AP Share Price Manipulation: NSE, SEC, House of Reps side Dangote

“He should be in prison,” Otedola said.

Not a few investors in the shares of Africa Petroleum Plc and other mainstream investors were scandalised with the sanctions considered appropriate by the Council of the Nigerian Stock Exchange in chastising the individuals and organisations that were involved in Nigeria’s most publicly denounced case of share price manipulations.

Continues here.




Apex capital market regulatory body, Securities and Exchange Commission (SEC) may suspend Transglobe Investment and Finance Company Limited (Transglobe) indefinitely over unethical practices.

According to a report by Proshare NI, a source made this affirmation to one of its reporters last week.

“SEC would suspend Transglobe over unwholesome practices,” the source reportedly said.

The source further affirmed that the suspension maybe indefinite and would take effect from sometimes next week; after an all parties meeting in Abuja, Nigeria.

It has been reviewed that a lot has gone wrong with the dealing firm under the Nigerian Stock Exchange (NSE).

Transglobe has been found to be illegally trading on shares of most of its clients, including a high profile client through the relationship its General Manager and acting MD/CEO had with a director of a multinational cooperative.

A letter signed by E.A Okolo on behalf of Musa Al-Faki, Director General (DG) of the Commission to the Cooperative and made available to Proshare NI; shows that SEC is currently investigating a case of fraud and misappropriation of funds belonging to the Cooperative of the multi national company by Transglobe.

The letter which was dated February 04, 2009 with reference number SEC/M & I/INVGT/MISC277/09 states that the SEC is currently investigating the case and in order to resolve the issues, has invited the Cooperative to an all parties meeting to be held at SEC’s Head Office on Thursday February 12 2009.

This issue has been raging on close to seven months now; which led to the suspension of Joseph Okolie and Sunny Ameh, acting Managing Director/CEO and General Manager (GM) respectively of Transglobe. It will be recalled that a case of Fraudulent conduct was delivered against the former MD/CEO: Mr. Wilberforce Onwuka.

SEC had on behalf of 31 complainants handed over Onwuka to the EFCC at the end of a hearing involving Transglobe because almost all of the 31 complaints against the company originated during his tenure as an officer of the company and occurred with his personal knowledge.

Currently, It has been affirmed that the firm owes billions of Naira; while its former Management in collaboration with some banks and fund managers made billions of Naira as well through share manipulations and financial engineering…especially on their transactions related to Geofluids Nigeria Limited.

This is coming on the heels of the resignation of two management members of the firm on the grounds of integrity concerns and interference by the Board of Transglobe and its former suspended management members of Joseph Okolie and Sunny Ameh. These members, we understand, are supervised by Mr. Sunny Obidiegwu, supervisory director and cousin of the chairman of the board, Nze Madako.

Prior to this time, the NSE had suspended Transglobe mid-2008 over infractions against its clients which include issuing of dud cheques, purchase of shares with clients’ funds in their names and not in the names of the clients; unbundling of shares purchased in the name of client not credited to the Central Securities Clearing System (CSCS) account but sold through contract notes.

The non-crediting of clients’ shares to its CSCS accounts; the use of funds provided for the purchase of shares for the cooperative, which was alleged not bought or/and unalloted, but for which bonus shares have been discovered in a separate CSCS account.

The use of clients’ funds as lien using fake seals and letter heads of the clients to procure facilities and non-verification of shares certificates of clients’ accounts.

As at the time of filing in this report, Proshare NI could not clarify the true status of the matter when it contacted Lanre Oloyi, Head, Media of the Commission. “I cannot confirm this issue at this moment due to an all parties meeting that has been scheduled,” he said.

The Consultant

Please, there has been so much noise about market-makers, how will they operate to stabilise the capital market. + 44 7957110056

The term market makers is the latest terminology in the Nigerian Capital Market and the way they are going they make it look as if all the  solutions to the problems in the Nigerian capital market will be solved with the appointment of market markers.

A market marker can be described as a person or company registered by the appropriate agencies to play an intermediary role in the capital market.

They can be described as the discount house of the capital market, they are expected to acquired shares of a quoted company on the floor of the stock exchange when their is surplus of the target stock and to sell / release stock of quoted companies in their possession to the market in period of scarcities, i.e they are to provide a balance in the market.

The use of market markers had always been controversial as they are generally seen as an artificial means of market control.

Looking at the Nigeria environment, my fear is the likely possible abuse of the roles and mandate of the market markers

I took my e-dividend form sent to me by the Registrar of a company in which I have shares to my bank for stamping etc, I was surprised when my bank told me that I had to pay =N=1,000.00 just for them to do the needed things. I think this is exploitative – Wale, OOU

Dear Wale,

You are right, it is not only exploitative it is symptomatic of the illegal and exorbitant charges Nigeria Banks charge their customers. Well, don’t be surprised because some Nigerian Banks now charge customers for depositing money into their account; meanwhile don’t forget that these are the same banks killing themselves and their marketers over deposit.

In the first place, I do not think that there’s need for the form in the first instance, what should have been required is for the mandate to be part of the CSCS procedure.

Also, it’s a process that could have been run through the stockbrokers.

Please where is the office of Wema Registrars – Toyin, ikeja


As published in Issue 48 and uploaded on http://www.fnc0486.wordpress.com