THE Nigerian Stock Exchange (NSE) has taken its former Director-General, Prof. Ndi Okereke-Onyiuke and Managing Director of the Central Securities Clearing System(CSCS), Onyewuchi Chikerem Asinobi, to the high court of Lagos State over alleged diversion of the shares of NSE/CSCS Multipurpose Co-operative Society worth N264,978,975.00) into private accounts.

According to the NSE, those involved in the alleged illegal diversion include Okereke-Onyiuke’s former deputy, Mr. Lance Musa Elakama, Josephine Igbinosun, Yinka Idowu, Uzoma Henry Onyekuru and Binus Dauda Yaroe.

Others are Olufunso Fatobi, Pauline Onyenwe, David Oleka, Cynthia Akpomudiar, Bassey John, Attah Ndubuisi and Vivian Ashiogwu.

Also sued for allegedly facilitating the transaction are Creative Financial Consultants Limited, Mining Systems Limited, Faozat Ventures Limited, Impact Management Limited, DOVI-NICCA International Limited, Business Dynamics Nigeria Limited, Oceanic Registrars Limited and WEMA Registrars Limited.

NSE disclosed, yesterday, that at the end of an investigation, it was revealed that the fund was allegedly withdrawn from the NSE/CSCS Multipurpose Cooperative accounts with Access Bank Plc and First Bank Plc between 2007 and 2008 and subsequently used to purchase the shares of Dangote Flour Plc and Great Nigeria Insurance Plc.

However, according to the NSE, the proceed from the purchase was allegedly allocated to some former and present top management staff of NSE and CSCS.

In its writ of summons dated April 7, 2011, issued by Prof. Yemi Osinbajo of Simmons Cooper Partners, John Babatunde Fagbohunlu of Aluko & Oyebode and ‘Wuyi Ogunyinka of Terra Marine Attorneys, NSE is asking the court to compel the defendants to refund the said amount with interest, dividend and bonuses where applicable.

Sued jointly as officers and representatives of and on behalf of all the members of the NSE/CSCS Multipurpose Cooperative Society are Olufunso Fatobi, Binus Dauda Yaroe, Pauline Onyenwe, David Oleka, Josephine Igbinosun, Cynthia Akponmudiar, Bassey John, Attah Ndubuisi and Vivien Ashiogwu.

Already, all parties in the alleged transactions according to NSE have been served their summons, adding that the NSE/CSCS Multipurpose Cooperative Society is a union and association organised to promote the interest and welfare of members.

In the writ of summons, NSE lawyers accused the first defendant of breach of trust by allegedly approving the drawing on the claimant’s account, a cheque in the sum of N264,978,975.00 and thereby caused the claimant’s fund to be used for the purchase of Dangote Flour Mills Plc’s shares and Great Nigeria Insurance Plc’s shares ostensibly offerings of the Dangote Shares and the Great Nigeria Shares in September 2007 and May 2008, respectively.

It added that there were no record of the said purchase or transfer of the said shares or the transaction pertaining to the purchase of the said shares in the books of the NSE/CSCS Multi-purpose Cooperative Society.

Explaining further, NSE in the writ of summons said: “The 1st Defendant in breach of her fiduciary duty, and in breach of trust, approved the drawing on the claimant’s account, a cheque in the sum of N90,000,000.00 and thereby caused the claimant’s fund to be used for the purchase of 6,000,000 units of Dangote Shares ostensibly on behalf of the NSE/CSCS Cooperative during the public offerings of the Dangote Shares in September 2007.

“Further, on or about April 25, 2008, the 11th Defendant as Chairman of the NSE/CSCS Cooperative, authorised the transfer of the 6,000,000 units of Dangote shares to himself, the 1st, 5th, 6th and 7th Defendants.

“The 1st, 4th, 6th and 7th Defendants, in further breach of fiduciary duties and in breach of trust, received by transfer the 6,000,000 (six million) units of Dangote shares acquired with the claimant’s funds.”

NSE added that according to the 11th defendant’s record, by February 19, 2008, the 4,000,000 units of Dangote shares bought with the claimant’s funds were registered in the name of the third defendant via shares account number 91031432, the third defendant maintained with the 11th defendant.

The NSE said that the claimant shall at the trial of the suit rely on the following:

• its payment vouchers Nos. 0020286 and 0020286, both dated September 24, 2007 reflecting that the payment was for investment in public offer through the NSE/CSCS Cooperative Society;

• Access Bank cheques Nos. 253 received by one Dagogo Iyeimo on behalf of Unex Securities on 24 September 2007, drawn on the claimant’s account for N90 million, in respect of the share purchases;

• the claimant’s Access Bank Plc’s statement of account for account number 003001000 with Access Bank indicating that cheque were debited to the account on 28 September 2007;

• a handwritten note dated September 24 2007 attached to the payment voucher requesting one Odinachi to raise a cheque for the above stated sum;

• certified True Copies of Forms CAC 2 and 7 of the 5th defendant indicating that the 4th defendant was a director and shareholder in the 5th defendant at all material times; and,

• a letter dated November 23, 2010 from Vetiva Management to which is attached a letter dated April 2008 from the 8th defendant

It added: “In a letter written to the claimant, Independent Securities, a stock-broking firm, informed the claimant of the purchase of 30 million units of Great Nigeria Insurance shares ostensibly on behalf of the NSE/CSCS Cooperative during the public offerings of the Great Nigeria Shares in May 2008 at N3.80k per share and in the same letter, requested from the claimant the payment of the sum of N114,978,975 in full and final settlement of the purchase.

“The claimant shall at the trial of this suit rely on the Independent Securities’ letter to the claimant.

“In February 2008, the 1st defendant in breach of her fiduciary duty, and in breach of trust, approved the drawing on the Claimant’s account, a First Bank Plc’s cheque in the sum N114, 978,975.00 (one hundred and fourteen million, nine hundred and seventy eight thousand, nine hundred and seventy five naira) and thereby caused the Claimant’s fund to be used for the purchase of 30,000,000 (thirty million) units of Great Nigeria Shares for the benefit and in the name of the 2nd, 9th, 21st, and 24th Defendants.”