BY OKEY NDIRIBE & EMMAN OVUAKPORIE

ABUJA – CHAIRMAN of the Capital Market probe, Ibrahim El-Sudi, yesterday said participants at the probe would be given a fair hearing, saying the committee was not out to witch hunt anybody.

Also a sacked staff of the Securities and Exchange Commission, SEC, Mr Samuel Isimbabi has revealed that the sack of professionals in the capital market was one of the major causes of the crash of Nigerian Capital Market.

Speaking at the on-going probe of the near collapse of the capital market, Isimbabi said the sack of professionals by Mallam Musa El-Faki in 2007 immensely affected the capital market as mediocres were now elevated into sensitive positions and could not meet up with the challenges associated with their positions.

Mr Isimbabi further alleged before the era of the consolidation of banks, there was a policy that quoted companies should only issue their public offer once a year but said this was violated during the consolidation era.

He said: “Some banks were allowed to issue public offer twice in one year. This resulted in the capital market being over flooded with public offers. There was over valuation of some stocks quoted on the stock exchange.”

He cited the case of a certain stock which was over valued at N89 per unit which later crashed to N9, adding this was the true value of that particular stock.

Isimbabi further explained that another reason the market failed was that marginal loans were not given to stock brokers to buy shares.

On sacked staff, he said “despite a fresh directive that they should be re-absorped by the relevant government agencies and ministries, the management of SEC refused to comply.”

He explained that SEC management did not follow due process in sacking members of  staff that were core professionals when downsizing. “Most of the staff sacked were arbitrarily selected and sacked,” he said.