Nestle shares scam: Tribunal seeks refunds for investors
Oluyinka Akintunde, Abuja
The Investments and Securities Tribunal has directed the Bonkolans Investment Limited to make restitution to investors who lost their investment in the Nestle Foods Plc share scam, which rocked the capital market in 2002.
Some stockbroking firms had fraudulently introduced some share certificates worth N314 million, including 3.130 million units of Nestle Plc shares, into the depository of Central Securities Clearing System and later cleared and sold the shares.
The Nigerian Stock Exchange, which investigated the share scam, discovered that Bonkolans Investment Limited through its accredited dealing clerk, Mr. Lawrence Okwufulueze, was responsible for the fraudulent sale of the shares.
In its judgment delivered by Hon. George Feyi, last week in Abuja, the Tribunal held that BIL, B & N International Limited, Lawrence Okwufulueze and Basil Nkenchor, who is the Managing Director of BIL, were liable to make refund to the investors, who suffered losses as a result of the sale of the 3.13 million shares of Nestle Food Plc shares.
�The Securities and Exchange Commission should include the Bonkolans Investments Limited among the stockbroking firms previously found liable by the Commission in carrying out the earlier order of the Tribunal in the case of CSCS Vs SEC Appeal and in so doing any asset belonging to BIL, B & N International Limited, Lawrence Okwufulueze and Basil Nkenchor, which had been identified shall be applied in carrying out this order,� the tribunal also directed.
The SIT, however, lifted that veil of incorporation of the BIL, while directing the firm to make refund to investors, who suffered losses arising from the share scam.
