After two months of suspending the company, the Securities and Exchange Commission (SEC), on Thursday, June 25, stressed again that BGL Securities Limited, BGL Capital Limited, BGL Asset Management Limited, all BGL Group sponsored individuals and the Managing Director of the Group, Albert Okumagba remain suspended from all capital market activities.
The Commission also invited the management of the company to appear before the SEC Administrative Proceedings Committee (APC) sitting slated for August 4th and 5th 2015 to explain the allegations of capital market infractions against the group.
In a statement on its website yesterday, SEC said it received over 40 letters of investor complaints against BGL Group Plc alleging indebtedness to the tune of about N5.8 billion.
“Investigations were conducted and all-parties meetings were arranged by SEC during which repayment agreements were struck between BGL and some of the affected investors. Unfortunately, BGL continued reneging on promises to restitute investors. Backed by a court order from the Investments and Securities Tribunal (IST), SEC set up a 7-man Interim Management Team (IMT) for BGL Group.
This was a necessary, well-considered action with the sole objective of protecting investors while a more detailed forensic audit was conducted to determine the financial health of the companies within the BGL Group and the nature/extent of infractions committed by the BGL management.From the preliminary report of the forensic auditors, it was revealed, among other facts, that indeed BGL Group was in a critical financial state in which:The Group’s management had progressively eroded its shareholders’ funds through losses sustained over a 5-year period totaling about N48 billion as at December 31, 2014,” SEC said.
The commission explained that Group has significant liquidity challenges making it unable to meet its responsibilities towards clients and investors as evidenced by over N11 billion in unpaid matured funds to investors.