Nigeria’s Finance Minister Kemi Adeosun, on Friday struggled to convince the worried public and investors that adequate Public Service rules were followed in the suspension of Mounir Gwarzo, Director Securities and Exchange Commission, SEC, eleven days after she asked him to step aside to allow investigations into an alleged misappropriation of funds.
Adeosun rather accused Gwarzo while briefing the media on the matter on Friday of blackmailing her through claims that his suspension from office was as a result of his “refusal to stop the forensic audit of Oando Plc.”
“The Federal Ministry of Finance would like to place on record that Gwarzo’s suspension is in line with the Public Service Rules (PSRs), to allow for an unhindered investigation of serious allegations of financial impropriety against him. Some of the allegations with documented evidence include the awards of contracts to companies related to him and members of his family,” Adeosun stated.
The finance ministry had, last week Wednesday said Gwarzo was being suspended over allegations of financial impropriety bordering on the payment of N104 million to himself when he retired as an executive commissioner of SEC in 2015, against the counsel of the former acting head of the commission’s legal department, Chukwuogor Frana. Gwarzo has since been replaced with an acting director general.
Meanwhile, reports in some section the media allege that Gwarzo’s Suspension was on the heels of the Minister’s verbal directive to discontinue the Oando probe, which he apparently objected to.
At the briefing – the first media reaction since the story broke, Adesoun said, “We have to go for some kind of fact checks with the Corporate Affairs Commission, and based on the evidence we got, it became that we have to apply the Public service rule to effect the suspension.”
She said suspending a very senior member of the financial regulatory agency must be taken seriously. “So, when there are grey areas in respect to what we have found out and what is on the files, we have to look at them before we took the step we took.”
Speaking further on the matter, the Minister explained that given the degree of speculation and the potential impact on the capital market, there is a need for the record straight to be set straight.
“The integrity of the capital market is vital to the growth of the Nigerian economy and must be managed in an orderly and transparent manner to ensure investors’ confidence. Its leadership must maintain and be seen to maintain the highest standards of integrity,” she stressed.
And according to her, “The original decision taken by SEC on October 20, 2017 to suspend the shares of Oando Plc and conduct a forensic audit, was approved and endorsed by the Federal Ministry of Finance. The SEC team, led by Mounir presented adequate evidence to the Minister of Finance and her team, that Oando Plc had a clear case to answer with regard to infractions of the ISA.”
She adds that, “No contrary evidence has been presented and thus, the investigative work on Oando and all other ongoing investigations being undertaken by SEC in the discharge of its statutory functions have continued. Indeed, our information is that the forensic auditors have resumed at Oando.”
Adeosun emphatically pointed out that, “For the avoidance of doubt, there was no directive whatsoever to discontinue investigation into Oando and this was reiterated to the current SEC leadership at the formal handover meeting. The fact that the investigation has continued further corroborates that this is the Minister’s position.”
Gwarzo was reportedly queried by the Ministry on 3rd November and he responded on 7th November, 2017. His response to the query was deemed unsatisfactory and further investigation was ordered. Based on the evidence from that further work and creditable reports that documents were being unlawfully removed from SEC, as well as consultations with the Economic and Financial Crimes Commission (EFCC), the decision was taken to suspend Gwarzo, Adeosun said.
“Also,at the meeting on Monday, 27thNovember 27, Gwarzo was asked to clarify some of his responses to the query issued, which were not consistent with documentary evidence. From that interaction, Gwarzo became aware of the strong likelihood of his suspension. It was thereafter that Gwarzo prepared the memo, which has been circulated in the media.”Adeosun noted.
“It is instructive to note that Gwarzo personally delivered the memo using SEC staff seconded to the office of the Minister, in breach of normal procedures for the receipt of mail. The copy of the memo in the possession of the Minister was delivered with a message that any action against Gwarzo would result in same being leaked to the press. It was this threat of blackmail that strengthened the resolve of the Minister to suspend Gwarzo and allow the Administrative Panel of Inquiry to proceed with its probe.”
The Minister restated at the briefing that that the insinuation of an instruction to discontinue with the Oando case is false and this can be corroborated by the other parties at that meeting and by subsequent events.
HARRISON EDEH, ABUJA
