| EFCC to probe Stockbrokers
From MURPHY GANAGANA, Abuja
Tuesday, September
8, 2009
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Farida
Waziri
•Photo: Sun News Publishing |
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Chairman of the Economic and Financial Crimes Commission
(EFCC), Farida Waziri, on Monday disclosed that she is set
to prosecute stock broking firms for manipulating share prices
and distorting the market.
The anti-corruption boss also appealed to Festus Akingbola,
sacked managing director of Intercontinental Bank Plc to give
himself up rather than keep on with his hide and seek game.
Akingbola has been on the run since the EFCC waded into the
issue of the five troubled banks after their MDs were sacked
on August 14.
“I feel that he should just get himself together with
his defence and his lawyers and report here. If he is back,
we are appealing to him to come and surrender himself,”
Waziri said.
Waziri, while receiving a delegation of the Association of
Stock Broking Houses of Nigeria in her office, explained that
the commission’s investigation of banks revealed an
active connivance of stock broking firms.
“What the current investigation of banks has revealed
is the active connivance of stock broking firms to manipulate
share prices and distort the market,” she stressed.
She maintained that the EFCC investigation revealed that the
exposure of a single stock broking firm to the banking industry
was over N90 billion, recalling that the commission has charged
the MD of Falcon Securities Limited, Peter Ololo, to court
already.
According to Waziri, “he could not account for billions
of naira that went through his account. There were some instances
where billions went into his account one day and the following
day, went back to the banks and he could not explain that.”
The EFCC boss added that another reason the commission was
beaming its search lights on stock brokers was the discovery
that looted funds were being laundered into the stock market
through acquisition of shares.
“The EFCC will start the enforcement of the provision
of the Money Laundering (Prohibition) Act 2004 and prosecute
all stock broking firms that default in their obligation to
file transaction reports,” Waziri said, stating that
being financial institutions, they must file all suspicious
transactions with the Nigeria Finance Intelligence Unit.
She noted that the stock market is the platform for development
of the economy and it is important that it sets adequate rules
in place to ensure the economy is not sabotaged.
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