Economy
How FG Suspended SEC DG for Insisting on Forensic Audit of Oando
By Modupe Gbadeyanka
The suspension of Director-General of the Securities and Exchange Commission (SEC), Mr Mounir Gwarzo, yesterday by the Federal Government may not come as a surprise to some observers in the Nigerian capital market, but the reason behind this move may shock some.
An exclusive report by Premium Times suggested that the regulatory chief was suspended because he insisted on conducting a forensic audit on one of the biggest indigenous oil firms in the country, Oando Plc, headed by Mr Adewale Tinubu, to save the integrity of the capital market regulator.
Oando was accused of gross financial misconducts by two petitioners and SEC suspended trading of shares of the company on the Nigerian Stock Exchange (NSE).
After this action, there was an allegation against the SEC boss that after he was appointed as the DG, he paid himself N104 million as severance package as a former Executive Commissioner of SEC.
Below is Premium Times’ report:
Just before 5:00 p.m. on Wednesday evening, selected journalists got mails from the finance ministry of an impending ‘news break.’
“Kindly await a major news break from the Federal Ministry of Finance today at 6.30 p.m.,” Oluyinka Akintunde, the spokesperson of the Finance Minister, Kemi Adeosun, said; an indication that a decision to be announced to the public about 90 minutes later had already been made.
Less than an hour after Mr. Akintunde’s mail, the news was announced. Munir Gwarzo, the Director General of the Securities and Exchange Commission, SEC, had been suspended.
Suspended alongside Mr. Gwarzo were two officials of the regulatory commission, Abdulsalam Habu, Head of Media Division, and Anastasia Braimoh, Head of Legal Department.
The finance ministry in the statement signed by Patricia Deworitshe, Deputy Director, Press, announced that the officials were suspended based on corruption allegations against them.
“The Honourable Minister has set up an Administrative Panel of Inquiry (API) to investigate and determine the culpability of the Director-General”, Ms. Deworitshe announced.
Ms. Deworitshe did not announce the reason why it took the finance minister 10 months to acknowledge and act after the allegations were made to her office and anti-corruption agencies against Mr. Gwarzo and the two others.
However, ongoing investigation by PREMIUM TIMES reveals that while the allegations against the regulatory chief deserve to be investigated and suspects prosecuted if found guilty, the real reason for the suspension was the crisis rocking Nigeria’s supposed largest indigenous oil and gas firm, Oando.
In fact, sources told PREMIUM TIMES, the decision to suspend Mr. Gwarzo was taken at least 24 hours before Mr. Akintunde’s first mail to journalists on Wednesday at a meeting attended by three people.
THE MEETINGS
On Tuesday, the SEC chief met with the Permanent Secretary of the Ministry of Finance, Mohammed Dutse, two sources knowledgeable about the meeting told PREMIUM TIMES although both gave varying details of the meeting.
One source said the Tuesday meeting was a follow up to another held between Mr. Gwarzo, Mrs. Adeosun, and Mr. Dutse.
At the Monday meeting, the source said, Oando was the only topic of discussion.
A few hours before the Monday meeting, SEC had written the oil and gas firm, formally notifying it of the decision to commence the forensic audit earlier announced in October.
“The Commission notes that the above findings (of irregularities in Oando) are weighty and therefore needs to be further investigated. After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc”, the commission had stated on October 18.
However, hours after the SEC letter was delivered to Oando, the Monday afternoon meeting was reportedly called at the instance of the minister.
During the meeting, Mrs. Adeosun reportedly ordered Mr. Gwarzo to call off the forensic audit of Oando.
“She advised him to rather constitute a committee that would recommend that Oando pays large sums as penalties for its various infractions”, the source said.
Mr. Gwarzo reportedly told the minister and permanent secretary that his commission would not discontinue the audit process as such would have a negative effect on public perception of its role as a regulator.
The source said the DG was confronted with the threat to either resign or be suspended from office, ostensibly to allow ample time for the Oando issue to be sorted before his reinstatement later.
It was then Mr. Gwarzo reportedly received the shocker. He was allegedly reminded by the minister of pending allegations against him and that, “those could be brought back.”
