Brokerage Scandal rocks Nigeria: Access Bank and Surrogates make their presence felt

Dear Africa interested professionals:
                                                          I have incessantly spoken out about no proper system of checks and balances within some African Financial Markets.  Individuals continue playing musical chairs with influential positions to ensure they continue to have control over the financial marketplace and preserve their business deals while expanding their business empire.  Remember in 2014, when Access Bank (against extant rules in place) tried to freeze its share price for four months while it embarks on a rights issue to "preserve shareholder value?"  The freeze was on for a week until Arunma Oteh (SEC DG) at the time intervened and forced the freeze to be reversed.  Diamond Bank had completed its rights issue a few months earlier without seeking preferential treatment.  

Partnership Investment Securities (owned by Victor Ogiemwonyi) is currently embroiled in a financial scandal involving aggrandizement of clients' funds to the personal benefit of the owner and his companies.  One of these clients turned out to be Arnold Ekpe - the former Chairman of Ecobank Transnational Incorporated among other companies.  Arnold Ekpe had requested (all necessary paperwork was filled out) for the proceeds of the sale of his ETI shares to be deposited into his bank account.  

The trade was conducted on the Nigeria Stock Exchange, cleared by the Central Securities Clearing System and ended up in the account of  Partnership Investment Securities with Access Bank.  

There are two financial bodies, one brokerage company and one bank thrown into the 'dark' spotlight here.  

1. Central Securities Clearing System (CSCS)
2. Nigeria Stock Exchange.  
3. Access Bank.
4. Partnership Investment Securities

Let me solve this quadratic equation quickly for all of you without using the "Almighty Formula."  

1. The Deputy CEO of Access Bank: Obinna Nwosu is on the board of CSCS.  

2. The owner of Access Bank and WAPIC Insurance: Aigboje Aig-Imoukhuede is the President of the Council of the Nigeria Stock Exchange.  The President is the equivalent of a Board Chairman.  The Nigeria Stock Exchange also has major influence over the CSCS as a major shareholder.  The CEO of the NSE selects the CEO of CSCS and chairs the board of CSCS.  

3. Access Bank co-owner/and frontman is the President of the NSE Council and the NSE has influential control over CSCS activities and operations.  The President of the NSE Council also has major influence over the contract renewal of the NSE CEO.  

4.  For about a year-and-half - January 2013 - July 2014 Victor Ogiemwonyi and Aigbjoe Aig-Imoukhuede were both members of the Council of the Nigeria Stock Exchange.  

CSCS (where Access Bank's deputy CEO sits, the current CEO - Herbert Wigwe) was formerly in that position) moved the proceeds of the trade (in excess of 1.5B naira to the Access Bank account of Partnership Investment Securities.     

Access Bank received over N1.5B into its coffers, its customer (Victor Ogiemwonyi) gets access to funds that do not belong to him and everybody smiles to the bank, except, Arnold Ekpe.  

CSCS MD looks away (he has purportedly resigned two months ago), NSE management looks away while Aigboje and Victor look happy.  The Nigerian financial system continues to remain a joke as certain individuals continue to remain and strive to remain bigger than the system in Nigeria while everyone else that is supposed to matter and protect the interests of the common investor cower in fear while remaining focused on SELF-PRESERVATION given the highly vindictive nature of the financial services industry to whistle blowers and the blatant evil & corruption that permeates the Nigerian business environment masked by nice suits, grandiose speeches and smiles on television.  

Egypt's EGX30 index continues to soar despite having similar economic issues like Nigeria.  Egypt's financial market does not worship certain individuals for starters; ponder on that.    

More to come soon...  The TRUTH will set us free; I will keep telling it.  

      Tell others to tell others about this Africa Financial Markets Blog; the financial truth is here.


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