The Securities and Exchange Commission, SEC, has asked a Federal High Court sitting in Lagos to strike out the suit filed by BGL Plc, its subsidiaries and others over allegations that they were indebted to investors to the tune of N5.7billion.

SEC, in the preliminary objection, said BGL was indebted to the investors to the tune of N5, 769,993, 553.67 as at June 2. It added that BGL was having severe liquidity problems and has been running at a loss to the tune of over N48 billion as at December 2014. According to SEC, BGL Asset Management Ltd, contrary to its mandate, wholly transfers funds received from the investing public to BGL Plc without engaging in any form of Fund/Portfolio Management.

But BGL had obtained an order, restraining SEC from “holding and or conducting any trial or hearing in respect of the alleged complaints against the plaintiffs,” pending the hearing and determination of the suit.

The plaintiffs are BGL Plc, BGL Asset Management Ltd, BGL Capital Ltd, BGL Securities Ltd, Albert Okumagba, Chibundu Edozie, Teddy Okumakube, Loraine Awoonor-Renner, Ehime Alofoje, Joseph Ashley-Osuzoka, Andre Ewubare, Victor Obire and Nkechi Azubuike.

Defendants are SEC, its Administrative Proceedings Committee (APC) and Mounir Gwarzo. Further hearing in the matter has been adjourned till August 13.

By Dike Onwuamaeze


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