TO ascertain their level of involvement, the Investment Securities Tribunal (IST) sitting in Lagos has ordered the former Managing Director of Union Bank, Bartholomew Bassey Ebong and 19 other directors to be probed for the crash in the bank's shares between 2006 and 2007.
The five-member tribunal panel presided over by its Chairman, Dr. Nnenna Orji, also ordered the appointment of the firm of KPMG professional services for the purpose of undertaking an inquiry/investigation to determine, "the extent and quantum of the losses suffered by investors in the securities market as a result of the unlawful activities of the respondents.
The firm, the tribunal said will also determine the nature, extent and quantum of any direct benefit or advantage received or receivable by the respondents as a result of the respondents."
Although, Ebong secured a temporary relief during the hearing of the matter, as the tribunal stayed proceedings in his favour, the order made was however applicable to him.
Apart from Ebong and Union Bank, other directors of the bank listed as respondents in the amended Originating Application (OA) are: Samuel Idowu Ayininuola, Austen Iheanyi Obigwe, Kenneth Sola Adeyemi, Ado Abdullahi, Ebenezer Uzoma Emeruem, Walter Chukwuodinaka Orji Mbah and Anthony Ebhodaghe Esangbedo.
Others are: Musa Gella Yakubu, Ahmadu Abubakar, Mansur Ahmed, John Omotosho Omotayo Akinleye, Emmanuel Chukwuma Edozien, Ibrahim Abdullahi Gobir, Festus Boniface Oha Odimegwu, Olusegun Olusanya, Cosmas Paul Udofot, Onajite Okoloko, Lanre Idowu and Emily Ifeanyi Odikanekwu.
Securities and Exchange Commission(SEC) had sequel to the outcry on the crash, which shook the stock exchange to its foundation, filed an action seeking against the respondents.
SEC in the action filed through the law firm of Aluko and Oyebode sought for "a declaration that the respondents engaged and /or participated in a scheme and/or artifice that enabled Union Bank of Nigeria Plc to either directly or indirectly fund the purchase of its shares and thereby retaining the beneficial ownership of the shares, and as a consequence, (i) violated or contributed to the violation of the provisions of the Investment and Securities Act and the rules and regulations made there under; (ii) undermined the fair and orderly conduct of the securities market and (iii) abused, breached and undermined the integrity of the securities market."
SEC cited the reason for filing the action against the respondents on the ground that it has the "statutory duty to protect the integrity of the securities market against all forms of abuses.
