REPS/SEC BRIBERY Latest: How N5m request sparked trouble

The war of  attrition  between the Securities and Exchange Commission, SEC and the House of Representatives Committee on Capital Markets got messier yesterday  following revelations that a demand for N5 million cash may have ruptured the relationship  between the two parties.

Rep. Herman Hembe, the chairman of the House committee on Capital Markets has meanwhile instructed his lawyers to file legal action against Ms Arummah Oteh, the Director General of the SEC  for allegedly injuring   his character.

Newsmen learnt yesterday that Hembe has already briefed a Senior Advocate of Nigeria, SAN from the Northcentral zone to pursue his case in the courts immediately after he would have appeared before the House committee on Ethics and Privileges next week.

SEC sources yesterday disclosed that the House Committee on Capital Markets had officially requested for assistance from the commission through a proxy officially delegated as the committee’s alleged consultant (names withheld)

Appointment letter for  Committee’s consultant
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The letter appointing  the committee’s consultant was signed by the committee’s assistant secretary, Abama Thomas and dated March 14, 2012. In the letter the DG was requested to give the consultant “all necessary assistance.”

The letter of appointment of the consultant was preceded by a demand for assistance supposedly from the committee amounting to N39.844 million for the purpose of covering the expenses of the public hearing on the collapse of the capital market. That request which was detached on what SEC sources described  as the committee shopping list was allegedly received by the commission on February 29, 2012.

A breakdown of the total amount requested showed that N5.605 million for two advertisement slots in five print media organizations; N2.245 million for advertisement in three broadcast media; N4.215 million for secretariat needs and N1.575 million for refreshment for three days.

According to SEC sources yesterday, the consultant visited the commission in company  with a representative  of the committee with a ‘shopping list’, detailing a large number of ‘specific areas’ for which the SEC’s support was being sought by the House Committee.

SEC further affirmed that the request was subjected to its decision making procedure and was considering a N30 million support, based on its belief that the hearing is in the interest of the public and investors.

The commission, however, noted yesterday that it grew suspicious of a dirty deal when agents of the committee visited the commission requesting for N5 million in cash against the institutionalized process of transferring money through the banks.

“The SEC smelt a rat that rather than wait for the payment to be made through electronic transfer, in line with extant public service policy, to an institutional account, the man was seeking undocumented payment by cash. This was why the transfer was suspended.

“Even the least cursory look at the memo will see stapler marks on the top left hand corner of its cover page, evidence that its accompaniments had been detached,” SEC sources claimed yesterday.