The House of Representatives on Thursday called for the immediate sack of the Director General of Security and Exchange Commission (SEC), Arunma Oteh, insisting that her appointment was illegal.

Considering the report of its ad-hoc committee on the probe of the near collapse of the capital market, the lawmakers unanimously approved the recommendation that the Ms Oteh be sacked for incompetence and inadequate qualification for the role she is playing.

Giving a summary of the findings of the investigation before commencement of the clause by clause consideration, The Chairman of the ad hoc committee, Ibrahim Tukur El-Sudi (PDP, Taraba) defended the recommendation, explaining that Ms Oteh’s appointment was in violation of the investment and security act, 2007.

The lawmaker objected to the decision of the presidency to bring back Ms Oteh when an investigation on her was still pending.

The house also approved the recommendation that “in view of the breakdown of corporate governance in SEC, leading to total collapse of cooperation and coordination within its board and top management and since the tenure of the board has expired, top management of SEC should be relieved of their duties so as to give the capital market an opportunity of credible regulation through appointment of a neutral board and top management that will regain the confidence of investors.”

Section 3 ( 2 ) a and Section 38 ( 1 ) ( b ), 2 and 3, Section 315 of the investment and Security Act, 2007 stipulates that anyone that will be appointed as the DG of SEC must possess up to 15 years experience in the Nigerian Capital Market, a requirement the lawmakers said Ms Oteh does not possess.

“She has shown incompetence in the management of human and material resources at her disposal in Security and Exchange Commission.”

The lawmakers also called on the SEC to prevail on the Nigerian Stock Exchange to activate and strengthen the Investor Protection Fund (IPF)

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http://www.channelstv.com/home/2012/07/20/reps-recommend-otehs-sack-say-her-appointment-is-illegal/

Kuku impeach jonah

is oteh appointment is illegal,the elections that the won too was rigged which also makes the reps appointment illegal

mukina2: .


http://www.channelstv.com/home/2012/07/20/reps-recommend-otehs-sack-say-her-appointment-is-illegal/

arrant nonsense. this lady has not been indicted of any fraudulent act. since the she was appointed based on her track record with similar position.
this woman is changing from the norms and everybody is crying.

Monkeys! She will remain as the sec dg till her tenure expires and y'all can't do nothing but complain and shout. Idiots!

Since the beginning of year 2012. Our craziness in this country from various government organ to the least citizen has gone up by 79%.

Otedollar/Facrook movie is over! Now its Aruma Otteh/reps movie! Oya nigerians enjoy the show!

"Section 3 ( 2 ) a and Section 38 ( 1 ) ( b ), 2 and 3, Section 315 of the investment and Security Act, 2007 stipulates that anyone that will be appointed as the DG of SEC must possess up to 15 years experience in the Nigerian Capital Market, a requirement the lawmakers said Ms Oteh does not possess."

Its simple, if she has does not have up to 15 years experience in the Nigerian Capital Market, she must go!

dadde:
arrant nonsense. this lady has not been indicted of any fraudulent act. since the she was appointed based on her track record with similar position.
this woman is changing from the norms and everybody is crying.

Expect [size=15pt]post hidden[/size] soon

Afolabs101: "Section 3 ( 2 ) a and Section 38 ( 1 ) ( b ), 2 and 3, Section 315 of the investment and Security Act, 2007 stipulates that anyone that will be appointed as the DG of SEC must possess up to 15 years experience in the Nigerian Capital Market, a requirement the lawmakers said Ms Oteh does not possess."

Its simple, if she has does not have up to 15 years experience in the Nigerian Capital Market, she must go!

Good one. Someone should go to court please. I wonder why we are always shy to go to court.

When you fight corruption you will receive blows from all end. EVEn the thief's that cant handle their own facrook are here poking nose into peoples affair, let them show us proof that indicated Mrs Oteh in the scandal

If reps insist that she doesn't fit the position then, she does not. Have u guys took ur time to peruse through her expenditure @ Nicon hotel couple with the fact the house gathered. Pls lets call a spade a spade. Oteh should leave. Alison refuse to go
oteh also refuse to leave d position.
Are they befriending jona........

