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Tag: Mounir Gwarzo

  • Gwarzo awarded N33m contracts in SEC to personal companies – Reports

    Suspended Director General of Securities and Exchange Commission (SEC) Mounir Gwarzo reportedly awarded contracts to a company in which he is a director to the tune of N33m while in office.

    According to a report, these and others were contained in the report of the Administrative Panel of Inquiry into allegations of violations of public service Rules, Financial Regulations and other Extant Rules and Regulations set up by Minster of Finance to investigate the allegations and come up with recommendations.

    The Terms of Reference of the Panel include investigating allegations against Gwarzo he was a director in Medusa Limited and Outbound Investment Limited while still serving as SEC DG and also used his influence to award contracts to those companies.

    On the allegation of Gwarzo’s directorship in Medusa Limited while still serving as DG, the report stated inquiry made and documents obtained by the panel at the Corporate Affairs Commission revealed that Gwarzo was still a director of the company as well as a major shareholder with a shareholding of N1.2m as at the time of the search.

    “His purported letter of resignation dates 19th December 2012 was not part of CAC’s records as at the date of the inquiry l.

    Read Also: Court to decide ex-SEC DG, Gwarzo’s fate on April 12

    “It was equally discovered from the account opening mandate obtained from GTBank that Gwarzo was at the date of the inquiry signatory to account No 322324264/1/110 maintained by the company with the bank.

    “The panel was also furnished with a letter dated 24th July, 2015, addressed to the bank signed by Gwarzo as director of the company requesting for a change of account Officer on the basis of a resolution passed and signed by the directors of the company to that effect,” the report stated.

    The report also discovered a letter dated 16th August, 2016 signed by Gwarzo as a director of the company requesting for the issuance of a credit card in relation to the said account.

    It added: “When Gwarzo was confronted with the above letters, he admitted to have authored and signed them but claimed that it was a regrettable action.

    On Outbound Investments Limited, which benefitted in contacts awarded by SEC to the tune of N33, 736,596, in which Gwarzo is a director and shareholder, he claimed the company belongs to his wife’s family and stated that he was only representing his wife on the Board.

    Based on revelations, the panel stated that Gwarzo’s status as director in both Medusa Investment Limited and Outbound Investment Limited while in post as Director General of SEC has raised and established a fundamental issue of conflict of interest against him.

    Specifically, the PSR 030424 expressly states that Public officers are not prohibited from holding shares in both public and private companies operating in Nigeria or abroad except that they must not be directors in public companies and may only be directors in public companies if nominated by government.

    Given his directorship in both companies, the panel opined that Gwarzo was in breach of PSR 030424 and PSR 030402 (divided loyalty, which is classified as an act of serious misconduct).

    The panel also opined that being a shareholder of Outbound Investment Limited, Gwarzo used his position as DG to influence the award of contracts to the company which amounts to conflict of interest.

    Based on the gravity of the findings by the Panel, it was recommended that Gwarzo be dismissed from the Public Service of the Federal Government for holding the position of a Director in private companies while in service as the DG of SEC in breach of PSR 030424 and Section 6 of the Investment and Securities Act 2007.

    The panel also recommended that Gwarzo be referred to the ICPC for further investigation of the allegation of using his position as DG to influence the award of contracts to Outbound Investment Limited in view of the Provisions of Sections 58 (12) (b) and 58 (5) of the Public Procurement Act 2007.

  • Updated: Court frees suspended SEC DG, official charged with N115m fraud

    A High Court of the Federal Capital Territory (FCT) in Maitama has set free the suspended Director General of the Security and Exchange Commission (SEC), Mounir Gwarzo and a Commissioner of the commission, Zakwanu Garuba.

    Gwarzo and Garuba were, in a five-count charge filed by the Independent Corrupt Practices and other related Commission (ICPC), accused of complicity in a N115million fraud.

    Ruling on Tuesday, Justice Husseini Baba-Yusuf upheld the no-case submission made by both defendants.

    Justice Baba-Yusuf held that the prosecution failed to make out a prima facie case against the defendants. He discharged and acquitted them.

    In the charge, Gwarzo was, in three counts, accused of receiving N104,851,154.94 as  severance benefit, between May and June 2015 when he had yet to retire, resign or disengage from service.

    He was also accused of receiving N10, 983,488.88 as car grant, which he was not entitled to.

