July 18, 2012 / Agency Report 

The Director General of Nigeria’s Securities and Exchange Commission (SEC) has been recalled from compulsory leave. 

She is to resume at her duty post to continue the ‘world class reforms’ targeted at eradicating the culture of graft, corruption and mediocrity which is prevalent in the SEC as well as the lack of market integrity and rule enforcement which have eroded investor confidence in the capital markets.

Oteh’s recall is sequel to an audit report which absolved her of fraud or criminal motive in the ‘Project 50’ engagement that involved soliciting for funds from institutions and concerns under her regulatory oversight which were not remitted to the accounts of the regulator. 

With her recall, the supervising authority of the SEC, the Hon. Minister of Finance, Mrs Ngozi Okonjo-Iweala as well as the ratifying authority i.e. the Presidency have discountenanced the allegations of wrongdoing around Project 50 as not meeting the threshold of a breach in ethics and due process. In effect, the GON has overruled the Board as constituted under the ISA.  

Extract of Letter of Recall  

Re: Compulsory Leave 

Please refer to the decision of the Board of Securities and Exchange Commission (SEC) to send you on compulsory leave on order to enable SEC’s’external auditors – PricewaterhouseCoopers (PWC), to examine the records of the Commission’s’transactions covering SEC project 50 which you supervised.

I am to note that Government has studied the report submitted by the external auditors and you are neither indicted for fraud nor criminal breach in any form. However, some administrative lapses were reported, particularly, in cases where administrative procedures were not thoroughly observed. 

The purpose of this letter is to recall you from your leave and to caution that you must henceforth endeavour to diligently observe all extant rules and administrative procedures in the conduct of all official transactions. 4. Please accept the assurances of best wishes.