Some market
operators have expressed divergent views on the judgment of a Federal
High Court in Lagos last Friday which nullified the removal of the
former director general of the Nigerian Stock Exchange (NSE), Ndi
Okereke-Onyiuke, by the Securities and Exchange Commission (SEC).
Justice Mohammed
Idris who ruled over the case also awarded the sum of N500 million to
Mrs. Okereke-Onyiuke as exemplary and aggravated damages.
The former Exchange boss had challenged her removal as the DG of the NSE by SEC and demanded N3 billion as damages.
Mrs.
Okereke-Onyiuke was removed on August 5, 2010 by Arunma Oteh, the
director general of the Securities and Exchange Commission, over
allegations of financial impropriety. The capital market regulatory
agency also removed Aliko Dangote as the president of the NSE during
the period.
Her removal ushered
in an interim administrator for the Exchange, Emmanuel Ikazoboh, and
after eight months brought in Oscar Onyema as the new chief executive
officer of the NSE.
While some
operators applauded the court rulings, others believe that the judgment
should be appealed as some of the investigations of the yet-to-be
officially released forensic report of the NSE under Mrs.
Okereke-Onyiuke revealed that her administration mismanaged funds.
Boniface Okezie,
the national chairman of the Progressive Shareholders Association of
Nigeria, said the court judgment has “really vindicated her (Mrs.
Okereke-Onyiuke) and proven that SEC’s action was illegal.”
Mr. Okezie said the
judge ruled in her favour because the Exchange’s Commission did not
follow due process before taking action, adding that “she was not given
any fair hearing.”
For David Amaechi,
an executive member of the Shareholders Association of Nigeria, the
decision of the court “is good and a proof that people’s fundamental
human rights should not be violated in any given circumstances.”
“(Ms.) Oteh should
have suspended her following SEC’s discovery and investigated the
matter thoroughly before sacking her. But because she (Ms. Oteh) wanted
to show she has power, SEC went ahead to removed her without fair
hearing,” Mr. Amaechi said, adding that people’s right must always be
respected.
Meanwhile, a
stockbroker, who spoke under the condition of anonymity, said, “I
believe SEC really understood the crisis in the market before the
intervention. Today, foreign investors can now trade in our market
because the system is now transparent. This court judgment must be
appealed so that the true face of the market during her tenure has
shown in the forensic report can be revealed to the public.”
Breach of law
Delivering his
judgment last Friday, Justice Muhammed Idris held that
Okereke-Onyiuke’s removal was “irrational and hasty,” adding that “SEC
acted in breach of Section 308 of the Investment and Security Act and,
therefore, the removal of the plaintiff based on that section is a
nullity.”
The judge held that
the plaintiff’s right to fair hearing was breached, adding that “it is
ridiculous that SEC removed the plaintiff within 24 hours after
directing the NSE to remove her.”
The judge also
dismissed SEC’s objection that the court lacked jurisdiction to
entertain the suit, stressing that the Federal High Court had an
exclusive jurisdiction over the case.
“The plaintiff is
right to have commenced the suit by way of originating summons as
provided by Order 3 Rule 6 of the Federal High Court rules, thus
overruling the objection of SEC on the issue,” he said.
He ruled that Mrs
Okereke-Onyiuke’s removal was not in accordance with the rule of law
and should not be condoned in a democratic dispensation. He, therefore,
declared the removal as “illegal, unlawful, null and void.” Meanwhile
SEC’s spokesperson,
Lanre Oloyi, the
Exchange Commission’s spokesperson, said it would appeal the judgment,
adding that the court did not consider the allegations of financial
mismanagement levelled against Mrs. Okereke-Onyiuke.
“In August 2010,
SEC exercised its statutory powers of intervention and took regulatory
action to protect the NSE, the interest of the investing public and the
Nigerian economy as a whole. The judgment read in court this morning
(last Friday) questions procedural aspects of SEC’s regulatory action.
