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Messages - cooljoe

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« on: November 07, 2008, 07:01:03 PM »
The National Assembly has proposed N10. 4bn for the payment of pensions and gratuities of retirees nationwide.

This amount, our correspondent learnt, may have been included in the supplementary budget recently passed by the National Assembly.

The Chairman, House of Representatives Committee on Pensions, Mr.  Rasak Adewusi, made this known on Thursday, when the committee members visited the Police Pensions Office in Lagos.

Adewusi, who had a chat with a cross-section of pensioners who were at the event, said the fund was undergoing normal processing and would be available in due course.

He advised the pensions office to make a documentation of all the retirees, especially those who had one problem or the other with the processing of their papers.

The list, he said, should be made available to the committee and appropriate steps would be taken on it to facilitate the payment of the retirees.

According to him, the committee would work on the list and make recommendations to the appropriate authorities on the beneficiaries.

He said, ?The purpose of our visit is to assess the level of achievement of work undertaken by you from the 2008 Appropriation.

?There is, therefore, the need for your office and the committee to work together to minimise, if not completely eradicate the issue of unpaid or delayed pensions. ?

The Director-General, Police Pensions, Mr.  Essai Dangaba, said his office had already compiled a comprehensive list of police retirees, even till 2009.

He admitted that every retiree who had perfected the necessary documentation of his papers was entitled to his pension and would surely be paid. 

« on: November 07, 2008, 06:57:41 PM »
NEW YORK (CNNMoney. com) -- General Motors shook an already embattled auto industry Friday as it reported a huge quarterly loss that was much worse than expected and warned it is in danger of running out of cash in the coming months.

GM, the nation's largest automaker, reported it lost $4. 2 billion, or $7. 35 a share, excluding special items.  That's up from the loss $1. 6 billion or $2. 86 a share it reported a year earlier and was far worse than the forecast of analysts surveyed by earnings tracker Thomson Reuters, which had forecast a loss of $3. 70 a share.

But the most shocking news came in its statements about its cash position.  GM said it had burned through $6. 9 billion during the quarter and warned that it "will approach the minimum amount necessary to operate its business" during the current quarter. 

In addition, the company said that in the first half of next year its "estimated liquidity will fall significantly short" of what it needs to continue operating.  It said the only thing that would save it would be a significant improvement in economic and automotive industry conditions, help from the federal government, better access to capital markets or some combination of those options.

The report was by far the most grim assessment by a company that has insisted it is not considering filing for bankruptcy court protection.  While the release did not mention the threat of bankruptcy, the outlook appeared to raise the possibility of such a dramatic step.

Dave Cole, chairman of Michigan think-tank the Center for Automotive Research, said the chances that GM would be forced to file for bankruptcy were high unless Congress takes almost immediate action to bail out the industry.

"This is not something that can go on and be dealt with in the next year, it needs to be dealt with in the next few weeks," said Cole.  "When your cash is gone, you're gone. "

One possible scenario reported recently involved a corporate tie-up between GM and Chrysler.  Wagoner, without mentioning Chrysler by name, said on a conference call that GM had ended talks about a possible merger with a Detroit rival to concentrate on the cash crisis it now faces. 

GM announced a series of steps Friday designed to help it improve its cash reserves by $5 billion.  Those steps included cutting another 10% of salaried employment costs, on top of the 20% cut in those costs already planned.  In addition to expected staffing reductions, those white collar workers will not get their typical incentive pay next year.

GM will also cut capital spending plans by $2. 4 billion in 2009, pushing back development plans for some new models.  But it warned that even those steps would not be enough unless conditions improve.  It did not announce any plans for additional plant closings or hourly staff cuts in its statement, however.

The company is clearly pinning much of its hopes of weathering the current downturn on the Congress approving some kind of bailout for the industry.

"The company has engaged in discussions with various U. S.  federal government agencies and congressional leaders about the . . .  the need for immediate government funding support given the economic and credit crisis and its impact on the industry, including consumers, dealers, suppliers and manufacturers," according to a company announcement. 

GM CEO Rick Wagoner joined the chief executives of Ford Motor (F, Fortune 500), privately-held Chrysler LLC, as well as the president of the United Auto Workers union Thursday afternoon in meetings with House Speaker Nancy Pelosi, D-Calif. , and Senate Majority Leader Harry Reid, D-Nev. , to seek support for a wide-ranging bailout package.  Both congressional leaders voiced support for additional help for the sector following their meetings.

Among the topics discussed were a $25 billion loan to fund union-controlled trust funds that would be set up in the coming year to cover the health care costs of retirees and their family members.  Shifting about $100 billion of those costs from the automakers' balance sheet to the trust funds was a key concession the companies won from the UAW in the 2007 labor deals.

The discussions also touched upon allowing the automakers to tap into the $700 billion bailout of Wall Street firms and the nation's banks that was passed by Congress last month.  Treasury has so far rejected auto-industry inquiries about accessing that pool of money.

The automakers also renewed their pre-election request to double the $25 billion low-interest loan program approved by Congress to help automakers convert operations to make more fuel-efficient vehicles and meet the demands of car buyers and new federal rules. 

Shares of GM (GM, Fortune 500), whose trading was halted ahead of the announcement, fell 16% after they resumed.

The company's problems have been building for many years.  It has not made money on its core North American auto operations since 2004, and since that time it has run up $72 billion in net losses, including this latest period.

The company did see a one-time $1. 7 billion gain from a change in accounting for its obligation to pay for health care for retirees and their family.  That allowed it to post a net loss of $2. 5 billion, or $4. 45 a share, an improvement from the net loss of $42. 5 billion, or $75. 12 a share a year ago when it was hit by huge special charges.

Much of the net losses in recent years have been due to non-cash charges, such as the ones a year ago.  But even excluding those kinds of special charges, GM's core auto operations in North America have lost nearly $18 billion over the course of the last 15 quarters.

GM's announcement came on the same day that Ford Motor reported a $3 billion loss in the period, excluding special items.  Even Japanese rival Toyota Motor (TM), which has a much better cash position coming into this crisis, announced Thursday that its third quarter earnings had plunged nearly 70%, as it slashed its full fiscal-year outlook by 50%. 

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