Court voids Okereke-Onyiuke’s sack from SEC, awards her N500m

Posted by admin Headlines Friday, May 20th, 2011

The immediate past Director General of the Nigeria Stock Exchange, NSE, Prof. Ndi Okereke-Onyiuke, got reprieve from a Federal High Court sitting, Lagos, Friday, when her sack by the Nigeria Security and Exchange Commission, SEC, was declared a nullity and awarded N500million as damages.

SEC, has, however, faulted the judgement, and gave indication it would appeal against same. It said Okereke-Onyiuke’s sack was in exercise of its statutory powers to protect the NSE, the interest of investing public and the Nigerian economy as a whole.

Prof. Ndi Okereke-Onyiuke

SEC’s Head of Media, Mr. Lanre Oloyi, in a statement shortly after the judgement said, “ the commission in August 2010, exercised its statutory powers of intervention and took regulatory action to protect NSE, the interest of investing public and the Nigerian economy as a whole. It is important to note, however, that the judgment makes no comment whatsoever on the serious allegation of misconduct, fraud and breach of trust made against Okereke-Onyiuke and some of his erstwhile colleague.”

He added that despite the judgement, SEC “remains committed to its objective of protecting the interest of investors and maintaining confidence in the securities market and will continue to vigorously pursue its efforts to ensure that transparency, accountability and justice prevail in the sector.” Okereke-Onyiuke, who was sacked on August 5, had challenged same in court. Justice Mohammed Idris, in his judgement, described Okereke-Onyiuke’s removal as reckless, hasty and done in bad faith.

The court awarded N500 million against SEC as exemplary and aggravated damages for the reckless manner Prof Okere-Onyiuke’s right to fair hearing was a breached by the commission.

Said the court, “ it was wrong for SEC to withheld the allegation against the plaintiff, without giving her the opportunity to adequately reply to the allegations. Her removal was irrational and hasty and did not comply with the condition precedent in removing the plaintiff.

“It is indeed ridiculous that SEC removed the plaintiff within 24 hours, based on bad and unverified allegations and that it is not in doubt that SEC did not comply with the condition precedent in removing the plaintiff. SEC acted in breach of section 308 of Investment and Securities Act (ISA) and therefore, her removal based on the section is a nullity.

It is also important to note that the plaintiff has not attempted at any forum and in any manner whatsoever to answer those allegation on their merits.”

Okereke-Onyiuke, had in the suit, challenged the propriety of her removal by SEC and sought to restrain the commission and its agents from treating and relating to her “as a removed DG of the NSE.”

She had said that she was through with the NSE, having tendered her resignation letter before her sack, adding that she harbours no grudge against her former employer said, she was neither seeking to be reinstated nor did she intend to disrupt the on-going efforts by the interim management to reorganise and restructure the stock market.

-Vanguardwp_posts