Ex-MD Of Ghana Stock Exchange Sanctioned

...but he questions jurisdiction
The Security and Exchange Commission (SEC) on Monday announced that Mr Yeboa Amoa, former Managing Director of the Ghana Stock Exchange (GSE), has been sanctioned after being found culpable of unethical conduct, but he says the SEC has no jurisdiction in the matter, which he has taken to the High Court.
A statement signed in Accra by Mr Mark Anthony Made, Board Secretary of SEC, said: The Securities and Exchange Commission wishes to announce for the information of all securities market operators and the general public that following the determination of a complaint of unethical conduct made against
Mr Yeboa Amoa (former Managing Director of Ghana Stock Exchange) the Commission found Mr Yeboa Amoa culpable and has accordingly sanctioned him as follows:
"Mr Yeboa Amoa is disqualified from serving as a director or officer of a licenced Stock Exchange, Dealer, Investment Adviser, Mutual Fund, Unit Trust or any other institution licenced by the Commission, for a period of six months with effect from March 27, 2003.
"Mr Yeboa Amoa has also been reprimanded for his conduct.
The statement said: "The Commission received a written complaint on March 23, 2001 alleging acts of unethical conduct against Mr Yeboa Amoa.
Among other things, it was alleged that while then the Managing Director of GSE, Mr Yeboa Amoa established an investment consultancy firm called Investek Consultancy Services Limited (Investek), of which he was the Chairman and a 50 per cent shareholder.
"It also alleged that Mr Yeboa Amoa had used the facilities of the GSE to promote the business of Investek and had on an occasion directed an enquirer, who intended doing business in the market to first link up with Investek before contacting the Licenced Dealing Members of the GSE.
"As required under the Securities Industry Law, 1993 PNDCL 333 (the Law) the Director-General conducted investigations into the complaint and after completion of investigations referred the matter to the Administrative Hearings Committee (AHC) of the Commission on October 28, 2002, for determination.
"The AHC dully examined the matter and found that Mr Yeboa Amoa, while being the Managing Director of the GSE incorporated Investek and was its Chairman and 50 per cent shareholder, fact not disclosed to the Council of the GSE.
"It was also found that Mr Yeboa Amoa was actively involved in the running of Investek and used the facilities of the GSE to promote the interest of Investek. It was found that Mr Yeboa Amoa on one occasion directed a potential investor on the market to first link up with Investek before contacting the Licenced Dealing Members of the GSE.
"In view of the facts as found by the AHC the AHC concluded that Mr Yeboa Amoa had promoted his interest in Investek over and above that of GSE. In the opinion of the AHC, Mr Yeboa Amoa's conduct was not an acceptable practice in the industry and fell short of the standard of conduct expected of him as the Managing Director of the GSE.
"The AHC, therefore, found him culpable and decided that the sanctions as indicated be applied to him.
"As required under the Law, the AHC referred it decision to the Commission for consideration."
The statement said: "The Commission at its 29th Meeting held on March 27, 2003 considered and approved the decision of the AHC.
The Commission wishes to advise all licenced operators and their agents to conduct business in conformity with the Law and acceptable practices in the industry.
Mr Yeboa Amoa told the Ghana News Agency that he did not breach any ethical code since none existed in the industry and showed the GNA a copy of a letter from the GSE Council dated April 19, 2001 and signed by its Acting Chairman, Mr K.O. Amponsa-Dadzie.
The letter stated among other things: "That according to the GSE's policy of disclosure by Council Members, Members are required to declare their holdings in listed equities only. Since ICSL (Investek) is not a listed company, Mr Yeboa Amoa did not declare that interest on the Council Members' Shareholding Declaration form.
"That neither the GSE's company regulations nor the MD's contract of employment had any clause prohibiting him from making an investment in a private company."
"Based on facts available, Council decided that on the whole Mr Yeboa Amoa had not engaged in any unethical conduct as alleged by the complainant."
Another letter from Kofi Aboagye and Company, solicitors for Mr Yeboa Amoah to the Director-General of SEC, dated January 8, 2003 challenged the jurisdiction of the AHC and indicated the intention "to apply to the High Court for the prerogative writ of Certiorari to quash AHC's decision on this matter".
Mr Yeboa Amoa subsequently refused to attend the AHC hearings, even though, "a lawyer from our Chambers will attend the said hearing with limited instructions to come out for record of proceedings but not to go through any hearing processes", Counsel for Mr Yeboa Amoa wrote.

