‘BGL remains suspended from capital market activities’
The Securities and Exchange Commission (SEC), has declared that BGL Securities Limited, BGL Capital Limited, BGL Asset Management Limited, all members of thc BGL Group, and the Managing Director of the group, Albert Okumagba remained suspended from all capital market activities.
The commission also invited the management of the company to appear before the SEC Administrative Proceedings Committee (APC) sitting slated for August 4th and 5th 2015 to explain the allegations of capital market infractions against the group.
SEC had suspended BGL from operating in the market over market infractions two months ago.
In a statement, SEC said 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,” the statement added.
Backed by a court order from the Investments and Securities Tribunal (IST), SEC set up a seven-man Interim Management Team (IMT) for BGL Group, 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 auditors, 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 five-year period totaling about N48 billion as at December 31, 2014,” SEC said.
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