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FIRS Goes After States, Local Govts Over Unremitted Tax Deductions

FIRS Boss, Muhammad Nami | Nairametrics

The Federal Inland Revenue Service (FIRS) has indicated a resolve to enforce and recover unremitted tax deductions by some States and Local Governments in Nigeria.

This is contained in a Public Notice, signed by its Executive Chairman, Muhammad Nami.

Nami is worried that most States and Local Governments have failed to remit to the Service Withholding Tax (WHT) and Value Added Tax (VAT) deductions from payments made to contractors and service providers by them as required by law.

He highlighted relevant portions of the Companies Income Tax Act (CITA) and the Value Added Tax Act (VATA), saying that Ministries, Departments and Agencies of Government, as well as Parastatals and other establishments are expected by law to deduct certain taxes while making payments to third parties and remit those deductions to the FIRS.

“The provisions of Sections 78(3), 79(3), 81 of the Companies Income Tax Act (CITA), and Sections 9(I), 13(1) of the Value Added Tax Act (VATA), mandate Ministries, Departments and Agencies of Government (MDAs), Parastatals and other establishments to deduct WHT and VAT while making payments to third parties and remit same to the Service.

“By the provisions of the relevant laws, States and Local Governments are statutorily mandated, as agents of collection, to deduct at source and remit to the Service, all taxes deducted, within twenty-one days.”

The Notice by the FIRS boss said that most States and Local Governments have failed to comply with these provisions of the law, despite appeals from the FIRS.

“However, it is regrettable to note that most of the States and Local Governments have failed in their responsibilities of remitting WHT and VAT deducted from payments made to contractors and service providers as required by law.

“The implication is the huge tax debts owed by the States and Local Governments.

“All entreaties by the Service to ensure the remittance of the established unremitted tax deductions by the defaulting States and Local Governments have been unsuccessful as a result of lack of cooperation in adopting the e-payment platforms provided by the FIRS for a seamless deduction and remittance of these taxes.”

The notice said that as a result of the failure to remit by defaulting States and Local Governments, the Service will advise the Federal Government and the Minister of Finance, to henceforth decline approval of any request for the issuance of state bonds or other securities in the capital market; as well as requests for external borrowing and approval for domestic loans from commercial banks or other financial institutions.

The tax authority same said that it would also publicly name and shame the defaulting States and Local Governments while publishing the amounts owed in unremitted tax deductions.

It said that it would also invoke the provisions of Section 24 of its Establishment Act which empowers the Accountant General of the Federation to deduct at source, from the monthly FAAC allocations, un-remitted taxes due from any government agency and to thereafter transfer such deductions to the Federation Account and notify the Service.

The FIRS called on all defaulting States and Local Governments to promptly remit all unremitted tax deductions within 30 days of the publication of the Notice to avoid it taking these enforcement actions.

US Dollar’s Share Of Global Foreign-Exchange Reserves Falls—IMF

International Monetary Fund (IMF) has said that the US dollar’s share of global foreign-exchange reserves fell below 59% in Q4 2021.

The Fund, in its Blog Chart of the Week, said that the US dollar “has long played an outsized role in global markets.

“It continues to do so even as the American economy has been producing a shrinking share of global output over the last two decades.

“But although the currency’s presence in global trade, international debt, and non-bank borrowing still outstrips the US share of trade, bond issuance, and international borrowing and lending, central banks aren’t holding the greenback in their reserves to the extent that they once did.

“As the Chart of the Week shows, the dollar’s share of global foreign-exchange reserves fell below 59 per cent in the final quarter of last year, extending a two-decade decline, according to the IMF’s Currency Composition of Official Foreign Exchange Reserves data.

“In an example of the broader shift in the composition of foreign exchange reserves, the Bank of Israel recently unveiled a new strategy for its more than $200billion of reserves.

“Beginning this year, it will reduce the share of US dollars and increase the portfolio’s allocations to the Australian dollar, Canadian dollar, Chinese renminbi and Japanese yen.

“As we document in a recent IMF working paper, the reduced role of the US dollar hasn’t been matched by increases in the shares of the other traditional reserve currencies: the euro, yen, and pound.

