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Okereke Indicts CBN Over Capital Market Collapse …Oteh Absent At House Probe Panel

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Following Monday’s allegations and accusations of financial imprudence made by the Director-General of the Securities and Exchange Commission, Ms Arunma Oteh levelled on former Director-General of the Nigeria Stock Exchange, Prof. Ndi Okereke Onyiuke,  the former DG of NSE appeared before the panel yesterday to defend herself against some of the allegations.

She also provided a way forward for the present administrators of the SEC and NSE.

In her earlier statement, Okereke-Onyuike accused the CBN merger loans of being the main reasons why the capital market was in a state of comatose.

She said, “the merger loans given to most of the commercial banks have cost the present mess faced by the capital market”.

She further said that many of the fictitious private companies registered by the Corporate Affairs Commission saw the capital market as a money making avenue for themselves, and tried to exploit individuals and innocent investors in the market.

However, she highlighted some major points on how the market could get back to its glorious days of market booming.

“I wish to state that some of the ways which the market can get its confidence back in the mind of investors are as follows: appointment of the market makers which must include a public enlightenment because the stock market is the barometer of the economy of any country.

Secondly, merger of stock brokering firms, as this will make them stronger because most of them are too weak to stand alone, thirdly, the e-dividend and e-certificates should be encouraged so that they can be properly kept and protected.

She further said that the setting up of another government’s agency to monitor unclaimed dividends and certificates should be discouraged as this would bring about over-lapping of duties.

Prof.Okereke-Onyiuke also said that the SEC should have developmental functions and not just police offenders but enlighten them while the SEC should be adequately funded by the Federal Government. She concluded by adding that Value Added Tax placed on shareholders should be abolished.

Meanwhile, the Director-General of the Securities and Exchange Commission, Ms Arunma Oteh failed to appear before the panel yesterday, giving a written excuse in which she asked for the permission of the House probe panel to allow her to attend an economic summit being chaired by President Goodluck Jonathan.

But in a swift response, the chairman of the probe panel, Hon. Ibrahim El-Sudi, ordered her to appear before the panel unfailingly by 10am today or the law will be used against her.

Oteh had on Monday at the resumed probe, reeled out series of cases of recklessness in the running of the SEC under the watch of Okereke-Onyuike.

Meanwhile, former Director- General of the Securities and Exchange Commission, Prof. Ndidi Okereke-Onyuike, came under hammer on Monday at the resumed probe into the various malpractices that led to the collapse of the capital market.

D-G of the commission, Mrs. Arunmah Oteh, whose statements culminated in the dissolution of the initial probe panel in the House of Representatives, spilled it all as she left no one in doubt on the various criminal acts that got underway under the nose of the former DG.

In what amounted to a glaring abuse of positions, criminal diversion of funds and extravagant disbursement of funds, Oteh revealed that high-level transactions breached all rules known to the financial sector.

In many of the shady deals involving banks, Oteh accused her predecessor of allowing fraud under her watch.

Oteh said in one of the instances, “”Between August 2006 and December 2008, the Executive team of Finbank engaged six law firms to incorporate 95 companies and transferred more than 425 billion of depositors’ funds to nine of these companies, and purchased 2.8 billion units of its own shares against SEC rules.

“Between June 2007 and December 2008, Intercontinental Bank (now under Access Bank), its directors and principal officers engaged in unlawful share buyback schemes, buying about 3.4 billion units of shares using depositors’ funds. It violated Section 105, 106 and Section 110 of ISA 2007 as well as Section 160 of CAMA and Rule 109b of SEC Rules.

“Then, in 2007, Union Bank borrowed amounts totalling £430.4billion from two foreign investment banks. The funds were transferred to Union Trustees, which in turn transferred the funds to Falcon Securities. In four days in November 2007, Falcon purchased 620.4million units of shares worth $430.8 billion ahead of a public offer/rights issue.

“In 2007, Falcon Securities carried out 181,088 transactions with respect to Union Bank shares. This drove up the share price of Union Bank stocks from a low of $423.30 in January 2007 to £450.33 in November 2007, in other words, a price appreciation of over 110% within 11 months.

