Gwarzo in Court to Challenge Suspension as SEC DG

By Modupe Gbadeyanka

Federal Government has been dragged to the National Industrial Court sitting in Abuja by the suspended Director-General of Securities and Exchange Commission (SEC), Mr Mounir Gwarzo.

Joined in the suit filed by Mr Gwarzo are the SEC, Minister of Finance, Mrs Kemi Adeosun; and Attorney-General of the Federation, Mr Abubakar Malami.

Mr Gwarzo wants the court to declare his suspension from office by Mrs Adeosun in November 2017 as illegal.

Apart from that, he wants the court to order his reinstatement as the Director General of the nation’s apex capital market regulatory chief.

According to his counsel, Mr Abdulhakim Mustapha, the suspended SEC boss also wants to know if the Minister of Finance has the authority to remove him from office having been appointed by the President for the position and confirmed by the Senate.

When all these are determined and he is reinstated by the court, Mr Gwarzo wants the federal government to pay all his entitlements, emoluments, allowances and other perquisites of the office of DG of SEC for the entire period he was under suspension.

The former SEC boss was removed from office alongside two other senior officials of the capital market regulatory agency.

He was accused of paying himself the sum of N104 million as severance package after he was appointed as the DG of the capital market regulator in 2015 by former President Goodluck Jonathan following the resignation of the former occupier of the seat, Ms Arunma Oteh.

Mrs Adeosun had set up an Administrative Panel of Inquiry (API) to investigate and determine the culpability of the DG, explaining that Mr Gwarzo’s suspension was to allow unhindered investigation of fraud allegations levelled against him.

But in his suit yesterday, Mr Gwarzo wants the court to determine whether this panel of inquiry set up by the Minister was properly constituted, fair and impartial.

According to him, he would also want to know if the Public Service Rule, relied upon by the Minister to suspend him was applicable to persons holding the office of DG of SEC.

Mr Gwarzo’s troubles started when he ordered a forensic audit into activities of Oando Plc, an energy firm listed on the Nigerian Stock Exchange (NSE). This followed suspension of the company on the local bourse because a panel by SEC to look into petitions against the firm found it guilty of market infractions.

At a panel set up by the House of Representatives in January this year, Mr Gwarzo had alleged the Minister of Finance of having special interest in Oando Plc and Oasis Insurance Company.

“I was removed from office because I refused to discontinue the forensic audit of Oando Plc, which the Minister has interest in,” he had alleged at the hearing.

But responding, Mrs Adeosun described as ridiculous the erstwhile SEC boss’ claims.

“It is mischievous to link the matter to Oando,” the Minister had replied, emphasising that her action was mainly to “instilled confidence in the capital market, and made clear to investors that Nigeria takes seriously the issue of integrity, and that their funds, which we have worked hard to attract, are safe.”