    On his part, Garuba, a former Executive Commissioner, Corporate Services in SEC, was, in two counts, accused of conferring corrupt advantage on another public officer, in the person of Gwarzo, by approving the payments to the suspended SEC boss.

    In his ruling on Tuesday, Justice Baba-Yusuf said the board of SEC had, by its resolution, approved the payments which the prosecution had alleged to be illegal and dishonest.

    The judge held that by virtue of the Investments and Securities Act, the resolution by the board of SEC was not subject to a review by any person or authority.

    “‎There is no evidence that the 1st defendant (Gwarzo) used his officer to confer advantage on himself.

    “The evidence of criminal breach of trust was not established and the evidence of the witnesses was discredited under cross-examination,” the judge said.

    ‎He added that the evidence led by the prosecution showed that the N115m severance allowance paid to Gwarzo followed his elevation from the position of a Commissioner of SEC to the status of the Director-General, and was in line with a resolution made by the SEC board on July 11, 2002.

    Justice Baba-Yusuf rejected the prosecution’s argument to the effect that the severance allowance handed to Gwarzo was in excess of what was provided for in the Certain Political, Public and Judicial Office Holders (Salaries and Allowances ETC) Act, 2002.

    He said the provision of the Certain Political, Public and Judicial Office Holders (Salaries and Allowances ETC) Act, 2002 was not applicable to SEC and that the public officers for who the law was meant to apply had been clearly reflected in the law.

    The judge said the prosecution’s emphasis on the law was out its ignorance of the powers of the highest decision-making organ of the SEC – the board.

    READ ALSO: Suspended SEC DG Gwarzo, one other arraigned for alleged N115m fraud

    He faulted the prosecution’s failure to consider the provisions of the Investments and Securities Acts.

    Justice Baba-Yusuf noted that the evidence of the first prosecution witness, who was an officer in SEC’s Legal Department, conflicted with evidence of the third and fourth prosecution witnesses.

    The judge said the first prosecution witness agreed that the payment made to Gwarzo was based on a board resolution, and was therefore correct, since the board was the highest-decision making body of the commission.

    He said: “The payment was alleged to have been made without authority, but it turned out to have been made upon a resolution of the board of SEC, which is the highest decision making body.”

    The judge held that there was evidence showing that the N10m car grant Gwarzo got was part of Gwarzo’s entitlement, but that the prosecution failed to prove that he “was instrumental or played active roles in the preparation for the voucher for the payment”.

  • Alleged N115m fraud: Court discharges Gwarzo, one other

    Justice Hussein Baba Yusuf on Tuesday discharged the suspended Director-General of the Securities and Exchange Commission (SEC), Dr Mounir Gwarzo, on charges of N115 fraud.

    Independent Corrupt Practices and Other Related Offences Commission (ICPC) charged Gwarzo with  an Executive Commissioner in the commission, Zakawanu Garuba, with five counts of alleged misappropriation to the tune of about N115 million and conferment of corrupt advantage on a public officer .

    The commission accused Gwarzo of committing fraud to the tune of about N115 million in June, 2015, when he was SEC Director-General.

    It alleged that Gwarzo received N104, 851,154.94 as severance benefits when he had yet to retire, resign or disengage from the service of the organisation.

    It added that the director-general conferred a corrupt advantage upon himself when he received N10, 983,488.88 in excess of car grant payable to him.

    The commission (ICPC) accused Garuba of conniving with Gwarzo to commit the fraud.

    The defendants, however, pleaded not guilty to the charges.

    In Tuesday’s ruling, the judge, Baba-Yusuf, held that the prosecution did not establish any prima facie case against the defendants.

    He held that the prosecution failed to establish the essential elements of the offence for which the defendants were charged and subsequently discharged them.

    On Feb. 7, the defendants’ counsel, Abdulhakeem Mustapha, SAN, and Robert Emupkoeruo, informed the court of their intention to file no-case submission.

    Read Also: Gwarzo goes to industrial court

    The made the prayer after the prosecuting counsel, Mr Adesina Raheem, told the court that the prosecution was closing its case against the defendants with the testimony of the fifth prosecution witness (PW5), Taiwo Olorunyomi.

    Gwarzo’s counsel, Mustapha, on March 18 urged the court to hold that the prosecution had not adduced any credible evidence to make the defendant enter any defence.

    He informed the court that the no-case submission he prayed for was brought pursuant to sections 302 and 303 of the Administration of Criminal Justice Act (ACJA), 2015.

