century. They won’t readily give up lucrative family business.

Of 254 district congressmen, 205 or 81 percent are dynasts. They’ve infiltrated partylists for the marginalized; 32 of 61 partylist reps come from dynasties.

Three congressmen are close kin of the Vice President, who has three more relatives in local office.

The House Speaker has 15 relatives in Congress and Isabela local positions, and two Executive posts. The Majority Leader is the son of the President, who has a senator-sister, three more close kin in the House, and seven others in Ilocos and Leyte local posts.

Among 24 senators are four pairs of siblings. They and six more senators have congressman-spouses, offspring, siblings, or cousins. Five have offspring or siblings in local elective or national appointive posts. One packed his staff with ten relatives. Only four have no kin in government. Eighty-three percent of senators are dynasts.

Dynastic privilege is most visible in pork barrels, which the Supreme Court outlawed in 2013:

Rep. Paolo Duterte got P51.8 billion in the last three years of father President Rody Duterte’s term, 2020-2022. His Davao City district was the ‘epicenter of flood control corruption’, the Ombudsman said.

Ex-Speaker Martin Romualdez got P57.5 billion in the first three years of cousin President Bongbong Marcos’ term, 2023-2025. He masterminded the flood work scam, the Ombudsman added.

BBM’s son Majority Leader Sandro Marcos got P39.2 billion, Philippine Center for Investigative Journalism reported.

Speaker Faustino Dy III got P3.8 billion in 2026, more than thrice the P1 billion originally slated for Isabela’s 6th district, PCIJ said. In 2023-2025 then-6th district Rep. Faustino Dy V got P10.7 billion, while 5th district Rep. Faustino Michael Carlos Dy III got P10.5 billion.

Ex-DPWH Sec. Manuel Bonoan told the Sandiganbayan that he granted P500 million ‘leadership fund’ per senator per year in the 19th Congress, 2022-2025. Senators availed of P13.29 billion in 2024 and P21 billion in 2025; Bong Revilla got P150 million as public works committee chairman.

For 39 years now, Congress hasn’t enacted a law against dynasties. ‘Grave abuse of discretion,’ fifteen SC justices unanimously ruled Aug. 26.

The 1987 Constitution requires in Article II, State Principles, Section 26: ‘The State shall guarantee equal access to opportunities for public service, and prohibit political dynasties as may be defined by law.’

The SC listed four ‘relevant considerations’ for prohibition, culled from scholarly research:

(1) Up to fourth degree of consanguinity and affinity, including half-blood, adoptive, step, legitimate or illegitimate, and common-law relationships;

(2) Simultaneous and successive offices;

(3) National and local positions including barangays;

(4) Not only within the same province but by region.

The Dy-Marcos bill that the House passed in June is a farce:

It forbids simultaneous positions only up to the second degree, and allows uncles, aunts, nephews, nieces, cousins, and in-laws.

It allows political succession by spouses, offspring, parents, siblings, and in-laws, thus skirting term limits so clans can monopolize specific government seats.

It treats the President, VP, and Senate as national, but the House as local although part of Congress, thus expanding dynasties there. It forbids relatives from running within the same legislative district, yet allows them in different localities or separate government branches.

It excludes partylists from coverage. During plenary debates, amendments to ban partylist dynasties were rejected, thus creating a backdoor for dynastic expansion.

It omits appointive positions and deals only with elective ones. It perpetuates the practice of politicos securing influential unelected appointive government positions for family members, further cementing clan grip on state resources and institutional power.

Dy and Marcos said they tailored the bill for supermajority dynasts, or else there won’t be a bill at all. What 267 of 318 or 83.9 percent of congressmen approved was a bill that would perpetuate dynasties.

Congress shouldn’t be let to satisfy the SC ruling with a watered-down measure, said Alyansa ng Nagkakaisang Mamamayan, led by retired generals and colonels:

‘A law that merely regulates dynasties, allows relatives to alternate in office, or legitimizes a family’s continued control of government positions would betray the Constitution’s true intention. Such a measure could strengthen political dynasties instead of dismantling them.’

Seventy percent of Filipinos want dynasties banned, Pulse Asia polled in March. Dynasts stunt economic growth, control local businesses, and withhold permits from rivals. Even scholarships and healthcare depend on dynasts’ endorsement, lamented Atty. Eirene Aguila of Dapat Isa Lang: ‘They keep people poor and reliant on dole outs.’

