Former GSE Boss Rejects Commission's Decision

Mr Yeboa Amoa, a former Managing Director of the Ghana Stock Exchange, on Monday rejected the Securities and Exchange Commission's (SEC) decision to sanction him for unethical conduct for the non-disclosure of his directorship of Investek Company.

A statement issued on his behalf by his solicitors, Kofi Aboagye and Company said Mr Yeboa Amoa had not breached any rules of the GSE nor had he engaged in any unethical conduct since the GSE Council policy on disclosures applied to interest in listed companies only.

It cited investigations conducted by the GSE Council, which exonerated Mr Yeboa Amoa from any breach in his investment in the company and stressed that the Exchange's rules and its employment contract with "our client" did not forbid him from investing in a private company.

It described as prejudicial and inimical SEC decision to go public with its ruling when other superior avenues of redress had not been exhausted.

"As far as we are concerned, the decision of SEC is a nullity and we shall so invite the court to declare the same," the statement said and added that proceedings had been commenced in the High Court for the prerogative Writ of Certiorari to be issued and to quash the decision of SEC and its AHC.

The statement accused SEC of imposing the sanctions with an aim of tarnishing the hard won reputation of Mr Yeboa Amoa.

"In any case, we find it amazing that the Council which administers the disclosure rules and in whose jurisdiction this complaint falls, acquits our client of unethical conduct concerning the non-disclosure of his directorship of Investek because the said company is not listed on the GSE, nevertheless, SEC goes ahead and finds our client culpable and publishes same."

The statement described as ridiculous the Administrative Hearings Committee endorsement of the complainant's assertion that Mr Yeboa Amoa had diverted business from the Licence Dealing Members (LDMs) to Investek.

It explained that since Investek was not an LDM, which by the rule of the Ghana Stock Exchange could sponsor listings and carry on trading in listed securities, it was difficult to understand how Mr Yeboa Amoa could divert any prospective GSE Investor to Investek.

The statement dismissed the claim that Mr Yeboa Amoa used the Exchange's time and resources to promote the business of Investek, saying that he was not an Executive Director of the company. Besides the company had its own Chief Executive Officer, Staff and Office.

"SEC's assertion that our client subjected his interest in GSE to that of Investek is unfortunate and misguided, if not malicious."

The statement said it found the alleged suspension misguided since Mr Yeboa Amoa was neither "a director nor an officer of a licensed Stock Exchange, Dealer, Investment Advisor, Mutual Fund, Unit Trust and Other institution licensed by the Commission," adding that a person could not be reprimanded for doing what the law does not expressly proscribe.

The statement further stated that SEC had failed to communicate to Mr Yeboa Amoa the statute and the section of which he had breached.

"It is interesting further to note that contrary to SEC's (AHC's) own rules, SEC has to date not provided our client with a charge sheet detailing what offence our client has committed and under what statute. Nevertheless, SEC has found our client culpable."

The SEC last Monday disqualified Mr Yeboa Amoa from serving as a director or officer of a licensed Stock Exchange, Dealer, Investment Adviser, Mutual Fund, Unit Trust or any other institutions licensed by the Commission, for a period of six months with effect from March 27, 2003 for unethical conduct in the non-disclosure of his interest in Investek. He was also reprimanded for his conduct.