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Wednesday, March 21, 2012

SEC Board Approved N30m Bribe For Probe Committee...With Herman Hembe`s Consent




Huhuonline.com can disclose that the last is yet to heard on the spat between Ms. Aruman Oteh, director general of the Nigerian Security and Exchange Commission and members of the House of Representatives Committee on Capital Market.

Recusing himself and members of the committee from the probe, Tuesday, Hon. Herman Hembe stopped short of calling the SEC director general a lair, alleging that Ms Oteh offered an unsolicited support (bribe) to the committee.  

The closing paragraph of a Security and Exchange Commission internal memo, addressed to the Director General, authored by one Hassan Mammam and dated March 1st 2012, read:

"If the above suggestion is acceptable to management, the committee (Capital Market Committee) may be approached on your directive, to find out the possible areas for the support."

According the memo, Hassan Mammam initiated and proposed sponsorship of the probe. He said,

"In view of the Commissions role as the apex regulator of the Nigerian Captial market and in consideration of the existing cordial relationship cultivated over the years between it and the House of Representatives Committee on capital market, we find it appropriate for the management to assist  the committee by co-sponsoring this three week long event."

" It is our considered opinion that doing this will of immense benefit to the nation`s capital market by further creating more conducive atmosphere to finding lasting solutions to the challenges facing the Nigerian Capital Market."

Huhuonline.com understands that neither Hon. Hembe or members of the committee opposed the sponsorship as claimed, another memo dated March 9th 2012,also authored by Hassan Mamman reveals that  the committee on capital market welcomed the idea of sponsorship, and subsequently, forwarded a  budget estimate for an undisclosed amount, but received approval for thirty million naira only.

Twenty six million naira for live media coverage and four million for secretariat needs.

The SEC board at its 63rd meeting held on March 12, 2012 approved the thirty million. The approval was conveyed in a memo, dated March 13 2012, and authored by E.K. Aigbekaen.

Hear him:
"After due deliberation, the Board approved a maximum of N30million as donation to by the commission to the House of Representatives Committee on Capital Market and Institutions to enable it undertake a public hearing to identify the manifest causes of the near collapse of the Capital Market with a view to finding lasting solution."

Responding to the sponsorship allegations, Securities and Exchange Commission, in a statement issued by one Obi Adindu, said,

“Despite Hon. Hembe’s claims even as he said he had copies of internal memos which he purportedly obtained from the SEC, however Ms. Oteh did not issue or cause to be issued any correspondence to Hon. Hembe which offered him financial gratification.”
“We confirm that the SEC received a document in respect of the public hearing with a list of items with cost implications totaling N39,844,490.00. “  


“The correspondences which the Director General sent to Hon. Hembe comprised a letter dated 5th March 2012 which expressed her support for the Public Hearing in line with the SEC’s role as the apex regulator of the Nigerian capital markets and a cover letter for SEC’s submissions to the Public Hearing dated 12TH March 2012.

“She had hoped that the Hearing would offer a platform for an objective examination of the market with a view to identifying the factors militating against its full recovery.”

“ She had expected that the outcome of the Hearing would facilitate realization of the SEC’s vision of a world class capital market that constitutes the engine room for our country’s rapid socio economic growth and development. “
Continuing, Obi Adindu, said,

It is sad that a genuine act of support to the process of fair and transparent review of our capital market has been twisted into something reprehensible.”

“ We totally disagree with the claim that we tried to financially induce or influence Hon. Hembe or anyone else.”

“ It goes against everything that the Director General stands for and has been known for, internationally and locally, by those who have known her in her professional career of over 25 years.”

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