ABUJA — The African Petroleum Plc share manipulation saga reverberated among the regulators yesterday, with the Ministry of Finance directing the Director-General,  Securities and Exchange Commission (SEC), Mr. Musa Al-Faki to proceed on accumulated leave effective May 1. His five-year tenure would lapse in October.

Although capital market sources told Vanguard that  Al-Faki was asked to resign latest by today, the Ministry however denied this, saying the SEC boss was embarking on accumulated leave and there was a letter to that effect.

However, the principal actors in the drama, Mr. Femi Otedola of AP and Alhaji Aliko Dangote of Dangote Group were invited to a public hearing by the House of Representatives on the matter yesterday, but while Dangote appeared before the House committee, Otedola was absent.

Ahead of his being asked to proceed on leave, the embattled SEC boss was however at the headquarters of the Economic and Financial Crimes Commission (EFCC) Tuesday and yesterday. EFCC spokesman, Femi Babafemi, confirmed to Vanguard that Al-Faki’s visit to the Commission might not be unconnected to the AP shares manipulation saga.

Vanguard’s investigation revealed last night that the Ministry of Finance was dissatisfied by the general performance of the Commission, especially the handling of the AP share manipulation scam. The Ministry, it was gathered, believed SEC did not do a thorough job. It was further gathered that some foreign investors that indicated desire to invest in the nation’s capital market, have complained  about lack of effective regulatory oversight in the capital market and this is reflected in the prevalence of sharp practices, especially insider dealings and price manipulation in the market.

SEC spokesman, Mr. Lanre Oloyi, when contacted over alleged resignation of Al-Faki, said “ I am not aware of such development. I have not been briefed. But I will let you know if it is true or not”.

Musa Al-Faki was appointed Director-General of the Securities and Exchange Commission by former President Olusegun Obasanjo in October 2004. He assumed duty in November 2004. Before joining the Commission, Al-Faki was the Managing Director of M&F Investments and Securities Limited, a stockbroking firm and member of the Nigerian Stock Exchange.

Otedola absent, Dangote appears as House suspends hearing

In Abuja, CEO of African Petroleum Limited, Mr. Femi Otedola for the third time running failed to appear before the House of Representatives Committee on Capital Market over his petition that Alhaji Aliko Dangote and Nova Securities manipulated the share price of his company. The committee yesterday suspended its public investigative hearing because of his absence, and promised to issue a warrant of arrest on Mr. Otedola to force his appearance at a date not yet announced.

At the public hearing yesterday were Alhaji Aliko Dangote, the CEO of Nova Securities, Eugene Anenih and chairman of Association of Shareholders, Otunba Mukhtar Mukhtar.

Alhaji Dangote who was earlier quizzed by operatives of the EFCC over an earlier petition by AP Plc , said he was “trained to respect the law and constituted authorities”, and would continue to do so.

The Committee after suspending the exercise, had threatened to invoke Sections 88 and 89 of the 1999 Constitution to order Otedola’s arrest if he failed to appear before it for the fourth time at a future public hearing yet to be fixed.
Section 88(1) states in part that “Subject to the provisions of this Constitution, each House of the National Assembly shall have power by resolution published in its journal or in the Official Gazette of the Government of the Federation to direct or cause to be directed an investigation into:

(a)    any matter or thing with respect to which it has power to make laws; and conduct of affairs of any person, or intended to be charged, with the duty of or responsibility for executing or administering laws enacted by the National Assembly and disbursing or administering moneys appropriated or to be appropriated by the National Assembly.”

Section 89 sub (d) also states in part that the House can “issue a warrant of arrest to compel the attendance of any person who, after having been summoned to attend, fails, refuses or neglects to do so and does not excuse such failure refusal or neglect to the satisfaction of the House or the Committee in question.”

The Chairman of the Committee on Capital Market, Mr. Wadada had before calling off the probe, dismissed representatives of AP Plc and other representatives of banks, insisting that their principals, like Dangote must be present as expected by the Committee.

His reason: “We want the CEOs to appear themselves. We don’t want to have any subordinate evading answers to some questions with the excuse that he has no permission to answer them”.

He however allowed the CEO of Nova, Mr. Eugene Anenih, to submit the documents he had brought for presentation, by first allowing him to read out the title of the documents, which sounded as indictments of Mr. Otedola.

Heated exchange

This led to a heated exchange between Nova and the representative of AP Plc, Mr. I.D. Idigbe, as he urged the Committee to stop NOVA from further maligning the reputation of Mr. Otedola.

But committee chairman said it was alright that NOVA makes public all the documents it was submitting to the committee to avoid speculation.

“I also want anyone here with documents to announce what the person has and submit to the Committee”, he declared. The Committee later adjourned the hearing to a date to be announced later.

Dangote confirms EFCC invitation

Speaking with newsmen at the venue, Alhaji Dangote said he honoured the invitation because he was raised to obey constituted authority.

You were invited here as a result of a petition against you by Mr. Otedola, now that the sitting has been postponed because he was not here, do you have any comment on this?

You have to remember that I have been in business for 31 years now. I was raised as a businessman and taught how to respect constituted authority. That is why I had to show up this morning despite the fact that I have a running stomach. I had to rush here to honour the invitation of the committee.

Reports have it that you were quizzed by the EFCC yesterday (Tuesday), and detained overnight?
First of all, I want to say that I was not detained. I am not above the law. I am a common citizen like you. Even if you (reporters) make a complaint against me, the EFCC will invite me to come and say my own part. The person who wrote a complaint against me was first asked to put his complaint in writing. I was also called to come and put my response in writing.

That was what happened at the EFCC. I was not detained. That’s all.
Now, that the committee has invited you and the complaining party for the third time, and hearing on the issue failed all these times, would you be ready to return if asked to do so?”

Even if I am in any part of the world, and I hear about their invitation, I would dump anything I am doing and come. Thank you very much.