Suspend the dubious capital market probe now

MARCH 19, 2012 BY PUNCH EDITORIAL BOARD 56 COMMENTS

THE latest bribe scandal emanating from the National Assembly reinforces Nigeria’s global image as an irredeemably corrupt nation. The integrity of the parliament, never sterling in the first place, has once more been called into question. On Monday, last week, the House of Representatives announced the commencement of a three-week probe into the Nigerian capital market, with the involvement of the Economic and Financial Crimes Commission. What happened a few days into the probe was bizarre, if not comic. The allegation that the leader of the parliamentary committee, probing the capital market regulator, Herman Hembe, demanded bribes from the same regulator is the latest assault to public sensibility. The Hembegate scandal has brought the integrity of the National Assembly to the lowest ebb and should not be condoned.

If we are serious about fighting corruption and improving the nation’s odious image, this latest bribe saga should not be swept under the carpet as many similar scandals have been treated in the past. The drama in Abuja on Thursday was sordid indeed. The House of Representatives Committee on the Capital Market and other Institutions had been grilling Arunma Oteh, Director-General of the Securities and Exchange Commission. Several allegations, bordering on improper recruitment and spending had been made against her. Hembe had been particularly hostile and aggressive towards Oteh.

On Thursday, she flipped. Demanding a fair hearing, she questioned Hembe’s integrity and motives. Then the bombshell: “In asking the SEC to contribute N39 million for this public hearing, don’t you think that you are undermining your capacity to carry out your duties?” Not done yet, she thundered: “You also requested that we should provide at least N5 million, which was a day before this public hearing.”

All stakeholders will agree that the issue of the credibility of Hembe be swiftly addressed. This position is unassailable. The principle of fair hearing compels an immediate halt to the enquiry. An independent committee is required to investigate the allegations against Hembe and the committee. The investigation into the committee should also examine if there are external influences, as already alleged, in the SEC hearings. Observers easily recall how SEC and Oteh were hounded by both chambers of parliament and a federal attorney-general on behalf of the ousted leadership of the Nigerian Stock Exchange.

Since 1999, the National Assembly that should be the bastion of probity, integrity and moral rectitude has been repeatedly enmeshed in scandals and financial brigandage. It has become a national embarrassment, a swamp of intrigues and corruption. From the first Speaker of the House who forged educational certificates, to the last but one, scandal had dogged the lower chamber. Three Senate presidents have bowed out of the National Assembly in scandal. The parliament gave jute bags, Ghana-must-go in local parlance, a certain notoriety associated with treasury looting and bribes. Previous legislative scandals offer stout evidence that probes are nothing but random plots for corrupt enrichment, or to achieve personal agenda. How come none of the numerous probes undertaken by the lawmakers have ever yielded fruits?

Once again, the federal lawmakers are disgracing the state. Allegations that parliamentarians routinely demand bribes to confirm for appointment public office nominees and approve the budgets of Ministries, Departments and Agencies are rife, even if not proved. There are widespread stories of how the conduct of oversight functions involving public hearings such as the current one, summons of public officials and private sector operators and visits to institutions, have become an avenue for extortion. Alleged demand for and release of N51 million to the Senate to approve his budget landed a former Education Minister and several others in court on corruption charges. A former Federal Capital Territory Minister, Nasir el-Rufai, once alleged that senators had demanded bribes to smooth the way for his ministerial confirmation. No one was apprehended nor punished. A former senator once alleged on the floor of the senate that he had received and personally distributed bribes to other senators at the behest of the Presidency. At the lower chamber, a member once displayed his own share of millions of naira collected as bribes by members.

The erosion of credibility and integrity has made a mockery of our democracy and deprived the nation of quality governance. Our lawmakers have often portrayed themselves as irresponsible and unresponsive to the needs of the people. As public officers, they place their own comfort above all else. Despite the continued slide in the standard of living of Nigerians – with 61.9 per cent living in “absolute poverty” – the National Assembly has adamantly refused to drastically reduce the jumbo allowances of its members that make our parliamentarians arguably the highest paid in the world. The frequent shameful displays by lawmakers have gone too far. Despite the hefty sums they vote for themselves that enabled them to take 25 per cent of all federal overheads in 2010, according to the Central Bank Governor, Lamido Sanusi, lawmakers are alleged to routinely demand money from MDAs. These are some of the reasons why the National Assembly has developed a reputation as a rendevouz for feasting on public funds. Thursday’s ugly scene at the House probe of the capital market only reinforced this image.

There is something terribly wrong with our political system that marginalises those with the best brains and highest standards of integrity, but allows pliable people to dominate the public space. It is quite telling that Nigerians continue to elect its Second Eleven to the legislature rather than good men and women who are determined to wipe out corruption. Our weak electoral system is one of the main reasons why, despite the corruption, laziness and incompetence in the National Assembly, the corrupt, lazy and incompetent keep getting re-elected. Nigeria is also stuck with pathetic opposition parties that are chronically incapable of keeping the ruling party on its toes. There is, sadly, nothing in the present composition of the National Assembly to inspire much hope of productive lawmaking. The quality of representation has been rather poor and explains the meagre output of the national parliament in the last 13 years.