Worried by the mood of the alleged Monday meeting and the pressure allegedly put on him by the minister, Mr. Gwarzo reportedly briefed some of his close confidants on the discussions at the meeting.
Mrs. Adeosun’s spokesperson, however, told PREMIUM TIMES that the Monday meeting never held. He, however, confirmed the Tuesday meeting but gave a different narrative of what transpired.
Our source, who sought anonymity for fear of victimisation, said Mr. Gwarzo on Tuesday sent a memo to Mrs. Adeosun documenting the implications of derailing the forensic audit, particularly the negative signal it would send to the capital market, in view of the horrible financial position of Oando.
In the memo, he made reference to Section 11(d) of the SEC Act on his duty as the Director General of the Commission to advise the minister on such matters, the source said.
He advised the minister to “allow the matter to follow its course professionally, for the integrity of its regulatory function.” The source said it was the content of the memo, and the minister’s actions, that was discussed with Mr. Dutse on Tuesday.
Mrs. Adeosun’s spokesperson, Mr. Akintunde, however, gave a different narrative of what transpired on Tuesday.
In an interview with PREMIUM TIMES on Thursday morning, Mr. Akintunde said the SEC boss did not meet with the minister but only met with the permanent secretary on Tuesday to seek a “soft landing” over the corruption allegations.
“The minister was not even in office on Monday. Mr. Gwarzo went to the Permanent Secretary on Tuesday to seek a soft landing over allegations that he paid himself N104 million severance package while still in office; and the private companies he used to award contracts to his relations.”
Mr. Akintunde said it was after the meeting with the permanent secretary that Mr. Gwarzo was advised to go and consider resigning his appointment.
In his reaction to why it took 10 months for the minister to react to the corruption petition, Mr. Akintunde said, “investigations were conducted to authenticate the substance of the petition, queries were issued and answers received; the anti-graft agencies have to be given the chance to do their job.”
Another source at the SEC, knowledgeable about the matter, however, questioned Mr. Akintunde’s claim.
“If the investigations have already been conducted by the finance ministry, why set up a panel again? Since the matter is already being investigated by EFCC and ICPC, why not let them complete their investigation and prosecute those found wanting. It’s a lie, the suddenness is all about protecting Oando even though Gwarzo has a case to answer,” the source said.
THE ALLEGATIONS AGAINST GWARZO
In the corruption petition, which is currently being investigated by the two anti-corruption agencies, EFCC and ICPC, Mr. Gwarzo was accused of pocketing about N104.85 million as severance package while still in service.
He was also accused of getting entangled in a conflict of interest as a Director in Medusa Investment Limited, a company he allegedly used to funnel millions in contract awards while still in office in violation of extant rules.
Officials at the EFCC and the ICPC confirmed that their commissions are investigating the matter and had indeed questioned several officials mentioned in the alleged scandal several times.
EFCC
At the EFCC, the case is being handled by the Capital Market and Investment Fraud Section, CMIFS, section headed by Adesola Amusan.
When he was invited earlier this year, the SEC chief was said to have admitted to the EFCC that he indeed received a severance package, but insisted it was not for the office he currently occupies as DG, but for when he held office as a commissioner.
Mr. Gwarzo was said to have submitted documents, including the extract of a Board meeting of SEC held on July 11, 2002, long before he joined the commission.
Any senior official who attains the position of either a DG or commissioner was entitled to draw a severance package after completing two years in office, that board resolution stated.
Having completed over two years and five months in office, as a commissioner, Mr. Gwarzo reportedly told the operatives he was entitled to the severance package.
PREMIUM TIMES findings show that Mr. Gwarzo served as Executive Commissioner of SEC for two years and four months prior to his appointment by former President Goodluck Jonathan on May 22, 2015, to succeed Arunma Oteh as the Director-General of SEC.
While our ongoing investigations show that this practice of paying people such severance packages is common in SEC, its legality is questionable, an issue the EFCC and ICPC are still looking into; to, among others, determine how many officials benefitted from such arrangement in the past.
