First Bank, Others Fined N32bn …As NSE Tackles Infractions

Rivers State Governor, Rt Hon Chibuike Amaechi waving to the crowd during the Independence Day Anniversary at the Liberation Stadium, Elekahia, Port Harcourt, on Monday

The Nigerian Stock Exchange, (NSE), has indicted Costain
(West Africa) Plc, First Bank of Nigeria Plc, John Holt Plc, Oando Plc, Conoil
Plc and over 50 other quoted companies, and imposed N34.09 million fines for
various infractions, ranging from publications of their activities without
securing the approval of the NSE to late filings of their financial statements.

According to the NSE, in its latest X-Compliance report, 12
companies were fined N8.465 billion for failing to obtain the NSE’s approval
before publicizing their activities in the media; 65 companies were slammed
with a fine of N6.652 billion, while another 18 were fined N16.8 billion for
failing to submit their financial statements for the 2011 and 2012 financial
statements as well their quarterly results.

The NSE maintained that its law stipulates that quoted
companies provide it with timely information to enable it efficiently perform
its function of maintaining an orderly market.

It said, “In accordance with the provisions of Appendix 111
of the Listing Rules, quoted companies are required to obtain prior written
approval before publications are made in the media.

“The companies contravened the provision of the Listing
Rules and the Exchange applied the sanctions prescribed by the rules, and the
companies discharged their financial obligations.”

A breakdown of the sanctions shows that Mobil Oil Nigeria
Plc and Lafarge WAPCO Plc were fined N1.016 million and N0.7 million,
respectively by the NSE for publishing their interim results in the media
without obtaining prior written approval from it, while First Bank of Nigeria
Plc and Unity Bank Plc were fined N2.1 million and N1.544 million for
publishing notices of extraordinary-general meeting and divestment from
non-banking subsidiaries, respectively.

Guinea Insurance Plc was indicted and fined N0.157 million for
publishing its audited account without approval; Transnational Corporation of
Nigeria Plc was fined N0.763 million for publishing changes in its Board
without the consent of the NSE and Neimeth International Pharmaceuticals was
sanctioned with a fine of N0.181 million for publicizing the appointment of its
acting chief executive officer with out notifying the NSE.

Wema Bank was fined N0.352 million; Honeywell Flour Mills
Plc was fined N0.647 million, Multiverse Plc was fined N0.496 million and
Diamond Bank Plc was fined N0.406 million; for not securing approval before
publishing the appointment of directors in their various boards.

The NSE slammed a N2.85 million fine on Costain for late
submission of its audited financial statements for the year ended, March 31,
2012; C&I Leasing Plc was fined N1.05 million for delay in the submission
of its 2012 financial statements, due January 31 while John Holt Plc was fined
N1.7 million for its failure to submit its 2011 financial statement, due
September 2011.

For failure to submit their 2011 financial statements, due
December 31, Cornerstone Insurance Plc was fined N1.5 million; Conoil was fined
N1.2 million, while UnityKapital Assurance Plc, Niger Insurance Plc, Royal
Exchange Plc, Union Bank Nigeria Plc and Universal Insurance Plc were slammed a
fine of N0.9 million each.

FTN Cocoa Plc was fined N0.2 million, Dangote Flour Mills
Plc was fined N0.4 million, Regency Alliance Insurance Plc was fined N0.5
million, Oando Plc was fined N0.5 million, Premier Paints Plc was fined N0.7
million and SCOA Nigeria Plc was punished with a N0.8 million fine.

Several other companies, numbering 31, were fined between
N2,857.14 and N0.245 million, totaling about N2.174 million, for failure to
submit their full year and quarterly results.