By Michael Eboh
The Senate, Chartered Institute of Stockbrokers (CIS) and Association of Stockbrokers of Nigeria (CIS) has waded into the controversy between the President of the Nigerian Stock Exchange (NSE), Alhaji Aliko Dangote and management of the NSE, with the aim of finding an amicable solution to the crisis.

Chairman, Senate Committee on the Capital Market, Senator Ganiyu Solomon, in a chat with finance correspondents in Lagos, Tuesday, after a brief visit to the authorities of the NSE, promised that the Senate will intervene in the issue to ensure that the integrity and confidence reposed on the market is not eroded.

He called for the intervention of other stakeholders in the market so as to ensure an amicable resolution of the crisis.
Also, a source in the capital market, who spoke on the condition of anonymity, said that operators have commenced mediation in the issue to prevent an escalation of the crisis and its negative effects on the market.
He said that a combined team from CIS and ASHON are in consultation with stockbrokers representatives on the Council in order to gather useful information to enable them mediate effectively in the crisis between both parties.
Dangote had revealed that the NSE is broke and unable to meet up with its financial obligations to stakeholders in the market.

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

Dangote in a petition to the Director General of the Securities and Exchange Commission (SEC), Ms Arunma Oteh, has enjoined the regulatory authority to investigate certain irregularities, particularly as it pertains to the accounts and finances of the NSE.

In response to the allegations, Assistant General Manager/Head, Corporate Affairs of the NSE, 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.

Dangote had also alleged that the Management of the NSE has not presented the audited financial statement for the year ended December 2009, seven months into the current financial year, neither has it been able to produce for consideration by the Finance and General Purpose Committee of the council, interim financial statements for the first and second quarters of 2010.

Despite having a surplus cash position of over N9 billion as at the end of 2007, Dangote said NSE is today in deficit and unable to meet its obligations as and when due.

Commenting on the expenditure pattern of the NSE, he said the NSE in the last four years grossed a total income of N 42.2 billion with a surplus of only N5.6 billion, representing 13 per cent growth over the period.