Would You Buy Stocks From Nigerian Stock Exchange List? - By jamesgandolfi
"A receipt obtained by THE PUNCH on Tuesday revealed how the Director-General, Securities and Exchange Commission, Ms. Arumah Oteh, allegedly spent the sum of N850,000 at the Transcorp Hilton Hotel, Abuja.

There were, however, discrepancies in the figures on the receipt.



The receipt, which was dated March 24, 2010, was issued at exactly 9.57pm to the SEC boss. The bill was issued by Zuma Grill Restaurant and it contained expenses incurred by Oteh in three distinct total figures.

In the first category, the bill recorded that Oteh was served two Aquafina Large, at the rate of N1,000; one Teem Soda Water, N500; five bottles of Star, N3,000; one 7Up, N500; two Chapman Large, N1,700; three Fresh Crayfish, N13,500; one Classical Snail, N4,500; four Lobster, N18,400; three Trad. Nativ. Poten, N12,000; one Roast Pork Belly, N4,000 four Pan Salmon, N19,200; Food, N71,600; Beverage A, N3,000; and Beverage N4,100.

The total in this category, according to Transcorp, was N78,700 as against a total of N157,000 computed by our correspondent.

The second category had four crme Brulee, N10,000; one Fruit Salad, N1,800; Food N83,400; Beverage A, N3,000 and Beverage N, N4,100. The total due was placed at N90,500 in contrast to N102,300 computed by our correspondent.

The last total revealed that Oteh spent N91,400, which is against N92,300 by our calculations. She was served two Tea Earl Grey at N900; Food, N84,300; Beverage A, N3,000; and Beverage N, N4,100.

A comprehensive total of the three categories as revealed by the hotel showed that the SEC boss spent N260,600. This, however, is against the total computation of N351,600.

Meanwhile, in a letter obtained by THE PUNCH from SEC, the commission refuted that its boss consumed meal worth N850,000 and never submitted such a bill to the SEC.

The letter reads The bill referred to at the public hearing related to Ms Otehs hotel expenses during her stay at the Hilton following her assumption of duty.

We have reviewed her hotel expenses during her stay, and the highest charge for food was N83,400 on March 24, 2010. This bill was in respect of an official dinner hosted by the SEC with a group of international capital market experts who were visiting Nigeria to provide technical assistance to SEC Nigeria.

Transcorp invoice breakdown

_________Items______________________________Amount

2............Aquafina Large.....................1,400.00

1............Teem Soda Water.....................300.00

5............Star....................................3,000.00

1............7UP ...................................500.00

2............Chapman Large......................1,700.00

3............Fresh Crayfish.......................13,500.00

1............Classical Snail........................4,500.00

4............Lobster ...............................18,000.00

3............Trad Native Poten .....................12,000.00

1............Roast Pork Belly.....................4,000.00

4............Pan Salmon..........................19,200.00

............Food...................................71,600.00

............Beverages R..........................3,000.00

............Beverage N............................4,100.00

4............Creme Brulee..........................10,000.00

1............Fruit Salad..............................1,800.00

............Food.....................................83,400.00

............Beverage R ............................3,000.00

............Beverage N.............................4,100.00

............Total Due.............................90,500.00

2............Tea Earl Grey.........................900.00

............Food...................................84,300.00

............Beverage R.............................3,000.00

............Beverage N............................4,100.00

............Total Due...............................91,400.00

............Room NR......................................1026

............Signature Charge..........................91,400

Chech H/No.049785

15 Comments    •    Post a comment    •   

Naija Mix

ademola....
@Ugbulie

I understand perfectly what Showpopulous is saying. A corrupt SEC or a SEC that is led by a corrupt person shouldnt be allowed due to the nature of the business they are into perfect

I only said the activities of an unscrupulous SEC leader shouldnt be a deterrent to willing investors provided his/her (willing investor) homework was done properly

