Absence of boards, commissioners slows SEC, character commission
Absence of commissioners and board is slowing activities at the Federal Character Commission (FCC) and Security and Exchange Commission (SEC), findings by Daily Trust revealed.
The absence of 30 commissioners, for nearly four years, is affecting the capacity of the FCC to monitor recruitment activities in Ministries, Departments and Agencies (MDAs).
SEC, on the other hand, has no board for over three years, even though the Investments and Securities Act, 2007 said the board shall be responsible for the general administration of the
commission. Section 153 (1) of the 1999 Constitution empowers the federal character agency to ensure unbiased geographical spread of recruitments and government offices among the 36 states of the federation and the Federal Capital Territory (FCT).
Federal character grounded
Daily Trust’s investigation has shown that only seven states have commissioners representing them at the commission: Katsina, represented by Barrister Mahdi Jibril Daura; Zamfara, Ambasador Abdullahi Haidu Shinkafi; and FCT, Dr. Yunisa Musa Salihu.
Others are Osun, represented by Bashorun Awofisayo; Ondo, Honourable Sheba Abayomi; Edo, Ifaluyi Isibor and Anambra, Mrs. Adaeze Gloria Idigo Izundu.
Findings show that the following states have no representation at the FCC as at yesterday: Abia, Adamawa, Akwa Ibom, Bauchi, Bayelsa, Benue, Borno, Cross Rivers, Delta, Ebonyi, Ekiti and Enugu States.
Others are Gombe, Imo, Jigawa, Kaduna, Kano, Kebbi, Kogi, Kwara, Lagos, Nasarawa, Niger, Ogun, Oyo, Plateau, Rivers, Sokoto, Taraba and Yobe States.
A source within the commission told Daily Trust that the tenures of the commissioners from Anambra, Edo and FCT will expire by December this year and if replacements are not made, only four commissioners will be left in the commission by January, 2019.
Section 2(1) of the Federal Character Act of 1995 provides that the Commission shall consist of a chairman who shall be the chief executive of the Commission; a representative each of the States of the Federation; and a representative of the Federal Capital Territory, Abuja.
Section 2(2) of the Act provides that the chairman and members of the Commission shall be appointed by the President, subject to confirmation by the Senate.
The commissioners are expected to meet periodically to ensure that “each state of the Federation and the Federal Capital Territory shall be equitably represented in all national institutions and in public enterprises and organisations” as outlined in the Commission’s guiding principles.
Section 7(4) provides that the quorum for a meeting of the Commission shall be “not less than one third of the total number of members of the Commission at the date of the meeting.”
Speaking on condition of anonymity, a source within the Commission said the absence of the commissioners had affected policy making, monitoring of recruitment exercises and provided room for job racketeering in MDAs.
The source said that while there are about 24 committees overseeing over 600 MDAs, it is impossible for the seven commissioners available now to monitor the MDAs.
Besides, the commissioners protect the interests of their individual states and may be unlikely to advance the interest of states not represented in the commission.
The absence commissioners job racketeering of most of the means that is now almost unchecked.
Daily Trust had previously reported secret recruitments in several government agencies.
How absence of board affect SEC
The law said the board, in particular, shall formulate general policies for the regulation and development of the capital market and the achievement and exercise of the functions of the commission. It also approves the audited and management accounts of the commission.
The board appoints auditors for the commission; consider and approve the annual budget of the commission as may be presented to it by the management; establish zonal offices and carry out such other activities as are necessary and expedient for the purposes of achieving the objectives of the commission.
‘Absence of board investors confidence’
Also commenting Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi said “SEC is a very critical Institution in the financial sector and indeed the nation’s economy. It’s primary responsibility is to protect the interest of investors and for which it has to ensure that the market is properly regulated.”
According to him “SEC cannot carry out this function effectively without a Board which ordinarily ensures that the Institution is well governed. The development of the capital market requires certain strategic decisions that cannot be taken at the level of SEC Management. Some may involve spending requirements beyond the approval limit of the DG.”
He noted that will erode “even when these approvals are obtained from the Minister of Finance, they do not enjoy the benefit of a robust debate which only a properly constituted Board provides.”
“The way forward is to constitute a Board for SEC as quickly as possible as this would go a long way in boosting investors confidence. The government should also consider granting some autonomy to the Commission just like the CBN,” he said.
Federal character, SEC react
When contacted for a comment, the Secretary of the Commission, Mr. Mohammed Bello Tukur, declined commenting on the development.
“I will kindly request that you get in touch with the Office of the Secretary to the Government of the Federation on this matter,” Mr. Tukur responded in a message to our reporter.
Though our reporter drew his attention that the issue at hand was clearly under his purview as it bothered on whether or not the absence of the commissioners was affecting the activities of the commission, Mr. Tukur did not respond further.
Responding, the spokesperson for SEC, Efe Ebolo said the absence of the board hasn’t impacted SEC operations.
“Our work is still going on as usual, no limitations. The minister serves as our board for now as required by SEC Act 2007,” she said.
When contacted, a spokesperson in the Office of the Secretary to the Government of the Federation, Segun Adetola, declined to comment on the story. He simply told our reporter last’ night that “I don’t have any comment.”