by Lekan Olanrewaju
Director General of the Security and Exchange Commission (SEC), Arunma Oteh on Monday spoke at the resumed hearing of the House of Representatives capital market probe.
Oteh, who was involved in the much talked about “mealgate” scandal over the alleged spending of huge amounts of SEC funds on food and hotel bills, among others, yesterday flipped the script, and accused the Nigeria Stock Exchange of “weaknesses in corporate governance, weaknesses in risk management, weaknesses in internal control, insufficient oversight of brokerage firms and listed companies and inability to enforce rules.
She went on to point to various examples of mismanagement of funds by the NSE, stating that she had become aware of “incidences of financial scheming, misappropriation, false accounting, misrepresentations, and questionable transactions.”
“For instance, the council of the Nigeria Stock Exchange bought a yacht for N37 million and wrote down the book value within one year by recognising it in its books as a gift presented during its 2008 long service award” she said. “Yet there is no record of the beneficiary.”
“The outstanding 92 Rolex watches valued at N99.5 million remained unaccounted for.” she added, pointing out that the council of the stock exchange spent N186 million on the purchase of 165 Rolex wrist watches, as gifts for awardees, but only 73 of the watches could be accounted for.