NEWS REVIEW
9
THE NATION ON SUNDAY JULY 22, 2012
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RISIS of confidence. That just about captures the present predicament of the embattled Director-General of the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, who may be literally fighting the battle of her life, as far as her public career is concerned. Her reinstatement by the federal government, according to observers, has dire consequences for the nation’s Executive/Legislative relationship as well as how the country would be assessed globally by members of the international community. Crux of the matter On June 12, the Board of SEC had suspended Oteh over, among other charges, alleged questionable handling of the funds realised from Project 50, an event the commission organised in 2011. Her suspension came just as an Ad Hoc Committee on the Near-Collapse of the Capital Market headed by Ibrahim ElSudi had indicted her for similar offences. After establishing a prima facie case against her, the Ad Hoc panel had recommended the termination of Oteh’s appointment, noting among other things that the DG’s appointment breached existing laws as she did not possess the requisite 15-year experience in capital market operations. The committee’s report noted that “She (Oteh) has shown incompetence in the management of human and material resources at her disposal in SEC. “Lack of transparency in the management of 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 policy.” Government’s face-saving device for Oteh But just as the House was planning to consider the report last Thursday, in a move designed to pre-empt the lawmakers, the federal government had on the eve of the lawmakers’ sitting declared that Oteh was acquitted of all allegations levelled against her without recourse to what the lawmakers’ decision on her would be. The federal government in defending her recall said Oteh was never indicted for fraud or any criminal breach. In her letter of recall, the Secretary to the Government of the Federation, Anyim Pius Anyim, wrote, “Please refer to the decision of the Board of Securities and Exchange Commission to send you on compulsory leave in order to enable SEC’s external auditors – the Price Water Coopers Limited – to examine the records of the commission’s transactions covering SEC Project 50 which you supervised. “I am to note that government has studied the report submitted by the external auditors and you are neither indicted for fraud nor criminal breach in any form. However, some administrative lapses were reported,
Arunma Oteh’s return The recall of Ms. Arunma Oteh, the suspended Director-General of the Securities and Exchange Commission (SEC) by the Federal Government last Wednesday has further created a crisis of confidence in the stock market, reports Ibrahim Apekhade Yusuf
particularly, in cases where administrative procedures were not thoroughly observed. “The purpose of this letter is to recall you from your leave and to caution that you must henceforth endeavour to diligently observe all extant rules and administrative procedures in the conduct of all transactions. “Please accept the assurances of my best wishes.” Chain of reactions over Oteh’s reinstatement Expectedly, the decision to bring her back has led to a chain of reactions which began with a march protest at the SEC headquarters in Abuja on Wednesday as staff of the commission said they did not want her back. The staff shut the gates of the commission and carried placards denouncing Oteh’s recall. The protest, while it lasted, grounded business activities at the commission for hours, with some of the protesters chanting anti-Oteh slogans, while others carried placards with various inscriptions such as “We no go gree”, “We say no to Oteh” and “Oteh must go.” Explaining their grievance, the workers, who spoke through their Secretary, Mr. John Briggs, said they would resist every attempt by the government to impose Oteh on them. Briggs said, “We don’t want her (Oteh) back until due process is followed and that is what the workers are saying. The information we have is that she has been given a letter by the SGF, Pius Anyim, to resume and this is wrong because he is not the supervising minister of this commission. “That letter ought to have been
given to her by the Minister of Finance. So, why is he acting on behalf of Okonjo-Iweala? That is why we are not happy because due process has not been followed. Investigations have not been concluded and the report has not been submitted, what they have is only the interim report and we are saying that due process is not being followed,” the workers’ spokesman argued. He said the imposition of the embattled DG on the commission would affect investors’ confidence in the stock market. Guilty in the court of public opinion If the court of public opinion was allowed to have its way, they would rather she should be summarily dismissed based on the weighty allegations levelled against her by SEC staff who blew the whistle on her, hence her exoneration by the federal government, that she was free to go and sin no more after a mere warning, was considered not just a slap on the wrist but hardly enough! Unlike her predecessor, Musa Al-Faki, who honourably resigned his appointment when the fortunes of the capital market began a downward slide, Oteh, according to analysts, has refused to leave, this they argue would further bring public opprobrium to her and dip the fortunes of the capital market further. Stakeholders’ grouse against Oteh Expectedly, stakeholders in the capital market reacted negatively to Oteh’s recall, arguing that the action was against the rule of law. They said her reinstatement was not necessary in the face of unclear
information, advising the DG to resign honourably. Among those who opposed her recall was the Chairman, Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, who fell short of accusing the federal government of criminal conspiracy. He said, “It is rather unfortunate that this is happening in a country that is supposed to be transparent in all its dealings. We need the federal government to tell us on what basis they are recalling her. The report from the House Committee came in yesterday (Tuesday), and she was indicted, and so why are we hearing a different story today (Wednesday)?” Raising further posers, the shareholders’ boss asked rhetorically: “Aren’t all the arms of the government supposed to be working together? Or is it that the federal government does not have the interest of the growth of the capital market on their mind?” Echoing similar sentiments, the National Coordinator, Independent Shareholders of Nigeria, Mr. Sunny Nwosu, noted that it was wrong for the federal government to reinstate Oteh just after the House Committee report which indicted her came through. “This action means that the FG is not sincere in what they are doing. The truth is that in this nation, we cannot continue to rely on sentiment; it is not taking us anywhere. “In any case, if I were Oteh, I would throw in the towel and resign honourably from SEC, because she has been thoroughly embarrassed in all these.” Already many see her case as litmus test for President Goodluck
Jonathan’s anti-corruption war just as they think it has the potential to either make or mar our image in the international community. One of those who hold this view and very strongly too is President of the Campaign for Democracy, Dr. Joe OkeiOdumakin. According to her, the decision to recall Oteh showed that President Jonathan’s administration condoned corruption. She said it is a sign of the fallen walls and the collapse of moral columns under a president who does not give a damn. “The sign was clear when Jonathan allowed her (Oteh) to attend the meeting of the economic team despite being under suspension. There is no surprise again under Jonathan. It is now a republic of anything can happen.” Also on the same page with her is Secretary General of the Trade Union Congress, Chief John Kolawole. While challenging the federal government to give the reasons behind the decision to recall Oteh, Kolawole said that it was necessary for the government to convince the citizenry on its action because of the need to have transparency in running the nation’s capital market. Another school of thought is of the view that she has demonstrated her power and the fact that she can pull the strings from the highest quarters. But how long can these strings go or stretch? The lawmakers whose report has found her culpable may wish to also tug at the strings. The question is: from whose end will it snap?