logo
India's financial crime fighting agency summons Google, Meta executives, sources say

India's financial crime fighting agency summons Google, Meta executives, sources say

Khaleej Times20-07-2025
India's financial crime fighting agency has summoned executives of tech giants Google and Meta to its headquarters on Monday as it investigates accusations of money laundering on online betting apps, two government sources said.
The Enforcement Directorate (ED) is investigating whether the platforms eased the way for promotion and wider reach of betting apps through advertisements, the first source said.
A date of July 21 has been set for the appearances at the agency's headquarters in the capital, New Delhi, the source added.
A second government source accused Google and Meta of using their platforms to promote illegal activities, despite a government advisory against the advertisement of any form of betting.
The agency will investigate Google and Meta over the funds they received from betting apps, the second source added, as well as checking if they were advertising or promoting any other betting platforms.
Both sources sought anonymity as they were not authorised to speak to media.
Google and Meta did not immediately respond to Reuters' requests for comment.
Betting and gambling pose "significant financial and socio-economic risks for consumers, especially youth and children," India's information and broadcasting ministry told television channels and digital media in an advisory in 2022.
Promotion of offline or online betting and gambling through advertisements was not advised in the larger public interest, the ministry added.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nigeria: Mounting deficits raise concerns over bank takeover as Ikeja Electric reports $16mln pretax loss
Nigeria: Mounting deficits raise concerns over bank takeover as Ikeja Electric reports $16mln pretax loss

Zawya

time16 minutes ago

  • Zawya

Nigeria: Mounting deficits raise concerns over bank takeover as Ikeja Electric reports $16mln pretax loss

Efforts by Nigerian banks to take over Sahara Group's power assets may be complicated by the deepening financial woes of Ikeja Electricity Distribution Company (Ikeja DisCo), which posted a pretax loss of N25.2 billion for the full year ended December 31, 2023. The company's latest financials revealed worsening fundamentals that raised red flags for potential acquirers. Despite recording a 21.6 percent increase in revenue to N207.34 billion—up from N170.4 billion in 2022—soaring costs and operating inefficiencies continued to erode profitability. Distribution and administrative expenses jumped 25.7 percent to N55.7 billion, while net finance costs surged by 70 percent to N10.34 billion in 2023. A tax credit of N21 billion helped cushion the blow, reducing after-tax loss to N4.1 billion from a previous profit of N33.96 billion in 2022. Nonetheless, accumulated deficits rose to a record N177.05 billion from N172.88 billion a year earlier, highlighting the company's persistent losses. Among the most pressing concerns is a tariff shortfall of N83.64 billion and trade payables totaling N115 billion. The company's current liabilities of N183.46 billion far exceed its cash and bank balance of N23.01 billion, resulting in a negative working capital of over N160 billion. Employee benefit expenses stood at N12.47 billion, while staff welfare and contract labor costs added N121.89 million and N1.64 billion, respectively—bringing total personnel-related spending to N14.52 billion. Repairs and maintenance expenses were N2.4 billion. Ikeja DisCo's biggest expense remains energy purchases, with the company spending N215.31 billion on electricity sourced from the Nigerian Bulk Electricity Trading (NBET) Plc. This accounts for the lion's share of the company's rising cost of sales. Total loans and borrowings stood at N39.2 billion, while total financial liabilities—including trade and other payables (excluding statutory deductions)—amounted to N173.94 billion. Analysts say the company's prolonged losses and weak balance sheet make it a less attractive asset for lenders aiming to recover outstanding debts. Ikeja DisCo is a beneficiary of the Central Bank of Nigeria's (CBN) Operating Expenditures (OPEX) loan, a special facility designed to support power distribution companies in meeting their minimum market remittance obligations and operational expenses. The 10-year loan was extended at a subsidised interest rate of five percent annually up to February 28, 2023, and nine percent thereafter. In addition, the company secured a N2.9 billion loan from Sahara Power Group Limited on May 1, 2022. This 12-month facility, offered at an 18 percent interest rate, was used to finance technical upgrades. By the end of 2023, the full amount had been drawn, up from N2.4 billion in 2022. Another loan agreement worth N3 billion was executed in April 2023, also at 18 per cent interest over 24 months, with N1.6 billion disbursed by year-end. Ikeja DisCo's troubling financial position comes amid an ongoing legal battle between Sahara Group and a consortium of Nigerian banks seeking to recover loans said to total N1.1 trillion. The banks involved include Access Bank, First Bank, Zenith Bank, UBA, Union Bank, FCMB, Fidelity Bank, Keystone Bank, and Sterling Bank. Through their appointed trustee, First Trustees Limited, and facility agent, FBNQuest Merchant Bank, the banks appointed Kunle Ogunba (SAN) as receiver over Sahara's assets on July 19, 2025. In response, Sahara Group swiftly filed lawsuits to halt the receivership process. On August 5, 2025, the Federal High Court in Lagos, presided over by Justice Akintayo Aluko, issued an injunction restraining the banks and the appointed receiver from taking adverse actions against the power companies. The ruling protects Egbin Power Plc, Ikeja Electric Plc, and First Independent Power Limited (FIPL) from enforcement actions related to the disputed debt. Babatunde Osadare, Chief Legal and Regulatory Officer of Ikeja Electric, said the ruling bars the receiver from accelerating the loan, interfering in business operations, enforcing share security, or acting unilaterally on financial documents. Ikeja Electric Plc operates within a franchise covering six business units: Ikeja, Oshodi, Shomolu, Ikorodu, Akowonjo, and Abule-Egba. The company acquired these assets in 2013 during the federal government's power sector privatization program. The assets were sold to the New Electricity Distribution Company (NEDC) consortium—comprising Sahara Group and Korean Electric Power Corporation (KEPCO), which serves as the technical partner. Ownership was formally transferred on November 1, 2013. Kepco Energy Resources Limited holds a 70 percent stake in Egbin Power Plc; NG Power HPS Limited, a Sahara subsidiary, owns 70 percent of First Independent Power Limited while New Electricity Distribution Company Limited controls 70 percent of Ikeja Electric. Analysts believe that with mounting liabilities, ballooning deficits, and a court-ordered injunction freezing lender actions, the future of Sahara Group's energy holdings—including IkejaDisCo—remains mired in uncertainty. For banks, the combination of weak financial performance and legal obstacles poses significant challenges in their pursuit of loan recovery. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (

