The on-going allegations and counter-allegations between the Minister of Finance, Kemi Adeosun and the suspended Director-General of the Securities and Exchange Commission (SEC), Mounir Gwarzo started in 2017.
In October, Gwarzo was petitioned for allegedly getting a severance package of N104 million from the Commission after he was made the DG in 2015, by former President Goodluck Jonathan.
Prior to his appointment as the DG, he was the Executive Commissioner of SEC, after assuming office, he reportedly demanded his severance package as entitled to a Commissioner, which he was for two and the half years.
“On assumption of office as the DG of the Commission, Mr. Gwarzo immediately requested that the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), be paid to him as severance package for the cessation of his appointment as Executive Commissioner of the Commission.
“The requested severance package in the sum of N104,851,154.94 (One Hundred and Four Million, Eight Hundred and Fifty-One Thousand, One Hundred and Fifty-Four Naira and Ninety-Four Kobo), was paid by the Commission into Mr. Gwarzo’s bank account, held with Guarantee Trust Bank PLC, with account number 0023868895,” the petition read.
He was petitioned because according to practice, he was not entitled to a severance package, as severance package can only be made to an employee of the Commission who has concluded his or service year and disengaged from the Commission.
He was also accused of awarding contracts to his family members and friends, which was also against the Commission rules.
In November, Adeosun suspended Gwarzo in what she claimed is a move to allow for proper investigation of the allegations against him.
He was also suspended alongside Head of Media Division, Abdulsalam Naif Habu and Head of Legal Department, Anastastia Omozele Braimoh.
According to the Statement signed by Patricia Deworitshe, on behalf of the Ministry of Finance: “The suspension is in line with the public service rules (PSRs) 03405 and 03406.
“She has directed the suspended SEC Director-General to immediately handover to the most senior officer at the Commission, pending the conclusion of investigation by the API.”
But it was reported that he was suspended over his insistent on conducting a forensic audit of Oando over allegations of irregularities.
In a letter titled “Investigation of Oando Plc”, Gwarzo said:
“Pursuant to our meeting on the above subject held on Monday, November 27, 2017, I am compelled to advice you ma, on the implication of the verbal directive issued to me in which you stated that the SEC should discontinue the forensic audit on Oando Plc and hold a tripartite meeting with Legal Officers of the Commission, Oando Plc and the Federal Ministry of Finance, with the purpose of coming up with penalties which would be issued to top officials of Oando Plc in their personal capacity for payment.
“It is therefore not in the best interest of our recovering economy that the forensic audit is not seen to be conducted in an independent and transparent manner proposed by the Commission.”
Adeosun denied the assertion, saying the decision to suspend the audit was from the Ministry.
“That the original decision taken by SEC on October 20, 2017 to suspend the shares of Oando Plc and conduct a forensic audit was approved and endorsed by the Federal Ministry of Finance.
“For the avoidance of doubt, there was no directive whatsoever to discontinue investigation into Oando and this was reiterated to the current SEC leadership at the formal handover meeting.”
In January, Gwarzo was invited by the House Committee on Capital Market and Institutions, and he reaffirmed that his suspension was due to his refusal to halt the audit.
“On one occasion, the Minister invited me and asked me the powers I had to carry on with the audit. So, I explained to her it was within the powers of my office. She said we should have mentioned it to her but no problem.
“But the scary aspect was that she told me she was told I should have been sacked. After that encounter, we went on with our investigations.”
He further iterated that the Minister told him to stop the audit and raise a Committee that would comprise of the head of legal of SEC, the Ministry and Oando.
“She then told me I will not be on that committee, and that they were given me the directive as my board (members). I said okay, if that’s the case, I want it to be committed in writing.”
Gwarzo also claimed that Adeosun then told him he has two options; either resign or face suspension, while reminding him of the allegations against him.
Gwarzo said he was not guilty of the allegations against him, explaining that he had duly collected his severance pay, which is one of the issues in contention, and that the illegal recruitment he was accused of carrying out was also false.
In defence, Adeosun said Gwarzo was suspended “because he acted outside the public service rules.”
“As we speak, the forensic audit is still going on. So, it is mischievous to even suggest that, that led to his suspension.
“Mr Mounir was called and given a right of audience. We believe that our decision to suspend Mr Mounir was just. We cannot have somebody at the helm of affairs and it is only when the EFCC arrest them that they can be removed. That’s not fair.”
She also said Oando was alleging that the person investigating them was not a fit and proper person and felt that his actions were mismatching, hence, such suspicion needed to be removed.
Meanwhile, the panel set up by the Ministry of Finance to probe the allegations against the suspended DG recommended that he be dismissed from public service.
