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
committees.
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 Committee.
"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 policies.
"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 2009.
"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
Government.
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
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