Reps back suspension of SEC DG pending conclusion of allegations

The House of Representatives on Tuesday mandated the Federal Government to throw its weight behind the suspension of Munir Gwarzo director-general of the Securities and Exchange Commission (SEC).

To this end, the House resolved to probe all allegations of corruption levelled against the Gwarzo and other officials, just as it directed all the parties involved to maintain status quo, pending the outcome of the investigation. Gwarzo was suspended by Kemi Adeosun, Minister of Finance, over “several allegations of financial impropriety levelled against him,“ in line with the Public Service Rules (PSRs) 03405 and 03406. Subsequently, the Minister has set up an Administrative Panel of Inquiry to investigate and determine the culpability of the Director-General,” according to a statement issued by the Ministry.

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The House resolution was passed sequel to the adoption of a motion raised under ‘Matters of Urgent Public Importance titled: “Need to intervene in the conflict between the Minister of Finance and the suspended Director-General, Securities and Exchange Commission,” sponsored by Diri Douye, who frowned at the various allegations and circumstances surrounding Gwarzo’s suspension. In an interview with BusinessDay, Tajudeen Yusuf, chairman, House Committee on Capital Markets and Institution, confirmed that “he (Gwarzo) is already suspended. So it remains for now, pending the outcome of our investigation.”

Some of the lawmakers who spoke in favour of the motion: Toby Okechukwu (PDP-Enugu), Sanni Kaita (APC-Katsina) stressed the need for the intervention of the House, in a bid to avert crisis in the country’s capital market. In his lead debate, Douye, who accused the Federal Ministry of Finance of interfering in the SEC activities, particularly in the Oando forensic audit matter which he said was largely responsible for the DG’s suspension. “The House notes the conflict between Minister of Finance, Kemi Adeosun and the suspended Director-General, Securities and Exchange Commission (SEC), Munir Gwazo, over Oando’s forensic audit and corruption allegations.

“The House still notes that the conflict has led to the suspension of the DG, SEC, alongside Head, Legal Department and Head, Media on the 29th November 2017. It has also led to the setting up of an Administrative Panel of Inquiry and appointment of Ag DG by the Minister of Finance. “The House equally notes that the conflict has allegedly lingered for several months between the Ministry of Finance and Securities and Exchange Commission but the matter of Oando disagreement brought it into the public domain.

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In his remarks, Toby Okechukwu, chairman, House Committee on Works, said that the rot in SEC apparently contributed to the collapse of the capital market in Nigeria. “What is happening in SEC is symptomatic of the collapse of the capital market. I wouldn’t know why infractions should be swept under the carpet. The Nigerian people should be told why the infractions of Oando will be swept under the carpet. “Nigerians should know why the minister cannot be investigated. Nigerians should know why the DG was sacked. A total panel of inquiry is needed in the SEC,” he urged.

Also speaking, Sanni Kaita (APC-Katsina) said that the Commission was too sensitive and important to be left unattended. “SEC is very sensitive and very important to Nigeria and the international community. Should we allow the investigation to go on without knowing what happened?” While ruling, Speaker Yakubu Dogara mandated the Committee on Capital Market and Institutions, to investigate all allegations and report to the House within two weeks.