By Peter OBIORA investadvocate

Dec 01 2010 02.20 GMT

Lagos (INVESTADVOCATE) – Nigeria’s Securities and Exchange Commission (SEC) is yet to clear the Professor (Mrs.) Ndi Okereke-Onyiuke’s past Management of the Nigerian Stock Exchange (NSE) of financial misconduct.

 

This was contained in a Statement dated November 30 2010 by Lanre Oloyi, Head, Media of SEC and made available to investadvocate in Lagos Nigeria.

 

“The attention of the Securities and Exchange Commission (SEC) has been drawn to some media publications that it has absolved the immediate past Management of The Nigerian Stock Exchange (NSE) of any financial misconduct” the Statement said. 

 

SEC affirmed in the Statement that the report of a clean bill of health was purportedly based on the 2009 annual routine inspection report of NSE carried out by the Commission from 14^th – 18^th September, 2009. 

 

“The Commission wishes to inform all stakeholders that the inspection report referred to, on the contrary, raised serious issues which were subsequently corroborated by the developments that led to the intervention of the SEC on 5^th August 2010, to restore the integrity of the NSE” it said.

 

According to the Apex Capital Market Regulatory Institution, stakeholders will recall that in line with the Investment and Securities Act of 2007 (ISA), which vests on the Commission; the responsibility to protect investors, regulate and develop the Capital Markets, “the Commission took steps to address the unfortunate developments at the NSE, notably inadequate oversight, ongoing litigation, financial mismanagement, governance challenges and inordinate delays in the implementation of the succession plan for the Exchange” the Statement said.  

 

SEC further affirmed that the actions taken include (a) replacing the leadership of the NSE with an interim administration pending the implementation of the succession plan of the Exchange. (b)  Launching of an investigation on the issues raised about financial mismanagement, inadequate oversight and governance challenges.  “The reports prepared by the Aluko & Oyebode and KPMG joint Investigation team are being submitted to the Commission for its consideration” SEC affirmed.

“The Commission will continue to vigorously pursue its various reforms aimed at sanitising the Market, ensuring Market integrity, and protecting investors as these are the building blocks of a world class Capital Market, a pre-requisite for the transformation of the Nigerian economy” the Statement said.

This is coming on the heels of reports on the full scale investigation ordered by the Senate Committee on Capital Market.

At a public hearing Tuesday November 30 2010, Senator Ganiyu Solomon, Chairman Senate committee on Capital Market had affirmed that his committee would investigate the merger of quoted companies and unquoted companies approved by Emmanuel Ikazoboh, Interim Administrator of the NSE.

 

Also the Committee is interested in knowing the details of the recent sacking of 95 workers at the Exchange.

 

The investigation is expected to cover the activities of the SEC within its mandate as prescribed by the ISA 2007; financial records and its activities since the take over of the Nation’s Stock Exchange August 05 2010.