NSE explains role in the Afroil/Capoil saga

NSE explains role in the Afroil/Capoil saga

March 27, 2008



Proshare NI

March 27, 2008 at 20.60 GMT


LAGOS - The Nigerian Stock Exchange (NSE) today, at a parley with capital market correspondents laid out the rationale for its actions subsequent to the public order announcing the suspension of Afroil and Capoil by the SEC.



“The delay implementing the SEC order was rooted in the need to comply with well laid down procedures for handling such developments…..the much needed due process guiding the exchangeâ€ÂÂÂÂÂ. Ndi Okereke-Onyiuke, Director General (DG) of the NSE said.


Explaining further, Prof. Okereke-Onyiuke said that “as a mark of respect for our partners in progress - SEC, I wouldn’t want anybody to misinterpret me, today Afroil Plc and Capital Oil Plc has been placed on full suspension, not technical suspension†she said.



“We did not receive a letter from SEC. The Director General (DG) SEC, Musa Al-Faki and I had a full meeting yesterday evening; he came all the way from Abuja and we meet†Onyiuke said.



“The Stock Exchange is not a government agency, if we put a suspension on a company without any reason, the company can take us to court†she said.



“If SEC says we should suspend a company, because of certain reasons, we will now come to the floor with the letter from SEC, that is a document tenable in court, if we don’t have a document and we are taken to the court, how do we defend ourselves†Onyiuke said.



The DG of NSE says the Stock Exchange cannot act upon hearsay; until they get a letter from SEC, “it was only yesterday that we got the letter and held a meeting with the DG SEC subsequently concerning this issue†she said.



She also disclosed that Afroil has just submitted a full report on their business dealings to the NSE for scrutiny.


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