SEC sacks Onyiuke, Dangote over crisis in Nigerian Stock Exchange
In a swift reaction to the crisis rocking the nation’s stock market, the Securities and Exchange Commission, SEC has removed the Director General of the Nigerian Stock Exchange, NSE Ndi Okereke-Onyiuke and the President-elect of NSE, Aliko Dangote.
Their sack was contained in a statement signed by the Assistant Director/Head Media, SEC, Lanre Oloyi who explained that the Commission took the decisions in the interest of the public and the need to protect investors.
Oloyi said, “The Commission has closely followed the developments in the Nigerian Stock Exchange, particularly with respect to inadequate oversight of the Exchange, ongoing litigation, allegations of financial mismanagement, governance challenges, and the inordinate delays in the implementation of the succession plan for the Exchange.
“In following the developments, the Commission has at all times carefully deliberated on the implications and ramifications of a direct intervention in the affairs of the Exchange. In this deliberation, the Commission weighed the consequences on the market of a direct intervention set against the broader goal of safeguarding the interest of the public and protecting the investor.”
The decisions thus taken by SEC in the statement reads, “Council Member elected as President of the Exchange in defiance of the Court order cease acting as the President pending the outcome of the ongoing litigation;
“Council Members elected in defiance of the Court order cease acting as members of the Council pending the outcome of the ongoing litigation;
“Current Director-General of the Exchange, Professor Ndi Okereke-Onyiuke, be removed from the office of Director/Chief Executive Officer of the NSE;
“Affairs of the Exchange are managed by an Interim Administrator appointed by the Commission pending the selection of a new Director General.”
The statement further disclosed that the Commission will announce the interim arrangements before the markets open on Thursday August 5, 2010.
The Assistant Director/Head Media said “given the gravity of the allegations around financial mismanagement of the Exchange, the Commission has also directed the conduct of an independent investigation into the allegations.”
He asserted that, “These actions by the Commission reinforce the integrity of our markets and demonstrate commitment to accountability, particularly given the importance of ensuring adequate oversight at all times and demonstrating that when there are shortcomings, as the apex regulator, the Securities and Exchange Commission will step in decisively to address these issues in the public interest and to protect the investors.”
Dangote had alleged that the NSE under Onyiuke was facing solvency problems and had petitioned SEC to take immediate steps to examine certain irregularities, in relation to the accounts and books of the NSE.
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