NSE meeting its obligations – GM

By Omoh Gabriel

President of the Nigerian Stock Exchange (NSE), Alhaji Aliko Dangote, yesterday revealed that the NSE is flat broke and financially down to the point of not being able to meet its to stakeholders in the capital market.

He accused NSE’s management of dipping its hands into the finances of its subsidiary, the Central Securities Clearing System’s (CSCS) accounts to borrow N 900 million to support its cash deficit position.

Dangote further revealed that the NSE is indebted to the tune of N 119.5 million to Accenture auditing firm and that it has decided to stop additional work on executive selection, trading platform selection completion and implementation of the operating model for which the Exchange engaged its services, until all outstanding invoices are duly paid.

This, according to him, was contained in a letter addressed to the Council of the NSE on June 9, 2010 and signed by the company’s Country Managing Director, Niyi Yusuf.
The letter reads in part: “As agreed in the contract with the NSE, our payment were to be made in instalments and based on invoices which are payable upon presentation.

Alhaji Aliko Dangote, President of the Nigerian Stock Exchange (NSE)

“However, despite all the necessary invoices, Accenture is yet to receive any payment on all outstanding invoices. We have written formal letters of reminder of this indebtedness to the Management of the NSE to no avail.”

In its reaction the NSE General Manager,  Mr. Sola Oni, said: “The Nigerian Stock Exchange is not insolvent. The organisation is meeting all its obligations as at when due.

“The staff are not owed salaries and allowances.  The retirees receive their cheques promptly. The Exchange does not owe any bank or individual. If there is any form of owing it could be that such a company is handling project that has not been completed. Even at that, the Exchange must have made some pre-payment.

“No organisation in Nigeria is fully insulated from the effects of global market down turn. The Exchange is certainly affected.”