Lagos High Court hears AdonaiNet case against NSE today
Category: Frauds & Scandals
February 23, 2011
The Lagos High Court will this today continue hearing in a case of breach of contract instituted by AdonaiNet Nigeria, owners and operators of the Trade Alert , and the management of the Nigerian Stock Exchange (NSE).
AdonaiNet is challenging the stoppage of the remittance of its commission from the NSE and the Central Securities Clearing System Limited since December 2010, running into about N210 million by the end of this month.
The owners of AdonaiNet, whose operation was approved by the Securities & Exchange Commission (SEC) six years ago as an investor protection scheme, along with the electronic bonus, biometrics and e-IPOs (Initial Public Offerings), are also filing contempt proceedings before Justice Phillips. This followed the failure of the defendants to maintain the status quo as ordered by the court when the case came up last December.
The plaintiffs, had on January 26, 2011, written the Managing Director, CSCS Limited requesting him to effect payments for services rendered so as to enable it meet obligations to consultants and other stakeholders in the trade alert value chain.
AdonaiNet in the letter signed by Dr. G.T. Alli-Balogun, its managing director and copied to the NSE Interim Administrator recalled “that all brokers, by regulation and convention, routinely remit the Trade Alert commission emanating from their transactions to the CSCS, by the 15th of every month for onward transmission to our organisation, after the CSCS has deducted its agreement charges, C.O.T and management fees.”
Vanguard gathered that part of the problem between the parties was the plan by the NSE to acquire 75 per cent stake in AdonaiNet, a move that was declined by the management of AdonaiNet .
AdonaiNet had argued that “the NSE/CSCS never conceptualise trade alert, nor fund its research
According to a source “ NSE dib not contribute to software acquisition, and was not involved financially in the purchase of hardware or the six-month free trial period for all investors, do not pay consultants, is not involved in software and hardware upgrade. So it has not right to demand for any shareholding .