Busari stated this while speaking with newsmen shortly after the 38th yearly general meeting of the institute held at its National Secretariat, Alausa, Ikeja, Lagos, recently.
He also said the ongoing probe of the Securities and Exchange Commission (SEC) the near comatose of the capital market should be extended to those who were involved in the Initial Public Offers (IPOs) of some companies, where he alleged massive fraud were perpetrated.
He charged the members of the Institute to shun unprofessional conducts that will tarnish the image of the profession and the Institute.
“Without discipline; without accountability; without commensurate returns to the efforts put into labour, then we cannot say democracy has thrived.
“We won’t make progress until we bring to book all the perpetrators of scams being witnessed in the various sectors of the economy. Democracy can’t thrive if it is founded on corruption. What we will agitate and urge as an Institute is that government must have the sincerity of purpose”, the ICSAN boss said.
On the stock market probe, Busari said: “It is a bit belated at the time the probe started, a lot of people had lost their lives because of losses incurred in the Stock Market due to a lot of factors”.
Reiterating that apart from breakdown in the practice of good Corporate Governance, he identified another factor as “bridging loan facilities” as responsible for the problem in the capital market.
“Imagine a bank giving out money to individuals to buy own shares; all these are not in accordance with the provisions of the Companies and Allied Matters Act (CAMA). It is elementary that a company will not use its own money to buy its own shares. That was what happened when most of the companies were doing their IPOs; IPOs are fraught with so many irregularities.
‘I’m not sure SEC alone is the body that should be probed because there are so much insider dealings; so much sensitive information being made available to the privileged view. People will buy shares at a particular fixed amount, four people will be privileged to the share certificates issued to them; while some are waiting.
“By the time you get the certificate, the prices would have collapsed. This is fraud; this is massive fraud. If the government has the sincerity of purpose, it should go back and look at all the actors involved in the IPOs-from the Issuing House to the returning accountant up to the company itself and even to the solicitors.
“Government should ask how did they conduct it (the IPO) before getting to the Securities and Exchange Commission and even going to the Nigerian Stock Exchange. All the actors have roles to play in the massive fraud. Government should restore people’s confidence in buying shares”, the ICSAN President further stated.
Earlier in his address at the meeting, Busari advised members of the Institute to shun all manners of vices and unprofessional conducts that will tarnish the image of the Institute.
Busari said: “As a Corporate Governance practitioners, we must always be at the forefront of promoting the ideals for which ICSAN stands for”.
The ICSAN boss said efforts have reached advanced stage with the Head of Service of the Federation “towards ensuring the proper listing of our certificate in the Scheme of Service”, adding that “This would give us more mileage and also attract more people to the profession”.
Assuring that the Institute would sustain the tempo towards the attainment of its objectives, Busari said: “In our pursuit at projecting Corporate Governance, we have continued our partnership with regulatory bodies in Nigeria. Lately, we have intensified our relationship with the Corporate Affairs Commission (CAC) and the Financial Reporting Council (FRC) towards regaining our positions on their Boards, thereby influencing policy decisions that are in line with the dictates of good governance”.
He called for the support and understanding of all members towards a more dynamic, robust and vibrant institute, stating that “any professional body is as good as the support it enjoys from its embers”.
In the report to the Council, the Registrar/Chief Executive of ICSAN, Dele Togunde, said despite the global financial crisis which continued to affect both the global economy and in turn the operations of the institute, it however, increased its activities both at the local and international fronts to attract visibility, recognition and to stamp its authority on the core area of practice in Corporate Governance and International Best Practices.
“The relationship between ICSA UK and ICSAN had been normalized as the initial hostile attitude of UK body had given way and the two bodies now enjoy cordial relationship and mutual respect.
“ICSAN is also participating actively in the activities of Corporate Secretaries International Association (CSIA), the global body of Corporate Governance practitioners registered in Geneva”, Togunde stated.
