Investors petition NSE on Alliance Capital

Investors petition NSE on Alliance Capital

September 16 , 2008 /Proshare NI


Investors have petitioned the Nigerian Stock Exchange (NSE) on the activities of Alliance Capital Management Company Limited.

 

This is coming on the heels of complaints and enquiries to Proshare NI as regards the activities of the company.

 

 

A petition against Edward Diete-Koiki, the Managing Director/Chief Executive Officer (MD/CEO) of Alliance Capital dated July 29, 2008 was made available to Proshare NI today in LagosNigeria at the Stock Exchange by A.J. Sule Esquire and Solicitor to the petitioner.

 

From the document, the circumstance leading to the petition from one Prince Oyerinde Adewale Atanda reads thus, “on the 13th day of September, 2007, Alliance Capital Management Company Limited under the control of Mr. Edward Diete-Koiki collected the sum of N598, 000 from our client vide Receipt No. 0008095 for the purchase on our clients behalf 20,000 units of Access Bank Plc shares Public Offer 2007 valued at N298, 000 and 20,000 units of Dangote Flour Mills Plc 2007 Public Offer valued at N300,000.

 

 

Precisely again on the 14th day of November 2007, our client entered into another business transaction with Alliance Capital Management Company Limited and paid to the said company the sum of  N520,000 for the purchase of 20,000 units of FCMB 2007 Public Offer and 30,000 units of Fidelity Bank Plc 2007 Public Offerâ€ÂÂÂÂÂ

 

 

Photocopy of a Diamond Bank Plc cheque of N598, 000 dated September 05 2007 with cheque number 06340645 issued to Alliance Capital was also made available to Proshare NI.

 

 

While another United Bank for Africa Plc (UBA) Ebute-Metta Branch cheque of N240, 000 dated November 11, 2007 with cheque number 74750930 was issued yet again to Alliance Capital.

 

 

The petitioner also issued a Zenith Bank Plc Herbert Macaulay Branch cheque of N280, 000 dated November 11, 2007 to Alliance Capital with cheque number 0000078.

 

 

However, the cheques amounted to the second N520, 000 transactions for the purchase of the FCMB and Fidelity Bank 2007 offers. A corporate receipt with number 0010646 was issued to Atanda the petitioner by Alliance Capital.

 

 

In the same vein, a letter dated July 16, 2008 by solicitors to Atanda to the MD of Alliance Capital was also made available to Proshare NI.

 

 

The letter showed details of the said transaction with Atanda and requesting that Alliance Capital pay the sum of N1, 076,583.03 million in terms of un-allotted Dangote Flour Mills return money, un-purchased FCMB and Fidelity Bank 2007 offers and anticipated income by way of profit on FCMB and Fidelity Bank offers.

 

 

A breakdown of these shows that Alliance Capital is to pay N256,585.03 on Dangote Flour Mills return money, N520,000 FCMB and Fidelity Bank un-purchased offers and N300,000 anticipated income by way of profit on FCMB and Fidelity Bank offers; totalling N1,076,585.03.

 

 

As at the time of filling in this report, Proshare NI could not clarify the issue from the NSE or Alliance Capital.

 

 

Prior to this time, Proshare NI has visited the office of Alliance Capital situated at New Africa House, Royal Exchange Building in Marina Street, Lagos but met an almost deserted office with handful of investors around to ascertain the fate of their investments through the Stockbroking firm.


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