That is what i am saying

cheers
johnson_...
This discussion is touching a part of me I wish you had not raise it or I hadn't seen it but like I said knowledge they say is power the excesses of the regulator is what the regulator wanted to hid not information as it affects investment, abridge versions of prospectus show what investments the company's want to do when given the funds if for example they are banks CBN would also have to vet the prospectus meaning the would make sure the use the funds for what they have said they would use it for so also NAICOM for insurance companies but their are no such for products (tangible) because they are believe to not need as much regulation as services (intangible) so if you see your money going down you can as well divest now SE.C looks at the financial states which are prepared by auditors recognised by SE.C but plz don't forget a financial statement is a record of activities you present to an audited firm of past events they don't have control over it theirs is just to report that these were your activity in the last year, so how does SE.C have anything to do with that plz my belief is she is a thief and so many other past members of the house that are supposed to have check these their excesses didn't do anything also aiding them when the market was good booming, plz we need to read more education removes the veil of our sight and then we can see that me putting my money in the market is me putting my money in a company in nigeria operating and not SEC and any organisation can go to capital market if they have met up with the listing requirements I would have loved to list them but you may not need them for now and it would be foolish to be given the opportunity to invest in the only sugar manufacturing company in west africa - look at the market nigeria west africa part of central africa and then coz you say it owned by one person u can't invest what I would look at it to what level has he sold his shares or divested as against what he has and what is the true value internal workings and the ratios of profitability etc well let's leave it their for now
ugbulie_...
@Tokunbo, what agency is in charge of ensuring that funds raised from d floor or IPO's is used for what they are meant for, when you answer that then you understand where Show is coming from.

@Show you must realize you do not invest your money in a bizness you do not understand how it is being run. I wld neva in dis life tym invest in a daar or even a dangote, they are practically one man biznesses, they cld wake up and pack up anytime. You need to understand the workings of the stock market before investing.
ademola....
There is a saying in yoruba that says " iwo nikan ko logbo, iwo nikan ko lomoye, toba gbon to lenikan kogbon, iwo ni baba obo"

i cant translate to english but all its saying in simple terms is only a fool believes hes the only one with wisdom

again; SEC oversees NSE

when you invest in NSE, you invest in companies not NSE, not SEC

and a fool is the one who after analysing stocks to buy, decides to purchase stocks of DAAR Communications or Ben TV, or Idahosa radio or OgunOshun FM radio or whatever

what are the funndamentals that precipitated such actions? thats a fool at work. They never learn the basics but run after the complex

There are companies that have been churning out good results year in year out and millions of people are happy for it

if the head of SEC is corrupt, is it an isolated case in the country? is the president not corrupt? CBN Guvnor? ministers? heads of govt parastatals? Has economic activities stopped happening?

how can anyone relate investing activities with corruption in SEC?

how will your cash move from NSE to SEC? did they ask the companies you invested in to remit your investments to them at SEC? or did they tell your DAAR corporations to steal your investments? if you invest in a shabby company, your loss. You havent lost cos of SEC but on your weak and faulty investment decisions

This isnt a Nigeria thing. if you want stories of how companies go bust in the West, ill give you 10 stories

do not misinform or throw anecdotals in the air to whip up sentiments. say as it is
johnson_...
@show you are very far from it (i am a registered student member of the CIS) as a player let me explain it in the easiest terms to you their are three structures that make up the capital market the SEC, NSE, and the BROKERS the SEC is responsible for regulating the activities and registering the activities of the brokers/DEALING CLERKS THEY ACTUAL CONDUCT INTERVIEWS FOR OPERATORS the people that buy and sell amongst themselves, they also serve as a body defending you and i investment in the market if your broker is playing funny with you are does somethings without your consent (selling your shares) its just like saying their is a local market the activities in a local market are regulated by the the local governments councils, if the chairman of the local council is accused of stealing they are actually stealing money you paid to which according to law is your mandatory responsibility, the daily payments or taxes levied on them and that's what SEC D.G was doing stealing the levies, and mismanaging it, to other issues like merger they are their to approve mergers based on the activities of the organisations, and possible sales of shares based on the units for sale, they don't monitor what is happening in terms of the sales or purchases of shares they only lay the frame work to enable things like mergers and sells of shares, it is done by the brokers like myself, NSE DG is actually the one that should be held for killing or otherwise the capital market activities because he is the actual face of activities in the market and also he is a player in the market, i didn't benefit from this construct called nigeria talkless of the nigerian capital market, in any bit as i speak with you i am in the labour market like any other nigerian i have been waiting for the bank of industry to give me a loan i have been granted for more then 5months after it took 11months to process it and get approval. so i am against the same corruption because it is this that is causing the same delay, for people that think they dont need investment advise they fall prey to shares like DAAR communication most of the shares that where sold were sold on the streets in markets without investment advise from people like us (part of the reason that took us out of the market)because people were afraid of our small payment/charges i would allow you to bring up the points and i would try to clarify them
.showpop...
Johnson, I suspect that you are a beneficiary of this warped construct called Nigerian Capital Market. That is the only explanation for your support of the philosophy of building huge mansions on sandy grounds.