Corruption in high places has gone far enough. The Hembegate scandal is coming only two weeks after British law caught up with a former Delta State Governor, James Ibori, who had successfully dribbled our own compromised judiciary. It comes in the wake of the still unfolding N2 trillion petrol subsidy scandal and sundry other financial scams whose perpetrators are still breathing the air of freedom. No nation that celebrates corruption makes progress.

Nigerians should be appalled at their corrupt and clueless legislature. The regular assaults on their collective dignity by the few corrupt and greedy politicians must end. President Goodluck Jonathan should demonstrate his commitment to transparency by reining in the pervasive culture of corruption, by making public his assets declaration papers and those of his ministers immediately. Nothing short of this will restore the people’s confidence and trust in his government. Jonathan should immediately order that no minister or head of MDA should, henceforth, succumb to parliamentary blackmail. The MDAs should stop sponsoring legislators as they have their own votes for travels. The Nigerian Bar Association and civil society groups should mobilise for the institution of a transparent, upright and less expensive parliament. The electoral system will need to be radically overhauled as should the party system, to pave the way for credible Nigerians to emerge in leadership positions.

For democracy to have meaning and facilitate development, there must be a drastic change and zero tolerance for corruption, election malpractices and financial recklessness at the parliament. The Presidency and the leadership of the National Assembly should get to the root of the SEC probe saga. Unlike the numerous other scandals that have been swept under the carpet, this should provide a take-off point for the war on corruption to truly gather steam. The EFCC need not wait for a petition to quickly move in and question Oteh and Hembe and thus revamp the comatose anti-corruption drive. There should be a greater display of integrity in the National Assembly than what is happening now.

http://www.punchng.com/editorial/suspend-the-dubious-capital-market-probe-now/

I have always said that the problem with this country are not just the leaders but a group of persons who will go to any length to make sure corruption cannot be eradicated. How can you go on this st.u.p.id rant and want us to take you seriously. It is not news that the NASS is corrupt. If there is an allegation against Hembe, it should be seriously investigated. But to call for a halt to this very useful probe is tantamount to blackmail. The probe should go on otherwise we will be creating (actually we have already created it) a situation where corrupt people will fight back with blackmail and everything in their arsenal to stop their probe. The probe should continue without interruption.

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If we are serious about fighting corruption and improving the nation’s odious image, this latest bribe saga should not be swept under the carpet as many similar scandals have been treated in the past.

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Thats all

l saw this editorial before and l asked a simple question ie,SHOULD WE NOW ENCOURAGE CORRUPTION BECAUSE NASS IS REEKING OF CORRUPTION?
If she is innocent then let d probe come 2 an end and we will know.Anybody can be accused of being corrupt,its left for d person to defend his/herself.

That News is for Nigerians to battle their heads. Probe or no-probe, Nigeria is SCAM. Look at our oil subsidy probe...No- culprits. No arrests. everything swept under the tiles and burried. NONsense. Who approved our independence self>? Our independence should be probbed and u will see SCAM too

The senseless and meaningless should be discontinued until they are ready to deal with issues concerning improvement of the capital market. They certainly went out of their mandate and the lady gave it to them. Shameless people, nice one Ms Oteh.

What has all these got to do with the allegation against Oteh ?

they should set up a new committee to probe the probing committee.

ofcourse, d new comitee wld ask 4 their bribe. Then another comitee wld b set up to probe them. They wld keep funding d comitees and dat wld reduce unemployment?? And corruption wld continue??

okay i now knw dat is why nothing happens after so many probing

All the newspaper articles praising Oteh are products of corruption
The former ED Finance of AP (Mr Aviomoh) said the company was making a loss but with the help of Deloitte, the accounts were manipulated to show a profit. He went ahead to add that Mr Otedola acquired shares worth over N10b without paying for those shares
Now what did Oteh do about these?[b][/b]
She is talking about N44m and the guy has been asked to step aside
It will interest all of us to note that Aviomoh who made allegation against Otedola was detained for "trying to incite the public against Otedola"

So what has happened to Otedola and his over N10b or is that not corruption?

Oteh's probe was purely witchunting because she stopped playing along.

gregg2: Oteh's probe was purely witchunting because she stopped playing along.

Ok
But what about the Otedola case
What about IGI private placement that has not been listed
What about the Sterling bank case

Are those witch hunting too?

Exactly why corruption can never be eradicated until we suffer inconceivable hardship. As long as 85,000 naira meals are deemed alright by some and 8 month hotel stays amount to prudence, nothing will change. The whole thing has gone sideways like the 179 probes before it. Corruption has fought back, repelled the onslaught and won. So sorry for this country.

the latest now is that the chairman of the committe, hon hembe has resigned and he has counter alledged that ms oteh offered him a bribe of N30M. the house has now asked that the whole committe stand down while the probe will continue with an ad - hoc committe set up by the house. the original committe will now be investigated by the ethics committee.

this is what fela called govt magic. the more you look the less you see.