By Peter OBIORA investadvocate

Dec 02 2010 11.00 GMT

Lagos (INVESTADVOCATE)-The Securities and Exchange Commission ordered investigation on the Nigerian Stock Exchange (NSE) is fraudulent.

 

Boniface Okezie, National Chairman, Progressive Shareholders Association of Nigeria (PSAN) made this affirmation to investadvocate Wednesday December 01 2010 in Lagos Nigeria.

 

Okezie said that it was proper that after an investigation; before making it public, those perceived to be indicted should be called to state their side of the story; rather than going straight to the press.

 

The shareholder leader further affirmed that any findings on an institution like the Stock Exchange should first and foremost be submitted to the National Assembly for review.

 

“If you are investigating the NSE, a private organisation, after your findings, you must also present same to the National Assembly. There is a Committee at the National Assembly saddled with the responsibility of seeing into the affairs of the Capital Market” he said.

 

“First and foremost, these reports are for the National Assembly; before distribution to the press” Okezie affirmed.

 

According to him, if the Report on whatever investigation that is made is not taken to the National Assembly in the first instance, they cannot look at it and take a decision. “This means the whole exercise was fraudulent; because you didn’t want others to review it; before going to the press and those involved to hear their own side” he said.

 

Okezie accused SEC of being biased in their investigation; wanting to deliberately indict Ndi Okereke-Onyiuke former Director General (DG) of the Stock Exchange and others.

 

“This means SEC did this investigation to indict people; because they have already made up their minds to indict Okereke-Onyiuke and others. The whole exercise SEC and the interim administration at the NSE carried out were fraudulent and totally unacceptable; that is why the National Assembly has called them to appear before it.

 

The shareholder leader said that the impression being created in the Capital Market among Nigerians is that their funds are trapped at the Exchange. Investors both local and foreign, who have invested in the Nigerian Capital Market (NCM), have invested in a company that has been in existence; “the person did not invest in the Exchange, the investors money is not at the Exchange” he said.

 

“If there is any institution or regulatory agencies were the investors’ money is, it is in SEC; because they collect tax payers’ money to run the Commission, also they collect some percentages on any transaction at the Exchange for doing nothing.  SEC is the largest collector of fund from the Capital Market” Okezie affirmed.

 

He called on the Commission to account for the funds it has received from the government to run its operations and those collected as fees and commission at the Capital Market.

 

“They should account for the past five years; what they have received as fees and commission from the Capital Market and what they have received from the Government to run its operations. The excess funds must be retired to the National Treasury. The Accountant General should not be the ones auditing them alone, there must be independent Auditors doing theirs as well” he said.

 

“Who has audited them in the review period, we want to know, let them make it public?” the shareholder leader queried.

 

He reiterated that SEC is a public institution run by tax payers’ money; therefore Nigerians must know how the finances of the Commission are being spent. “I am one of those advocating that we must know how much Musa Al-Faki left in the office. And since he left, how much is left and what was handed over to Daisy Ekinah, former Acting DG of the SEC” Okezie said.

 

Meanwhile, the shareholder leader has called on the SEC to submit itself for probe; just as the National Assembly is trying to do now.

 

“SEC cannot be run on secrecy; people must know how the funds comes in and goes out from the Commission; because it is a public institution. If they are collecting from me as an investor, we must know how the funds are being spent, we must also know how they are protecting the investors; this is why SEC must submit itself for probe and auditing in the last five years” he affirmed.

 

Okezie said that the Senate Committee on Capital Markets underestimated their function as regards the Capital Market; and this is the time they should critically look at occurrences in the Market.