Lamenting further, Oteh said, “these were the kinds of financial imprudence that were perpetrated at the NSE.” ”

Narrating how the SEC spent huge funds on wasteful ventures, Oteh accused the Okereke-Onyuike-led SEC of purchasing 165 Rolex watches for N186million which were presented as gifts to awardees.

She disclosed that out of the 165, only 73 were given out while the remaining expensive gifts had remained unaccounted for till date.

At Monday’s sitting, it appeared that Oteh struggled to caution herself against statements that could cause further tension at the new probe panel having forced the House to appoint a new panel after her allegation of bribery against the former one led by Hon. Ihembe.

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Bonny-Bodo Road: FG Offers Additional N20bn, Targets December Deadline

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The Federal Government has agreed to offer additional N20.5 billion for the completion of the Bonny-Bodo road project in December.
The government, however, said if the construction company, Julius Berger, was not ready to accept the offer, the contract will be terminated.
Minister of Works, David Umahi, said this during a meeting with the Managing Director of Julius Berger, Lars Ritcher and members of Bodo-Bonny Road Peace Committee, on Wednesday in Abuja.
The reports that Julius Berger had requested asking for a N28 billion variation on the 82 per cent completed project.
The company hinged its request on the rise in exchange rate, construction materials, and diesel among others.
Umahi, however, said the government was willing to provide N20 billion out of the N28 billion that Julius Berger requested for.
According to him, the Bonny-Bodo road contract which was initially awarded at the cost of N120 billion in 2015, was later varied at N199 billion with a completion dateline of December 2023, which has since elapsed.
The Tide’s source recalls that in 2017, an agreement between the Federal Government, Nigeria Liquefied Natural Gas (NLNG) and Julus Berger on modalities for funding the project cost of N199.923 billion, without any further increase.
“If you do not accept the Federal Government’s offer by Friday and resume work on the site, the previously expired 14-day ultimatum for termination of project will be enforced.
“I want to let you know that we are the client. No contractor will dictate for this ministry, and there is no job that is compulsory that a particular contractor must do.
“We give you an offer. If you do not like the offer, you walk away. You don’t force us or we don’t force you.
“Agreement of contractual relationship is a mutual understanding,’’ the minister said.
Umahi said that had Julius Berger adhered to the project timetable, the project would have been completed on schedule before the impact of foreign exchange.
“Our position is very simple, we reject the conditions of Julius Berger totally and we ask Berger to please go back to the site to complete the project based on our offer.
“Our offer is unconditional and we say, accept or reject, so you cannot subject our offer to your conditions ,’’ he added
Umahi said the company should be humble in its dealings and exhibit solidarity during challenges.
Earlier, Richter had explained that the company suspended work on the site to seek some clarifications from the ministry.
According to him, the company asked for the augmemtation of N28 bilion because as at the time the contract was awarded the exchange rate was N305 to a dollar and diesel was N350 eor litre.
“We will still require some outstanding materials; that means that the initial agreement can’t fly because the variation of project is not sufficient and the exchange rate is also not in our favour to compensate the additional costs.
“That is why we decided to go back to our original proposal of the augmentation. Augmentation is a very normal process for all contracts,” the managing director said.
Chief Abel Attoni, Palace Secretary, Bonny Kingdom, expressed gratitude to President Bola Ahmed Tinubu over the decision to complete the Bodo-Bonny road project.
Attonu urged the parties to be patriotic and make the necessary sacrifice for the actualisation of the project.

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Court Vacates Arrest Warrant Against Ehie, Five Others

