SEC Refutes Claim that it has cleared Past Management of Nigerian Stock Exchange
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. This misleading report of “a clean bill of health” was purportedly based on the 2009 annual routine inspection report of The Nigerian Stock Exchange (NSE) carried out by the Commission from 14th – 18th 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 5th August 2010, to restore the integrity of the NSE.
Stakeholders will recall that in line with the Investment and Securities Act of 2007 (ISA), which vests on the SEC, 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 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.
The Commission will continue to vigorously pursue its various reforms aimed at sanitizing 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.
Head, Media, Securities & Exchange Commission
30th November, 2010
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