SEC disagrees and intends immediately to file an appeal against the
decision,” the Exchange’s Commission said in a statement on Friday.
The statement noted
that “the judgment makes no comment whatsoever about the serious
allegations of misconduct, fraud and breach of trust made against the
former Director-General of the NSE, Mrs. Ndi Okereke-Onyiuke, and some
of her erstwhile colleagues. It is also important to note that Mrs. Ndi
Okereke-Onyiuke has not attempted, in any forum, and in any manner
whatsoever, to answer those allegations on their merits.”
Forensic report
Some of the
revelations in the yet-to-be officially released report on the
investigation of the NSE under the leadership of Mrs. Okereke-Onyiuke
showed that in 2008, the Exchange spent N186 million to buy Rolex
watches for long serving employees.
The report, a
product of investigations by KPMG, an audit firm, and Aluko Oyebode
Co., a legal firm, revealed that “at the beginning of 2008, the
NSE expended the sum of N45 million in purchasing 64 Rolex watches for
presentation to employees who had served the NSE for 10 years.”
The report also
noted that “later in the same year, Candy Floss Limited (a company
owned by Yinka Idowu, former head of NSE’s corporate affairs
department), was given N95 million for an additional purchase of 91
Rolex watches, and subsequently, after the award ceremony, another 10
Rolex watches at the cost of N46 million were purchased.”
Meanwhile, the
investigators said they observed that the award ceremony document
showed that only 73 out of the 165 Rolex watches purchased were
actually presented to the awardees, meaning that 92 Rolex watches
valued at N99.5 million were unaccounted for.
While the fact that Articles 52 of the NSE Employee Handbook for
Management and Senior Staff, as well as Article 55 of the Employee
Handbook for Junior Staff limits the value of gifts/cash that can be
given to employees for the long service award, the auditors said, “We
observed that the gifts awarded/presented far exceeded the value stated
in these handbooks, “adding that “these Articles further stated that
these awards should be presented to only members of staff, but we
observed that former members of staff were also given awards.”
operators have expressed divergent views on the judgment of a Federal
High Court in Lagos last Friday which nullified the removal of the
former director general of the Nigerian Stock Exchange (NSE), Ndi
Okereke-Onyiuke, by the Securities and Exchange Commission (SEC).
Justice Mohammed
Idris who ruled over the case also awarded the sum of N500 million to
Mrs. Okereke-Onyiuke as exemplary and aggravated damages.
The former Exchange boss had challenged her removal as the DG of the NSE by SEC and demanded N3 billion as damages.
Mrs.
Okereke-Onyiuke was removed on August 5, 2010 by Arunma Oteh, the
director general of the Securities and Exchange Commission, over
allegations of financial impropriety. The capital market regulatory
agency also removed Aliko Dangote as the president of the NSE during
the period.
Her removal ushered
in an interim administrator for the Exchange, Emmanuel Ikazoboh, and
after eight months brought in Oscar Onyema as the new chief executive
officer of the NSE.
While some
operators applauded the court rulings, others believe that the judgment
should be appealed as some of the investigations of the yet-to-be
officially released forensic report of the NSE under Mrs.
Okereke-Onyiuke revealed that her administration mismanaged funds.
Boniface Okezie,
the national chairman of the Progressive Shareholders Association of
Nigeria, said the court judgment has “really vindicated her (Mrs.
Okereke-Onyiuke) and proven that SEC’s action was illegal.”
Mr. Okezie said the
judge ruled in her favour because the Exchange’s Commission did not
follow due process before taking action, adding that “she was not given
any fair hearing.”
For David Amaechi,
an executive member of the Shareholders Association of Nigeria, the
decision of the court “is good and a proof that people’s fundamental
human rights should not be violated in any given circumstances.”
“(Ms.) Oteh should
have suspended her following SEC’s discovery and investigated the
matter thoroughly before sacking her. But because she (Ms. Oteh) wanted
to show she has power, SEC went ahead to removed her without fair
hearing,” Mr. Amaechi said, adding that people’s right must always be
respected.