“Moreover, while there has been some increase in the share of reserves held in renminbi, this accounts for just one quarter of the shift away from dollars in recent years, partly due to China’s relatively closed capital account. Moreover, an update of data referenced in the working paper shows that, as of the end of last year, a single country—Russia—held nearly a third of the world’s renminbi reserves.

“By contrast, the currencies of smaller economies that haven’t traditionally figured prominently in reserve portfolios, such as the Australian and Canadian dollars, Swedish krona and South Korean won, account for three quarters of the shift from dollars.

“Two factors may help to explain the movement into this set of currencies: these currencies combine higher returns with relatively lower volatility. This appeals increasingly to central bank reserve managers as foreign exchange stockpiles grow, raising the stakes for portfolio allocation.

“New financial technologies—such as automatic market-making and automated liquidity management systems—make it cheaper and easier to trade the currencies of smaller economies.

“In some cases, the issuers of these currencies also have bilateral swap lines with the Federal Reserve. This, it can be argued, creates confidence that their currencies will hold their value against the dollar. At the same time, the importance of this factor can be questioned.

“The nontraditional currencies tend to float. In practice, they fluctuate widely against the dollar. And their issuers have rarely if ever drawn on their bilateral swap lines with the Fed.

“A regression analysis shows that having a Fed swap line is associated with a 9 percentage point increase in the dollar share of the recipient’s reserves. This may indicate that swap lines are an imperfect substitute for actual reserves.

“A more plausible explanation is that these nontraditional reserve currencies are issued by countries with open capital accounts and track records of sound and stable policies.

“Important attributes of reserve currency issuers include not just economic weight and financial depth, but also transparent and predictable policies. In other words, the stability of the economy and policy decisions matter for international acceptance.

“A regression analysis of global reserve currency shares confirms that a higher economic risk premium, measured by the cost of using credit derivatives to insure against default, reduces a currency’s share in global reserves. Evidently, holders favour the currencies of countries known for good governance, economic stability and sound finances.”

Source: Business News Report

Nigeria Suffers Low Capacity To Mobilise Youths For Economic Development – NEPC

Ezra Yakusak-NEPC

Nigeria Export Promotion Council (NEPC) has indicated that the country is still suffering from low capacity to mobilise the dynamic nation’s youths into productive ventures for economic development.

The Executive Director of the Council, Ezra Yakusak, who spoke today, June 1 at the official commissioning of Lelook Bags Academy in Abuja, said that one of the challenges bedeviling the nation is low capacity to galvanise the youths into productive ventures for economic development.

He acknowledged that the country is blessed with a large youthful population ready to contribute to building a strong and prosperous economy.

“You are all aware that Nigeria has a large portion of youthful population, who are energetic, ingenious, skilful and ready to contribute in building a strong and prosperous economy.

“However, the challenge has always been low capacity to mobilise the youths into productive ventures for economic development.”

He commended the Founder of Lelook Academy, Mrs. Chinwe Ezenwa, for the commissioning of Lelook Bags Academy, saying that the council will do more to sustain its interventions to SMEs and other relevant players in the non-oil export ecosystem.

“This project is important to Nigerian Export Promotion Council because it is a testimony to how NEPC   interventions has tremendously built up and transformed a  SMEs into export oriented firms.  It is interesting to note that NEPC identified  LeLook in its infancy.

“The Council invested immensely  into it through participation in export readiness assessment sessions, product development and adaptation particularly in packaging and labelling  under the NEPC -ITC -SheTrades programs.

“The lessons she learnt under these programs has enabled Le look brands and labels to   successfully compete and break into niche export markets in abroad.

“You may also need to know that Le look has been one of the SME’s that participated in NEPC’s spearheaded and sponsored trade fairs such as the Magic fair, New York Gift Fair, Inter African Trade Fair in Egypt and South Africa and several other Match-making and business expos.

“Her labels were in high demand at the just concluded Expo 2020 Dubai. In recognition of the Le look progress and innovativeness NEPC provided further assistance to Le Look through the Export Expansion Facility Program (EFPP) for it to scale up production and the result is what we are all seeing today.

“A success story from a humble beginning to a great height. Without missing words , NEPC having prepared Le Look under its ITC/AFREXIMBANK training on “How to export under the AfCFTA and the NEPC/WATIH/USAID training on “Exporting under the AGOA”  has provided veritable platform for Le Look brands to capture a major market share under the  African Growth and Opportunity Act and the AfCFTA.

