The Securities & Exchange Commission (SEC) has cleared the Nigerian Aviation Handling Company (NAHCO) Plc and a director, Suleiman Yahyah, of allegations of corporate governance breaches.
Documents received from a source in the Presidency indicated that SEC in response to a petition sent to the Economic and Financial Crimes Commission (EFCC) and copied the Presidency and other regulatory agencies, confirmed that NAHCO complied with Section 5.1(b) and 4.3 of the SEC Corporate Governance for Public Companies.
SEC in a reply to the petition dated August 26, 2016 with Ref. No. SEC/DGO/IAC/16 copied to the President, ICPC, and AMCON, indicated that indeed, NAHCO did not breach any extant law or rule to enter into a contract with Rosehill Group, a company where Yahyah is said to have interest.
SEC said NAHCO’s decisions complied with good corporate governance practices, especially where the interested directors were excused from the meeting when the decision on the Management Service Agreement (MSA) between NAHCO and Rosehill Group was taken. This is in addition to the fact that a detailed disclosure of the MSA as well as the value paid by NAHCO to Rosehill group were made public in the annual financial statements of the company every year since 2012 till date.
Furthermore, the SEC letter confirmed that the MSA was presented by the management to the relevant board committees, the full board of directors and finally approved by the shareholders at an extra ordinary general meeting.
The petition also claimed that there were unauthorised sales of clients’ shares, non-purchase of shares by Empire Securities Limited, a company where Mallam Yahya served as a director in 2008.
“In May 2011, the decision of the Administrative Proceedings Committee was communicated to the parties. Mal. Yahyah and other board members were cleared of the allegations made at the Empire Securities Limited while the managing director was held responsible for the violations. This matter was concluded well before the DG of SEC was appointed Executive Commissioner by the President in 2013” it said.
SEC also said it was yet to identify any breach of rules in NAHCO.