Finance Minister Kemi Adeosun says attempted blackmail by former Securities and Exchange Commission (SEC) Director General, Mounir Gwarzo, led to his suspension on November 29, 2017 when she got fed up with his innuendoes and fabrications.
Gwarzo was shown the door over allegations of corruption, including unlawfully paying himself a handsome N100 million in retirement benefits.
He was replaced with Abdul Zubair in acting capacity.
Gwarzo hit back on December 5 with his own allegation that he was fired because of his refusal to stop the investigation of Adeosun’s former employer, oil firm Oando, for alleged shady records.
Federal legislators in the Lower House have weighed in on the matter, with a probe of their own, to get to the truth of the matter, and to persuade Adeosun to reinstate Gwarzo.
But Adeosun poured cold water on that idea on Friday, and opted to “set the record straight”, in her words, “given the degree of speculations and the potential impact on the capital market.”
A statement she issued in Abuja recalled that the original decision the SEC took on October 20, 2017 to suspend the shares of Oando and conduct a forensic audit was approved and endorsed by the Finance Ministry.
She said the SEC team led by Mounir presented adequate evidence to herself and her team that Oando had “a clear case to answer with regard to infractions of the ISA.”
The statement, issued by Adeosun’s Media and Communication Adviser, Oluyinka Akintunde, explained that:
• No contrary evidence has been presented and the investigation of Oando and all other ongoing investigations by the SEC have continued.
• There was no directive whatsoever to discontinue the investigation of Oando and this was reiterated to the new SEC leadership at the handover meeting.
• The fact the probe continues further corroborates Adeosun’s position.
• Gwarzo’s suspension is in line with the Public Service Rules (PSRs) and it is to ensure “an unhindered investigation of serious allegations of financial impropriety against him.
• “Some of the allegations with documented evidence include the awards of contracts to companies related to him and members of his family.”
• Adeosun issued a query to Gwarzo on November 3, 2017 and he responded on November 7, 2017. But his response “was deemed unsatisfactory and further investigation was ordered.”
• Gwarzo was suspended based on additional evidence and creditable reports that documents were being unlawfully removed from the SEC, as well as consultations with the Economic and Financial Crimes Commission (EFCC).
• At the meeting on November 27, 2017, Gwarzo was asked to clarify some of his responses to the query which were not consistent with documentary evidence, and that made him aware of the strong likelihood of his suspension.
• Thereafter “Gwarzo prepared the memo which has been circulated in the media.”
• Gwarzo personally delivered the memo using SEC staff seconded to Adeosun’s office in breach of normal procedures for the receipt of mail.
• The memo was delivered with a message that any action against Gwarzo would result in same being leaked to the press.
• This “threat of blackmail” strengthened Adeosun’s resolve to suspend Gwarzo and allow the Administrative Panel of Inquiry to proceed with its probe.
Adeosun reiterated that Gwarzo’s allegation that she ordered the stoppage of Oando’s probe is false, saying this can be corroborated by the other parties at that meeting and by subsequent events.
The integrity of the capital market is vital to the growth of the economy, she stressed, and must be managed in an orderly and transparent manner to ensure investors’ confidence.
Therefore, she added, its leadership “must maintain and be seen to maintain the highest standards of integrity.”