“The Nigerian Export Promotion Council will continue to sustain its interventions to SMEs and other relevant players in the non-oil export ecosystem in pursuit of our vision of making the world a market place for Nigerian non-oil products.”

In her remarks,  Chief (Mrs.) Chinwe Ezenwa, said: “Our goal is to buy into the Federal Government’s target of diversifying the Nigerian economy and promoting the country’s non-oil exports and production. “Having spent over 35 years in the sector, I am convinced on how to make a difference.Everywhere else, people talk about vocational skills but here we are talking about bag-making skills specifically. We thought we needed to raise people, esp women, with skills, with Nigeria having signed the African Continental Free Trade Agreement. Recently, we had to set up Lelook Multipurpose Society to empower women who might not be able to get loans easily, because getting a loan for a woman in Nigeria isn’t easy.”

Political Parties’ Failure To Respect INEC Timetable, Implications For 2023 Elections, By Ahmed Y. Hassan

Usually, elections everywhere in the world are clouded with divided interests and drama. As Abraham Lincoln once said, the ballot is stronger than the bullet. People who understand how powerful electioneering processes are, will do everything possible, either to exploit its loopholes or to ensure that the process is strong enough, free and fair.

Currently, Nigeria is at a crossroads and the 2023 general election is deemed to be very important. In fact, it is an eagerly anticipated event that will either make or mar Nigeria as a nation.

As such, it is high time citizens remembered that politics is too important a matter to be left solely in the hands of politicians, especially Nigerian politicians who are known to skew things to work in their favour.

While most political parties are already busy deciding their flag bearers for various political offices, the dilly-dallying on the primaries, leading to the readjustment of the Timetable and Schedule of Activities for the 2023 General Election, is below par.

After the Independent National Electoral Commission (INEC) released its timetable and schedule a day after the Electoral Act 2022 was passed, it was forced to readjust the timeline to allow the parties conclude their primaries.

The INEC timetable had 14 activities from the publication of notice for the elections. The third activity on the timetable is the conduct of primaries by political parties. This was expected to be for 60 days and should have been completed by June 3, 2022.

Sadly, all 18 registered political parties scheduled their Presidential primaries for the last seven days of the period earmarked for the exercise, making it impossible for INEC to make progress with its original schedule.

At the May 9 edition of the regular quarterly meetings between the election umpire and stakeholders’ and Inter-Party Advisory Council (IPAC), the 18 political parties had requested that INEC considered an extension of the timeframe by another 60 days (2 months).

They argued that the time given was too short. They also said they needed more time so they could fully comply with the provisions of the new Electoral Act 2022.

After the request was turned down, the parties wrote the commission again on May 12, reminding it of their request for extension. The request was turned down a second time.

INEC finally granted an extension on May 27 when IPAC called for an emergency meeting with the Commission. During the meeting, the political parties presented a modified request for a one-week extension.

The new extension period is expected to be from June 4 to 9.

However, INEC is yet to specifically list out the activities it expects the parties to have carried out within the new timeframe.

The next activity on the timetable is the submission of list of candidates for Presidential and National Assembly elections. This is expected to place between June 10 and 17.

Obviously, the lack of respect for the election timetable and schedule by the parties would have affected the overlapping activities in the election process if the 6-day grace granted by the commission was not in the plan – thankfully the election timetable remained essentially unaltered.

With INEC’s timetable and schedule already set, and a deadline given to parties to conduct primaries, failure of some parties to do so before June 3, shows disrespect for the commission, which could have caused problems for the election and put the timetable into doubt, had INEC not given a 6-day grace whilst maintaining the election timetable.

While it is sad that only a few parties have conducted primaries, many have indicated their desire to seize the opportunity of the 6-day extension to reschedule their primaries. INEC should have no reason to welcome any further request of extension from the parties.

INEC is not also expected to succumb to any unilateral decision that will benefit any political party, going forward.

Interestingly, parties are expected to submit their lists of candidates of candidates to INEC as soon as the primaries are concluded.

Four officials from each of the 18 political parties, making a total of 72 officials in all, would be trained on the use of the INEC portal where submission is expected to be made. It is easy to see how the failure of these political parties will directly affect the training.