You are basically trying to tell us, 150 million Nigerians, that there exist a fallacy somewhere in the world where the head is corrupt but the body is not. How logically is that? Please spare me.

Do you know the function of the SEC? Do you realize that it is the watchdog for the NSE? The whole purpose of the SEC is to protect the interest of investors and the only reason the government cares about setting up the SEC is to boost investor confidence so that they (the fools) can continue to throw their hard earned cash in a black hole called NSE.

When the CEO (managers) of the companies listed on the exchange decide to cook the books, is it the criminal that is busy eating lobsters at NICON NOGA that will come to the rescue of the investors? Oh please.

When Raymond Dokpesi decided to mix his private account with that of DAAR Communications, a publicly listed, corporation, who arrested him? When he borrowed money from the company (shareholder's funds) without proper authorization of directors, who took him to court?

Look, there are many more examples but I don't have time to dig into this issue. Na fly wey no dey hear word dey follow dead body enter inside ground.

A word is enough for the wise?
johnson_...
@ show now, if some one had asked me if they need investment advise i would tell them this buying shares in the capital market is dependent on 4 facts the management of the company you want to buy from 2. the history of returns and management of the company 3. the kind of investments the company want to do with the investments if its a right issue or offer for sale 4.to what amount is the company that you want to buy into divested their shares for sales the others issues become technical, and with just these few i have placed as a formal player where does the director general of the securities and exchange come in, finally the SEC is not traded unlike the nasdac and etc on wall street so how will this affect investors confidence like i said it would be stupid to see and investment opportunity and because of a glutton interest on the outside which actual registers dealing clerks and the activities of clearing houses say you wouldnt invest all you have to do is look for a good dealing house(stockbroking firm ) buy and sell and continue to watch as they disgrace an immoral glutton my take
hadey212...
@james. Am sure you do not know the way the stock market works. The corruption of either the director of NSE or SEC has nothing to do with your investment. SEC is just a regulatory body and NSE the platform used for trades in stock. You are investing your money in companies that are exclusive of control by either of the bodies. The issue you have raised has nothing to do with your stock investments. Thank you.
ademola....
Hi Shopopulous

Your submissions are clear and i understand your points

However my stance include:

1) SEC is the main regulator body of the capital market and is under a ministry

2) NSE are the people who devised the systems and processes for the transactions that go on daily in the market. Your investments are under NSE not SEC

3) A corrupt SEC chief CANNOT have access to the money you invest

4) It is safe to say despite the fact that NSE a selffunding institution can be questioned by SEC who oversees activities in the capital market, your investments cannot be syphoned or stolen by corrupt practices in the SEC

Your points are noted all corrupt practices must not be taken with kid gloves but i cannot because of a thief in SEC close my eyes to opportunities (if there are any) in the stock market

i hope you get my points

Cheers
.showpop...
@Tokunbo,
Oh please. Your analogy is completely flawed.
First of all, in the pension case, you have no control over the deductions. In the investment case, it is totally up to you whether or not you wish to put a cigarette lighter to your hard earned cash.

Second of all, corruption does not exist and operate in isolation. There is always a cascading effect to it. It is like telling one lie, you will always have to come up with another lie to cover up the first one. Otherwise your cover will be blown open. Every asset, including cash, controlled by the SEC must be accounted for. However, in the case where funds have been mismanaged, how do you think they make up for the imbalance?

THERE. You do the rest of the math yourself.

Showpopulous.
ademola....
I agree with Johnson that its foolish to link corruption charges of the chief of SEC to making investment decisions (when it arises) in the stock market

the 2 events are mutually exclusive of each other. There are factors you look at before making investment decisions; the uprightness of the chief of SEC is not one of the factors to look at

will you say because there is currently a fraud case with our pension managers/banks you will stop your employers from deducting pension remittances monthly?

