BGL Group and 12 orders have obtained an ex parte order halting their appearance before the Securities & Exchange Commission’s, SEC’s, Administrative Proceedings Committee scheduled for Tuesday and Wednesday August 4 and 5, 2015 respectively.
“The Commission’s attention has however been drawn to an ex parte order obtained by the Plaintiffs/Applicants in SUIT NO: FHC/L/CS/1050/2015 BGL PLC & 12 ORS VS SEC & 2 ORS directing that parties maintain the status quo . In view of the said order, the general public, concerned parties and stakeholders in the Nigerian Capital market are hereby informed that the Securities and Exchange Commission Administrative Proceedings Committee hearing in SEC APC/01//2015 RIVERS STATE MINISTRY OF FINANCE & 31 OTHERS VS BGL PLC & 31 OTHERS scheduled to hold on the 4th – 5th August 2015 at SEC Head Office, Abuja has been postponed to a date to be announced later,” the Commission said in a statement.
This is coming on the heels of SEC’s efforts to finally resolve the investor complaints made against BGL Group Plc, where it will listen to the defense of the market operator before taking final decision.
The nation’s apex capital market regulator in a notice on its website on Friday said BGL Group, its subsidiaries and sponsored individuals, will appear before the APC on Tuesday and Wednesday in Abuja.
In April 2015, SEC suspended BGL Group, its subsidiaries and sponsored individuals from market operations.
According to the commission, it received over 40 letters of investor complaints against BGL Group Plc alleging indebtedness to the tune of about N5.8 billion.
“Investigations were conducted and all-parties meetings were arranged by SEC during which repayment agreements were struck between BGL and some of the affected investors. Unfortunately, BGL continued reneging on promises to restitute investors.
Backed by a court order from the Investments and Securities Tribunal (IST), SEC set up a 7-man Interim Management Team (IMT) for BGL Group.
This was a necessary, well-considered action with the sole objective of protecting investors while a more detailed forensic audit was conducted to determine the financial health of the companies within the BGL Group and the nature/extent of infractions committed by the BGL management.
From the preliminary report of the forensic audit, it was revealed, among other facts, that indeed BGL Group was in a critical financial state in which the Group’s management had progressively eroded its shareholders’ funds through losses sustained over a 5-year period totaling about N48 billion as at December 31, 2014,” SEC said.
“The Securities & Exchange Commission is empowered under Sections 13(n), 45, 303 of the Investments and Securities Act (ISA) 2007 and Rule 598 of its Rules and Regulation to protect the integrity of the capital market against all forms of abuses by investigating and sanctioning persons who violate the provisions of the Act and the Rules and Regulations made pursuant thereto,” the capital market regulator added.


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