While it is commendable that INEC decided to train the political party officials to make efficient and effective use of the portal, there is also the need for the training to be done on time. The political parties must also take proper advantage of the opportunity to avoid delay relating to technical problems.

As the rest of the world watches the electioneering activities in Nigeria with keen interest, it is important that all stakeholders play their parts not only on the ‘Election Days’ but in the many activities that precede the period to ensure a free and fair election.

Hassan wrote from Birmingham, England.

Alleged Fraud: Court Seizes NOK University In Kaduna, Built By Former Federal Director Of Accounts

A Federal High Court sitting in Abuja, has ordered the interim forfeiture of every asset of NOK University, based in Kaduna.

The University, built by a former Director of Finance and Accounts (DFA), in the Federal Ministry of Health, Anthony Hassan, was suspected to have been built from the proceeds of unlawful activities traced to its owner.

Hassan, who was a DFA in the ministry between 2016 and 2019 allegedly built the University through fraudulent means.

Physical assets of the University forfeited include Senate building, ICT building, Faculty of Medicine building, Science Deanery building, two Academic buildings , a Faculty Hall  and other buildings.

Other properties traced to Hassan which are also forfeited in the interim are Gwasmyen Water Factory, Gwasmyen Event Center and Gwasmyen International Hotel in Kaduna.

Justice Zainab Abubakar, gave the interim forfeiture order today, June 1, while ruling on a motion ex-parte brought by the Economic and Financial Crimes Commission, EFCC.

Counsel to the EFCC, Ekele Iheanacho told the court that the EFCC sought the order “pursuant to Section 44(2) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and Section 17 of the Advance Fee Fraud and Other Fraud Related Offences Act No. 14, 2006 and under the inherent jurisdiction of the Honorable Court.”

The Commission, through its investigative Officer,  Adaora Asabe Oragudosi, investigated some verified intelligence, bordering on criminal conspiracy, stealing, abuse of office and money laundering against some staff of the Federal Ministry of Health where the properties forfeited were traced to the defendant.

In the ruling, the court directed that the interim forfeiture order be published in the National dailies, alerting anyone with interest in the properties to show cause, within 14 days, why it should not be forfeited to the Federal Government of Nigeria.

Justice Abubakar adjourned till October 5, 2022, for mention of the matter.

After EFCC Circuse Show, Ex Gov Obiano Enjoys Himself In US

After what looked media trial, a circuses show shortly after handing over as Governor of Anambra State, Chief Willie Obiano is now enjoying himself in Houston, USA.

Obiano was arrested by the Economic and Financial Crimes Commission after his handover on March 17, 2022. His International passport was seized before he got a court directive that ordered the EFCC to release his traveling documents.

PDP Presidency: I Paid For Nothing, I Got Nothing – Dele Momodu

One of the Presidential aspirants who contested the Peoples Democratic Party Primary recently, Dele Momodu, has said that he was not surprised that at the end of it all, he didn’t get a single vote.

Speaking at a question and answer program of the TVC today, June 1, Dele Momodu said that before the commencement of voting, he vowed not to give any delegate a kobo.

According to him, delegates were openly chasing contestants for Dollars and were therefore voting according to the dictate of the Dollars they got from the contestants.

“For me, I was not prepared to give any delegate a kobo. “So, at the end of the day, I paid for nothing and I got nothing, and I didn’t regret it.”

Two Brothers, Different Fate, By Obiaruko Christie Ndukwe

Wike and Amaechi

Since the concluded PDP presidential primaries, there have been different narratives canvassed in the media space for and against the aspirants. One of such who has attracted more attention than the eventual winner of the election is Governor Nyesom Wike of Rivers State.

Back home, the age-old rivalry between his camp and that of his former boss and predecessor, Rt. Hon. Chibuike Rotimi Amaechi has triggered a new frontier of arguments.

While Wike and Amaechi come from Rivers State but belong to different political parties, PDP and APC, respectively, there has been an attempt to put them on the same scale on the premise that what affects one will almost likely affect the other.

The governor went into the PDP battle with a full war chest financially and without a known loyalty to any godfather or political leader. He owes no one any allegiance; rather, he was upbeat about his attempt to secure the grand prize of his party, PDP.