What has the appointment made by the executive concern these useless legislators,is this part of their oversight functions as well,the power to sack and fire oteh lies solely with the president and no one else whether they rant from now till next year,she remains not because I like her but these goldies in the house of reps needs to clear their house before poking into others. They shhould deal with Farouks case first. Idiotas

dapsy d: If reps insist that she doesn't fit the position then, she does not. Have u guys took ur time to peruse through her expenditure @ Nicon hotel couple with the fact the house gathered. Pls lets call a spade a spade. Oteh should leave. Alison refuse to go
oteh also refuse to leave d position.
Are they befriending jona........

Listen to urself talk
You really talk like a goldie

WHERE UNA DEY WHEN DEM EMPLOY HER? UNA NO KNOW SAY SHE NO QUALIFY B4? ABI UNA NO SEE SAY SHE NO GET 15 YEARS EXPERIENCE B4 UNA APPROVE HER EMPLOYMENT OR LEAVE JONA TO EMPLOY HER? BECAUSE SHE'S NOT DANCING TO UR TUNE NOW U WANT HER SACKED BY ALL MEANS.REPS INDEED, NO B ONLY REPS NA TIGERS IN AGBADA CLOTHING.NONSENSE!!!!

I dont understand when they say her appointment is illegal, didnt she pass through screening from same house of assembly?
how come it took the reps since december 2009 to now realise the illegality of her appointment.
to say she's not qualified is a joke, her cv is rich. 1st class in compputer science no be beans an masters from havard too.
come on reps, she's been working with ADB for time immemorial, even okereke that has a fake phd headed the sec.
just say u guyz want to sack cos she indicted ur colleague - hembe

don't mind those fools,they hated her since the day she indicted hembe(one of their co- looters).was her appointment to recommended by the upper house?

EVEn the thief's that cant handle their own facrook are here poking nose into peoples affair, let them show us proof that indicated Mrs Oteh in the scandal.[img]http://www.demama.info/g.gif[/img]

[quote author=dapsy d If reps insist that she doesn't fit the position then, she does not. Have u guys took ur time to peruse through her expenditure @ Nicon hotel couple with the fact the house gathered. Pls lets call a spade a spade. Oteh should leave. Alison refuse to go
oteh also refuse to leave d position.
Are they befriending jona........[/quote]


Dude dont talk what you know nothing of..... on the contrary if reps insist that she doesnt fit... then am sure she fits perfectly well.... the woman is doing a great job in SEC.. ask any one working there.. her only crime is that it wasnt "business as usual"

If this report was submitted before the FACROOK scandal, perhaps we would have rolled out our drums in support of her sack. But since after FACROOK, it is safer to view House committee probe reports with caution.

Besides, Arunma Otteh earlier had a brawl with this House when she accused Hembe Herman of bribery and corruption.
Though the House stripped Hembe of the chairmanship but it is difficult to see how they could have totally purged themselves of bias in handling the matter

Make the Woman kuku go now!.

She don chop her own, make she carry go Abeg.

Reps say make she go.

SEC staff say make the woman go,


Na by force ne.

kingofdzanga: WHERE UNA DEY WHEN DEM EMPLOY HER? UNA NO KNOW SAY SHE NO QUALIFY B4? ABI UNA NO SEE SAY SHE NO GET 15 YEARS EXPERIENCE B4 UNA APPROVE HER EMPLOYMENT OR LEAVE JONA TO EMPLOY HER? BECAUSE SHE'S NOT DANCING TO UR TUNE NOW U WANT HER SACKED BY ALL MEANS.REPS INDEED, NO B ONLY REPS NA TIGERS IN AGBADA CLOTHING.NONSENSE!!!!

Actually the House does not approve appointments (of CBN Gov, SEC DG, CJN, EFCC Chair etc)
That is done by the Senate

Everything has a price. I think there is something for her to pay for and she is not pricing well.