The People’s Initiative must gather ten million voters’ signatures – three percent per legislative district and 12 percent nationwide. Comelec, chaired by BBM’s former election lawyer, must validate the signatures. Dynastic Congress must allot billions for a ratificatory plebiscite.

Dynasts can employ guns, goons, and gold to sabotage the process.

Miss Universe Cambodia team admits error with Thai photos

The organisers of the Miss Universe Cambodia pageant have acknowledged their use of Thai historical photographs, saying the mistake was unintentional and resulted from ‘insufficient verification’ of the original sources.

The clarification on Wednesday came after the Thai Ministry of Culture sent a warning letter to the pageant organisers on Monday, demanding an apology and correction over its use of Thai photographs to showcase Cambodian traditional clothing.

One of the photographs showed seven Thai women in Kamphaeng Phet province in 1906, during the reign of King Chulalongkorn.

The photograph was part of a collection of glass-plate negatives and preserved at the Phra Vajirayana Royal Library. The collection was inscribed on Unesco’s Memory of the World International Register in 2017.

The Cambodian statement, signed by the pageant’s national director Prasat Davin, said the incorrect presentation was unintentional and resulted from ‘insufficient verification of the original sources of those images’.

‘We would like to emphasise that there was no intention to cause misunderstanding, controversy or offend the feelings of any member of the public, whether nationally or internationally,’ it said.

The statement, issued in both Khmer and English, said the sole purpose was to highlight the traditional ‘Sbai’ garment.

However, it made no mention of Thais or Thailand, and did not explicitly apologise for the mixup.

The team said it accepted the feedback and criticism, describing the incident as a ‘valuable learning experience’ that would encourage it to strengthen its verification procedures in the future.

Asian Games: China’s Yu Zidi wins third swim gold with latest record

China’s 13-year-old swimming sensation Yu Zidi completed a hat-trick of Asian Games 2026 golds on Wednesday with a dominant victory in the 400m individual medley, two years out from the Los Angeles Olympics.

The school girl powered home in an Asian Games-record 4 minutes 28.56 seconds to make it a clean sweep from her three individual events in Tokyo, following victories in the 200m butterfly and 200m individual medley, also in Games-record times.

She beat the previous 400m IM Games record set by China’s Ye Shiwen in 2014 by almost 4.5 seconds.

It was the fourth-fastest time in the world this year, with world record-holder Summer McIntosh owning the top three.

Yu is shaping up to be a major medal threat at the Los Angeles 2028 Olympics.

She has been the talk of swimming since becoming the youngest medalist in world championships history last year with bronze for China’s relay team aged just 12.

She also finished just outside the medals in fourth in three world individual events.

She has embellished her growing reputation this year, notably with a victory over multiple American Olympic champion Regan Smith in March.

She has dominated this week in Tokyo and gave another glimpse of her immense talent in the 400m IM.

Yu took the lead straight from the start and set off on a procession towards the finish line.

She finished 3.95 seconds clear of silver medallist Ke Wenxi of China, with Japan’s Mio Narita finishing third.

As well as international news headlines, her Asian Games exploits have caused a sensation back home.

Her back story, such as being spotted by chance by a swimming coach at a water park, and her struggle with interviews, have gone viral.

Mauritius bank wins lengthy Sh841m loan fight with Kenyan oil marketer

The High Court has allowed Mauritius Commercial Bank (MCB) to recover a $6.5 million (Sh841.7 million) debt from a Kenyan petroleum company after a decade-long financing dispute tied to the collapse of Imperial Bank.

The court ordered Jade Petroleum Limited to pay the debt after finding that MCB had paid the money to South Africa’s FirstRand Bank, trading as Rand Merchant Bank (RMB), when it called guarantees issued to secure debt by the petroleum firm.

The court declined a claim by the petroleum company that the collapse of its banker, Imperial Bank, had frustrated the repayment obligations under the loan facility by MCB.

The judge said that the bank’s receivership did not extinguish its debt. Imperial Bank collapsed into receivership on October 13, 2015, after the bank’s board alerted regulators to suspected fraud, with subsequent investigations finding substantial fraudulent activities and misrepresented financial statements.

‘Imperial Bank was an intermediary through which the facility was administered. The supervening event therefore affected the means by which the first defendant (Jade) ordinarily dealt with RMB, but did not transform the obligation to repay into something radically different or extinguish it,’ said the court.

