N44m bribery scandal: House constitutes ad hoc committee

The House of Representatives yesterday disbanded its Committee on Capital Markets over allegation of N44 million bribery scandal leveled against its Chairman, Hon. Herman Hembe by the Director-General, Securities and Exchange Commission (SEC), Ms Aruma Oteh.

The Speaker, Hon. Aminu Waziri Tambuwal, therefore constituted an eight-member committee to continue with the public hearing which is focusing on the near collapse of the capital market.

The new probe panel led by Ibrahim El-Sadu (Taraba) include Ini Udoka, Toby Okechukwu,Buba Jibril,Usman Adamu Mohammed, Dogara Daramola and Rose Okoh.

Aside the disbanding of Hembe committee, Tambuwal also directed the Ethics and Privileges Committee led by Samson Osagie to investigate Oteh’s allegations and report back to the House. Osagie is also the Deputy Minority Whip. He was asked to chair the committee since the substantive chairman is a member of the disqualified capital market committee.

The decision on the embattled lawmaker (Hembe) was arrived at during the meeting of principal officers of the House with the Speaker yesterday. The parley resulted to a two-hour delay in the commencement of plenary yesterday. At the meeting , the Speaker and the principal officers agreed that the only way to redeem the image of the House in the bribery allegation was to disqualify Hembe and his committee from continuing with the probe . He was asked to voluntarily step aside alongside his committee members to facilitate the setting up of a new panel to conclude the probe.

On resumption of plenary, the Speaker quickly examined and approved the votes and proceedings of the previous legislative day. As the Speaker was about to enter into the business of the day as marshaled out in the Order Paper, Hembe in line with the resolution at the principal officers’ meeting raised a point of order to lay personal complaints, which was duly granted.

He immediately drew the attention of the House to the ugly development while investigating into the down-turn in the capital market as mandated by the House a couple of weeks ago. He said that he was seeking the permission of the House to express his innocence in the saga.

Hembe told the House that he did not make any attempt to collect any bribe or inducement of any kind from the SEC, but rather alleged that he made an effort to resist the attempt made by Ms Oteh to entice him with a N30 million bribe.
He said that he had an internal memo from the SEC office to substantiate his claim, stressing that he was innocent and would never let the House down.

Soon after he spoke, the Chief Whip, Ishaka Bawa, raised a motion asking for the disqualification of Hembe and his committee from continuing with the probe. He recommended that an eight-man adhoc committee be set up to continue with the public hearing.
The Speaker endorsed the motion and announced the new panel as well as members of a committee to investigate Oteh’s allegations.

Tambuwal said: “This morning, we have passed through yet another challenge which though not unusual in the democratic process, has subjected this institution to further refining. These challenges are necessary for the strengthening of our democratic institutions.

“Before I proceed further, let me thank the Chairman of the House Committee on Capital Market, Hon. Herman Hembe and the entire members of the committee for their courage in voluntarily withdrawing from this investigative hearing. It is not a popular propensity of public officers in our clime, but it is in line with our legislative agenda of transparency in the conduct of government business.

“The incidence of 15th March, 2012 which forms the basis of the deliberations just concluded, arose from an investigative hearing which was being conducted pursuant to a resolution of this House. The Constitution of the Federal Republic of Nigeria 1999 (as amended) in Sections 88 and 89 places upon the legislature the duty and responsibility to conduct investigations into the activities of government for the purpose of exposing corruption, waste and inefficiency. This is no doubt a responsibility which is hazard-prone. However, as I have stated elsewhere, these hazards notwithstanding, it is a duty from which we cannot and must not abdicate.

“Let me assure Nigerians once again that we are totally committed to the fight against corruption and shall deploy all energies available at our disposal to fight this war. The old saying that “when the going gets tough, the tough gets going,” will continue to be our guide. I also wish to assure Nigerians that in fighting this war, we recognize that we must, like Caesar’s wife be above board and suspicion.
“For the avoidance of doubt and the benefit of those who may be uninformed, all committees of the House have constitutional backing.

“My dear colleagues, we were not elected to lie on a bed of roses. Those who elected us expect that we represent their yearnings and aspirations. Nigerians have chosen presidential democracy as a bulwark against dictatorship, against corruption and waste and above all, against executive recklessness, this is the duty to which we have been called and we have sworn to promote, protect and preserve the will of the people enshrined in the Constitution.

“Pursuant to this resolve, the ad-hoc committee just constituted, will commence the investigative hearing based on the earlier resolution of the House de novo and for the benefit of Nigeria and Nigerians. To avoid role conflict and in order to ensure fair hearing for all, the Chairman of the Ethics Committee, who happens to be a member of the committee on capital market is hereby excused from the position for the purposes of the present investigation. Similarly, the Deputy Chairman of the Ethics Committee, who is now a member of the ad-hoc committee is also excused, from the Ethics Committee, for the purposes of the ethics investigation”, Speaker Tambuwal said.
Reacting to the Hembe-led panel’s sack yesterday, SEC through its spokesman, Obi Adindu, expressed pleasure over the development.

In a statement, SEC said: “The Securities and Exchange Commission welcomes the timely action of the House of Representatives under the leadership of Rt. Hon. Aminu Tambuwal in creating the Ad hoc Committee to preside over the Public Hearing on the Nigerian Capital Market.

“There is no doubt that the action of the House aligns with our position and the view widely held by most Nigerians that the Hearing had deviated from the course set for it by the House and degenerated instead to a hostile attack on the Securities and Exchange Commission, and its Director General, Ms. Arunma Oteh.

“We note the allegation made by Hon. Hembe on the floor of the House and on live television that it was Ms. Oteh who made financial overtures to him. We wish to state unequivocally that at no time and in no place did the SEC offer Hon. Hembe any financial inducement.
“We confirm that the SEC received a document in respect of the public hearing with a list of items with cost implications totaling N39,844,490.00.”

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