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Fraud at NSE unresolved as new DG assumes office

SUBSTANTIVE Director-General of Nigerian Stock Exchange (NSE), Mr. Oscar Onyema is to assume office today amidst non-resolution of allegation of fraud leveled against the former management of the establishment.

The Securities and Exchange Commission (SEC) had in August last year removed the former Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, from office and replaced her with an interim administrator, Mr. Emmanuel Ikazoboh.
Based on a petition by a council member, Alhaji Aliko Dangote that the Exchange was insolvent and that its account should be audited, SEC also directed the administrator to work with an external auditing firm, KPMG, and a law firm, Aluko Oyebode and Co, to conduct a forensic audit of the NSE‘s accounts.

Though investigations into the alleged fraud have been concluded, sources told The Guardian yesterday that the forensic report may not be released soon, due to a series of suits instituted by some parties involved in the alleged fraud.

SEC, yesterday, directed that a one-month transition period commencing from today be allowed to enable proper handover by the interim administrator to the new chief executive officer. After the transition period, according to SEC, Ikazoboh will continue in the council as deputy to the interim president.

Also, according to information made available yesterday, all the SEC nominated members, including the interim president of the council, Messrs Ballama Manu and Emmanuel Ikazoboh, shall be on the Council pending the election of a new council, and are charged to work with existing council members to achieve the following:

• restructure the Exchange to ensure good corporate governance practices;

• conclude the ongoing initiatives/plans regarding the trading platform and other infrastructure of the Exchange aimed at making it a world class Exchange;

• guide the new Management team over the next few months to settle; and

• prepare the Exchange for its demutualization, including the restructuring of the legal framework.

A statement issued by SEC and signed by the Head of Media, Mr. Lanre Oloyi said the commission expected the restructuring exercise to be quickly concluded so that elections can be conducted to establish a new council.

“We are hopeful that by that time, all the cases in court would have been disposed of so as to allow the Interim President to conduct elections without any legal impediment”.

Oloyi said one of the mandates of the interim administration is to ensure rigorous, transparent and credible process for the selection of a new chief executive officer and executive directors of the Exchange, adding that the commission is pleased to note that “this mandate has been satisfactorily executed and commends the Interim President, the Interim Administrator, and all the members of the council for the excellent work done in this regard”.

According to him, the task of the interim administration is not yet completed, pointing out that a lot more work will need to be done to put the Exchange on a sounder footing so as to achieve the objectives for which the Securities and Exchange Commission intervened.

He said: “In order to speed up this work, the Securities and Exchange Commission has, in the public interest, and pursuant to Section 35 (1) of the Investments and Securities Act (ISA) 2007, directed the Council to admit some professionals, as public interest members, to strengthen the Council and support the new management team”.

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