Finance Ministry Faults NSE’s Onyeama, SEC’s Amos Azi, Others On Oando’s Suspension Saga.
The Finance Ministry has faulted the manner in which the Nigerian Stock Exchange (NSE) lifted the technical suspension on the shares of Oando Plc noting it was without due authorisation.
The ministry also faulted the roles of some top management officials of the Securities and Exchange Commission (SEC) whose curious actions led to the flip-flop in the capital market.
NSE on April 11th lifted the technical suspension on the shares of Oando Plc and later reversed its action, causing confusion in the nation’s capital market.
Finance ministry in a July 2018 report on the confusion that trailed the action noted that the technical suspension was lifted without the knowledge and authorisation of Abdul Zubair, the then Ag. D-G SEC who learnt about the development through television broadcast like every other Nigerians.
The three officials of the commission indicted by the Finance ministry report are Amos Azi, the Acting Secretary, Adamu Sambo, Head of R & E, and Mahmud Mukthar, a principal manager of the commission which Finance ministry frowned at their individual roles in the whole issue.
On the NSE’s side are Oscar Onyeama, the Chief Executive Officer and other top management officials of the Exchange whom the Finance ministry frowned at their decision to abruptly lift the suspension on the trading on the shares of the oil company without clarifying from Zubair, the Ag. D-G of SEC.
The Ministry in its final submission held that they worked without due authorisation owing to the fact that both NSE, and SEC had earlier agreed with the Johannesburg Stock Exchange (JSE) to withhold action on lifting the technical suspension.
The confusion that trailed the action led to the slight restructuring of the top personnel of the commission and the removal of Abdul Zubair, from the Acting D-G position and his replacement with Mary Uduak the current Acting D-G.
For the roles of the officials of the SEC in the situation which the ministry described as embarrassing and tagged “Flip-Flops Of the Nigerian Capital Market”, the Finance Ministry In a circular signed by Mrs Olubunmi Siyanbola, Director, Home Finance, Finance Ministry, directed that the trio should be sanctioned in accordance to the rule of the Commission.
“The Ag.Secretary to the Commission, Mr Amos I Azi, the HOD (R&E) Mallam Adamu Sambo and Principal Manager (R&E), Mahmud Muktar, should be subjected to the internal disciplinary processes of SEC, in line with their established roles in the whole issue’ noted the Finance ministry summary report and the circular to the Commission.
Sanctions for such action according to those familiar with SEC’s staff manual include non-promotion to superior positions in the commission.
While the Ministry in its circular of 12th July 2018 with reference number F.11127/S.1/950 to the Acting D-G, SEC, Mary Uduak recommended punitive measures for the commission’s officials, the ministry was silent on the NSE officials who were involved.
It would be recalled that the suspended DG of SEC, Mounir Gwarzo directed the Nigerian Stock Exchange (NSE) to place the shares of Oando Plc on technical suspension from October 20, 2017.
Consequent upon its findings, the commission resolved to conduct a forensic audit into the affairs of Oando Plc, pursuant to its statutory duties in line with section 13(k), (n), (r) and (aa) of the ISA 2017 and, as such ordered the technical suspension of the oil company’s shares.
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