• May Face Criminal Prosecution
• Suspends Chairman, Other Directors For Five Years
In line with its zero tolerance for infraction and as part of the determination to enhance investor confidence in the Nigerian capital market, the Securities and Exchange Commission (SEC) came down hard on Partnership Investment Company Plc and Partnership Securities Limited and its key officials for engaging in acts capable of adversely affecting the investing public’s image of, and confidence in the capital market. The commission in a statement on Tuesday, announced the cancellation of its registration certificate issued to Partnership Investment Company Plc, while Victor Ogiemwonyi, its managing director and chief executive got a life ban from holding board positions in any public company in Nigeria..
Also, chairman of the companies, Henry Omoragbon was suspended for five years from engaging in capital market activities in the Nigerian Capital Market, according to the decision of the Administrative Proceedings Committee of the SEC, which was approved by the commission’s board.
The companies and their officials were dragged before the APC over allegations that the violated the SEC Rules on separation of clients’ funds from company’s funds; unauthorized sale of clients’ shares; failure/Refusal to resolve clients’ complaints; performance of a capital market function without registration; non-compliance with the Code of Corporate Governance of the Commission; and filing of false/misleading information.
Others include: non-compliance with the Commission’s Rules relating to assets-mix ratio; non-compliance with the Commission’s Rules on disclosure of transactions valued at N50m and above executed in a single day; soliciting deposits from the public; other violations of the Investments and Securities Act, 2007, SEC Rules and Regulations, the Code of Conduct for Capital Market Operators and their Employees and Code of Corporate Governance for Public Companies.
According to a statement by the SEC, “…pursuant to Section 38 (4) of the Investments and Securities Act 2007 and Rules 34 (1), (a) of the SEC Rules and Regulations made pursuant thereto, the certificate of registration of Partnership Investment Company Plc is hereby cancelled without prejudice to the recovery of all existing liabilities due to the Complainants and penalties payable to the Commission.
Ogiemwonyi and Omoragbon were ordered to pay a penalty of N100,000 “for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007.
Ogiemwonyi “is also banned for life from holding directorship position in any public company in Nigeria for his unprofessional conduct in respect of the activities of the both companies,” the statement added.
Partnership Securities was also ordered to pay N1.0m as penalty for the breach of Rule 65 (5) of the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007, while the parent company is to pay N3.0m “as penalty for the breach of Section 61 (1) of the Investments and Securities Act 2007 and punishable under Section 65 (1) of the Investments and Securities Act 2007.”
Together, Omoragbon, Ogienmwonyi, Mrs. Funke Ogiemwonyi and Mrs. Arese Ugwu were “jointly and severally ordered to pay the sum of N3.0m only as penalty for the breach of Section 61 (1) of the Investments and Securities Act 2007 and punishable under Section 66 (1) of the Investments and Securities Act 2007.”
The statement added that pursuant to Section 304 of the Investments and Securities Act 2007, all information on possible criminality in the matter would be referred to the appropriate law enforcement agencies.
Directors of the company such as Ojetunde Taiwo, Mrs. Ogiemwonyi, Ogiamien Frank, Adeusi Aladejola Alexander, Mrs. Ugwu, were also suspended for a five-year period from engaging in capital market activities in the Nigerian Capital Market, banned from holding directorship positions in any public company in Nigeria for the said period and ordered to pay a penalty of N100, 000 each for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.
Eseha Augustine Enejeta, a Manager in the company was suspended for a year from engaging in capital market activities in the Nigerian Capital Market and ordered to pay a penalty of N100, 000 also for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007.