His style was a crass display of brute force against any dissenting voices, not excluding the media where he publicly told his host on a Television programme that he is the candidate for the PDP and not an aspirant. Wike urged Seun Akinbalode of Channels Television to congratulate him in advance since he was sure to win the ticket.

The delegates in some states were not left out as they were made to believe that only a Wike candidature could help the party defeat the ruling party. Governors and aspirants also felt the pang of Wike’s unnerved theatrics during his consultation around the country. Everyone, including non-PDP members, had a good dose of laughter or anger, listening and watching the Rivers Bulldog unleash at every doubting Thomas. There was no one to stop the governor or take the mic off from him. The PDP seemed to be in his pockets, having successfully dislodged his kinsman, Uche Secondus, as National Chairman of the party for an Iyorchia Ayu who is an avowed Atiku loyalist.

But, the result of the primaries showed otherwise that the party remains in the clutches of the North.

The gang up against Wike by the governors of the South can best be described as a payback for his indecorous manner while addressing them. They blame him for the exit of some PDP governors who joined the APC.

While Wike may have come very close to the ticket considering his intimidating ability to match a supposedly richer Atiku Abubakar money for money, his ambition to become the next president was punctured by those who never saw themselves less than him. The governors from the South are his contemporaries, and so do not amount to his loyalists.

Wike’s fate lay on his brothers.

On the other hand, Amaechi is also a frontrunner in his party, APC, for the presidential ticket. The story of this former Speaker and Governor needs no elucidation as every Nigerian knows that he played a key role in the presidential aspiration of General Muhammadu Buhari in 2014 primaries of the APC.  Amaechi, like Wike, is also strong-willed, but his style of politics since becoming a Minister under Buhari has changed considerably.

The Rivers born politician understands political diplomacy where everyone who aspires to be in authority must be under authority.

The APC has a sitting President who, by their Constitution, is the leader of the party. All party leaders and members owe him allegiance. Amaechi knows that as much as Buhari is a Democrat, he has not also ceased being a military General.

The President has told the sitting Governors of the party that he would nominate his choice of successor for the party. He also said consultation will continue amongst stakeholders and aspirants.

Amaechi is not expected to toe the same path as Wike with a party that has an overall leader with whom he enjoys a deep affinity.  It would amount to political suicide for Amaechi to adopt the dollarized kind of campaign beyond what is considered normal.

There would be no need to threaten anyone who is perceived not to be in support of his ambition. While on his tour of the states, Amaechi did not dissipate energy and financial resources to visit leaders and members of the opposition PDP.

With a leader like Buhari, there is a place for endorsement and eventual consensus. If Amaechi gets the nod of the President, which is 80% likely, his fate would surely not be the same as Wike.

 Obiaruko Christie Ndukwe is an Abuja based political analyst @beamnews@yahoo.com

Nigeria Is Ready To Host Global Conference On Tourism, Culture, Creative Industry In November – Buhari

President Buhari visits United Nations World Tourism Organisation Secretary-General in Madrid Spain on 1st June 2022 | State House Press

President Muhammadu Buhari has said that Nigeria is fully ready to host the first-ever Global Conference on Tourism, Culture, and the Creative Industry in November this year in a conducive environment.

Speaking today, June 1, during a visit to the headquarters of the United Nations World Trade Organization (UNWTO) in Madrid, the Spanish capital at the beginning of his State Visit to Spain, President Buhari described the granting of the hosting rights as a further proof of Nigeria’s support for the vision of the organization and also an affirmation of the confidence reposed in our country by your organization.

He said that the event would provide yet another opportunity for the country to showcase its tourism and creative industry to the whole world.

“It will also serve as an opportunity to extend our warm hospitality to the world and introduce the country’s leisure and business sectors to potential investors. We have not-so-well-known wonders to reveal!”

President Buhari assured participants from across the world  of a safe and  secure environment  as well as excellent facilities, adding: “we look forward to welcoming all participants.”

The President affirmed that the country has been consistent in supporting the organisation since joining in 1975, saying that Nigeria had also been elected Chairman of the Commission  for Africa between 2005 and 2007.

The President used the opportunity to thank the Secretary-General for granting 100 UNWTO Online Academy Scholarships on the ‘Introduction to Tourism-Industry Management,’ saying that this will further boost youth empowerment and education as well as address the manpower shortage in the tourism sector.