Nigeria: CBN, NDIC deepen collaboration to safeguard financial system
Nigeria: CBN, NDIC deepen collaboration to safeguard financial system

Zawya

timean hour ago

  • Zawya

Nigeria: CBN, NDIC deepen collaboration to safeguard financial system

The Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have reaffirmed their commitment to strengthening collaboration aimed at ensuring stability in the country's financial system. This renewed commitment was made during a courtesy visit by the newly-appointed Managing Director/Chief Executive of NDIC, Mr. Thompson O. Sunday, and his management team to the CBN Headquarters in Abuja. CBN Governor, Mr. Olayemi Cardoso, congratulated Mr. Sunday and the new Executive Director of Operations, Dr. Kabir Katata, on their appointments and expressed optimism about deepening ties between the two institutions. 'Our meeting today is a clear testament to our willingness to work together. The CBN counts on NDIC's support in navigating the uncertain times that we are in,' Cardoso said. He emphasized that his two years in office have brought critical insights into the financial sector, underscoring the need for proactive collaboration between the CBN and NDIC in managing potential risks and maintaining depositor confidence. Mr. Cardoso welcomed NDIC's visit, describing it as timely and essential to strengthening joint efforts in financial sector oversight, especially in the face of evolving economic challenges. In his remarks, Mr. Sunday commended the CBN's reform initiatives under Governor Cardoso, particularly in stabilizing the foreign exchange market and implementing the recapitalization of Deposit Money Banks. He reiterated NDIC's commitment to aligning its operations with the NDIC Act 2023 (as amended), noting that the Corporation was undergoing a strategic restructuring and developing a new corporate strategy to enhance its risk minimization mandate. The NDIC boss highlighted recent achievements, including the payment of ₦54.62 billion to 691,418 depositors of the defunct Heritage Bank, and the declaration of a 9.2 kobo per naira liquidation dividend to uninsured depositors within a year of the bank's closure. He also disclosed ongoing efforts to establish a target funding framework. Mr. Sunday pointed out some operational challenges, such as the lack of a unique identifier like the Bank Verification Number (BVN) for corporate customers and difficulties in collecting premiums from insured institutions that do not maintain accounts with the CBN. He expressed NDIC's readiness to collaborate with the apex bank to resolve these issues. He also called on the CBN to partner with the Corporation in developing a joint crisis preparedness framework to enhance coordinated responses to future financial sector crises. In response, Mrs. Rita Sike, Director of Financial Policy and Regulation at the CBN, noted that such a framework could be developed under the Financial Services Regulation Coordinating Committee (FSRCC). She also revealed ongoing efforts to upgrade the Credit Risk Management System (CRMS) to incorporate the Global Standing Instruction (GSI) for onboarding Other Financial Institutions (OFIs). Hawwau Gambo, Head of Communication & Public Affairs said the NDIC delegation included Dr. Kabir Katata, Executive Director, Operations; Mr. Yakubu Shehu, Director, Human Resources; Mr. Olufemi Kushimo, Director, Legal Department; and Mrs. Regina Dimlong, Assistant Director, Communications and Public Affairs. On the CBN side, key officials present included Mrs. Rita Sike; Mr. Nnadi Maduka of the Corporate Communications Department; and Mrs. Salamatu Jubril-Adeniji of the Compliance Department.