C'mon . . . try again
.showpop...
A word should be enough for the wise.

Nigerians laws are only made for the poor. The rich can commit any crime they want and get away with it.

Don't be foolish enough (@johnson) to give your hard earned cash to the rich for them to spend lavishly.
johnson_...
only a fool would see an opportunity and wouldn't invest because of the act of the director general of stock exchange the bottom line is she is a thief and a glutton and so also are all the other director generals executive secretaries and ministers and the national assembly members even EFCC officials have joined them because the tentacles of corruption has caught up with them :twisted:
jamesgan...
Can somebody please tell me why fools invest their money in Nigerian stocks? Take time to look at the purchases below. You will be amazed.

Here is an article from punch....
A receipt obtained by THE PUNCH on Tuesday revealed how the DirectorGeneral, Securities and Exchange Commission, Ms. Arumah Oteh, allegedly spent the sum of N850,000 at the Transcorp Hilton Hotel, Abuja.

There were, however, discrepancies in the figures on the receipt.

Image

The receipt, which was dated March 24, 2010, was issued at exactly 9.57pm to the SEC boss. The bill was issued by Zuma Grill Restaurant and it contained expenses incurred by Oteh in three distinct total figures.

In the first category, the bill recorded that Oteh was served two Aquafina Large, at the rate of N1,000; one Teem Soda Water, N500; five bottles of Star, N3,000; one 7Up, N500; two Chapman Large, N1,700; three Fresh Crayfish, N13,500; one Classical Snail, N4,500; four Lobster, N18,400; three Trad. Nativ. Poten, N12,000; one Roast Pork Belly, N4,000 four Pan Salmon, N19,200; Food, N71,600; Beverage A, N3,000; and Beverage N4,100.

The total in this category, according to Transcorp, was N78,700 as against a total of N157,000 computed by our correspondent.

The second category had four crme Brulee, N10,000; one Fruit Salad, N1,800; Food N83,400; Beverage A, N3,000 and Beverage N, N4,100. The total due was placed at N90,500 in contrast to N102,300 computed by our correspondent.

The last total revealed that Oteh spent N91,400, which is against N92,300 by our calculations. She was served two Tea Earl Grey at N900; Food, N84,300; Beverage A, N3,000; and Beverage N, N4,100.

A comprehensive total of the three categories as revealed by the hotel showed that the SEC boss spent N260,600. This, however, is against the total computation of N351,600.

Meanwhile, in a letter obtained by THE PUNCH from SEC, the commission refuted that its boss consumed meal worth N850,000 and never submitted such a bill to the SEC.

The letter reads The bill referred to at the public hearing related to Ms Otehs hotel expenses during her stay at the Hilton following her assumption of duty.

We have reviewed her hotel expenses during her stay, and the highest charge for food was N83,400 on March 24, 2010. This bill was in respect of an official dinner hosted by the SEC with a group of international capital market experts who were visiting Nigeria to provide technical assistance to SEC Nigeria.

Transcorp invoice breakdown

_________Items______________________________Amount

2............Aquafina Large.....................1,400.00

1............Teem Soda Water.....................300.00

5............Star....................................3,000.00

1............7UP ...................................500.00

2............Chapman Large......................1,700.00

3............Fresh Crayfish.......................13,500.00

1............Classical Snail........................4,500.00

4............Lobster ...............................18,000.00

3............Trad Native Poten .....................12,000.00

1............Roast Pork Belly.....................4,000.00

4............Pan Salmon..........................19,200.00

............Food...................................71,600.00

............Beverages R..........................3,000.00

............Beverage N............................4,100.00

4............Creme Brulee..........................10,000.00

1............Fruit Salad..............................1,800.00

............Food.....................................83,400.00

............Beverage R ............................3,000.00

............Beverage N.............................4,100.00

............Total Due.............................90,500.00

2............Tea Earl Grey.........................900.00

............Food...................................84,300.00

............Beverage R.............................3,000.00

............Beverage N............................4,100.00

............Total Due...............................91,400.00

............Room NR......................................1026

............Signature Charge..........................91,400

Chech H/No.049785

jamesgandolfi

Posts: 8
Joined: 23 May 2011 08:17