By Peter OBIORA investadvocate

Nov 23 2010 16.30 GMT

Lagos (INVESTADVOCATE)-Alliance Capital Management Company Limited a Dealing Member of the Nigerian Stock Exchange (NSE) has topped the list of Dealing Firms that committed Capital Market infractions with 26 percent (26%) of these attributed to the company in year 2009.

This was contained in the President’s Statement at the 49^th Annual General Meeting (AGM) of Members of the Nigerian Stock Exchange held Tuesday November 23 2010 in Lagos Nigeria.

Ballama Manu, Interim President of Nigeria’s Exchange confirmed that complaints against Capital Alliance constituted about 26% of the total complaints handled by the Directorate; which are mostly unresolved because of the suspension of the firm.

The NSE Interim President confirmed that Alliance Capital also appeared before the Administrative Proceedings Committee (APC) of the Securities and Exchange Commission (SEC) from the Tuesday 03 to Friday 06 November 2009 and the firm is also scheduled to appear at the next meeting of The Exchange’s investigation panel.

It was reported that a total number of 249 unresolved complaints were brought forward from year 2008; mainly from inactive Dealing Member Firms.

Manu affirmed that in year 2009, a total of 374 complaints were received against Dealing Member Firms. “Out of these, 268 complaints were resolved; while 106 are still being investigated pending resolution” he said.

“We observed that the complaints received during the period under review, border mainly on unauthorised sale of shares and failure to remit proceeds” the Interim President said.

He further affirmed that the reason for this attitude was due to the illiquidity suffered by majority of Dealing Member Firms coupled with desperation of Banks to recoup their outstanding Margin Facilities.

In addition, it was observed that the majority of Dealing Member Firms do not comply with Article 102 of the Rules and Regulations governing its members-Know Your Client (KYC). This has often resulted in fraudulent sales of shares to persons who are not the real owners of the shares” Manu affirmed.

As earlier reported investors had for the past two years raised complaints against Edward Diete-Koiki, the Managing Director/Chief Executive Officer (MD/CEO) of Alliance Capital.

One of the petitions dated July 29, 2008 by A.J. Sule Esquire and Solicitor to the petitioner sent to the NSE, the company was said to have collected from one Prince Oyerinde Adewale Atanda several sums of money amounting to over N1.076 million for the purchase of units of Access Bank Plc shares Public Offer (PO) 2007, Dangote Flour Mills Plc 2007 PO. And the then First City Monument Bank (FCMB) and Fidelity Bank Plc 2007 offers.

Atanda requested that Alliance Capital pay the sum of N1, 076,583.03 million in terms of un-allotted Dangote Flour Mills return money, un-purchased FCMB and Fidelity Bank 2007 offers and anticipated income by way of profit on FCMB and Fidelity Bank offers.

However, as at the time of filling in this report, investadvocate could not confirm if this particular case has been resolved since it was reported.