By PETER EGWUATU & NKIRUKA NNOROM
LAGOS—Mixed reactions have continued to trail the directive by the Securities and Exchange Commission, SEC, compelling its Director- General, Ms Arunma Oteh, to proceed on compulsory leave in order to effectively investigate allegation of misappropriation of funds for the project 50 event to commemorate the 50 years of capital market regulation.
While some stakeholders are questioning the power of the board to send Oteh on compulsory leave to effect her eventual removal, some investment analysts and senior stockbrokers that spoke to Vanguard agreed that the SEC’s board possess absolute power to ask her to step aside, saying, “they acted within the ambit of the law.”
It is generally believed that the action of the board is not unconnected to the revelations made by SEC commissioners at the House of Representatives ad-hoc committee’s hearing which interrogated Oteh over the amount spent on the project 50.
Already, the commission has set up internal committee to investigate the alleged misappropriation of funds.
Investment & Securities Act Provision
Meanwhile, the Investment and Securities Act, ISA, which established the Commission stated as follows: “The Director-General and the three full time commissioners shall be appointed by the President upon the recommendation of the Minister and confirmation by the Senate.
(2) The Director-General shall hold office for a period of 5 years in the first instance and may be reappointed for a further period of five years and no more.”