• Says Attempted Blackmail Mischievous
Finance Minister, Mrs Kemi Adeosun, on Friday spoke for the first time since the suspension of Mounir Gwarzo as Director-General of the Securities & Exchange Commission (SEC), describing as mischievous, media report that the move followed his insistence on going ahead with the forensic audit of energy giant- Oando Plc over breach of the Investment & Securities Act (ISA), among others.
While describing the claim that has been widely reported in the media as mischievous attempt at blackmailing her, Adeosun said the SEC DG was suspended “in line with the Public Service Rules (PSRs), to allow for an unhindered investigation of serious allegations of financial impropriety against him.
“Some of the allegations with documented evidence include the awards of contracts to companies related to him and members of his family,” for which he was queried by the Ministry on November 3, and responded four days later.
His response to the query, according to a statement by Oluyinka Akintunde, Special Adviser, Media & Communications to the Minister, was deemed unsatisfactory, following which further investigation was ordered.
“Based on the evidence from that further work and creditable reports that documents were being unlawfully removed from SEC, as well as consultations with the Economic and Financial Crimes Commission (EFCC), the decision was taken to suspend Gwarzo.”
This was why the meeting of November 27, was called to enable him clarify some of his responses to the query issued, as they were inconsistent with documentary evidence, the Minister said, adding that from then, the embattled SEC boss became aware of the strong likelihood of his suspension.
It was thereafter Gwarzo prepared the memo circulated to the media, which he personally delivered “using SEC staff seconded to the office of the Minister, in breach of normal procedures for the receipt of mail.
“The copy of the memo in the possession of the Minister was delivered with a message that any action against Mr. Gwarzo would result in same being leaked to the press. It was this threat of blackmail that strengthened the resolve of the Minister to suspend Mr. Gwarzo and allow the Administrative Panel of Inquiry to proceed with its probe.
“The Minister restates that the insinuation of an instruction to discontinue with the Oando case is false and this can be corroborated by the other parties at that meeting and by subsequent events.
She described the reports as misleading and mischievous, especially given that the SEC management led by Dr. Zubair has since announced plans to continue with the audit, which has indeed resumed as communicated in a letter to the management of Oando Plc on Wednesday, December 6, 2017.
“For the avoidance of doubt, there was no directive whatsoever to discontinue investigation into Oando and this was reiterated to the current SEC leadership at the formal handover meeting. The fact that the investigation has continued further corroborates that this is the Minister’s position,” according to a statement.
The Minister recalled that the October 20, 2017 decision of the SEC to suspend Oando Plc’s shares and conduct a forensic audit was approved and endorsed by the Ministry (because the SEC has no board).
On that day, she continued, Gwarzo led a team from the commission to present adequate evidence supporting the fact that Oando Plc had a clear case to answer in relation to infractions of the Investment & Securities Act (ISA).
In the absence of contrary evidence presented, “the investigative work on Oando and all other ongoing investigations being undertaken by SEC in the discharge of its statutory functions have continued.”
She said the decided to respond to the allegation, follows realization that “the integrity of the capital market is vital to the growth of the Nigerian economy and must be managed in an orderly and transparent manner to ensure investors’ confidence.”
This is why, the Minister continued, leadership of the market’s apex regulatory agency, “must maintain and be seen to maintain the highest standards of integrity.”