Meanwhile, a
stockbroker, who spoke under the condition of anonymity, said, “I
believe SEC really understood the crisis in the market before the
intervention. Today, foreign investors can now trade in our market
because the system is now transparent. This court judgment must be
appealed so that the true face of the market during her tenure has
shown in the forensic report can be revealed to the public.”
Breach of law
Delivering his
judgment last Friday, Justice Muhammed Idris held that
Okereke-Onyiuke’s removal was “irrational and hasty,” adding that “SEC
acted in breach of Section 308 of the Investment and Security Act and,
therefore, the removal of the plaintiff based on that section is a
nullity.”
The judge held that
the plaintiff’s right to fair hearing was breached, adding that “it is
ridiculous that SEC removed the plaintiff within 24 hours after
directing the NSE to remove her.”
The judge also
dismissed SEC’s objection that the court lacked jurisdiction to
entertain the suit, stressing that the Federal High Court had an
exclusive jurisdiction over the case.
“The plaintiff is
right to have commenced the suit by way of originating summons as
provided by Order 3 Rule 6 of the Federal High Court rules, thus
overruling the objection of SEC on the issue,” he said.
He ruled that Mrs
Okereke-Onyiuke’s removal was not in accordance with the rule of law
and should not be condoned in a democratic dispensation. He, therefore,
declared the removal as “illegal, unlawful, null and void.” Meanwhile
SEC’s spokesperson,
Lanre Oloyi, the
Exchange Commission’s spokesperson, said it would appeal the judgment,
adding that the court did not consider the allegations of financial
mismanagement levelled against Mrs. Okereke-Onyiuke.
“In August 2010,
SEC exercised its statutory powers of intervention and took regulatory
action to protect the NSE, the interest of the investing public and the
Nigerian economy as a whole. The judgment read in court this morning
(last Friday) questions procedural aspects of SEC’s regulatory action.
SEC disagrees and intends immediately to file an appeal against the
decision,” the Exchange’s Commission said in a statement on Friday.
The statement noted
that “the judgment makes no comment whatsoever about the serious
allegations of misconduct, fraud and breach of trust made against the
former Director-General of the NSE, Mrs. Ndi Okereke-Onyiuke, and some
of her erstwhile colleagues. It is also important to note that Mrs. Ndi
Okereke-Onyiuke has not attempted, in any forum, and in any manner
whatsoever, to answer those allegations on their merits.”
Forensic report
Some of the
revelations in the yet-to-be officially released report on the
investigation of the NSE under the leadership of Mrs. Okereke-Onyiuke
showed that in 2008, the Exchange spent N186 million to buy Rolex
watches for long serving employees.
The report, a
product of investigations by KPMG, an audit firm, and Aluko Oyebode
Co., a legal firm, revealed that “at the beginning of 2008, the
NSE expended the sum of N45 million in purchasing 64 Rolex watches for
presentation to employees who had served the NSE for 10 years.”
The report also
noted that “later in the same year, Candy Floss Limited (a company
owned by Yinka Idowu, former head of NSE’s corporate affairs
department), was given N95 million for an additional purchase of 91
Rolex watches, and subsequently, after the award ceremony, another 10
Rolex watches at the cost of N46 million were purchased.”
Meanwhile, the
investigators said they observed that the award ceremony document
showed that only 73 out of the 165 Rolex watches purchased were
actually presented to the awardees, meaning that 92 Rolex watches
valued at N99.5 million were unaccounted for.
While the fact that Articles 52 of the NSE Employee Handbook for
Management and Senior Staff, as well as Article 55 of the Employee
Handbook for Junior Staff limits the value of gifts/cash that can be
given to employees for the long service award, the auditors said, “We
observed that the gifts awarded/presented far exceeded the value stated
in these handbooks, “adding that “these Articles further stated that
these awards should be presented to only members of staff, but we
observed that former members of staff were also given awards.”
No comments:
Post a Comment