The Federal Government has reconstituted the Investment and Securities Tribunal (IST), as a practical step towards restoring investors’ confidence in the capital market, and repositioning it to contribute positively to the country’s economy.

The Investment Tribunal was dissolved in compliance with Government’s directive on dissolution of Boards of Parastatals, Agencies, Institutions and Government Owned Companies, conveyed in circular Ref. No. SGF.19/S:18/XIX/964 dated 16th October, 2015.

The reconstitution and inauguration of the Tribunal is expected to enhance its effectiveness and efficiency in handling the rising number of new of disputes cases in the Capital Market.

The development comes as the Securities and Exchange Commission (SEC), banned the Managing Director of Partnership Investment Company (PIC) Plc, and Partnership Securities Limited (PSL), Victor Ogiemwonyi, for life from holding directorship positions in any public company in Nigeria for his unprofessional conduct in the Nigerian capital market.

Earlier in the year, The Guardian exclusively reported about Ogiemwonyi’s involvement in over N10billion scandal, for which he was arrested by the Economic and Financial Crimes Commission (EFCC) in October last year, and the matter charged to court. The SEC also withdrew the operating licence of the companies. The Chairman of the companies, Henry Omoragbon, was suspended for a period of five years from engaging in capital market activities in the Nigerian Capital Market.

According to a statement by the SEC, “…pursuant to Section 38 (4) of the Investments and Securities Act 2007 and Rules 34 (1), (a) of the SEC Rules and Regulations made pursuant thereto, the certificate of registration of Partnership Investment Company Plc is hereby cancelled without prejudice to the recovery of all existing liabilities due to the Complainants and penalties payable to the Commission.

“Mr. Victor Ogiemwonyi is hereby banned for life from engaging in capital market activities in the Nigerian Capital Market and ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007. He is also banned for life from holding directorship position in any public company in Nigeria for his unprofessional conduct in respect of the activities of the both companies.

“Mr. Henry Omoragbon is hereby suspended for a period of 5 years from engaging in capital market activities in the Nigerian Capital Market and ordered to pay a penalty of N100, 000 (One Hundred Thousand Naira only) for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007.”

The Decision also stated that pursuant to Section 304 of the Investments and Securities Act 2007, all information on possible criminality in the matter would be referred to the appropriate law enforcement agencies.

Furthermore, some directors of the companies, Mr. Ojetunde Taiwo, Mrs. Ogiemwonyi Olufunke, Mr. Ogiamien Frank, Mr. Adeusi Aladejola Alexander, Mrs Arese Ugwu, were also suspended for a period of Five years from engaging in capital market activities in the Nigerian Capital Market. They were also banned from holding directorship positions in any public company in Nigeria for the said period and ordered to pay a penalty of N100, 000 each for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees, as contained in the SEC Rules and Regulations made pursuant to the Investments and Securities Act 2007.

But Mr. Eseha Augustine Enejeta, a Manager in the company was suspended for a period of One year from engaging in capital market activities in the Nigerian Capital Market and ordered to pay a penalty of N100, 000 for breach of Rule 1(iii) of the Code of Conduct for Capital Market Operators and Their Employees as contained in the SEC Rules and Regulations made pursuant to the Investments an Securities Act 2007.

Meanwhile, the reconstituted 10-man Tribunal, which has Siaka Isaiah Idoko as the Chairman, was inaugurated on Tuesday by the Minister of Finance, Mrs. Kemi Adeosun.Other members are: Jude I. Udunni, Nosa Osemwengie, Abubakar A. Ahmad, Albert L. Otesile, Emeka Madubuike, Kasumi Garba Kurfi, Edward O. Ajayi, Onyemaechi E. M. Elujekor, and Mamman Bukar Zargana.

Speaking at the inauguration, the Minister said the delay in reconstituting the Tribunal was to enable Government to carefully overhaul the system, and ensure that credible, competent and experienced people are brought in to effect the desired change.

Adeosun expressed confidence that the Tribunal would work assiduously to restore the confidence of the capital market operators and investing public, which may have been dampened by the delay in the dispensation of justice during the absence of the Tribunal.

“The Alternative Dispute Resolution (ADR) window is going to be rejuvenated to dispel fears and threats from both Capital Market operators and the investing public on issues that require declaratory orders by the Tribunal,” she said.

The Minister recalled that the former Chairman and members of the Tribunal were faced with various challenges due to lack of corporate governance, mistrust, and lack of cordial working relationship.She charged the new Tribunal to ensure harmonious and symbiotic working relationship with the members, management and staff in order to move it forward seamlessly.

“The onus lies on the Chairman and all the Members to ensure that the IST effectively executes its adjudicatory functions in line with Government’s economic drive to improve the Capital Market attract international investors, and generate revenue for the country,” she said.Speaking earlier, the Director, Home Finance, Federal Ministry of Finance, Mrs. Olubunmi Siyanbola, emphasised the importance of the Tribunal in government’s desire to take the capital market to higher heights.

She expressed optimism that the calibre of people selected into the Tribunal will ensure that the task before it will be effectively handled.Responding, the Chairman, Idoko, appreciated the Government for finding members worthy to be appointed into the Tribunal, adding that members will work tirelessly to justify the confidence reposed on them and reposition the capital market.

The IST was established under Section 275 of the Investments and Securities Act (ISA) 2007, as a specialised Court with statutory responsibilities to adjudicate on matters relating to capital market disputes and ensure quick dispensation of justice.