Senate queries SEC over illegal N9bn spending, N10bn Gombe State bond

Senate Committee on Capital Market yesterday queried the Securities and Exchange Commission (SEC) for spending N9 billion without appropriation by the National Assembly.
Also, the committee queried Acting Director General of SEC, Muniru Gwarzo, on the approval of N10 billion bond to the Gombe State government despite rejection of the request by the immediate past Director General, Aruma Oteh.
Facts which emerged at the 2015 budget defence of the SEC before the committee indicated that Gombe raised N20 billion infrastructure bond in 2012.
Last year, the state applied for another N10 billion from SEC without justification on the first N20 billion bond, according to a former governor of the state, Senator Danjuma Goje, who is also a member of the Capital Market Committee.
Goje informed the committee that what was on ground in Gombe State was not up to N200 million, lamenting that the state that its monthly allocation is not up to N3 billion monthly is now mortgaged under the current administration.
Other members of the committee asked Gwarzo why approval was given despite a court case on the matter.
In his response, Gwarzo explained that the SEC got approval from the House of Representatives Committee on Legislative Compliance on the issue of N9 billion expenditure in 2014.
He also disclosed that the commission was, however, told that SEC should only spend funds on overheads and recurrent expenditure.
On N10 billion bond, he denied knowledge of any court order and also explained that an in-house committee was set up and sent to Gombe for assessment and based on its report, the bond was approved.
As the budget session was almost degenerating into a rowdy session, Committee Chairman, Senator Ademola Adeseun, ruled for a closed session with the SEC management and asked that newsmen to excuse them.