    Mustapha said the prosecution had failed to make out any prima facie case against Gwarzo, adding that the evidence adduced were all contradictory.

    He submitted that the prosecution in its written address on the submission relied on the law on certain political office holders and admitted that SEC was not mentioned in the law.

    Specifically, he urged the court to uphold the no-case submission by the first defendant, discharge and acquit him of the charges against him.

    Counsel to Garuba, Mr. Robert Emukpoeruo, also argued that the prosecution had failed from the evidence adduced to make any prima facie case against the second defendant.

    He said the evidence adduced by the prosecution during hearing had not established any ingredients of the offence said to have been committed by Garuba.

    He, then, urged the court not only to uphold the no-case submission but to discharge and acquit his client.

    However, the prosecution counsel, Mr. Raheem Adesina, urged the court to dismiss the no-case- submission of the defendants and ask them to enter their defence.

    Adesina stated that there was a need for the defendants to explain where they got the severance package from since there was nowhere in Exhibit ICPC 3, before the court where severance package was mentioned.

     

    NAN

  • Alleged N115m fraud: Court fixes Tuesday to rule in ex-SEC DG’s no-case-submission

    An FCT High Court on Friday is to deliver ruling on Tuesday in the no- case- submission filed by the suspended Director-General of the Securities and Exchange Commission (SEC), Dr Mounir Gwarzo on alleged of N115 fraud.

    The Independent Corrupt Practices and Other Related Offences Commission (ICPC) charged Gwarzo alongside an Executive Commissioner in the Commission, Zakawanu Garuba, with five counts of alleged misappropriation to the tune of about N115 million and conferment of corrupt advantage on a public officer before Justice Hussein Baba-Yusuf.

    They, however, pleaded not guilty to the charge.

    The defendants, on Feb. 7, through their counsel, Abdulhakeem Mustapha, SAN, and Robert Emupkoeruo, informed the court of their intention to file no-case submission.

    This they prayed after the prosecuting counsel, Mr Adesina Raheem, had informed the court that the prosecution was closing its case against the defendants with the testimony of the fifth prosecution witness (PW5), Taiwo Olorunyomi.

    Gwarzo’s counsel, Mustapha SAN, on March 18 urged the court to hold that the prosecution has not been able to adduce any credible evidence to make the defendant enter any defence.

    He informed the court that the no-case submission he prayed for was brought pursuant to Sections 302 and 303 of the Administration of Criminal Justice Act (ACJA), 2015.

    According to him, the prosecution had failed to make out any prima facie case against Gwarzo, adding that the evidence adduced were all contradictory.

    He submitted that the prosecution in its written address on the submission relied on the law on certain political office holders and admitted that SEC was not mentioned in the said law.

    Specifically, he urged the court to uphold the no-case submission by the first defendant as well as discharge and acquit him of the charge against him.

    Counsel to Garuba, Mr Robert Emukpoeruo, also argued that the prosecution had failed from the evidence adduced to make any prima facie case against the second defendant.

    He said the evidence adduced by the prosecution during hearing has not established any ingredients of the offence said to have been committed by Garuba.

    Read Also: Fayemi’s new cabinet is robust, says Ondo APC

    He, then, urged the court not only to uphold the no-case submission but also discharge and acquit the second defendant.

    In his submission , the prosecution counsel, Mr Raheem Adesina, urged the court to dismiss the no-case- submission of the defendants and ask them to enter their defence.

    Adesina stated that there was the need for the defendants to explain to the court where they got the severance package from, since there was nowhere in Exhibit ICPC 3, before the court where severance package was mention.

    He argued that there was no single word of severance benefit in the SEC Board resolution in July, 2002 (Exhibit ICPC 3).

    He said that what was approved and collected was severance benefit when the first defendant never retired from SEC.

    The News Agency of Nigeria (NAN) reports that the ICPC accused Gwarzo of committing fraud to the tune of about N115 million in June 2015, when he held forth as SEC Director-General.

    It alleged that the suspended D-G received the sum of N104,851,154.94 as severance benefits when he had yet to retire, resign or disengage from the service of SEC.

    It added that he conferred a corrupt advantage upon himself when he received the sum of N10,983,488.88 in excess of car grant payable to him.

    Garuba, on the other hand, was accused by ICPC of allegedly conniving with Gwarzo to commit the fraud.

