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SEC Initiates Internal Investigation to Unravel Spy Ring providing Internal Memos to Hembe

By Afolabi Ogunde on March 21, 2012

An internal investigation is also underway at SEC to discover who the mole is that continually provides Herman Hembe with internal correspondences.

Herman Hembe, who up until he disqualified himself yesterday was, the House Committee Chairman on Capital Markets has accused the Director General of the Securities and Exchange Commission (SEC) of attempting to influence his committee by offering them a bribe of N 30 million.

Speaking in the chambers of the House yesterday, the former Committee chairman moved to disqualify himself from the committee.

He said, “I stand before you this morning to reaffirm my innocence, regarding the allegations made against me by the Director General of SEC. I want to be on record that I demanded no bribes and took no bribes; rather I fought hard and rebuffed efforts to be inappropriately influenced.

“In my innocence however, I am aware of the impact of this false allegation on public perception and as a legal practitioner, I am conversant with the principles of law that in the exercise of judicial or quasi-judicial functions, it becomes inappropriate to continue to preside when allegations bordering on pecuniary interest are made against your person.

“Consequently, Mr Speaker, my dear colleagues, I hereby wish to disqualify myself and request the House to withdraw the entire committee from further conducting the investigative hearing. I remain persuaded that however that the resolution of this Honourable House to investigate the Nigerian Capital Market remains most honourable and timely and should be carried to its logical conclusion.”

Mr. Hembe provided three internal memos originating from SEC in order to prove his allegation of bribery against the Commission.

The memos signed by Hassan Mamman called upon SEC leadership to ‘assist the committee by co-sponsoring this three weeks long event”.

Miss. Oteh called this an excellent idea, and steps were taken to donate N 30 million to the House Committee.

In reaction to the allegations by Hembe, Ms. Oteh has stated that the former House Committee chairman detached the document that initiated the SEC ‘donation’ from the internal memos. As evidence she pointed to staple marks on the top left corner of the document which can be clearly seen.

The internal memos can be seen here.