This was even as the Minister of Information and Culture, Alhaji Lai Mohammed, whose ministry is facilitating the conference, said that Nigeria was given the hosting rights at the 64th meeting of the UNWTO in Cape Verde in 2021.

“Our plan is to host the event in the iconic National Theatre in Lagos which is currently  being massively refurbished for the first time  since its commissioning some 46 years ago.”

Lai Mohammed said that since the announcement of the rights, preparations had started in earnest in conjunction with the UNWTO to ensure that Nigeria hosts a world-class event to justify the confidence reposed in the country by the organization

The Minister emphasized that Nigeria intended to leverage on the conference to showcase what makes Nigeria tick in culture, tourism, music, film, gastronomy, fashion, photography and why Nigeria has become a global leader in music and film, especially.

In his remarks, Secretary-General, UNWTO, Zurab Pololikashvili said that the visit of the President is a direct confirmation of how important tourism is to Nigeria, describing Nigeria as “a big country with huge resources in culture, nature and diversity.

“We have a long-term commitment with Nigeria to develop tourism and attract more and more tourists to Nigeria. The numbers are very small at the moment and I think it’s a shame. Nigeria  has to receive much more tourists to see the beauty and meet the people.”

He assured the President of his support in promoting the diverse culture of Nigerians and  Africans to the world.

Atiku Reminds PDP: There’s So Much To Do To Win 2023 Elections

Atiku Abubakar

Presidential Candidate of the Peoples Democratic Party (PDP) in the 2023 Presidential Election, Alhaji Atiku Abubakar has reminded leaders and members of the party that there is so much to do to win the elections next year.

Atiku, who spoke while receiving the Certificate of Return as the party’s candidate, at the PDP National Secretariat, Wadata Plaza, Wuse, Abuja today, June 1, said: “we must unite and work extremely hard for every single vote in this country. There is so much to do and there is little time to waste.  So, let’s get to work.”

According to him,  PDP should not take the defeat of the All Progressives Congress (APC) for granted.

Atiku said that while he is excited and happy for the opportunity to bear the party’s flag, “let us all remember that what just happened is a contest within a family to decide how to put our best foot forward. The main contest is the one to win the Presidency of our country for our Party.

“And it requires the entire PDP family and other supporters and sympathizers. We must pull everyone together. Nobody should be excluded. I have already visited some of those who contested against me as a way to lead in that effort to unify the party so that we can face our real opponents, defeat them in the elections and begin the process of rescuing and rebuilding this country.”

Part of his speech is reproduced here:

When I came in April and informed the National Working Committee of my intention to offer myself for consideration as the Presidential flag-bearer of our great party, the Peoples’ Democratic Party, in the forthcoming Presidential Election, I was well received. The NWC assured me that it would be fair and provide every aspirant a level playing field.

I was also assured that once a candidate emerged from our primary election you would all support that candidate and work very hard to ensure our victory in the Presidential election and of course the governorship and legislative elections across the country.

I am honoured and quite humbled to receive this Certificate of Return, having emerged as our party’s Presidential Candidate in our just concluded Special Convention. This victory is a victory for all of us, for our party and for the vast majority of Nigerians suffering under the misrule of the APC.  It was a collective effort, and I am very grateful for everybody’s contributions.

Let me first thank the Organizing Committee for the Convention under the leadership of the rock-solid Senator David Mark, for putting together a rancor-free and successful Convention.  I want to specially thank the National Working Committee of our Party, led by the National Chairman, the unflappable Senator Iyorchia Ayu, for the excellent way that it has steered the affairs of this party, including overseeing the successful Convention.

I am particularly grateful that you kept your word and gave us contestants fair treatment despite your likely varying sympathies and what must have been a pressure-laden and difficult situation.  Your integrity and even-handedness must be commended. I commend our party’s National Executive Committee for putting our party and our country first in its deliberations and decision-making.

I thank all those who assisted my campaign in a variety of ways to enable me to crisscross this vast country and make my case to our delegates and other party elders and members.

To all those who volunteered their time to help with organizing the Convention, as well as all the security personnel and agencies who ensured an orderly event and the safety of the attendees, I say thank you very much.

I also thank my family for putting up with my demands and the disruptions this quest to serve obviously bring about.

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