  • Group takes agitations for Gwarzo’s prosecution to Presidency

    The Concerned Industry Watchers, yesterday petitioned President Muhammadu Buhari to  use his good offices to ensure that all fraud cases leveled against the suspended Director-General of the Securities and Exchange Commission (SEC), Mounir Gwarzo, are pursued to ensure justice.

    The group’s demand came barely 24 hours after the Centre for Anti-Corruption and Open Leadership (CACOL) called on the Independent Corrupt Practices and Related Offences Commission (ICPC) to commence thorough prosecution of the suspended SEC boss over fraudulent allegations leveled against him.

    The Concerned Industry Watchers, in a statement by its National Coordinator, Abdullahi Idoto, urged President Buhari to, as a matter of urgency, direct the ICPC to charge Gwarzo on the abuse of office by the award of contracts to his companies as well as being a director in the said companies.

    The group recalled that the suspended Director General breached public service rules by using his position to abuse the due process in contract awards in the commission and awarding various contracts to his companies and other cronies as well as paying substantial sums to himself as severance packages when still serving in office.

    Specifically, it noted that Gwarzo used his office to award contracts to Outbound Investment Limited; Northwind Environmental Services Limited; Medusa Investments Limited; Acromac Nigeria Limited and  Balfort International Investment Limited all of which he had interests in as a Director while his wife, Khadija and another relative are Directors in Medusa Investments Limited .

    The civil society group stated that up until the time of his suspension as Director General of SEC, Gwarzo solely contracted Outbound Investment Ltd as the sole supplier of diesel to the commission while also supplying air conditioners, fridges and involved in several other contracts.

  • Panel recommends Gwarzo’s dismissal from public service

    Panel recommends Gwarzo’s dismissal from public service

    …Adeosun lacks powers to suspend me – SEC chief

    The Administrative Panel of Inquiry has recommended the dismissal of the suspended Director-General of the Securities and Exchange Commission (SEC), Mounir Gwarzo, from the public service

    The panel headed by the Permanent Secretary of the Federal Ministry of Finance, Mahmoud Isa-Dutse, also recommended that the suspended SEC chief be referred to the Independent Corrupt Practices and Other Related Offences Commission (ICPC) for further investigation of the alleged use of his position to influence the award of contracts to Outbound Investments Limited.

    The panel report which has been submitted to the Minister of Finance, Kemi Adeosun, directed Gwarzo to refund N104,851,154 being the severance package he approved for himself and received.

    It noted that Gwarzo’s holding of the SEC director-general’s position and that of director in two private companies (Medusa Investment Limited and Outbound Investments Limited) was a breach of public service rule 030424, public service rule 030402 and Section 6 of the Investment and Securities Act, ISA 2007.

    Meanwhile, the suspended SEC chief has insisted that the minister lacks the power to suspend him from service.

    In a statement issued on his behalf by one Naif Abdussalam  Gwarzo argued that only the President can remove him from office.

    He said: “The appointment into office or removal from office of the Director General of SEC is a power strictly resident with the President of the Federal Republic of Nigeria. This is evident from the provisions of Sections 5 & 8 (1 & 2) of the ISA 2007. The minsters role is only limited to making recommendations to the President.”

    He argued that his letter of appointment as the SEC DG specifically referred to the Investments and Securities Act (ISA) 2007, an Act of the National Assembly, as the law governing the conditions of service.

    “Thus all actions relating to my appointment must be in compliance with the ISA as anything outside same would amount to a nullity,” he added.

     

  • SEC partners CBN, NIBBS to eliminate fraudulent investment outfits

    SEC partners CBN, NIBBS to eliminate fraudulent investment outfits

    The Securities and Exchange Commission ( SEC ) on Wednesday said that the commission was partnering with other regulatory bodies to get rid of fraudulent investment outfits in the Nigerian capital market to boost investors’ confidence.

    Mr Mounir Gwarzo stated this at the 2017 World Savings Day and Financial Literacy Week held in Lagos.

    Gwarzo said that the commission was working with other regulatory bodies to combat proliferation of fraudulent investment outfit in the nation’s capital market.

    Gwarzo, who was represented by Mr Henry Rowland, Director Investment Services, SEC, stated that the commission was committed to ensure zero tolerance to fraudulent activities in the market.

    “We are partnering with CBN, NIBBS, PENCOM, CSCS and other regulatory bodies to combat the negative effect of fraudulent investment outfit in the market.”

