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Senate orders a Full Scale Investigation of SEC, JSE assists in NSE CEO recruitment



 November 30, 2010 1626pm

The Senate Committee on Capital Markets has today informed the Securities & Exchange Commission (SEC) of its intention to conduct a full scale investigation into developments in the Nigerian Capital Market.
This decision was arrived at today at the public hearing held with Ms. Arunma Oteh, Director General of the Securities & Exchange Commission who was invited to brief it.
Mr. Emmanuel Ikazoboh, Interim Administrator of the Nigerian Stock Exchange was absent at the hearing, which prompted the Senate Committee to request for his compliance within 24 hours after which it would issue a bench warrant for his arrest.
These developments played out at the event, which had the media in attendance and which elicited heated exchanges between the legislators and the apex regulator, SEC.
The investigation is expected to cover the activities of the SEC within its mandate as prescribed by the ISA 2007; financial records, its activities since the take over of the NSE; and market transactions it considers require further light.
Officials of the JSE & the Recruitment of the DG NSE
In an unrelated development, sources confirmed to Proshare NI that the recruitment of the new DG for the NSE moved closer to a resolution with an interview and screening exercise conducted today in Ikoyi, Lagos.
The interview panel consisted of the Interim Administrator, Mr. Emmanuel Ikhazoboh, Alh. Maccido (Council Member), Ms. Tinu Awe (acting as Secretary) and two officials from the Johannesburg Stock Exchange (JSE).
We could not ascertain the role of Accenture in this particular process and their absence would indicate that they no longer play a role.


The meeting had in attendance Senators of the Federal Republic and the DG and senior management of the Securities and Exchange Commission (SEC) held at the Senate hearing Room 221.

Important Outcomes from the Deliberations:

The DG, SEC refused to brief the Committee on the events that occurred in the Capital Market prior to, during and after the take over of the NSE; even after several requests dating back to the second week in August 2010. This deliberate act, the committee believes, is for reasons other than serving the public good, an agenda unknown and confirmed by the DG SEC’s utterances at the session.

The DG SEC said that she withheld information from the Committee for reasons best known to her. Her reluctance to provide details of the actions taken so far and the deliberate refusal to submit the brief is as a result of the committees’ position that the SEC acted outside of the law in removing the former DG of the NSE.

The committees position that there concerns goes beyond the issue of the person of the DG NSE appeared not to have indicated to the DG SEC that there were fundamental issues and concerns about the regulatory role of the SEC in the Nigerian Capital Market.

The committee noted that the SEC DG has not been up and doing in her responsibilities, choosing to manage the market through the pages of newspapers.

The committee equally noted that it had been left in the dark as regards the activities of the interim management of the NSE, who chose to avoid the senate hearing deliberately without cause; suggesting he had things to hide.

In view of the several allegations and petitions that the committee has received against the NSE and the indeed the SEC, matters which bother on financial mismanagement, misapplication of funds, misuse of priviledge and office, contraventions of the ISA 2007 and lack of due process in its activities etc.; it has deemed it fit to act in the interest of the public good. 

The Committee therefore resolved to:

 Conduct a full investigation and public hearing into the NSE crisis and the management of the Securities and Exchange Commission (SEC) in its handling of its finances and the management of the capital market.

Issue an arrest warrant on the Interim Administrator of the NSE if he does not appear before the committee within 24 hours.




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