He also said the ongoing probe of the Securities and Exchange Commission (SEC) the near comatose of the capital market should be extended to those who were involved in the Initial Public Offers (IPOs) of some companies, where he alleged massive fraud were perpetrated.
He charged the members of the Institute to shun unprofessional conducts that will tarnish the image of the profession and the Institute.
“Without discipline; without accountability; without commensurate returns to the efforts put into labour, then we cannot say democracy has thrived.
“We won’t make progress until we bring to book all the perpetrators of scams being witnessed in the various sectors of the economy. Democracy can’t thrive if it is founded on corruption. What we will agitate and urge as an Institute is that government must have the sincerity of purpose”, the ICSAN boss said.
On the stock market probe, Busari said: “It is a bit belated at the time the probe started, a lot of people had lost their lives because of losses incurred in the Stock Market due to a lot of factors”.
Reiterating that apart from breakdown in the practice of good Corporate Governance, he identified another factor as “bridging loan facilities” as responsible for the problem in the capital market.
“Imagine a bank giving out money to individuals to buy own shares; all these are not in accordance with the provisions of the Companies and Allied Matters Act (CAMA). It is elementary that a company will not use its own money to buy its own shares. That was what happened when most of the companies were doing their IPOs; IPOs are fraught with so many irregularities.
‘I’m not sure SEC alone is the body that should be probed because there are so much insider dealings; so much sensitive information being made available to the privileged view. People will buy shares at a particular fixed amount, four people will be privileged to the share certificates issued to them; while some are waiting.
“By the time you get the certificate, the prices would have collapsed. This is fraud; this is massive fraud. If the government has the sincerity of purpose, it should go back and look at all the actors involved in the IPOs-from the Issuing House to the returning accountant up to the company itself and even to the solicitors.
“Government should ask how did they conduct it (the IPO) before getting to the Securities and Exchange Commission and even going to the Nigerian Stock Exchange. All the actors have roles to play in the massive fraud. Government should restore people’s confidence in buying shares”, the ICSAN President further stated.
Earlier in his address at the meeting, Busari advised members of the Institute to shun all manners of vices and unprofessional conducts that will tarnish the image of the Institute.
Busari said: “As a Corporate Governance practitioners, we must always be at the forefront of promoting the ideals for which ICSAN stands for”.
The ICSAN boss said efforts have reached advanced stage with the Head of Service of the Federation “towards ensuring the proper listing of our certificate in the Scheme of Service”, adding that “This would give us more mileage and also attract more people to the profession”.
Assuring that the Institute would sustain the tempo towards the attainment of its objectives, Busari said: “In our pursuit at projecting Corporate Governance, we have continued our partnership with regulatory bodies in Nigeria. Lately, we have intensified our relationship with the Corporate Affairs Commission (CAC) and the Financial Reporting Council (FRC) towards regaining our positions on their Boards, thereby influencing policy decisions that are in line with the dictates of good governance”.
He called for the support and understanding of all members towards a more dynamic, robust and vibrant institute, stating that “any professional body is as good as the support it enjoys from its embers”.
In the report to the Council, the Registrar/Chief Executive of ICSAN, Dele Togunde, said despite the global financial crisis which continued to affect both the global economy and in turn the operations of the institute, it however, increased its activities both at the local and international fronts to attract visibility, recognition and to stamp its authority on the core area of practice in Corporate Governance and International Best Practices.
“The relationship between ICSA UK and ICSAN had been normalized as the initial hostile attitude of UK body had given way and the two bodies now enjoy cordial relationship and mutual respect.
“ICSAN is also participating actively in the activities of Corporate Secretaries International Association (CSIA), the global body of Corporate Governance practitioners registered in Geneva”, Togunde stated.
Written by NEWSTRAWL ONLINE UPDATE
Sodiq Oyeleke is a Media, Human Resources, Project Management and Public Relations Practitioner
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