O God, save us from the hand of our leaders. They pretend as if they do not know that the masses are suffering. We only hear them talking about trillions, billions, millions etc. Nothing to show for it. A wealthy nation with over 90% of the population living below average. It is a pity. Nigeria.

Kindly find below the verbatim recommendations of the El-Sudi led Ad-hoc committee of the National Assembly on the investigation into the collapse of the Nigerian Capital Market.Please make useful comments based on facts not sentiments


These recommendations were tabled for discussion in the house today, Thursday, July 19, 2012.


CONSIDERATION OF REPORT


Ad-hoc Committee on the Investigation into the near Collapse of the Nigeria Capital Market;



Hon. Ibrahim Tukur El-Sudi:


"That this House do consider the Report of the Ad-hoc Committee on the Investigation into the near Collapse of the Nigeria Capital Market and approve the Recommendations therein" (Laid: 17/7/2012).


(i) That the Regulatory Authorities in the Capital Market should take proactive and preventive measures to forestall the near collapse of the Capital Market in future as the following reasons were identified by the Committee as the reasons for the near collapse of the market in the past and lack of public confidence in the market:


the sum of ₦8Billion missing from Union Bank Plc Public Offer of 2005; Nationalisation of some Banks without due process; Banking Sector consolidation of 2004/2005; unbecoming activities and market infractions of some capital market operators; poor regulation of foreign port folio investors thereby precipitating capital flight; high cost of doing business in the capital market; contradictory monetary policy of the Central Bank Nigeria; absence of product variety and low level of new listing thereby hampering dept and liquidity of the capital market; conflict of interest and misconduct of the current leadership of Security and Exchange Commission thereby fettering its regulatory capacity; loss of credibility of the entire Security and Exchange Commission management team, led by the Director General, Arunma Oteh; Regulatory failure of Security and Exchange Commission and Central Bank Nigeria; incompetence and lack of statutory qualification by the current Director-General, Security and Exchange Commission, Ms Arunma Oteh; unguarded utterances by key financial system's regulators; Asset Management Corporation of Nigeria's activities that constitute a time bomb and potential disaster in waiting in that there is doubtful process of Non Performing Loans (NPLS) valuation, inadequate liquidity and capital base, Asset Management Corporation of Nigeria's involvement of one of its regulators, Security and Exchange Commission, in its Board contrary to Section 10, Asset Management Corporation of Nigeria Act, non-accountability of Asset Management Corporation of Nigeria to any authority; layers of moral hazards in Security and Exchange Commission and diversion and issue of bonds for debt re-financing; irregular acquisition of Intercontinental Bank Plc by Access Bank Plc; irregular acquisition by Asset Management Corporation of Nigeria of the performing loans of SEAWOLF and GEOMETRICS Company etc;


(ii) that consequently, with respect to the missing N8 Billion arising from the Union Bank Plc Public Offer, a case of fraudulent diversion having been established, the past Board and Management of Union Bank Plc, the Chief Executive Officer of the Issuing House/Financial Adviser to the Offer, the present members of the Board and Management, including the Managing Director of Union Bank Plc, Mrs F. Osibodu, should be investigated by the Economic and Financial Crimes Commission with a view to establishing and recovering the missing amount. The Management of Asset Management Corporation of Nigeria and Security and Exchange Commission, including their respective Chief Executive Officers (Mustafa Chike-Obi and Ms Arunma Oteh), should be investigated by the Economic and Financial Crimes Commission considering their roles in attempting to conceal the fraudulent diversion and missing fund;


(iii) that the Nationalization of AfriBank Plc, Bank PHB, and Spring Bank, and their subsequent change of names to Mainstreet Bank, Keystone Bank, and Enterprise Bank respectively, is a violation of the Asset Management Corporation of Nigeria Act, Nigeria Deposit Insurance Corporation Act and Section 44 of the 1999 Constitution of the Federal Republic of Nigeria as the processes of transfer were fraught with potential forgery, unethical practices, abuse of office, and various unacceptable bad corporate governance precedents; the transaction should be reviewed and investigation be carried out on the following by the Economic and Financial Crimes Commission and other Security Agencies:


