House Of Representatives Want Trial To Be Set for the Heads of CBN, SEC, and AMCON
The House of Representatives, yesterday, indicted Governor of the Central Bank of Nigeria (CBN) Mallam Sanusi Lamido Sanusi; Director-General of SEC Arunma Oteh and DG of Assets Management Commission (AMCON) Mustafa Chike-Obi for their refusal to sub
By OnTV Publisher
Jul 20, 2012 - 12:28am WAT
The House took the decision while adopting the recommendations of its Adhoc Committee on the near collapse of the Capital Market.
The Report was laid before the House last Tuesday by the committee’s Chairman Ibrahim El-Sudi.
The plenary session of the House adopted almost all the recommendations of the Committee. However, due to the intervention of the Chairman of the House Committee on Banking and Currency Matters, Hon. Jones Onyereri, some of the Capital Market Committee’s recommendations were stepped down for harmonisation by the two committees.
According to some of the ratified recommendations: “ The Governor of Central Bank, Sanusi Lamido Sanusi; the Managing Director Asset Management Corporation of Nigeria (AMCON), Mustafa Chike-Obi; Director-General Securities Exchange Commission (SEC) Ms Arunma Oteh are hereby cited for contempt of the House and they should be prosecuted by the Attorney-General of the Federation under sections 4 and 11 (b) of the Legislative Houses Powers and Privileges Act and section 89 of the amended 1999 Constitution for refusing to produce documents as requested and demanded by the Adhoc Committee.
“That the Central Bank of Nigeria Governor through his Deputy Governor Kingsley Moghalu, SEC DG and the Nigeria Deposit Insurance Corporation (NDIC) Managing Director having lied under oath in their testimony with respect to the ownership structure of the nationalised banks should be prosecuted under Section 10 of the Legislative Houses Powers and Privileges Act, Cap 12 Laws of the Federation of Nigeria by the Attorney-General of the Federation for giving false evidence under oath to the Committee.
“That the appointment of Ms Arunma Oteh as DG of SEC be terminated forthwith as her appointment is in violation of section 3 (2) and section 38 (1) b, 2 and 3; Section 315 of the Investment and Security Act, 2007 in that she did not have 15 years experience in the Nigerian Capital Market as required; That she has shown incompetence in the management of human and material resources at her disposal in SEC; lacked transparency in managing 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 policies.
“That with respect to the missing N8billion, from the Union Bank Plc public offer, a case of fraudulent diversion having been established, the past Board and Management of the bank, the Chief Executive Officer of the Issuing House/Financial Adviser, the present members of the Board and Management, including the Managing Director of the bank Mrs F. Osibodu should be investigated by the EFCC with a view to establishing and recovering the missing amount. Also, the management of AMCON and SEC including their Chief Executive officers should be investigated by EFCC considering their roles in attempting to conceal the fraudulent diversion and missing fund.
“That all former bank executives who are recipients of National Honours and who are currently being prosecuted for crimes and unethical practices which led to the collapse of their banks be stripped of their National Honours by President Goodluck Jonathan in line with section 7 of the National Honours Act and international norms. That EFCC and Independent Corrupt Practices and Related Offences Commission (ICPC) and the courts are also urged to hasten their prosecution to serve as a deterrence and to help restore investors confidence in the market.”
“That the transactions involving AMCON, Seawolf and Geometric respectively should be reversed by AMCON’s Management and Board and be investigated by EFCC for possible fraud and violations of existing regulations and laws.
“That former CBN Governor, Prof Charles Soludo, Deputy Governor of the Bank Tunde Lemo and former Director of the bank, Banking Supervision Ignatius Imala,be further investigated by the House on account of their role in the banking sector crisis that led to the CBN’s intervention in eight banks in 2009.
“That the allegation of financial impropriety against the former DG of Nigeria Stock Exchange (NSE) Mrs Ndidi Okereke Onyiuke is subjudice.
In its findings, the Committee’s report had revealed that the Assets Management Corporation ofNigeria, AMCON was a time bomb waiting to explode.
The report also stated that the consolidation of banks in 2004/2005 contributed to the near collapse of the capital market and that most of the money raised for re-capitalisation came from the Nigerian Capital Market.
According to the Ad-hoc Committee report AMCON is an accumulation of bubbles that would soon explode because as at date, AMCON claimed to have issued bonds worthN4.5trillion but only about N1.7trillion is guaranteed by the Federal Government.
The report further stated that “the real challenge of the AMCON bonds is the bond’s ability of being converted into liquid cash and the fact that a good number of the AMCON Series bond is yet to be registered at the CSCS.”
The Committee in the report noted that “it was shocked at the way and manner that the non-performing loans were being manipulated by AMCON. While some AMCON balances were marked at very ridiculous values, others were stated at values higher than their book values.
culled from the osundefender.com