Reps To Probe Suspension Of SEC DG By Adeosun

Henrietta Strickland
December 6, 2017

According to him, there were allegations of interference by the Ministry of Finance in the discharge of SEC's responsibilities, with the Oando forensic audit matter being largely responsible for the DG's suspension.

The Commission had in a statement while announcing the appointment of Dr. Abdul Zubair as the acting DG SEC by the Federal Government said: "In view of the foregoing, the SEC Nigeria, wishes to assure the investing public and all stakeholders, local and global, of its commitment to ensuring the uninterrupted and orderly operation of the market and the regulation thereof".

SEC had explained that it carried out a comprehensive review of the petitions from Mangal and Ansbury and found a breach of the provisions of the Investments & Securities Act (ISA) 2007; breach of the SEC Code of Corporate Governance for Public Companies; suspected insider dealing; suspected related party transactions not conducted at arm's length; and discrepancies in the shareholding structure of Oando Plc, among others.

SEC said that while a Notice of Appeal has been filed to challenge the judgment of the Federal High Court, the notice does not serve as an Order of Court restraining the Commission from conducting the exercise.

The lower legislative arm, therefore, directed its committee on capital markets and institutions to investigate all the allegations and report back to the members in two weeks time.

Both petitioners have filed at least four lawsuits against Oando following a failed business move in which the firm acquired oil infrastructures from ConocoPhillips in Nigeria.

SEC also confirmed that though the court advised Oando Plc to approach the Securities Tribunal, it has not received any notification from any court stopping it from proceeding with the forensic audit.

"Nigerians should know why the SEC DG was suspended".

Meanwhile, SEC said on Tuesday that it would go ahead with the forensic audit of Oando Plc.

Consequently, the Commission announced the appointment of a consortium of experts, consisting auditors, lawyers, stockbrokers and registrars, to conduct the forensic audit, while shares of Oando Plc at the Nigerian Stock Exchange, NSE were placed on temporary technical suspension. The forensic audit will show that there is no hidden agenda or interest from all stakeholders involved in the matter. It is not a one-man entity, so the continuation of the forensic audit on Oando is a welcome development. We shareholders expect the forensic exercise to continue despite the suspension of Gwarzo. "The suspension of Gwarzo is a different thing from Oando's audit. We want the exercise to be transparent and not to witch-hunt anybody".

Other reports by Click Lancashire

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