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House
of Representatives committee on capital market has denied the content
of its report which indicts the Securities and Exchange Commission.

The
report recommended the reversal of the sack of Ndi Okereke-Onyiuke, the
former director general of the Nigerian Stock Exchange (NSE).

The
preliminary report allegedly indicted the Securities and Exchange
Commission (SEC) for “using a legal means to effect an illegal action”;
it, however, upheld the sack of Aliko Dangote as president of the NSE
Council.

The
report adds, “The condition precedent, as stipulated under sections 13,
35, 47, 48, 49, and 308 of the Investment and Securities Act 2007 and
section 62 of CAMA, were not met.”

Relevant laws

The
committee observed that SEC did not comply with the relevant laws, and
cited the letters, referenced SEC/DG/08/03 of 4th August 2010 and
referenced SEC/DG/08/04 of 5TH August 2010 respectively, entitled,
‘Notice of Removal of the DG of the NSE’ and ‘The Removal from Office
of the DG of the NSE.’ The lawmakers argued that a space of one day
cannot amount in law to sufficient compliance and/or giving a person a
reasonable opportunity of being heard.

However, Lanre Oloyi, the SEC spokesperson, said he is not aware of any report indicting the commission.

“We
have not received any official directive from any quarter. The action
of the commission is in strict compliance with the Investment and
Securities Act, which we have the mandate to implement,” Mr. Oloyi
said.

Umar
Buba Jibril, chairman, House committee on capital market, denied the
contents of the report, adding that the submitted report would have to
be deliberated upon by the entire House.

“I
don’t know where they got it from and I will not comment on that. What
we submitted to the House, we said we wanted to be fair to all
concerned, and that is what we have done so far under the
circumstances,” Mr. Jibril said.

He refused to disclose the committee’s recommendations, but added that whatever the committee submits is not the final decider.

Controversial report

Also,
a game of denial is playing out among parties in the capital market
over the report by KPMG and Aluko Oyebode & Co. which indicted the
sacked NSE DG and some members of her management team. Both the House
of Representatives and SEC, which commissioned the report, said it has
not received any official version of the report.

Mr. Jibril further denied that his committee has received the interim report.

“We
have not seen any report. No report was submitted to the House. We were
in touch with SEC a week and a half ago, and SEC said it has not
received any report.”

Mr.
Oloyi said he is not aware of any report. “I don’t know how it got out.
I am not aware that any report was submitted. Not to my knowledge,” he
said.

SEC,
on August 5, sacked the NSE DG and suspended the president of the
council, Aliko Dangote. Thereafter, the commission appointed an interim
administrator in the person of Emmanuel Ikhazoboh, to oversee the
administration of the Exchange, pending the appointment of a
substantive director general.