ARUNMA OTEH FACES QUERY OVER HOSTILITIES IN SEC

The dramatic scene continues at the on-going house committee probe on the near collapse of the Nigeria capital market as it enters day three, more revelations emerged as direct accusation were made to the management of the Securities and Exchange Commission. As expected the Director General of SEC, Ms Arunma Oteh who was yesterday summoned by the El-Sudi led probe committee appeared before it and tender an apology for absenting herself from yesterday proceedings. She however fed questions from the panel members on issues relating to appointments of contract staff, 50th anniversary of SEC, commercial banks merger and acquisition, 0.3% transactional charges on traded shares, AMCON and bonds and so on. On Contract Staff Appointment The Head of Human Resource department of the commission, Mr. Oseni Dauda who responded to questions over the inappropriate appointments some staff in the commission said though there were needs for some departments to get additional manpower for proper discharge of duties but that the appointment of some 10 contract staff who directly report to the DG was not desirable. Mr. Oseni said a one year partial appointment was given to about 27 NYSC corps members who as at that time were carrying out their national duties with SEC but were later made to sit for examination in other to be recommended for proper employment. He further said that the internal control department of the Securities and Exchange Commission has stopped the salaries and all other allowances of all contract staff that their appointment did not go through due process. In her response, Ms Oteh said all she did had followed due process and that the fact that someone describe the practice of the commission as illegal should not put the competency of the SEC human resource personnel in question, and should not be used as an assessment as well. She said the issue about the contract staff is that of ratification and not of illegal or undue appointment. She posited that prior to 2011 that the commission had received a letter from the federal character commission that following the manpower audit carried out at the SEC, they identified that the appointment of some staff of the commission had yet gone through board ratification since 2008 till date and had advised SEC to put up a letter in other to get the board to ratify them as required. The DG said that since she arrived as the head of the commission everything has gone through due process because it will be difficult for her to enter an institution she is not familiar with and do things in awry. When asked about her action of renewing the appointment of the contract staff as against what the commissions audit department advised, the DG dodge the question and instead responded to the reasons why the need for human capital development of young professionals was addressed and employed by the commission. Defending the appointment of the two Access bank employees as a project adviser on facilities management and the other as the brand communication support officer, she said she only appreciated what these people have done in the area of commercial banks transformation in Nigeria and hope to bring such transformations on brand and structures of the capital market. On Project 50 When asked by Hon. Alliyu Buba about the apposition of the 50th anniversary of the capital marketin 2011 as against the foundation of the capital market in 1973 then know as the capital issue commission, the DG explained that though it is true but that the SEC actually started in 1962 as a capital market regulation within CBN which later became SEC through the 1979 act. The question on who funded the commemoration and in which account it was donated brought some denial drama as Ms Arunma denied ever receiving any direct donations into the commissions account. The executive commissioner for finance said there were no records of money donated into the commissions account and that he is not also aware of any donation for the Project 50 anniversary but that instead the sum of 42.5million was approved by the tender board of the commission. Oteh refuted the claim that there were cash donations to SEC and that what they did rather was to partner with related institutions like CBN, finance ministry, training and development ministry and other financial bodies to fund and provide materials needed for the commemoration. Meanwhile the panel reminded her of her earlier statement 2days ago to bring to the house list of the donors. In her statement, “We did not receive money as SEC for the project 50 ceremony, I am the interim chairman of the project 50 committee and that was as a result of the retirement of the chairman before me as a matter of urgency”. She said other decisions making members of the committee includes all executive management members a statement the commissioners deny of being aware of. The case was later put to rest and the DG was told to provide the list of all co-partners in the project 50 commemoration. On Banks Merger/Acquisition and 0.3% share charges Meanwhile, the Director General of SEC said the deduction of 0.3% transaction charges is not abnormal because it is an admin fee on every share traded on the floor of the stock exchange market in other to regulate the market. She was however accused of being aware of the financial issues between Finbank and FCMB before the acquisition and merger and still went ahead to write to the Central Bank of Nigeria to consent to the acquisition. This Hon. Rose Oko regarded as unethical and against investors protection act. The DG said financial issues among FinBank and FCMB was around 30 to 34 cases but as at the time of merger approval the cases had been reduced to 6 left. On Bureau of Public Procurement Honorable Bimbo Daramola brought the DG’s attention to the letter written to her office complaining of her not following due process in securing the goods and services used for the project 50 commemoration from the BPP as accorded by the law. The DG’s response that Hon. Daramola to refer the question to the BPP angered the panel chairman and warn her never to refer any question put forward to her that if she doesn’t have an answer to questions ask she should better say. Oteh who once again apologize to the panel for her action explained the commission’s reason for using the Hilton hotel as the venue of the project 50 anniversary with a short notice to the management. The probe panel adjourned the hearing to next week Tuesday 15thh of May, 2012.

