[size=15pt]Stockbrokers to Okereke: It’s time to go[/size]

By Daniel Osunkoya and Stanley Oronsaye

August 21, 2009 12:35PMT
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Stockbrokers at the Nigerian Stock Exchange have expressed concern over the ability of Ndi Okereke-Onyuike, the Director General of the exchange, to continue after she was named as one of the large debtors by the Central Bank of Nigeria in the non-performing loans debacle.

All the stockbrokers who spoke to NEXT refused to be identified for fear of possible sanction, condemned Mrs. Okereke-Onyuike's leadership of the exchange.

A CBN advertorial on Tuesday, listed Transnational Corporation of Nigeria Plc, a company chaired by Mrs. Okereke-Onyuike, as owing Intercontinental Bank Plc and Union Bank of Nigeria Plc over N41 billion.

A chief executive officer of a stock broking firm who spoke to NEXT under the condition of anonymity said, "Although we have been warned not to grant any press interview on the stock exchange leadership related issues, but I can say the truth off record. Let me be frank with you, Mrs. Okereke-Onyuike misled investors to buy into Transcorp, knowing fully well that the company was going nowhere." .

Politics killed Transcorp

Another broker, argued that Transcorp operations became politicised, saying, "Politics killed Transcorp. They believed that because (Olusegun) Obasanjo had interest in the company as a President, other governments will follow." He, however noted, "Really, Transcorp business plan and vision was good. That was why they were able to raise about N22 billion from the offer and able to get loans from the banks. But the hidden plan for those funds was not known to investors." The broker added, "She has done a lot of good in the market in the past, but she has also used her position to scatter all she has done. Mrs. Okereke-Onyuike should be prosecuted. She should not be allowed to go free. We really need her to resign."

Another stockbroker also pleading anonymity said, "Stockbrokers have no choice than to support her because we've been ordered not to speak to you guys (journalists) so that we don't say anything against madam." He admitted that there are suspicions that Transcorp's shares might have been manipulated to keep it at the current price, to protect the board and management's interests.

To support the suspicion, the brokers noted that Transcorp has not presented any financial result to the stock exchange since it became listed in the market against its standing policy, which could lead to the technical suspension on the trading of the shares.

Besides, the broker further noted, Transcorp's listing on the exchange did not follow due process, saying, "Transcorp should have been de-listed by now if the NSE upholds its rule. The company's share price has remained on 50 kobo nominal value for over a year."

The seven-day ultimatum

The Securities and Exchange Commission, on Wednesday, issued a seven-day ultimatum to Mrs. Okereke-Onyuike to clear herself from any involvement in the non-performing loans scandal.

But stockbrokers pointed out that the commission has no power to remove her if she failed to comply as requested of her. "There is nothing anybody can do about her position because the stock exchange is not a public liability company; it's still a private liability company." According to them, the commission can sanction her only if it is a public company and listed on the floor.

According to the brokers, it is only the board of directors of the NSE that can remove her as the director general. "And if the board fails to remove her from that position then we all have to wait for her to resign by 2010, as she has said." However, Lanre Oloyi, spokesman for the securities commission said the regulator has the power to call the stock exchange director general to order. According to him, section 13 of the Investment and Securities Act 1999, empowers the commission to regulate all capital market operators.

"The commission has the responsibility to protect the integrity of the market. The issues involved here are about the integrity of the market," he said.

Section 13, sub-section B of the Investment Act empowers the commission to register and regulate securities exchanges, capital trade points, futures, options and derivatives exchanges, commodity exchanges and any other recognised investment exchange.

http://www.234next.com/csp/cms/sites/Next/Money/Finance/5446916-147/story.csp

It seems she and her brother Saludo were just opportunist, taking advantage of the system

I think its time for her to bow out.
OBJ corrupted these people.

nuzo:

I think its time for her to bow out.
OBJ corrupted these people.

She should have gone after that Obama campaign mess.