The House of Representatives Ad-Hoc Committee on the Near-Collapse of the Capital Market, has said that the nationalisation of Afribank Plc, Bank PHB and Spring Bank by the regulatory authorities was fraudulent. The committee listed Sanusi and Oteh among other officials to be investigated by the Economic and Financial Crimes Commission for alleged infractions in the nationalisation of the banks in violation of the Asset Management Company of Nigeria Act. The panel, which is headed by Mr. Ibrahim El-Sudi, had laid its report before the House on Tuesday. The panel noted that the nationalisation of three banks was “fraught with potential forgery, unethical practices, abuse of office and various unacceptable bad corporate governance precedents..” It recommended the investigation of Sanusi; the Managing Director of AMCON, Mr. Mustafa Chike-Obi; and the MD/CEO of the Nigerian Insurance Deposit Insurance Corporation, Mr. Umaru Ibrahim, by the EFCC. In the case of the missing N8billion from the Union Bank of Nigeria Plc share offer, the committee recommended the investigation of Oteh, the MD of the bank, Mrs. F. Osibodu, the board and past management of the bank for “their roles in attempting to conceal the fraudulent diversion and missing fund.” On Sanusi, the panel faulted the intervention of the CBN in eight banks in August 2009, saying that he “refused to produce after demand, the Special Examination Report upon which the intervention in the eight banks was based.” The committee added, “The CBN’s action in disbursing N620bn bail-out funds afterwards did not follow due process of law and the Constitution of the Federal Republic of Nigeria, 1999, as the source of funds and the appropriate authority did not approve.” For their roles in the banking sector crisis, which led to CBN’s intervention in the eight banks by Sanusi, the panel recommended the investigation of his predecessor, Prof. Chukwuma Soludo, by the EFCC. It also recommended the investigation of the Deputy Governor (Banking Supervision), Mr. Tunde Lemo, and the former Director (Banking Supervision), Mr. Ignatius Imala. Specifically on the three nationalised banks, the panel recommended the “prosecution” of Sanusi, Oteh and the MD of NDIC for “lying under oath” on the ownership structure and board of the banks. The El-Sudi panel did not spare Oteh, as it recommended the termination of her appointment. The committee said the appointment of Oteh breached existing laws as she did not possess the required 15-year experience in capital market operations. It cited violations of Sections 3(2), 38 (1) (b), 2 and 3; Section 315 of the ISA 2007. The report stated, “She has shown incompetence in the management of human and material resources at her disposal in SEC. “Lack of transparency in the management of Project 50, regulatory failure in some of the recent mergers, acquisitions and approvals of transactions by SEC and general inability to carry along her staff, board and management in decision making in SEC, and questionable staff recruitment policy.” The panel faulted the interference of SEC in the Council of the Nigerian Stock Exchange and directed that all SEC-appointed officials should be withdrawn forthwith from the council. It suggested that for a stronger capital market to thrive, SEC should strengthen its regulatory roles and request the NSE to “activate, fund and strengthen the Investor Protection Fund and set up modalities for compensation of investors through the IPF.” The committee asked the Federal Ministry of Finance to “as a matter of urgency, reorganise SEC, with a view to making more efficient, its regulatory functions.” On AMCON, the committee recommended further investigation of its activities, “with a view to ensuring that it is working in tandem with the objectives for which it was established.” The panel called on President Goodluck Jonathan to strip all former bank executives being prosecuted for the banking sector crisis of their national honours. The committee also made a recommendation on the former DG of the NSE, Prof. Ndi Okereke-Onyiuke. According to its findings, “the allegation of financial impropriety against the former DG of NSE is subjudice.” Other recommendations included a review of the acquisition of Intercontinental Bank by Access Bank to ensure that “violations of extant laws were not made.” Earlier, the Speaker, Mr. Aminu Tambuwal, announced that the report would be debated and adopted on Thursday (tomorrow). The speaker directed that the copies of the report should be made available to all members latest on Wednesday
Posted on: Thu, 24 Oct 2013 15:09:01 +0000
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