EDO GUBER ELECTIONS: OSHIOMHOLE TACKLES PDP IN CAMPAIGN, WELCOMES NEW DECAMPEES.

The reelection bid of the Edo state Governor Adams Aliyu Oshiomhole took a dramatic turn on Tuesday when he flagged-off his 2012 campaign in Esan senatorial district of Edo state home of the acclaimed Edo state political god-father and National leader of the Peoples Democratic Party, Chief Tony Anenih. It will be recall that Esan is the only area in the state where Governor Oshiomhole’s Action Congress of Nigeria recorded the lowest votes in the last elections so the visitation was indeed a significant one to the ruling party in the state. Oshiomhole while delivering his first term report card stated that despite given the necessary support by the Esan people, his administration did not tribal politics by denying them what is popularly called democracy dividend in Nigeria with the provision of notable infrastructural development such as roads, construction of bore-hole water, building of blocks of classrooms etc all in Esan senatorial district. The comrade governor challenged the oppositions People Democratic Party to publicly point out their developmental achievements both in Esan senatorial district and state entirely in their nearly one decade of rule in the state then compare it to what he has achieved so far. “The PDP rule the great people of Edo for close to ten years, between 1999 and 2008 yet could not account for a singular project that is still up and running today. It is a shame and this is due to their so call overbearing political god-father”. Meanwhile, part of the highlights of the campaign saw some of the state's big wig among the PDP publicly decamping to the ACN and declaring their total support for the ruling party in the forthcoming gubernatorial election. Some of them include the younger brother of the former governor of Edo state Professor Osumbor. While welcoming the Comrade Oshiomhole said he is happy for them for realizing the truth on time and breaking the yoke of slavery in their life for freedom “The fight against god-father-ism is fight against oppression, in other to get our development right then our politics must be moving”, say no god-father-ism say no to PDP. Eminent Nigerians present at the campaign includes, former foreign affairs minister and ACN National leader Tom Ikimi, two time former house of representative member honorable Patrick Obaiagbon, Chief Oduma, director general of the Oshiomhole campaign organization Barrister Ize Iyamu, incumbent deputy governor of the state and a host of others. The governor who took time to enumerate his first term achievements which includes, construction of roads in all the local government area in the state, building of classrooms in numerous and different local governments in the state both Junior and Senior Secondary schools, installation of bore-hole water in communities, on-going Ambrose Alli University central administrative Block which was abandoned for years, power project at Ilushin etc He however promise to do more if voted in for the second time.