Apart from the suspended officials, other officials including the executive commissioner, corporate services of SEC, also appeared before ICPC investigators.
The spokespersons of both the EFCC, Wilson Uwujaren, and ICPC, Rasheedat Okoduwa, could not be reached for comments on the current status of their investigations.
While Mr. Uwujaren’s phone number was not reachable, Ms. Okoduwa did not pick or return calls made to her.
While the anti-corruption agencies continue to investigate the allegations against Mr. Gwarzo and others, and now joined by the administrative panel set up by the finance ministry, attention will now be focused on what the regulator will do about Oando.
THE OANDO CRISIS
The proposed forensic audit of Oando followed two petitions SEC received from concerned shareholders, Dahiru Mangal and Ansbury Incorporated, about alleged mismanagement of the company’s financial affairs and distortion of its shareholding structure.
Following the petition, SEC said it conducted a comprehensive review, which revealed massive breaches of the provisions of the Investments & Securities Act 2007 and the SEC Code of Corporate Governance for Public Companies.
Consequently, the Commission announced the appointment of a consortium of experts, consisting auditors, lawyers, stockbrokers and registrars, to conduct the forensic audit, while shares of Oando Plc at the Nigerian Stock Exchange, NSE were placed on temporary technical suspension.
The technical suspension is still in place, meaning while trading on Oando stock is still allowed, there will not be any price changes.
Last week, the oil firm also lost a bid to stop the forensic audit planned by SEC as a Federal High Court ruled against it.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange fell by 0.23 per cent on Wednesday, April 2, after the market resumed from a two-day holiday observed on Monday and Tuesday.
There were three price gainers and three price losers at the first trading session of the new week and month.
FrieslandCampina Wamco Nigeria Plc lost 23 Kobo during the trading day to close at N36.50 per unit compared with last Friday’s N36.73 per share, Geo-Fluids Plc went down by 22 Kobo to sell at N2.48 per share versus N2.70 per share, and Food Concepts Plc slipped by 13 Kobo to end at N1.17 per unit, in contrast to last Friday’s closing price of N1.30 per unit.
On the flip side, Lagos Building Investment Company (LBIC) Plc grew by 23 Kobo yesterday to end at N2.63 per share compared with the preceding day’s N2.40 per share, IPWA Plc appreciated by 5 Kobo to 55 Kobo per unit from N50 Kobo per unit, and Industrial and General Insurance (IGI) Plc marginally increased by 1 Kobo to close at 36 Kobo per share versus 35 Kobo per share.
When trading activities ended for the day, the market capitalisation lost N4.45 billion to settle at N1.910 trillion compared with the preceding session’s N1.915 trillion and the NASD Unlisted Security Index (NSI) shed 7.71 points to 3,308.46 points from 3,316.17 points.
During the session, the volume of securities transacted by investors increased by 625.8 per cent to 9.1 million units from the 1.3 million units, but the value of transactions went down by 17.5 per cent to N7.2 million from N8.8 million, and the number of deals rose by 100 per cent to 22 deals from 11 deals.
Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units worth N520.9 million, followed by Industrial and General Insurance (IGI) Plc with 70.2 million units sold for N23.8 million, and Geo Fluids Plc with 44.2 million units valued at N89.4 million.
FrieslandCampina Wamco Nigeria Plc, with the sale of 13.7 million units valued at N529.1 million, was the most traded stock by value (year-to-date), trailed by Impresit Bakolori Plc with a turnover of 533.9 million units worth N520.9 million, and Afriland Properties Plc with 17.8 million units sold for N364.2 million.
Crypto presales have become a fundamental pillar within the blockchain fundraising landscape, providing a vantage point to investors for outstanding buying opportunities even before public and secondary markets. Due to these presales, the investor can avail discounted prices for tokens and acquire significant returns on the investment in case the project takes off afterward. For those with an eye on presale crypto, it’s believed that getting to either an illegal or an unreliable presale is pretty hard; thus every avenue must be exploited. Consequently, then, in the world of cryptocurrencies, presale has turned out to be a crucial modality for both developers and investors to somehow pave the way for seeding even better alternatives.
