SEC Intervenes in Partnership Investment’s Plan to Repay Investors

The Securities and Exchange Commission (SEC) has directed Partnership Investment Company Plc and its subsidiaries to submit documents containing the plan to repay investors who lost their investments in the capital market through the companies.

SEC had last September cancelled the registration of the Partnership Investment Limited and Partnership Securities Limited and banned their principal officers/ actors from participating in the capital market following infractions committed by the firms and their officers.

Particularly the companies were said to have sold the shares of former Chief Executive Officer of Ecobank Transnational Incorporated (ETI), Mr. Arnold Ekpe, worth N1.24 billion and misappropriated the proceeds.

The companies also introduced a product called Partnership Securities Deposit Account (PSDA), which involved investors keeping their securities with them for a return annually. However, many investors lost their investments in the process.

As a result of these, the apex capital market regulator banned the Managing Director of Partnership Investment Company Plc and Partnership Securities Limited, Mr. Victor Ogiemwonyi for life from holding directorship positions in any public company quoted in Nigeria for his unprofessional conduct in the Nigerian capital market.

Similarly, the chairman of the companies, Mr. Henry Omoragbon was suspended for a period of five years from engaging in capital market activities in the Nigerian capital market. The companies were also directed to ensure that affected investors are restituted.

However, SEC in a statement on its website yesterday, SEC said its attention had been drawn to an electronic message being circulated to investors captioned: “Re Partnership Investment Company Plc. Restructuring and Reorganisation: A Plan to Pay All Creditors/Customers.”

SEC explained that the electronic message indicated a proposal to investors who lost monies to Partnership Investment Company Plc and its subsidiaries, especially Partnership Securities Limited to sign up to participate in a repayment plan with two options.

According the commission, option A which is three years’ repayment plan, includes taking a cash payment or accepting equity in a company to be registered and listed on the Nigerian Stock Exchange or option B which involves the investors accepting payment of only 50 per cent of their investment payable within 12 months.

“Please be further informed that the conduct of the Partnership Investment Company and its subsidiaries on restructuring is very suspicious and appears to be an attempt to scuttle the directives of the Administrative Proceedings Committee (APC).In view of the above, the general public is hereby warned to be wary of the proposal and hereby direct Partnership Investment Company Plc and its subsidiaries to submit their repayment plan officially to the commission for the protection of affected,” SEC said.