...but he questions jurisdiction
The Security and Exchange Commission (SEC) on Monday announced that Mr Yeboa Amoa, former Managing Director of the Ghana Stock Exchange (GSE), has been sanctioned after being found culpable of unethical conduct, but he says the SEC has no jurisdiction in the matter, which he has taken to the High Court.
A statement signed in Accra by Mr Mark Anthony Made, Board Secretary of SEC, said: The Securities and Exchange Commission wishes to announce for the information of all securities market operators and the general public that following the determination of a complaint of unethical conduct made against
Mr Yeboa Amoa (former Managing Director of Ghana Stock Exchange) the Commission found Mr Yeboa Amoa culpable and has accordingly sanctioned him as follows:
"Mr Yeboa Amoa is disqualified from serving as a director or officer of a licenced Stock Exchange, Dealer, Investment Adviser, Mutual Fund, Unit Trust or any other institution licenced by the Commission, for a period of six months with effect from March 27, 2003.
"Mr Yeboa Amoa has also been reprimanded for his conduct.
The statement said: "The Commission received a written complaint on March 23, 2001 alleging acts of unethical conduct against Mr Yeboa Amoa.
Among other things, it was alleged that while then the Managing Director of GSE, Mr Yeboa Amoa established an investment consultancy firm called Investek Consultancy Services Limited (Investek), of which he was the Chairman and a 50 per cent shareholder.
"It also alleged that Mr Yeboa Amoa had used the facilities of the GSE to promote the business of Investek and had on an occasion directed an enquirer, who intended doing business in the market to first link up with Investek before contacting the Licenced Dealing Members of the GSE.
"As required under the Securities Industry Law, 1993 PNDCL 333 (the Law) the Director-General conducted investigations into the complaint and after completion of investigations referred the matter to the Administrative Hearings Committee (AHC) of the Commission on October 28, 2002, for determination.
"The AHC dully examined the matter and found that Mr Yeboa Amoa, while being the Managing Director of the GSE incorporated Investek and was its Chairman and 50 per cent shareholder, fact not disclosed to the Council of the GSE.
"It was also found that Mr Yeboa Amoa was actively involved in the running of Investek and used the facilities of the GSE to promote the interest of Investek. It was found that Mr Yeboa Amoa on one occasion directed a potential investor on the market to first link up with Investek before contacting the Licenced Dealing Members of the GSE.
"In view of the facts as found by the AHC the AHC concluded that Mr Yeboa Amoa had promoted his interest in Investek over and above that of GSE. In the opinion of the AHC, Mr Yeboa Amoa's conduct was not an acceptable practice in the industry and fell short of the standard of conduct expected of him as the Managing Director of the GSE.
"The AHC, therefore, found him culpable and decided that the sanctions as indicated be applied to him.
"As required under the Law, the AHC referred it decision to the Commission for consideration."
The statement said: "The Commission at its 29th Meeting held on March 27, 2003 considered and approved the decision of the AHC.
The Commission wishes to advise all licenced operators and their agents to conduct business in conformity with the Law and acceptable practices in the industry.
Mr Yeboa Amoa told the Ghana News Agency that he did not breach any ethical code since none existed in the industry and showed the GNA a copy of a letter from the GSE Council dated April 19, 2001 and signed by its Acting Chairman, Mr K.O. Amponsa-Dadzie.
The letter stated among other things: "That according to the GSE's policy of disclosure by Council Members, Members are required to declare their holdings in listed equities only. Since ICSL (Investek) is not a listed company, Mr Yeboa Amoa did not declare that interest on the Council Members' Shareholding Declaration form.
"That neither the GSE's company regulations nor the MD's contract of employment had any clause prohibiting him from making an investment in a private company."
"Based on facts available, Council decided that on the whole Mr Yeboa Amoa had not engaged in any unethical conduct as alleged by the complainant."
Another letter from Kofi Aboagye and Company, solicitors for Mr Yeboa Amoah to the Director-General of SEC, dated January 8, 2003 challenged the jurisdiction of the AHC and indicated the intention "to apply to the High Court for the prerogative writ of Certiorari to quash AHC's decision on this matter".
Mr Yeboa Amoa subsequently refused to attend the AHC hearings, even though, "a lawyer from our Chambers will attend the said hearing with limited instructions to come out for record of proceedings but not to go through any hearing processes", Counsel for Mr Yeboa Amoa wrote.