India pauses plans to buy U.S. arms after Trump's tariffs
India pauses plans to buy U.S. arms after Trump's tariffs

Zawya

timean hour ago

  • Zawya

India pauses plans to buy U.S. arms after Trump's tariffs

New Delhi has put on hold its plans to procure new U.S. weapons and aircraft, according to three Indian officials familiar with the matter, in India's first concrete sign of discontent after tariffs imposed on its exports by President Donald Trump dragged ties to their lowest level in decades. India had been planning to send Defence Minister Rajnath Singh to Washington in the coming weeks for an announcement on some of the purchases, but that trip has been cancelled, two of the people said. Trump on Aug. 6 imposed an additional 25% tariff on Indian goods as punishment for Delhi's purchases of Russian oil, which he said meant the country was funding Russia's invasion of Ukraine. That raised the total duty on Indian exports to 50% - among the highest of any U.S. trading partner. The president has a history of rapidly reversing himself on tariffs and India has said it remains actively engaged in discussions with Washington. One of the people said the defence purchases could go ahead once India had clarity on tariffs and the direction of bilateral ties, but "just not as soon as they were expected to." Written instructions had not been given to pause the purchases, another official said, indicating that Delhi had the option to quickly reverse course, though there was "no forward movement at least for now." India's defence ministry and the Pentagon did not respond to Reuters' questions. Delhi, which has forged a close partnership with America in recent years, has said it is being unfairly targeted and that Washington and its European allies continue to trade with Moscow when it is in their interest. Reuters is reporting for the first time that discussions on India's purchases of Stryker combat vehicles made by General Dynamics Land Systems and Javelin anti-tank missiles developed by Raytheon and Lockheed Martin have been paused due to the tariffs. Trump and Indian Prime Minister Narendra Modi had in February announced plans to pursue procurement and joint production of those items. Singh had also been planning to announce the purchase of six Boeing P8I reconnaissance aircraft and support systems for the Indian Navy during his now-cancelled trip, two of the people said. Talks over procuring the aircraft in a proposed $3.6 billion deal were at an advanced stage, according to the officials. Boeing, Lockheed Martin and General Dynamics referred queries to the Indian and U.S. governments. Raytheon did not return a request for comment. RUSSIAN RELATIONS India's deepening security relationship with the U.S., which is fuelled by their shared strategic rivalry with China, was heralded by many U.S. analysts as one of the key areas of foreign-policy progress in the first Trump administration. Delhi is the world's second-largest arms importer and Russia has traditionally been its top supplier. India has in recent years however, shifted to importing from Western powers like France, Israel and the U.S., according to the Stockholm International Peace Research Institute think-tank. The shift in suppliers was driven partly by constraints on Russia's ability to export arms, which it is utilizing heavily in its invasion of Ukraine. Some Russian weapons have also performed poorly in the battlefield, according to Western analysts. The broader U.S.-India defence partnership, which includes intelligence sharing and joint military exercises, continues without hiccups, one of the Indian officials said. India also remains open to scaling back on oil imports from Russia and is open to making deals elsewhere, including the U.S., if it can get similar prices, according to two other Indian sources. Trump's threats and rising anti-U.S. nationalism in India have "made it politically difficult for Modi to make the shift from Russia to the U.S.," one of the people said. Nonetheless, discounts on the landing cost of Russian oil have shrunk to the lowest since 2022. India's petroleum ministry did not immediately respond to a request for comment. While the rupture in U.S.-India ties was abrupt, there have been strains in the relationship. Delhi has repeatedly rebutted Trump's claim that the U.S. brokered a ceasefire between India and Pakistan after four days of fighting between the nuclear-armed neighbours in May. Trump also hosted Pakistan's army chief at the White House in the weeks following the conflict. In recent months, Moscow has been actively pitching Delhi on buying new defence technologies like its S-500 surface-to-air missile system, according to one of the Indian officials, as well as a Russian source familiar with the talks. India currently does not see a need for new arms purchases from Moscow, two Indian officials said. But Delhi is unlikely to wean itself off Russian weapons entirely as the decades-long partnership between the two powers means Indian military systems will continue to require Moscow's support, one of the officials said. The Russian embassy in Delhi did not immediately respond to a request for comment. (Reporting by Shivam Patel and Aftab Ahmed; Editing by Katerina Ang)

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store