What Do You Mean By Crypto Presale?
Presales are the early fundraising events conducted by blockchain projects that let them sell their native tokens to a limited class of investors before they make an official public offer at retail or before listing on the exchanges. Here, the ones who are privileged to participate are on a whitelisting that mostly consists of very early supporters, venture capitalists, or community representatives. Through participation in a presale, investors get the chance to obtain tokens at lower price points, often including some additional bonuses or incentives. For the projects, presales present their funding opportunity and build a loyal community before going public.
Why Do Crypto Presales Matter to Stakeholders?
It is imperative for a project intending to develop a blockchain project to put on a crypto presale to assist in bridging the gap of capital necessary for the build-up and scaling of the platform; allowing early stakeholders the opportunity to benefit by truly supporting the project in its off-the-ground stages. For the stature investor, the presale is a particular investment opportunity in itself, developing a guarantee that projects of substantial promise might potentially reward high returns. Furthermore, presale tokens are based on either added governance rights, staking returns, or perquisites from the platform in a constrained fashion, vanishing all but one or two.
Participating in Crypto Presales
Becoming a spectator in a crypto presale must be well-earned; the investor must display a satisfactory level of underweight. Firstly, the probable investor should know any right projects-that is, to research the whitepapers, the team, and the roadmap. In many projects, one must be on a whitelist, which generally requires performing small tasks such as tracking social media accounts. Often following retweets, sharing posts, or joining other channels of this community will hide a whitelist. Once he/she is whitelisted, an investor will have to send various cryptocurrencies to the required address (mostly Ethereum or BINANCE) in exchange for presale tokens. It is important to check the legitimacy and be secure while scouting a presale.
Risks Associated with Crypto Presales
Well, crypto presales might offer fantastic opportunities, yet none are without risks. Due to the very little regulation in the crypto space, an investor has very minimal protection when it comes to scam projects. Most of the presale projects are in their very initial stages, which in turn makes it difficult to judge the long-term viability of the project. Moreover, the sphere is so great because the presale tokens can see very abrupt spikes or dips once the project is operational. Scams and marauding projects are no joke, thus it falls most urgently on you to research a bunch of these and stake only what you can afford to lose.
Key Factors to Evaluate in a Crypto Presale
There are a few criteria that shall be essential for making a positive effect on the project. The problem that is supposed to be solved must find proper rationale or should not better still just be significant and observable. This means a useful case here, which will only help to justify its chance of adoption. These experienced engineers and advisors are supposed to make the roles in the success of their projects and are commonly rewarded within the scope of project tokens. Tokenomics comes into the equation when fairly transparent with how tokens are used and distributed. A community that stands with a weak amount of support is not in the best interest, though partnerships and community support are in place to partner the project with success and enhance its reputation.
The Role of Community in Crypto Presales
The credibility of the community is very important for crypto presales. If the community is active and supportive, it can push for mass adoption, create network effects, and increase the value of presale tokens. Many projects actively engage their communities by providing forums for discussion using social media pages, forums, and Telegram groups, thus fostering a sense of ownership and loyalty among early supporters. An active community can be taken as a good indicator by investors, showing genuine interest and support towards the forward motion of the project.
Notable Examples of Successful Crypto Presales
Numerous great crypto presales have been able to change the lives of early investors, turning millionaires overnight. For instance, in 2014, holding its presale, Ethereum went on to make over $18 million, which eventually opened up the road for the subsequently occurring DeFi paradigm. Binance Coin (BNB) is the other excellent token that did a presale before launch and has grown to become one of the leading cryptocurrencies by market capitalization. The above few examples represent what crypto presales are capable of doing in the name of innovation and value for early contributors.
The Future of Crypto Presales
The future of presales will be engineered by the evolution of regulations, technological advances, and market trends. With maturity, one would expect to see relatively standardized administrative processes, in the hope of attracting society’s most unfathomable level of belief in us through due diligence by misaligned objectives in governance and scrutinization processes of the presales. Additionally, with the progression of artificial intelligence and IoT into blockchain integration, it is almost certain that there are other horizons to reach for presales. As the noise of presales dissipates, they may subside into more elaborate, more reliable tools of exploitation in the crypto life.
