More Facts Emerge on Why Panel Recommended SEC DG’s Dismissal

• Gwarzo accused of unilaterally approving N1.7bn for voluntary retirees

Ndubuisi Francis in Abuja

More information has come to light on why the administrative panel of inquiry recommended the dismissal of the suspended Director-General of the Securities and Exchange Commission (SEC), Mr. Mounir Gwarzo.

The panel of inquiry, which was set up by the Minister of Finance, Mrs. Kemi Adeosun, had found Gwarzo guilty of violating public sector rules and financial regulations, and consequently recommended his dismissal.

One of the documents sighted by THISDAY which nailed him, was his authorisation of a severance package of N1.7 billion to 44 SEC personnel in 2015, an action said to have run foul of the commission’s budgetary provisions for that year.

The document indicated that Gwarzo in 2015 had invented a voluntary staff exit scheme for SEC personnel willing to quit the services of the commission.

The scheme, christened “2015 Golden Handshake”, with an attractive package as well as a financial implication of N1,703,724,848.32, was designed to ease out staff on a voluntary basis.
However, the amount had no budgetary provision based on SEC’s 2015 budget.
Rather than seek the approval of the finance minister, Gwarzo unilaterally went ahead with the scheme in contravention of extant public service rules.

According to a top government source, who provided THISDAY with background information on the retirement package approved by Gwarzo, “In 2015, he single handedly, without a budgetary provision paid N1.7 billion to a set of staff under a golden handshake scheme.
“By law, the DG of SEC is required to seek the approval of the Minister of Finance, even if there is a board in place. He should have sought the approval of the minister who, in turn, will present it to the president and the request is sent to the National Assembly.
“But the suspended SEC DG went outside the budgetary provision to effect the payment.”

Besides approving a severance package of over N104 million for himself, Gwarzo was said to have contravened other public service rules.
The administrative panel of inquiry headed by the permanent secretary, Ministry of Finance, Dr. Mahmoud Isa- Dutse, which investigated Gwarzo following his suspension, said it made enquiries at the Corporate Affairs Commission (CAC), banks and other major stakeholders.
It unearthed payments in millions of naira paid to firms linked to the embattled SEC DG.
One of the firms – Outbound Investments Limited – has Gwarzo as a director on its board with 200,000 ordinary shares.
Several payments amounting to millions of naira were paid by SEC to the firm’s United Bank for Africa (UBA) account.

For instance, SEC on February 21, 2017 paid to Outbound Investments, the sum of N2,241,360 for the supply of diesel.
Previously on October 10, 2016 and July 27, 2016, SEC paid the firm N1.9 million and N2.2 million respectively for supplies.
Series of payments also made to Outbound Investment by SEC as indicated by invoices seen by THISDAY included N2,178,000 for the supply of 11,000 litres of diesel dated June 6, 2016 as well as the payment of another N2,464,400 on April 5, 2017 for the supply of 8,000 litres of diesel that was discharged on March 29, 2017.

Also, contrary to Gwarzo’s claim that he had resigned his membership of the boards of Outbound Investment and Medusa Investments Limited, another company linked to him, a copy of the resolution of the board of Medusa Investment dated August 15, 2016 proved otherwise.

Gwarzo, as managing director and Khadijat Mustapha, another director, signed respectively a copy of the board resolution.
A copy of Medusa Investment’s resolution also addressed to its bank, GTBank directed it to issue new corporate naira MasterCards on the company’s account to Gwarzo and Khadijat, the firm’s two directors.

The source added: “Gwarzo’s personal interest in the identified companies is a clear contravention of the regulation, which explicitly prohibits public officers from being in situations that bring their personal interest into conflict with their public duties.
“Also, the use of the companies as suppliers to the commission, amounts to earning wealth illegally and contravenes the EFCC Act as well as the Code of Conduct for Public Officers,” the source noted.

Gwarzo was placed on temporary suspension last November on the directive of the finance minister, to pave the way for unfettered investigations into allegations of financial misconduct against him.
The administrative panel investigated and submitted its report this week.
Among the panel’s recommendations to the federal government is the outright dismissal of Gwarzo from the public service of the federation.

It also recommended that the suspended SEC DG be referred to the Independent Corrupt Practices and other related offences Commission (ICPC) for further investigation of the allegation of using his position to influence the award of contracts to Outbound Investments.
Gwarzo was also asked to refund the sum of N104,851,154.94, being the severance package he approved and paid himself.
Adeosun and Gwarzo on had Tuesday appeared before the House of Representatives Committee on Capital Market and Institutions, where minister justified her decision to suspend Gwarzo.

However, in his submission before the committee, Gwarzo said his suspension last November coincided with his refusal to stop the forensic audit of Oando Plc, a Nigerian energy firm, after Adeosun had pressurised him to do so.