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.
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