Spotting Scams in Crypto Presales
The increasing popularity of crypto presales has led to a corresponding increase in scam cases that investors need to guard against. Some triggers are extremely risky: especially those offering returns that seem unreasonable or lack transparency. Some of the worst offenders come with anonymous teams, greatly marked-up whitepapers and careful yet chaotic marketing campaigns. One has to complete thorough due diligence to check for such key things as audits, public opinion, and a proven track record by their team. Platforms that provide information on where to buy presale crypto also add insights and ratings from actual users to help in testing authentic projects.
The Relevance of Regulation in Crypto Presales
The regulation has become a key part of influencing the direction of crypto presales. Countries differ from one another; some nations have given in to pre-sales and accepted them as a way to raise revenue, while others have put forth stringent rules about pre-sales. Regulation can save investors by providing transparency and making people accountable, although it does come at the risk of stifling innovation. The harmony between investor protection and the evolution of innovation would be a key factor, using the increasing age of crypto to propel presales in the years to come. Websites that display information on the regulation of presale platforms, where investors can look up the rules governing it, make it easier for investors to navigate.
In Conclusion
Crypto Presales have become vital to the blockchain ecosystem, giving willing investors early access to potentially worthwhile projects with huge returns. For anyone still wondering where to buy presale crypto, the critical point for them is to engage in deep research and due diligence. While they have their risks, presales bestow their support in favor of breakthroughs while nurturing the possibilities of reaping the healthy fruits upon them. In the long run, presales are destined to play a crucial role in fundraising and innovation, and whoever can put in effort into the dynamic and malleable space will surely find the chance circulating it. Understanding the future of crypto assets in a changing world, hence, requires comprehensive realities on presales, be you an investor, developer, or just an enthusiast of the crypto sector.
By Adedapo Adesanya
The Naira appreciated against the US Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, April 2 by 0.43 per cent or N6.63 to trade at N1,531.63/$1 compared with the preceding session’s value of N1,531.63/$1.
This happened after the Central Bank of Nigeria (CBN) disclosed that its net forex reserves reached $23.11 billion last year, a development that boosted the confidence of investors.
In a report earlier this week, the apex bank said net foreign exchange reserves for last year was the highest in the last three years, signalling a major improvement in the country’s external financial position.
The CBN said the improved position was due to “substantial reduction” in short-term foreign exchange liabilities, notably swaps and forward obligations.
It also cited measures aimed at boosting forex market confidence and reserves, alongside increased non-oil foreign exchange inflows.
The domestic currency also improved its value against the Pound Sterling in the official market yesterday by N9.21 to close at N1,982.66/£1 compared with last Friday’s N1,991.87/£1 and gained N4.03 on the Euro to quote at N1,656.96/€1 versus the preceding session’s N1,660.99/€1.
But in the parallel market, the Nigerian Naira depreciated against the US Dollar on Wednesday by N5 to trade at N1,555/$1, in contrast to the previous trading day’s rate of N1,550/$1.
In the cryptocurrency market, the US President, Mr Donald Trump’s sweeping reciprocal tariffs on China and other nations affected traders’ decisions yesterday.
On Wednesday, President Trump announced reciprocal tariffs on imports from 180 nations, including higher taxes on trading partners identified as worst offenders, such as China and the European Union.
This suppressed Solana (SOL) by 4.0 per cent to $119.14 and Cardano (ADA) went down by 2.6 per cent to finish at $0.6496, with Ethereum (ETH) down by 1.6 per cent to $1,825.59, while Dogecoin (DOGE) depreciated by 1.5 per cent to sell at $0.1658.
Further, Ripple (XRP) dropped 1.0 per cent to settle at $2.05, Bitcoin (BTC) lost 0.9 per cent to close at $83,246.52, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
However, Litecoin (LTC) recorded a 2.2 per cent rise to sell for $83.56, and Binance Coin (BNB) went up by 1.3 per cent to end at $606.76.
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