Why SEC has not published NSE’s forensic audit report – Investigation

Interim Administrator, Nigerian Stock Exchange, Mr. Emmanuel Ikazoboh

The much awaited forensic report on the audit of the Nigerian Stock Exchange may not be released soon, following differnet suits filed by some parties involved in the alleged fraud that rocked the Exchange recently, our correspondent has gathered.

A competent source at the Securities and Exchange Commission said in Lagos on Tuesday that the report could not be released now because of the legal actions.

A source at the NSE had earlier told our correspondent that the full report of the audit had been submitted to SEC and that it was left for the commission to make the content public since it ordered the audit of the accounts.

The Securities and Exchange Commission had removed the former Director-General of the Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke, from office in August and replaced her with an interim administrator, Mr. Emmanuel Ikazoboh.

The commission also ordered the administrator to work with an external auditing firm, KPMG, and a law firm, Aluko Oyebode and Co, to conduct a forensic audit of the NSE‘s accounts.

The audit was sequel to a petition by one of the council members, Alhaji Aliko Dangote, that the Exchange was broke and that its accounts needed to be properly audited.

Documents obtained by our correspondent indicated that Mr. Uzoma Henry Onyekuru, a former general manager of the NSE, in suit No: M/964/10 got a ruling in his favour from the High Court of Lagos State, on November 15, 2010.

Justice E. A. Adebayo in his ruling, had restrained the respondents from further acting on “the report of its purported findings in respect of the inquiry of the 3rd and 4th respondents commissioned by the 1st and 2nd respondents, pending the determination of the substantive application.”

Also, Okereke-Onyiuke, had on Monday, November 15, secured an interim order restraining the Exchange, SEC and the auditors from further acting on the report.

The court also granted an interim order of injunction restraining the respondents, their privies, nominees, agents and appointees from distributing, publishing and circulating the minutes, proceedings, report and recommendations or any purported findings arising from the audit to any party, pending the determination of the substantive applications.

Mrs. Yinka Idowu, in suit No: M/965/2010 against the SEC, NSE, Messrs Aluko Oyebode, Messrs KPMG Professional Services, got a similar ruling on November 15, 2010.
Source:http://www.punchng.com