Experts:”It’s an unethical act, with Conflict of Interest at the Core…”
By Abiola Olawale
Integrity issues and alleged conflict of interest, triggered by the Federal ministry of Finance’s reported decision to hire the services of Chapel Hill Denham Group, an investment banking, securities trading, and investment management firm founded by the Minister of Finance and Coordinating Economy, Mr Wale Edun, as Nigeria eyes its first Eurobond since 2022, have soared as experts condemn the action as grossly unethical, visibly inappropriate and a terrible action amouting to conflict of interest.
Apart from Mr Edun’s founded firm, it was gathered that the Federal Government has also hired investment banks, like Citigroup Inc., JPMorgan Chase & Co., and Goldman Sachs Group Inc. to advise it on how to spend the Eurobond offer, which is expected to arrive before June. However, it is the case of the company founded by the Minister that is at the core of public condemnation at the moment.
Though the amount and size of the Eurobond is yet to be ascertained, an insider source said Nigeria may raise as much as $1 billion in external borrowing in 2024 to meet its spending needs.
While reacting to the development, some analysts described the Minister’s action as a violation of ethical principles and an alleged conflict of interest “because you cannot preside over a process and award a contract to your own company which you founded as it undermines the integrity of the entire process and rubbishes the reputation of Nigeria before the international community.”
Dr Isaac Oluwale, a development economist and social critic said:” The action of the Minister is indefensible if truly the firm which he founded got a contract in a process he is presiding over. It amounts to conflict of interest because it amounts to acts bordering on inappropriate and globally unethical procedure. Even if you have resigned from the Board, your shares are still intact in the company as sharehder! Everyone knows you founded the company and you bring it to your ministry which you preside over and reign in on your team! That is unacceptable. I give you an example, in Canada, a public officer is not allowed to have any interest whatsoever in any company or entity that does jobs or contracts in the Federal or regional public service as it would be an act of corruption. The Office of the Auditor General of Canada recently suspended two top public officers who were said to have shareholding stake in a company that got a contract in the public service. I think im the ministry of defence. That is called integrity and transparency…Mr Wale Edun should come clean, apologise to Nigerians and step aside…for a probe.”
Media reports had previously pointed out that President Bola Ahmed Tinubu signed the N28.7 trillion budget for the 2024 fiscal year, with a deficit of N9.8 trillion — which would reportedly be financed by borrowings from local and international investors and multilateral lenders.
It would be recalled that Tinubu had also received approval from the Senate on December 30, 2023, to borrow the sums of $7.8 billion and €100 million as part of the 2022-2024 borrowing plan of the federal government.
To manage the incoming resources, FG reportedly proceeded to hire Standard Chartered Bank and Lagos-based Chapel Hill Denham as advisers.
Checks by The New Diplomat revealed that Mr Edun is the founder of Chapel Hill Denham Group. On the official website of the company, the firm says it provides comprehensive advisory services to a diverse client base, including financial institutions, multinationals, and governments.