    He, however, stressed the need for prospective investors to seek the help of financial advisers while investing in the capital market to confirm those financial outfits that were registered with the commission.

    According to him, these advisers would help ascertain the true position of any investment outfit before any financial transaction can be carried out.

    On the importance of savings, he said that savings played an important role in determining the one’s future and urged students and youths to embrace savings culture.

    Mrs Oluwatoyin Sanni, the Chairperson, Financial Literacy Committee, called on investors to ensure that the companies they want to buy shares from file returns and records of their performance, profitability and dividend payment on  quarterly basis.

    “Prospective investors must check the quality of board of companies, the directors, the profile of the chairman and other corporate governance issues relating to the firm.

    “Again, check the business model of the company you want to invest in, how does the business plan work, how does the plan translate to profit.

    Look at the past, present and future of the company if the business lines, products and services is relevant in today’s world,” Sanni said.

    NAN

  • MTN discusses share sale of Nigerian unit with local regulator – SEC

    MTN discusses share sale of Nigerian unit with local regulator – SEC

    South Africa’s telecom group, MTN, has met with Nigeria’s Securities and Exchange Commission (SEC) to discuss a possible initial public offering and share sale structure, Head, Nigeria’s SEC, told newsmen.

    SEC Director-General, Mounir Gwarzo, said MTN had discussed the possibility of issuing various classes of shares to targeted investor groups.

    He said the telecom firm was looking at three different classes, which would be new in Nigeria.

    Gwarzo said the commission was willing to support the share sale as long as it was within local laws and advised the telecom firm to ensure retail investors were protected.

    MTN is the largest mobile phone operator in Nigeria with 57 million subscribers, and the country accounts for about a third of its revenue.

    Africa’s biggest mobile phone operator MTN said it aimed to list its Nigerian unit in  2017, subject to market conditions, as part of an agreement with the Nigerian government.

    In June, the telecom firm said it would list its local unit on the Nigerian Stock Exchange after agreeing to pay a reduced fine of 1.7 billion dollars in a settlement with the Nigerian government over unregistered SIM cards.

    Gwarzo said the company was yet to submit a formal application for the share sale.

    MTN Nigeria has appointed Stanbic IBTC Capital, Standard Bank of South Africa, Standard Advisory London and Citigroup Global Markets, as joint transaction advisors and global coordinators.

  • We failed to remit N3.4bn to federation account – SEC

    We failed to remit N3.4bn to federation account – SEC

    Out of the N13.7 billion it generated in three years (2010 to 2012) the Security and Exchange Commission (SEC) has confessed that it failed to remit the sum of N3.4 billion to the federation account

    Mounir Gwarzo, Director General of SEC, make the revelation Tuesday  while in a session with the House of Representatives Committee on Public Accounts.

    Seven queries were raised against the commission by the Hon Kingsley Chinda- headed Committee based on the report of the Auditor General of the Federation for year 2013.

    Mounir however in his response said due to the losses it incurred for the three years, the commission could not remit the N3.4 billion.

    The Director General, while responding to why the commission had to wait until end of the year to make the remittance, said it was based on the provisions of the Fiscal Responsibility Act, which empowers SEC to remit at the end of each financial year.

    However, the committee members disagreed with him, saying an executive circular in November 2011, directed the commission, among other agencies, to remit 25 percent of its internally generated revenue (IGR) monthly to the federation.

    The law establishing the commission, Mounir argued, supersedes any government circular.,

    While resolving to investigate the operations of the commission between 2010 and 2016, the committee directed that henceforth, the commission should make monthly remittances to the federation account.

  • SEC chief promises to create products to woo investors

    SEC chief promises to create products to woo investors

    The Director-General, Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo, has promised that the Nigerian Stock Exchange (NSE) is planning to create products that will encourage new investors to invest in the market.

    A statement from the SEC said Gwarzo spoke in an interview with CNBC Africa, in London, monitored in Abuja. Gwarzo said efforts are being made to bring Pension Funds Administrators (PFAs) into the NSE platform.

    This, he said, will make the capital market competitive and attract more investors that will in turn improve the nation’s economy, just as he added that the commission is also working out the possibility of a unified corporate governance structure.

    He said: “We still operate with very few products and one of the things we are doing is to as much as possible engage PenCom to come with guidelines for PFAs who will invest in those funds. We are aware that PFAs can only invest in an instrument that is secured. We will encourage development of new products in the market.