OKEREKE ACCUSED CBN OF CRASHING NIGERIA CAPITAL MARKET *As Oteh refuses to show up at probe panel*

Following yesterdays allegations and accusations of financial imprudence made by the Director-General of the Securities and Exchanges Commission, Ms Arunma Oteh on the removed Director General of the Nigeria Stock Exchange Prof. Ndi Okereke Onyiuke at the on-going house probe on near collapse of the Nigeria capital market, the former DG of NSE appeared before the panel today to defend herself of some of the allegation and also provided some way forward to the present administrators of the SEC and NSE. In her earlier statement the Prof. Okereke accused the CBN merger loans of being the main reasons why the capital market is in the state of comatose, “The merger loans given to most of the commercial banks has cost the present mess faced by the capital market”. She further said that many of the fictitious private companies registered by CAC saw the capital market as a money making avenues for themselves and try to exploit individual and innocent investors in the market. However, she highlighted some major points on how the market can get back to its glory days of market booming. “I wish to state that some of the ways which the market can get its confidence back in the mind of investors are as follows: appointment of the market makers which must include a public enlightenment because the stock market is the barometer of the economy of any country. Secondly, Merger of stock broking firms as this will make them stronger because most of them are too weak to stand alone, thirdly, the E-dividend and E-certificates should be encouraged so that it can be properly kept and protected. She further said that the setting up of another government agency to monitor unclaimed dividends and certificates should be discourage as this would bring over-lapping of duties. Prof. Onyiuke also said that the SEC should have a developmental functions and not just police offenders but should enlighten them while the SEC should be adequately funded by the federal government. She concluded by adding that Value added Tax placed on shareholders should be abolished. Meanwhile the Director General of the Securities and Exchange Commission Ms Arunma Oteh failed to appear before the panel today giving a writing excuse which ask for the permission of the house probing panel to allow her attend an economic summit being chaired by President Goodluck Jonathan but in swift response the chairman of the probe panel Hon. Ibrahim El-Sudi order her to appear before the panel unfailingly by 10am on Wednesday or the law will be used against her.

I WAS NEVER SACKED- FORMER NSE DG REPLIES ARUNMA OTEH

The on-going house probe on near collapse of the capital market witnessed some bragging rights from the former Director General of the Nigeria stock exchange Prof. Ndi Okereke Onyuike as she refuted the many of claims of the present administrators of Securities and Exchange Commission relating to her being sacked from the office in 2010 due to her sensational lifestyle and financial recklessness. It will be recalled that on day one of the resumption of the capital market probe panel led by Hon. Ibrahim El-Sudi, the Securities and Exchange Commission’s DG stated emphatically that Prof. Onyuike was sacked from the office following her overbearing attitude, while responding to questions from the house committee Prof. Onyuike said she was never sacked from the NSE instead she was forcefully and illegally removed from the office with the use of unauthorized policemen who bump into her office during unofficial hours and took away most of her documents including her marriage and birth certificates. According to her, four different high courts had nullified her removal from the office and one had ordered the SEC to pay a compensation of 500million as damages, a legal action yet to be obeyed by the management of the SEC. She expressed her dissatisfaction on the present crop of people saddling the canoe of the capital market and accused them of not competent enough to lead the stock exchange, ”For the first time in the history of this country, the Nigeria capital market is facing a crash. The people that have taken over the Stock Exchange have done nothing new other than what our administration wrote and recommended in the document pass on to them”. While lauding herself on what she achieved during her tenure as NSE DG, the financial expert cum Harvard University lecturer said she was a broker on the trading floor of the popular New York Stock Exchange in the early 80’s before she was invited by the Nigeria government to come and develop the Nigeria stock exchange, she however said her tenure as the Director-General of the NSE brought back the middle class in the capital market that seems to have diminished long before she assumed office in year 2000. She further alleged that all SEC is presently doing is just to cover their illegal burglary into the NSE building with armed thugs and despite all allegations against her no courts in Nigeria has find her guilty of any financial misappropriation not even her invitation by the Economic and Financial Crimes Commission could nail her as a culprit. She said though she is not an angel but that stealing is not in her dictionary. On the Abuja sstock exchange and commodity market she offered to help for free and promise to get it back to running in 6months she also denied the Obama campaign fund raising saying she had known President Obama long before he became the president of the United States of America whe he was only 8months old as a senator in the U.S. “The 100million naira dinner for Obama was simply to create awareness for his presidential bid and not to be given to him”.