(a) Umaru Ibrahim, Managing Director/ Chief Executive Officer of Nigeria Deposit Insurance Corporation,


(b) Mustafa Chike-Obi, Managing Director, Asset Management Corporation of Nigeria,


(c) Sanusi Lamido Sanusi, Governor, Central Bank of Nigeria,


(d) all those who were used or offered themselves to be used in the various misrepresentations leading to the corporate registration of the nationalized banks,


(e) Bello Mahmud, Registrar General, Corporate Affairs Commission,


(f) all the faceless "lawyers"; Directors' of Mainstreet Bank Ltd, Keystone Bank Ltd, Enterprise Bank Ltd should be unearthed and made to face the wrath of the law;


(iv) that the Governor of Central Bank of Nigeria, Sanusi Lamido Sanusi, as the Chief Executive Officer and Chairman of the Central Bank of Nigeria Board is hereby cited for contempt of the House of Representatives having refused to produce after demand the special Examination Report upon which the intervention in the 8 Banks in August 2009 was based;


(v) that the Central Bank of Nigeria's action in disbursing ₦620 Billion bail-out funds and other intervention funds afterwards did not follow due process of law and the Constitution of the Federal Republic of Nigeria, 1999, as the source of funds and the appropriate authority did not approve;


(vi) further recommended that in future any bailout plan for the Capital Market or Financial Sector should receive appropriate authorization and should be done after a comprehensive and transparent determination and location of the beneficiaries, borrowers, lenders and relevant collateral provided;


(vii) that the Central Bank of Nigeria and Security and Exchange Commission should produce clear guidelines on margin facilities and related transactions without further delay;


(viii) that to restore investor confidence, Security and Exchange Commission should overhaul its regulatory framework, and build requisite technical capacity to enable it tighten regulation on malpractices by market operators;


(ix) that considering the high dependence of the Nigerian Capital Market on foreign investors, and in view of the fact that they were able to pull $15 Billion out of the Nigerian Capital Market, the Central Bank of Nigeria, Security and Exchange Commission, the Debt Management Office, Federal Ministry of Finance, the Federal Ministry of Trade and Investments are hereby requested to produce guidelines and a national policy that should govern the entry, operation and exit of foreign portfolio investments in Nigeria;


(x) that in view of the need to reduce the cost of doing business in the Nigerian Capital Market to increase its competitiveness, it is hereby recommended that the Security and Exchange Commission and the Nigerian Stock Exchange should be directed to ensure that Transaction Fees do not exceed 6% down from the current high level of 12% and that brokerage commissions should not be more than 35% of the Transaction Fees, currently at above 50%;


(xi) that Central Bank of Nigeria and the Federal Ministry of Finance should henceforth, ensure the harmonization of Nigeria's monetary and fiscal policy. An accountability framework to hold the Central Bank of Nigeria responsible for financial system's instability should be put in place by relevant authorities;


(xii) that Security and Exchange Commission is hereby requested to conclude disciplinary actions on all outstanding market infractions that has remained so for more than two months; and report back to the House within 30days of the adoption of this report;


(xiii) that the Security and Exchange Commission should take appropriate steps within its statutory relationship with the Nigerian Stock Exchange to increase product variety in other to boost liquidity, encourage listing incentives, and desist from delisting of companies without thorough scrutiny;


(xiv) that engagement of Access Bank staff by Security and Exchange Commission on Security and Exchange Secondment to Security and Exchange Commission which regulates the Bank is unethical and may erode investor confidence and they should immediately be disengaged;


(xv) that to further restore investor confidence, Security and Exchange Commission should immediately disengage from its intervention in the Council of Nigerian Stock Exchange, and remove its nominees on the Nigerian Stock Exchange Council;


