How SEC offered to bribe Reps

Contrary to allegations that the chairman of the Committee on Capital Markets, Hon. Herman Hembe approached the Securities and Exchange Commission, SEC, for bribe, facts emerged yesterday that the commission actually offered to assist the committee with funds to host the ongoing public hearing.

The offer, in an internal memorandum of the SEC dated march 1, 2012 and signed by Hassan Mamman, designated as SS(CA), said it was a way of cementing “existing cordial relationship cultivated over the years between it and the House of Representatives Committee on Capital Market.”

Director General of SEC, Ms. Arunma Oteh, while speaking under oath, had alleged that the House committee had approached her with a request to fund the public hearing. She said her refusal, formed the basis of the expose on her management of funds of the commission.

The chairman of the House Committee on Capital Market, Hon. Herman Hemebe had earlier at the plenary announced his resignation as the chairman along with all the members of the committee, which was immediately replaced with an ad hoc committee to continue with the Capital Market probe.

Copies of three letters emanating from the management of SEC made available to newsmen revealed that on receiving a letter of invitation from the leadership of the House of Representatives Committee on Capital Market to participate at the public hearing, the management of the commission found it appropriate to ‘assist’ the committee by co-sponsoring the three weeks long event.

One of the letters dated March 1, 2012 and signed by one Hassan Mamman read in part; “In view of the commission’s role as the apex regulator of the Nigerian Capital Market and in consideration of the existing cordial relationship cultivated over the years between it and the House of Representatives Committee on Capital Market, we find it appropriate for the management to assist the committee by co sponsoring this three weeks long event.

“It is our considered opinion that doing this will be of immense benefit to the nation’s capital market by further creating more conducive atmosphere to finding lasting solutions to the challenges facing the Nigerian Capital Market.

“If the above suggestion is acceptable to management, the committee may be approached on your directives, to find out the possible areas for support”, the letter added.

Another letter dated March 9, 2012 addressed to Oteh read in part; “the department had suggested to management the need to support this great effort of the National Assembly to finding lasting solution to the challenges facing the Nigerian Capital Market.  We were then mandated to approach the committee with a view to finding the areas where such support is required.

“The committee welcomed this development and accordingly forwarded a budget estimate for the public hearing (see attached).

“In view of the above and in pursuance of the commission’s statutory responsibilities to the Nigerian Capital Market and in furtherance of our mutual relationship with NASS as major stakeholders in the Capital Market, we hereby recommend the sponsorship of two items only from their budget as follows; 1. Live Coverage – N26, 203,800 and 2. Secretarial needs - 4,215 000 totaling N30, 418,000”, the letter added.

The third letter dated March 13, 2012 directed to executive commissioner (F&A) was an extract from minutes of Board of the Securities and Exchange Commission held on Monday March 12 2012 showing approval of maximum of N30 million in support of a public hearing on the Nigerian Capital Market by the House of Representatives Committee on Capital Market and other Institutions.

The letter read in part; “the Board of the Securities and Exchange Commission at its 63rd meeting held on Monday, 12th March 2012 considered a proposal by the management for the commission to financially support a public hearing on the Nigerian Capital Market by the House of Representatives Committee on Capital Market and other Institutions scheduled to take place from 13 to 30th March, 2012.

“After due deliberations, the Board approved a maximum of N30 million as donation by the commission to the House of Representatives Committee on Capital Market and other Institutions to enable it undertake a public hearing to identify the manifest causes of the near collapse of the Capital Market with a view to finding lasting solution,” it added.

However, despite the controversy that had trailed the public hearing, the leadership of the House insisted that it must be completed as it set up a seven-man ad hoc committee to be chaired by Hon. Tukur Elsudi to continue with the probe since it was aimed at sanitising the nation’s ailing capital market.

Announcing his resignation on the floor of the House, the chairman, House Committee on Capital Market, Hon. Herman Hembe continued to plead his innocence to the allegations saying; “I stand before you this morning to reaffirm my innocence regarding the allegations made against me by the director general of SEC.

“I want it to be on record that I demanded no bribes and took no bribes; rather, I fought hard and rebuffed efforts to be inappropriately influenced.

“I had earlier indicated my willingness to submit to scrutiny by the EFCC and the ICPC; I hereby reaffirm that position here and now and add that I am further willing to submit myself to the jurisdiction of the House of Representatives Committee on Ethics and Privileges.

“Consequently, Mr. Speaker and my dear colleagues, I hereby wish to disqualify myself and request the House to withdraw the entire committee from further conducting the investigative hearing; I remain persuaded however that the resolution of this Honourable House to investigate the Nigerian Capital Market remain most honourable and timely, and should be carried to its logical conclusion.

“I still reserve the right and liberty to go to court not only to obtain a judicial stamp for my innocence but to receive full compensation for the obvious damage these false and spurious allegations have caused me”, he added.