Starcomms Chairman detained overnight, released by the EFCC

Chief Lababidi, Chairman of the Board of Directors and founder of Starcomms Plc was detained yesterday by the Economic and financial crimes commission (EFCC) in furtherance of their investigation into the Stanbic IBTC and Chapel Hill Denham led 2008 offer to the public.
As at the time of filing this report, it is understood that the commission appears keen on unravelling the many dimensions related to this transaction which has refused to go away. Recall that the erstwhile leadership of the SEC conveniently sided stepped the issue of Starcomms and ChapelHill/StanbicIBTC, even when compelling evidence was presented to it by its examinations/investigations unit which raised concerns in 2009.
The number of key players in the Nigerian financial market involved in the case makes it such a compelling case study of how serious Nigeria is about corporate governance, financial responsibility, investor rights and professional responsibility.
Indeed, the Starcomms transaction remains a litmus test for regulatory oversight and investor protection in Nigeria. Why? This singular transaction defined the excesses of operators, issuing houses, registrars, quoted companies, and the negligence/connivance of the regulatory agency – SEC.
The EFCC, we understand has received petitions received from concerned elites who believe that the transaction is fundamentally flawed, structurally in violation of the laws of the market and conceived to mislead unsuspecting investors. Information recently uncovered will indicate that the issuing house(s) may have failed to disclose the implications of their actions to all parties, even as they initially applied for a public offer with the SEC and the NSE but later converted same to a Private placement memorandum.
The investigations also extend to actions taken by Starcomms in relation to disposal of base stations, the register of members and share certificates as well as the actions/fiduciary responsibilities of the two foreign firms who should have known better – Actis of UK and ECP of USA; who both had directors on the board.
In a related development, the increase in the number of respondents to the notice for a class action – for all different classes including those on the allotment list, those who came through illegal schemes like that of the fund operated by Afrinvest, firms acting as commissioned agents and those solicited through the many road shows held by the issuing houses – have necessitated the need to close the register anytime soon.
In a related development, the increase in the number of respondents to the notice for a class action – for all different classes including those on the allotment list, those who came through illegal schemes like that of the fund operated by Afrinvest, firms acting as commissioned agents and those solicited through the many road shows held by the issuing houses – have necessitated the need to close the register anytime soon.
Investors that participated in the offer are encouraged visit this link to file their claims:

http://www.proshareng.com/news/17525