RE: NSE Audited Financial Statements 2009
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The SEC released a press release at 1835pm on Wednesday, October 6, 2010 to enable the members of the investing public know about why the SEC as asking the Interim Administrator to pursue the council bon uses for the period – 2006 to 2008.
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This was coming after www.proshareng.com had released the full list of beneficiaries of the productivity allowances declared by the Full Council, arising from the surplus achieved in the intervening period.
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The press released raised some salient questions which suggested a rushed response to a matter one would have otherwise considered under their control.
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Here are few gaffes that raised questions about the intent and purpose of the communication:
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- The SEC said that “The Interim Administrator of the NSE, Mr. Emmanuel Ikazoboh submitted the approved accounts to the Securities and Exchange Commission (SEC) on 30 September 2008â€ÂÂ. This cannot be correct as the NSE submitted accounts as at 30 September 2009.
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- The SEC said that “The 2009 accounts were audited by the NSE’s External Auditors, Messrs Akintola Williams Deloitte, who have been able to sign off an un-qualified set of accountsâ€ÂÂ. This cannot be correct as the same SEC statement immediately said that “One of the basis for the Auditors’ qualification of the accounts was that….â€Â It is thus incorrect to approbate and reprobate in the same space. Was the account qualified or not? The press statement did more to raise doubts as to what should otherwise be a straight forward position.
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- The SEC said that “the Accrued sum of N1.2bn was distributed to employees and council members as bonuses and share of surplus respectively in the current yearâ€ÂÂ. It went on to say that “similar payments had been also made since 2006 through to 2008â€ÂÂ. It then went on to provide “below a list, setting forth payments to 25 members of the Council from 2006 to 2008â€ÂÂ. The problem with this list was that it showed a total payment of N1.380bn as against the N1.2bn claimed above.
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The legitimate question is thus raised about why the Securities and Exchange Commission (SEC) could get it so wrong and not expect that any member of the investment community will be paying attention to specifics and not only the rhetoric.
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Also the information that Nigerians’ most influential businessman and erstwhile NSE President had returned the full N40 million, being what was his own share – appear contrived. This was so as it did not disclose the number of persons who had indicated to refund theirs as well or were unwilling to do so and is seeking legal advice and action on the development.
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Suffice to say, the SEC owes the market much more than obvious contradictions.