No fewer than 33 persons have been deemed unfit to engage in the Nigerian stock market business. Consequently, the Nigerian Stock Exchange (NSE), has blacklisted them as a result of alleged corruption and other offenses.
The ban was placed on the 33 persons for various crimes ranging from unauthorised sale of clients’ shares, diversion of funds, professional misconduct, and aiding and abetting criminal activities.
The Details: Those on the “blacklist” include stockbrokers, accountants, directors, compliance officers, registrar, information and technology specialists among others. A breakdown showed that stockbrokers comprise more than half of those blacklisted, while there is also a significant number of compliance officers.
It would be recalled that The Exchange, had in December last year, amended its rules to enable it to open a ‘blacklist’ for recording corrupt persons. The amendment as at the time was approved by the Securities and Exchange Commission (SEC).
What does this mean? Any blacklisted person shall no longer be entitled to the privileges, services, recognition, or access to the Exchange and its facilities. Such a person shall also not be permitted to deal/transact with or be employed by a dealing member or person.
The “blacklist” rule applies to all dealing member, an authorised clerk, an employee or director of a dealing member, a sub-broker, or any other capital market operator.
How the embargo can be lifted: According to the NSE rules, any person blacklisted by the Exchange may, however, apply to the Exchange for reinstatement after the expiration of the blacklisting period imposed by the Exchange; or where the blacklisting is not for life, a reasonable period has elapsed where no period is specified by the Exchange.
Any person applying for removal from the blacklisting and reinstatement into the capital market must “provide compelling reasons” in support of his or her application.
Meanwhile, the NSE-through it Disciplinary Committee and Securities and Exchange Commission (SEC)-through its Administrative Proceedings Committee (APC) run an active investigative mechanism that seeks to uncover malpractices, sanctions indicted operators and restitutes affected investors. However, both NSE and SEC lack prosecutorial powers.
Capital market regulators have recently been able to bridge the gap between their investigative powers and prosecutorial powers through a Memorandum of Understanding (MoU) with the Economic and Financial Crimes Commission. The MoU shall allow collaborative efforts on information sharing, investigation, prosecution and enforcement.
Update: Buhari suspends EFCC boss, Ibrahim Magu from office
The suspension follows the investigation of allegations of gross misconduct against him on Monday.
President Muhammadu Buhari has approved the suspension of the acting Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, from office. The suspension follows the investigation of allegations of gross misconduct against him on Monday.
According to available information, Magu was suspended to allow for probe into allegations against him.
The EFCC boss appeared before a presidential probe panel headed by retired Justice Ayo Salami, who is investigating the allegations against him.
The latest development is coming a day after he was invited to face the Rtd Justice Ayo Salami led probe panel, to various allegations that had been levelled against him, which borders on misconduct and financial irregularities.
Meanwhile, the Presidency in reaction to the probe of Magu, declared that it shows that nobody under the administration of President Muhammadu Buhari is above scrutiny. A monitored report suggests that the investigation of the EFCC boss was to reinforce that this administration’s commitment to transparency and accountability, adding that the holder of such office must be above suspicion.
A monitored report states that the interrogation of Magu is to give him the opportunity to clear himself of the weighty allegations against him.
The Department of State Services (DSS), yesterday stated that contrary to claims in the media that the EFCC boss had been arrested, he was only invited by a presidential panel that was set up to review the activities of the EFCC.
According to the DSS, he was served the invitation to the panel, while on his way to the Force Headquarters, Abuja for a meeting, so he was neither arrested nor forced to honour the invitation.
The acting Chairman of EFCC appeared before the panel probing allegations of gross misconduct against him on Monday, July 6, 2020.
Reps to investigate alleged illegal withdrawal of $1.05 billion from NLNG account
Gbajabiamila mandated the House to conduct a thorough investigation on activities of the dividends account.
The House of Representatives has concluded plans to investigate the alleged illegal withdrawal of $1.05 billion from Nigeria Liquefied Natural Gas (NLNG) account by the Nigeria National Petroleum Corporation (NNPC) without its knowledge and appropriation.
The decision by the lower chamber is on the heels of a unanimous adoption of a motion by the Minority Leader of the House, Ndudi Elumelu, during plenary session on Tuesday, July 7, 2020.
Going down memory lane, Elumelu recalled that the NLNG was incorporated as a limited liability company in 1989 with the aim of producing liquefied natural gas and natural gas liquids for export purposes which began in 1999.
He pointed out that the NLNG is jointly owned by the Federal Government, represented by the NNPC with a shareholding of 49% and Shell Gas with 25.6%, Total LNG Nigeria Ltd with 15% and ENI International with 10.4%.
The Minority leader said, “The dividends from the NLNG are supposed to be paid into the Consolidated Revenue Funds Account of the Federal Government and to be shared among the three tiers of government.’’
Going further in his motion, Elumelu said, “The NNPC who represents the government of Nigeria on the board of the NLNG had unilaterally without the required consultations with states and the mandatory appropriation from the National Assembly illegally tampered with the funds at the NLNG dividends account to the tune of 1.05 billion dollars thereby violating the nation’s appropriation law.
“There was no transparency in this extra-budgetary spending as only the Group Managing Director and the corporation’s Chief Financial Officer had the knowledge of how the 1.05 billion dollars was spent.’’
‘’There are no records showing the audit and recovery of accrued funds from the NLNG by the Office of the Auditor General of the Federation. Hence the need for a thorough investigation of the activities on the NLNG dividends account.”
In his ruling, the Speaker of the House, Femi Gbajabiamila, mandated the House Committee on Public Account to conduct a thorough investigation on activities that had taken place on the dividends account.
Gbajabiamila mandated the committee to invite the management of the NNPC as well as that of the NLNG in the process and report back to the house in four weeks.
Just In: DSS invites EFCC’s Acting Chairman, Ibrahim Magu for questioning
A 2016 report had indicted Magu of several criminal acts including diversion of recovered loot.
Ibrahim Magu, the Acting Chairman of the Economic and Financial Crimes Commission (EFCC) has been invited by operatives of the Department of State Services (DSS) for questioning.
Nairametrics gathered Magu was invited Monday afternoon by the DSS.
Tony Amokedo, a spokesman for Ibrahim Magu claims Mr. Magu wasn’t arrested as reported in a section of the media, but was invited for questioning by DSS officials. He said Magu was invited for a Panel set up by the Federal Government investigating corruption allegations against Magu.
Also, following earlier reports of Magu’s alleged arrest, the DSS quickly released a statement through its Public Relations Officer, Peter Afunanya, Ph.D, denying the arrest of the chief of Nigeria’s anti-graft agency.
“The Department of State Services (DSS) wishes to inform the public that it did not arrest Ibrahim MAGU, Acting Chairman of the Economic and Financial Crimes Commission (EFCC) as has been reported by sections of the media. The Service, has since, today, 6th July, 2020, been inundated with enquiries over the alleged arrest,” DSS statement read.
Last month, the Attorney-General of the Federation, Mr. Abubakar Malami (SAN), wrote to Buhari, recommending the removal of Magu, accusing him of misconduct, insubordination and diversion of recovered loot.
A 2016 report by the DSS revealed Ibrahim Magu lives a “high-profile lifestyle”. The report revealed Magu lives in a house rented for N40 million at N20 million a year which was paid for by one retired Air Commodore, Umar Mohammed.
Magu is also accused of using private jets belonging to Mohammed and going on trips with bank executives being investigated by the EFCC.
The report also revealed Magu was guilty of withholding EFCC files, obstruction of justice and sabotage by the Nigerian Police Commission in 2010.