Exclusive…Recruitment scandal rocks SEC: Ndanusa, Gwarzo, others implicated

All is not well with the Securities and Exchange Commission (SEC). Ripples can authoritatively report that SEC workers may be poised for a major showdown with the management after it emerged that former Chairman of the Board, Dr. Suleyman Ndanusa, the recently appointed Acting Director General, Mounir Gwarzo and the Executive Commissioner, Corporate Services, Zakawanu Garuba, abused their official positions by influencing the recruitment of their wards without due process.

Mr. Ndanusa presided over the Board’s meeting of March 12, 2015 where the decision was taken to recruit six fresh graduates, including his son, Abdulkareem, into various managerial positions in the apex capital market regulatory agency.

Abdulkareem Ndanusa, a Quantity Surveyor, whom the father confirmed completed his National Youth Service Corps programme barely three months ago, was hired as a Senior Supervisor II and posted to the office of the acting DG, Mounir Gwarzo.

The other appointee was Abdul-Afiz Garuba, an engineer and younger brother of Zakawanu Garuba, the Executive Commissioner, Corporate Services, who also oversees the Commission’s Administration, Human Resources and Finance Departments.

A former Speaker of the Edo State House of Assembly Garuba was nominated for the SEC employment by his godfather, Chief Anthony Anenih, Chairman of the PDP Board of Trustees. The other recruits are relatives and cronies of Ag. DG Gwarzo and Head of Legal and Enforcement, Saadatu Bello, wife of Attorney General of the Federation, Mohammed Adoke Bello who allegedly gave her the high profile SEC job.

Mr. Garuba, appointed Assistant Manager, was posted to the DG’s office, along with Hassan Bello Maitama (Senior Supervisor II), Ali Mohammed Dauda and Halilu Salamatu (Assistant Managers).

Muhammad Abdulkadir Gana (Senior Supervisor 1) was the only appointee posted to the Executive Commissioner, Legal and Enforcement office.

All appointment letters were signed by the Head, Human Resources Department, Mary Ekwo, on March 17, 2015, barely five days after the Board approved their immediate recruitment.

Curiously, investigations revealed that the recruitments were approved at the same Board meeting where the guidelines for rationalising the Commission’s workforce were issued.

The workers’ union has frowned vehemently at the appointments, which the Board called “support staff for the Executive Management to enable them carry out their duties efficiently and effectively.”

A senior official of the Commission, who confided in Ripples, disclosed that officials of the SEC chapter of the Amalgamated Union of Public Corporations, Civil Service Technical and Recreational Services Employees have already met with the management to register their displeasure.

The official, who asked not to be named for fear of victimisation, said the workers were concerned that the recruitments defied laid down procedures in the public service.

Chapter 16, Section 3, Rule 160302 on Appointment states:  “Appointment into all grades in Parastatals shall be need-based, through a fair and open selection process that ensures merit, credibility and equal employment opportunity for and with due regard to the Federal Character principle.”

However, the workers noted that the Board’s six new recruitment not only violated acceptable procedures, it grossly abused the Federal Character principle.

For instance, the official noted that due process was not followed, by openly declaring the vacancies based on need as required by law, before inviting applications from interested qualified candidates to compete for selection.

Expatiating, the official said that all appointees were from one section of the country, while the Commission’s employment procedure that no fresh graduate was qualified for an entry position above a Senior Supervisor, was not adhered to.

“This is clearly abuse of office by the Chairman (Ndanusa), the DG Gwarzo and Executive Commissioner (Garuba),” the official said.

“Nobody is against Ndanusa’s son and others being employed if they are qualified and emerged tops through due process. But, what would a fresh Quantity Surveyor or Engineer be doing in a Capital market regulatory Commission?” he queried.

Findings showed that the Board ignored recent warnings by Director, Monitoring and Enforcement, Federal Character Commission, David Fakeye, to SEC and other government agencies against conducting secret and illegal recruitments into the public service.

Extracts from the minutes of the 79th meeting of the Board held on Thursday, March 12, 2015 on Recruitment of Support Staff for the Executive Management, obtained  confirmed that “the Board of the Securities and Exchange Commission at its 79th meeting held on Thursday, March 12, 2015, considered the report of the Board on Ethics, Establishment and General Purpose Committee on the recruitment of support staff for the Executive Management to enable them carry out their duties efficiently and effectively.”

The Board meeting was presided over by Mr. Ndanusa on a day top management staff of the Commission boycotted President Goodluck Jonathan’s official visit to the Nigerian Stock Exchange to launch a new online mobile platform, X-Gen, to boost local investment,

SEC workers are also unhappy that a month ago, Mr. Ndanusa had equally ordered a close relation, one Abdul Bello, who worked in one of the Commission’s zonal offices, to be transferred to the head office and appointed Head of the Procurement Department, against laid down procedures.

Further investigations revealed that Mr. Garuba, who also oversees the Administration, Human Resources and Finance Department, had also used the same meeting to procure the Board’s approval to amend the Staff Manual to pave way for the recruitment of close relations, including his wife.

The amendment of the manual, which required staff approval Commission-wide, would allow close family members, including couples, to be employed without fear of conflict of interest in the discharge of official functions.

– Ali Smart

 

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now