At the same time, the MCB’s claim against Pankaj Vrajlal Vallabh Somaia, Amar Mahendra Chandra Pandya and Raj Harikrishna Mohanlal Devani, who were sued as guarantors of Jade Petroleum’s loan, was dismissed.

FirstRand Bank financed Jade Petroleum, while Imperial Bank acted as Jade’s banker and intermediary, and Mauritius Commercial Bank issued the standby letters of credit that secured part of Jade’s borrowing.

The court found that Jade had defaulted on its loan and that MCB became entitled to recover the $6.5 million after honouring the standby letters of credit issued on Jade’s behalf.

The September 17, 2026 judgment traces a chain involving Jade, Imperial Bank, FirstRand’s Rand Merchant Bank and MCB, with the dispute turning on liability after the guarantees were called.

The financing began in June 2007, when FirstRand (trading through Rand Merchant Bank – RMB) extended Jade facilities worth $10 million (Sh1.29billion), later increased to $14 million (Sh1.81billion).

Jade’s banker was Imperial Bank, while FirstRand required additional security in 2009. At Imperial Bank’s request, MCB issued five standby letters of credit worth $6.5 million for Jade’s obligations to FirstRand.

In November 2015, FirstRand told Jade that the guarantees were approaching expiry and demanded either their extension or repayment of the outstanding amount, which it put at $7.5 million (Sh971.10 million).

Jade replied that Imperial Bank had been placed under receivership and could not extend the guarantees or repay the debt. It asked for more time and said it was experiencing a liquidity constraint.

‘We shall unfortunately not be in a position to repay these sums as we are currently experiencing a liquidity constraint,’ Jade said in the letter signed by Mr Pandya.

FirstRand declared an event of default on November 18, 2015, and demanded immediate repayment. Jade did not pay, prompting FirstRand to call the MCB guarantees.

MCB paid FirstRand $6.5 million between December 4 and 31, 2015, with SWIFT confirmations identifying Jade Petroleum. FirstRand and MCB later signed a Subrogation and Transfer Agreement transferring FirstRand’s rights, securities and interests to MCB to the extent of the amount paid.

MCB then sued Jade and the three guarantors -Somaia, Pandya and Devani – in June 2016, seeking $6.5 million, interest and costs. Default judgment was entered, but set aside in October 2018, allowing the defendants to defend the claim.

At trial, Jade argued that Imperial Bank’s receivership had frustrated the financing arrangement and that a 2010 amendment had materially changed the facility. The guarantors also argued that the amendment discharged their obligations.

However, the court found Imperial Bank’s collapse affected how Jade dealt with FirstRand but did not remove its repayment duty.

‘Imperial Bank’s receivership did not render the first defendant’s obligation to repay RMB impossible or radically different,’ the High Court said. The court noted that the bank was only an intermediary through which the facility was administered.

‘Although Imperial Bank’s receivership was external to the parties, it did not make Jade Petroleum’s performance impossible or radically different. The frustration defence therefore fails,’ said the judge.

The court also rejected Jade’s claim that the 2010 amendment was obtained under duress. Security requirements rose from 20 per cent to 100 per cent, but Jade continued using the facility.

The court held that MCB became entitled to recover from Jade when it paid FirstRand. It rejected Jade’s argument that MCB could not sue because it had not been a party to the original facility agreement.

‘Upon paying $6.5 million to RMB under the Standby Letters of Credit (SBLC), the plaintiff (Jade Petroleum) became subrogated in equity to RMB’s rights to the extent of that payment,’ the court said.

It also found that the 2010 second amendment of the facility was not proved to be unconscionable or void for duress. This is because Jade continued to utilise the facility on the amended terms for several years.

‘Against that evidence, the fact that the amended terms were onerous is not enough, by itself, to establish unconscionability or duress. The 1st defendant continued to take the benefit of the facility for years after the amendment. I therefore find that the Second Amendment was not shown to be unconscionable or void for duress,’ said the judge.

The three guarantors faced a different outcome. Their guarantee remained valid, but required a formal demand before liability arose.

MCB produced demand letters dated April 21, 2016, but its witness admitted he had no proof showing that the letters had been dispatched or served.

‘I do not have evidence of service of the letter, or the certificate of posting of the demand,’ the witness told the court.

The court said the bank had failed to prove the contractual step needed to make the guarantors liable.

The court entered judgment against Jade alone for $6.5 million. Interest was awarded at LIBOR plus 3.5 per cent until filing, then 14 per cent until payment.