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The Federal High Court, sitting in Abuja, yesterday, set aside the warrant of arrest against Rt. Hon. Edison Ehie, the Chief of Staff, Government House, Rivers State, and five others.
Justice Emeka Nwite stated this while delivering his ruling in an application seeking to vacate the warrant of arrest which he issued on January 31, 2024.
The Judge said he was misled by the police in ordering the arrest of Ehie in connection with the burning of the Rivers State House of Assembly on October 30, 2023.
The Police, had told the court that Ehie and five others masterminded the bombing of the Rivers State House of Assembly amid a plot to impeach Rivers State Governor, Siminalayi Fubara.
The five others are Jinjiri Bala, Happy Benedict, Progress Joseph, Adokiye Oyagiri, and Chibuike Peter, alias Rambo.
Justice Emeka Nwite while setting aside the warrant said it has now become a mere academic exercise.
The judge further granted same to the 2nd to 5th Defendant/Applicant in same suit.
Femi Falana, SAN, and Oluwole Aladedoye, SAN, who appeared for the defendants in separate suits, held that the court lacked the jurisdiction to have granted the order.
While Falana filed a motion seeking an order to set aside the January 31 order by Justice Nwite, Aladedoye applied for a stay of execution of the arrest order.
In a motion marked: FHC/ABJ/CS/112/2024 dated February 2 and filed on February 7 by Falana, Ehie sought two orders, including “an order setting aside the order made on January 31 for want of jurisdiction.
“An order of this honourable court staying the execution of the order made on the 31st January 2024, pending the hearing and determination of this application.”
Giving six grounds of argument, Falana argued that the complainant had not filed any criminal charge or motion before the court.
The senior lawyer argued that the court lacked the territorial jurisdiction to entertain the ex-parte application as the alleged offences of conspiracy, attempted murder, murder and arson took place in Port Harcourt, the state capital.
“He submitted that the court lacked the vires to grant an application to arrest and declare his clients wanted in respect of the alleged offences.
“The complainant/respondent (IG) did not adduce evidence of terrorism in the affidavit in support of the application.
“The complainant/respondent did not cite any section of the Terrorism Prevention Act, 2013 (as amended) alleged to have been contravened by the applicants,” he argued.
Aladedoye in a motion on notice dated and filed February 9, on behalf of the five defendants, sought two orders, including
“an order staying execution or further execution of the order(s) of this honourable court made on the 31st of January, 2024, pending the hearing and determination of the appeal filed by the applicants.
“An order of injunction restraining the complainant from carrying out or further carrying out the orders of this honourable court made on the 31st January 2024, pending the hearing and determination of the appeal filed by the applicant in this case.”
Giving a three-ground argument, Aladedoye said that a notice of appeal had already been filed against Justice Nwite’s orders.
According to the senior lawyer, the notice of appeal contains grounds that challenge the jurisdiction of the honourable court.
The Inspector-General had, in a charge marked: FHC/ABJ/CR/25/2024, arraigned the defendants on a seven-count criminal charge bordering on terrorism and murder.

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13 Students Bag First Class, 182 PhD As IAUOE Graduates 5,550, Today

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The authorities of Ignatius Ajuru University of Education (IAUOE), Rumuolumeni, in Rivers State, have stated that 13 students will be graduating with first class while 182 graduands will bag Ph.D during the 42nd convocation ceremony of the university billed to hold today and tomorrow.
The Acting Vice Chancellor of the University, Prof. Okechuku Onuchuku, disclosed this during pre-convocation press briefing held in his office, yesterday, to unveil the programme for the convocation ceremony.
Onuchuku said that the 13 students were among the 4,653 graduands expected to graduate for the 2022/2023 academic session with first degree, while 897 students will be graduating with postgraduate degrees.
The Acting Vice Chancellor while giving the breakdown stated that 13 students made first class, 890 students bagged second class upper while 2,739 students had second class lower for first degree.
He further stated that 182 graduands bagged PhD, 667 got master’s degree and 48 got postgraduate diploma, adding that the convocation ceremony will hold today and tomorrow for first degree graduands and postgraduate graduands respectively.
He said that a total of 47 programmes out of the 54 programmes being undertaken at the first degree levels had been given full accreditation by the National University Commission (NUC) as well as all the programmes at the postgraduate school.
“We have ensured that our programmes both at the first degree and post graduates are in line with the NUC stipulated guidelines and speculations. We have also ensured that we are in line with both our academic and administrative policies,” he said.
Prof. Okechukwu urged the graduating students of the institution to always remember to use thier positions to help their alma mater as well as project the institution in a good image in the larger society.
“Try to ensure you finish any project you want to do, evaluate it first and avoid unfinished or abandoned projects. We will be graduating first degree graduands on Friday while Saturday will be for postgraduates, “he added.
Prof. Onuchukwu also said his administration had achieved a lot since he assumed office as Acting Vice Chancellor, stressing that his administration had improved on the welfare of the staff and the students.
“There are a lot of projects completed in the school; we have also given scholarship to some students and also encouraged departments to do same. We also impacted positively on our host communities”, he said.

Akujobi Amadi

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