(xvi) that Project 50 activities of Security and Exchange Commission which appears to lack transparency and accountability be further investigated by Economic and Financial Crimes Commission and Investment and Security Act to determine whether infractions and possible fraud had taken place;


(xvii) that in view of the breakdown of corporate governance in Security and Exchange Commission, leading to total collapse of cooperation and coordination within its Board and top management and since the tenure of the Board has expired, top management of Security and Exchange Commission should be relieved of their duties so as to give the capital market an opportunity of credible regulation through appointment of a neutral Board and top management that will regain the confidence of investors;


(xviii) that the following persons be further investigated by the House on account of their role in the banking Sector crisis that led the Central Bank Nigeria to intervene in 8 Banks in August, 2009:


(a) Charles Chukwuma Soludo; former Governor, Central Bank Nigeria,

(b) Ignatius Imala; former Director, Banking Supervision, Central Bank Nigeria,

(c) Tunde Lemo, Deputy Governor in charge of Banking Supervision;


(xix) that the appointment of Ms Arunma Oteh be terminated forthwith as Director-General of Security and Exchange Commission as her appointment is in violation of Section 3 (2) a 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; she has shown incompetence in the management of human and material resources at her disposal in Security and Exchange Commission; lack of transparency in managing project 50, regulatory failure in some of the recent mergers, acquisitions and approvals of transactions by Security and Exchange Commission and general inability to carry along her staff, Board, and Management in decision making in Security and Exchange Commission, and questionable staff recruitment policies;


(xx) that the Governor of the Central Bank of Nigeria, the Deputy Governors of the Central Bank of Nigeria, Directors of the Central Bank of Nigeria, the Director-General, Security and Exchange Commission, Commissioners, Board members of both Central Bank of Nigeria and Security and Exchange Commission should be subject to a code of conduct which has appropriate penalties for regulatory failures, while officials should be rewarded for outstanding performance;


(xxi) that officials of Government should be circumspect in their public statements, especially those that have capital market implications, and in particular the Governors of Central Bank of Nigeria should refrain from making utterances with far-reaching negative effects on the Capital Market;


(xxii) that the activities of Asset Management Corporation of Nigeria be further investigated by relevant authorities as a result of the identified need for a detailed examination of the bond issuing activities of Asset Management Corporation of Nigeria with a view to ensuring that it is working in tandem with the objectives for which it was established. Furthermore the valuation of Non Performing Loans by Asset Management Corporation of Nigeria should be referred for further investigation by a Committee set up by the House as well as Security agencies as there is clear evidence of inconsistency and manipulation of the process and there are no uniform standards employed. Even performing loans are also being also acquired rather than toxic assets as required by law particularly in transactions pertaining to Seawolfs, Geometrics and methods of acquisition of performing and non-performing loans of Unity Bank Plc;


(xxiii) that all former Banks' Executives who are recipient 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 the President, Commander-in-Chief in line with Section 7 of the National Honours Act LFN and international norms Economic and Financial Crimes Commission /Independent Corrupt Practices Commission and the courts should hasten their prosecution to serve as deterrence and to help restore investors confidence in the market;


(xxv) that the Central Bank of Nigeria Governor through his Deputy Governor, Security and Exchange Commission Director-General, and Nigeria Deposit Insurance Corporation 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 Legislative Houses Powers and Privileges Act, Cap. 12 LFN by the Attorney General of the Federation for giving false evidence under oath to the Committee;


(xxvi) that the Governor of Central Bank, Sanusi Lamido Sanusi; the Managing Director Asset Management Corporation of Nigeria, Mustafa Chike-Obi; and Director-General Security and Exchange Commission, Ms Arunma Oteh is hereby cited for contempt of the House of Representatives and they should be prosecuted by the A.G. of the Federation under Sections 4 & 11 (b) Legislative Houses Powers and Privileges Act and Section 89 of the 1999 Constitution for refusing to produce documents as requested and or demanded by the Ad-hoc Committee;


