SEC postpones hearing on BGL

In from Ali Smart …
Securities and Exchange Commission (SEC) has postponed its hearing on the complaints leveled against BGL Plc by more than 30 investors, Ripples has learnt.
The postponement is sequel to a Federal High Court order, which directed the apex capital market regulator not to take any further action on the case.
SEC had summoned BGL and its principal officials to its Administrative Proceedings Committee (APC) for a hearing slated for August 4 and 5.
The Commission yesterday stated that it had to postpone hearing in SEC APC/01//2015 RIVERS STATE MINISTRY OF FINANCE & 31 OTHERS VS BGL PLC & 31 OTHERS at SEC Head Office, Abuja to a date to be announced later because of a Federal High Court order.
Section 310(1) of the ISA and Rule 599(1) of the SEC Rules and Regulation empowers the Commission to set up the SEC Administrative Proceedings Committee (APC) to hear complaints on alleged violations of securities laws governing the market.
Pursuant to these powers, the APC was scheduled to hold on the 4th to 5th August 2015 to hear SEC APC/01//2015 RIVERS STATE MINISTRY OF FINANCE & 31 OTHERS VS BGL PLC & 31 OTHERS.
The Commission has however been restrained by an ex parte order obtained by the Plaintiffs/Applicants in SUIT NO: FHC/L/CS/1050/2015 BGL PLC & 12 ORS VS SEC & 2 ORS directing that parties maintain the status quo.
According to SEC, in view of the order, the Commission has to postpone the APC hearing to a date to be announced later.
“The Commission wishes to assure all stakeholders and the general public that it is committed to protecting investors and the capital market and to this end will ensure that persons who violate the provisions of the Investments and Securities Act and the Rules and Regulations made pursuant thereto would be sanctioned appropriately,” SEC stated.
SEC had in May suspended BGL Group and its subsidiaries from all capital market activities.
The Commission said its decisions were based on the “report of a detailed investigation into the various complaints received from investors against subsidiaries of BGL Group.”
SEC had late April intervened in the operations of BGL Group Plc, suspended its board and set up an interim management board for the group.
The interim management board headed by a former president of Chartered Institute of Stockbrokers (CIS), Oladipo Aina, was mandated to conduct full investigation into the operations of BGL Group.
Other members of the interim board were Mr. Abubakar Ambursa, Mrs. Hafsat Rufai, Ms. Temitayo Siyanbola and Ms. Tonne Ladipo-Ajayi.
On the basis of the investigation report, SEC then announced the suspension of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited from all capital market activities.

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The Commission also directed that all major officials and sponsored individuals of BGL Asset Management Limited, BGL Capital Limited and BGL Securities Limited whose particulars are contained in the Commission’s record as at December 2014 be suspended from performing any capital market activity.
SEC particularly cited Albert Okumagba, the group managing director of BGL Group and directed that Okumagba, who was the president of CIS before the April sack of the board, should cease to be a registered sponsored individual with the Commission following the withdrawal of the registration of BGL Plc as a capital market operator.
With this directive, Okumagba, one of the most influential capital market operators, will therefore no longer be entitled to carry out capital market activities.
Besides, the apex capital market regulator stated that it has referred what it described as “suspicious transactions” observed in the course of the investigation to the appropriate law enforcement agencies for further investigation.

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