Gwarzo Defends N1.7bn Severance Package For SEC Workers

Embattled Director-General, Securities and Exchange Commission (SEC), Mounir Gwarzo, has defended the payment of N1.7 billion as severance package to some workers of the commission in 2015.

Gwarzo, who was recently indicted of financial impropriety by a panel set up by Finance Minister, Kemi Adeosun, said the sum was paid under SEC’s “Golden Handshake” scheme and was approved by the commission’s board.

Adeosun’s panel had accused Gwarzo of benefiting from the severance package to the tune of over N104 million, of which the SEC DG said was for his position as the commission’s Executive Commissioner under the Goodluck Jonathan administration.

The board’s internal memo approving the N1.7 billion severance package on March 12, 2015, had read:

“The board of Securities and Exchange Commission at its 79th meeting held on Thursday, March 12, 2015 considered the report of the board ethics, establishment and general purpose committee seeking the approval of the Voluntary Retirement (Golden Handshake) proposal.

“The rationale for this exercise is the fact that management found the workforce top heavy and one way to address the issue was to come up with incentives for early retirement for certain categories of staff of the commission.”

“The effect of the provisions of the ISA cited above is that the commission is empowered to cater for all of its financial obligations from its funds. However, such amounts must be expended from a budget, which must be approved by the board of the commission.”

“Section 4 (1) (d) of the Investment and Securities Act (ISA), 2007 (Appendix II) empowers the board of the commission to consider and approve the annual budget of the commission to consider and approve the annual budget of the commission as may be presented to it by the management. Thus the board in exercise of its power as contained in the ISA approved the 2015 budget of the commission.

“Furthermore, section 19 & 20 of the ISA (Appendix III) empowers the commission to establish and maintain a fund, the proceeds of which it may apply to meets its financial obligations.

“The effect of the provisions of the ISA cited above is that the commission is empowered to cater for all of its financial obligations from its funds. However, such amounts must be expended from a budget, which must be approved by the board of the commission,” the memo read.