(xxvii) that the Security and Exchange Commission in the exercise of its regulating authority should request the Nigerian Stock Exchange to activate, fund and strengthen the Investor Protection Fund (IPF) and to set up modalities for compensation of investors through the Investor Protection Fund. In addition, Security and Exchange Commission should immediately set up National Investors Compensation Fund and in line with Section 13 (k) of Investment and Security Act 2007 set up a Nationwide Trust Scheme to compensate investors for fraud in the Capital Market and unlisted Securities of quoted companies not covered by the Investor Protection Fund;


(xxviii) that in order to deepen the equity market, that Pension Commission should reverse the policy that restricts PFAs from investing a maximum of 25% of their portfolios in equities; that Pension Commission should formulate a policy that Pension Funds Administrators should invest a minimum of 25% of their portfolio holdings in viable equities;


(xxix) that the amount of Treasury Bills issued by the Central Bank of Nigeria should not exceed 40% of currency in circulation at any point in time in order not to crowd out investments in the Capital Market. This is the maximum ratio in economies with similar characteristics as Nigeria's;


(Bleep) that the massive loss incurred by the financial system, especially the near collapse of the Capital Market due to regulatory lapses which the Security and Exchange Commission and Central Bank of Nigeria admitted, this Committee recommends that both Security and Exchange Commission and Central Bank Nigeria staff involved in detecting infractions and malpractices in their supervisory capacity but failed to take remedial action be thoroughly investigated by their employers and a Committee of this House and appropriate punishment be meted out to them:


(a) that the Federal Ministry of Finance should as a matter of urgency reorganize Security and Exchange Commission with a view to making more efficient its regulatory functions,


(b) that Security and Exchange Commission should carry-out its regulation of the Nigerian Stock Exchange in strict compliance with the rule of law;


(xxxi) that Security henceforth, be required to ensure that bonds are approved for projects with realistic cash-flow, rather than for refinancing old indebtedness;


(xxxii) that a Committee appointed by the House should thoroughly review the issue of sacked staff of Security and Exchange Commission;


(xxxiii) that the Security and Exchange Commission and Nigerian Stock Exchange should put in place appropriate incentives to attract the Telecoms and the Oil Companies to list in the Nigerian Stock Exchange;


(xxxiv) that the allegation of financial impropriety against the former Director-General of Nigerian Stock Exchange (Mrs Ndidi Okereke) is subjudice;


(xxxv) that the activities of Falcon Securities be investigated by Economic and Financial Crimes Commission;


(xxxvi) that the transactions involving Asset Management Corporation of Nigeria, Seawolf and Geometric respectively should be reversed by the Asset Management Corporation of Nigeria Board and investigated by the Economic and Financial Crimes Commission for possible fraud and violation of extant regulations and laws;


(xxxvii) that the acquisition of Intercontinental Bank by Access Bank should be reviewed by the requisite regulatory authorities with the aim of ensuring that violations of extant laws were not made;


(xxxviii) that it is further recommended that a Committee of the House be mandated to investigate the propriety of this acquisition.

Well is a pity in tis country that appointment is given is favourism
Not on merit, so Oteh was favour on fatherism but not on qualification

Any House member wey make too much noise now go receive d Hembe treatment. Where Farcrook matter dey now sef? Farcrook now na S. I unit of bribery for naija now. And any SEC employee wey dey vex for her return can resign or die.

Yorisb:

Why

1.

dadde:
arrant nonsense. this lady has not been indicted of any fraudulent act. since the she was appointed based on her track record with similar position.
this woman is changing from the norms and everybody is crying.

2. You do not know Mukina that hides any assaultive post especially when you query her post

dapsy d: If reps insist that she doesn't fit the position then, she does not. Have u guys took ur time to peruse through her expenditure @ Nicon hotel couple with the fact the house gathered. Pls lets call a spade a spade. Oteh should leave. Alison refuse to go
oteh also refuse to leave d position.
Are they befriending jona........

This comment is one of the reasons we need a WTF! button