The Minister of Finance, Mrs Kemi Adeosun, and the now suspended Securities and Exchange Commission (SEC) Director-General, Munir Gwarzo, are at loggerheads over some undisclosed issues, JOSHUA EGBODO writes.
Secret behind tussle
It all started like a tussle over protection of interests, and to a reasonable extent, a demonstration of a mark of supremacy. The Securities and Exchange Commission (SEC), the regulatory body in charge of the nation’s capital market, under the leadership of now suspended Director General, Munir Gwarzo, had launched a forensic audit of some companies over perceived malpractices.
The probe reportedly, as it affects oil marketing giant, Oando, did not go down well with the Minister of Finance, Kemi Adeosun, who allegedly asked Gwarzo to back-off the forensic audit. But the defiant DG insisted on the investigation, describing the minister’s action as interference with the internal working of the SEC.
Twist in the tale
In a dramatic twist late last year, and like the popular axiom of the hunter becoming the hunted, Gwarzo was later to be suspended, and an administrative panel raised by Adeosun, to investigate his alleged receipt of unmerited severance package of about N104 million, for the period he worked in SEC as a Commissioner, before he was elevated to the position of DG, and also reportedly holding interests in companies that were working for the Commission, in breach of the Public Service Rules.
The media war, and public commentaries that followed forced the House of Representatives to make an intervention, passing a resolution on December 5, 2017 directing its Committee on Capital Market and Institutions to wade into the “the conflict between the Minister of Finance and the suspended Director General” of the SEC. The drama, however, was to continue on January 30th, 2018 when the Tajudeen Yusuf-led Committee sat on the matter.
Counter arguments
Adeosun in her submissions before the committee justified the suspension on the basis that the “the integrity of the capital market has to be protected”. According to the minister, “the decision was a good one. It was a pre-emptive move to restore confidence in the capital market. The Oando matter is a separate issue, which is not the case here. As we speak, the audit is ongoing. We don’t have to wait for the suspended DG to be in handcuffs before we take action”.
She further stressed while fielding questions from members of the committee that neither she nor any member of her family have shares or any business interest in Oando as being suggested as possible reason for her action, explaining that the said forensic audit of Oando was still in progress, even with the suspension of the DG. She subsequently confirmed receipt of the report of the Administrative Panel of Inquiry into the series of allegations levelled against Gwarzo, and told the committee that she will forward the recommendations to the President for necessary action.
The suspended DG, who, however, insisted that he resigned his directorship of the said company since 2012, told the committee that the SEC was investigating five different companies at the time the Minister interfered, by calling for suspension of the probe, saying the committee should therefore seek answers to why Adeosun was of particular concerns for Oando and Oasis, and not the other three.
He confirmed to the committee he had ordered the Nigerian Stock Exchange (NSE) to place the shares of Oando on “technical suspension”, following allegations of capital market infractions against the firm, explaining in his submissions that he acted on the petitions by two shareholders of Oando; Alhaji Dahiru Mangal and Ansbury Investment Inc, who accused the executive management of Oando of financial mismanagement.
Gwarzo also argued that Adeosun had no power to suspend him, based on sections 03405 and 03406 of the Public Service Rules quoted in his suspension letter, adding that the said severance packages followed due process, and in line with what has been the practice in the organisation for over a decade.
Bad for capital market
While each of the parties held on to self-justified positions on the saga, the House of Representatives Committee was left with no option to rescheduling the public hearing, with a promise that it will be as much as possible, fair to all parties, especially in the interest of the investing public, and the nation’s economy. The Chairman, Hon. Yusuf explained that the House, “as a responsive institution was aware of the likely and potential damage this unfortunate development may have on the capital market, and Nigeria’s economy”.
Just hours later however, report of the administrative panel of inquiry set up by the Minister to investigate the allegations against Gwarzo was made public, with key recommendations that the embattled suspended DG be sacked, and that the supposed unmerited severance package he received be refunded.
Administrative panel’s verdict on Gwarzo
The panel of inquiry under the leadership of the permanent secretary in the ministry of finance, Mr. Mahmoud Isa-Dutse, said it made enquiries at the Corporate Affairs Commission (CAC), banks and other major stakeholders to arrive at its conclusions.
“Mr. Mounir Gwarzo should be dismissed from the public service of the federal government for holding positions of a director in private companies – Medusa Investment Limited and Outbound Investment Limited, while serving as DG SEC. This is in breach of PSR 030424, PSR 030402 and Section 6 of the Investment and Securities Act (ISA), 2007.
“He should also be referred to the ICPC for further investigation on the allegation of using his position as director-general to influence the award of contracts to Outbound Investments Limited in view of the provisions of Sections 57 and 58 of the Public Procurement Act.
“He should also be dismissed from the public service, having breached Paragraph 313 and 316 of the financial regulations for engaging in extra budgetary expenditure without appropriate approval”, the panel had reportedly recommended.
This development has raised a lot of questions, according the followers. Has Gwarzo’s fate already been decided, even before Adesoun, who said she also had respect for the committee of the House of Representatives, and appeared to make presentation? Would the outcome of the House committee be of any effect anymore? Whose will President Muhammadu Buhari act on, in the event that the House suggested otherwise?
2019: Ogboru tears Delta APC apart
The endorsement of Chief Great Ogboru as the likely sole governorship candidate of the All Progressives Congress (APC) has thrown the party asunder in Delta State.
Chief Ogboru was endorsed by some chairmen and secretaries of local government areas, but 10 of the chairmen have dismissed the alleged endorsement stating that there has been no such thing yet.
The Valentine Egbe- led Delta State APC Chairmen/Secretaries Forum had insisted that Chief Ogboru was the choice of the chairmen but others said the party has neither made arrangement for display of interest nor has formally asked aspirants to declare their interest.
The group, under the aegis of Delta Central LGA Chairmen/Secretaries and others from Delta North, in a resolution at the end of an emergency meeting weekend in Ughelli, said:
“Olorogun Ogboru is only known and recognised by the Delta Central LGA Chairmen/Secretaries Forum as an APC member from Ethiope-East Local Government Area of the state, and also one of the rumoured gubernatorial aspirants for the 2019 contest, nothing more, nothing else.”
“That the Delta Central LGA Chairmen and Secretaries Forum, ceases to be part of the Mr. Valentine Egbe’s led Delta State Chairmen/Secretaries Forum beginning from this day and the public should also take note.”
The chairmen passed a vote of confidence in Olorogun O’tega Emerhor as the leader of the party in the state, according to a communiqué by its chairman, Olorogun Felix Ekure and 16 others.
