Reps want Sanusi, Oteh to face prosecution

The House of Representatives, yesterday, indicted
Governor of the Central Bank of Nigeria (CBN)
Mallam Sanusi Lamido Sanusi; Director-General of
SEC Arunma Oteh and DG of Assets Management
Commission (AMCON) Mustafa Chike-Obi for their
refusal to submit certain documents required by the
The House took the decision while adopting the
recommendations of its Adhoc Committee on the
near collapse of the Capital Market.
The Report was laid before the House last Tuesday
by the committee’s Chairman Ibrahim El-Sudi.
The plenary session of the House adopted almost
all the recommendations of the Committee.
However, due to the intervention of the Chairman of
the House Committee on Banking and Currency
Matters, Hon. Jones Onyereri, some of the Capital
Market Committee’s recommendations were
stepped down for harmonisation by the two
According to some of the ratified recommendations:
“ The Governor of Central Bank, Sanusi Lamido
Sanusi; the Managing Director Asset Management
Corporation of Nigeria (AMCON), Mustafa Chike-Obi;
Director-General Securities Exchange Commission
(SEC) Ms Arunma Oteh are hereby cited for
contempt of the House and they should be
prosecuted by the Attorney-General of the
Federation under sections 4 and 11 (b) of the
Legislative Houses Powers and Privileges Act and
section 89 of the amended 1999 Constitution for
refusing to produce documents as requested and
demanded by the Adhoc Committee.
“That the Central Bank of Nigeria Governor through
his Deputy Governor Kingsley Moghalu, SEC DG and
the Nigeria Deposit Insurance Corporation (NDIC)
Managing Director having lied under oath in their
testimony with respect to the ownership structure of
the nationalised banks should be prosecuted under
Section 10 of the Legislative Houses Powers and
Privileges Act, Cap 12 Laws of the Federation of
Nigeria by the Attorney-General of the Federation
for giving false evidence under oath to the
“That the appointment of Ms Arunma Oteh as DG of
SEC be terminated forthwith as her appointment is
in violation of section 3 (2) and section 38 (1) b, 2
and 3; Section 315 of the Investment and Security
Act, 2007 in that she did not have 15 years
experience in the Nigerian Capital Market as
required; That she has shown incompetence in the
management of human and material resources at
her disposal in SEC; lacked transparency in
managing Project 50, regulatory failure in some of
the recent mergers, acquisitions and approvals of
transactions by SEC and general inability to carry
along her staff, Board, and Management in decision
making in SEC and questionable staff recruitment
“That with respect to the missing N8billion, from
the Union Bank Plc public offer, a case of fraudulent
diversion having been established, the past Board
and Management of the bank, the Chief Executive
Officer of the Issuing House/Financial Adviser, the
present members of the Board and Management,
including the Managing Director of the bank Mrs F.
Osibodu should be investigated by the EFCC with a
view to establishing and recovering the missing
amount. Also, the management of AMCON and SEC
including their Chief Executive officers should be
investigated by EFCC considering their roles in
attempting to conceal the fraudulent diversion and
missing fund.
“That all former bank executives who are recipients
of National Honours and who are currently being
prosecuted for crimes and unethical practices which
led to the collapse of their banks be stripped of their
National Honours by President Goodluck Jonathan in
line with section 7 of the National Honours Act and
international norms. That EFCC and Independent
Corrupt Practices and Related Offences Commission
(ICPC) and the courts are also urged to hasten their
prosecution to serve as a deterrence and to help
restore investors confidence in the market.”
“That the transactions involving AMCON, Seawolf
and Geometric respectively should be reversed by
AMCON’s Management and Board and be
investigated by EFCC for possible fraud and
violations of existing regulations and laws.
“That former CBN Governor, Prof Charles Soludo,
Deputy Governor of the Bank Tunde Lemo and
former Director of the bank, Banking Supervision
Ignatius Imala,be further investigated by the House
on account of their role in the banking sector crisis
that led to the CBN’s intervention in eight banks in
“That the allegation of financial impropriety against
the former DG of Nigeria Stock Exchange (NSE) Mrs
Ndidi Okereke Onyiuke is subjudice.
In its findings, the Committee’s report had revealed
that the Assets Management Corporation ofNigeria,
AMCON was a time bomb waiting to explode.
The report also stated that the consolidation of
banks in 2004/2005 contributed to the near collapse
of the capital market and that most of the money
raised for re-capitalisation came from the Nigerian
Capital Market.
According to the Ad-hoc Committee report AMCON
is an accumulation of bubbles that would soon
explode because as at date, AMCON claimed to
have issued bonds worthN4.5trillion but only about
N1.7trillion is guaranteed by the Federal
The report further stated that “the real challenge of
the AMCON bonds is the bond’s ability of being
converted into liquid cash and the fact that a good
number of the AMCON Series bond is yet to be
registered at the CSCS.”
The Committee in the report noted that “it was
shocked at the way and manner that the non-
performing loans were being manipulated by
AMCON. While some AMCON balances were marked
at very ridiculous values, others were stated at
values higher than their book values.
Culled: Vanguard

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