The Securities and Exchange Commission, SEC, on Wednesday ordered
full suspension of the trading of shares of Oando Plc for two days.
The commission also directed that effective from Friday, October 20,
the Nigerian Stock Exchange should implement a technical suspension of
the shares of the company.
SEC in a notice posted on its website on Wednesday morning said it
took the decision after it received two petitions from Dahiru Mangal and
Ansbury Incorporated.
The Commission explained that it carried out a comprehensive review
of the petitions and discovered issues of breach of the provisions of
the Investments & Securities Act 2007, breach of the SEC Code of
Corporate Governance for Public Companies, suspected insider dealing,
related party transactions not conducted at arm’s length, discrepancies
in the shareholding structure of Oando Plc. Among other discrepancies.
“The Commission’s primary role as apex regulator of the Nigerian
Capital Market is to regulate the market and protect the investing
public,” it said.
“The Commission notes that the above findings are weighty and
therefore needs to be further investigated. After due consideration,
the Commission believes that it is necessary to conduct a forensic audit
into the affairs of Oando Plc.
“This is pursuant to the statutory duties of the Commission as provided in section 13(k), (n), (r) and (aa) of the ISA 2017.”
According to SEC, “To ensure the independence and transparency of the
audit exercise, the forensic audit shall be conducted by a consortium of
experts made up of auditors, lawyers, stockbrokers and Registrars.
“To further ensure that the interest of all shareholders of Oando Plc
are preserved during the course of the exercise, the Commission
directed the Nigerian Stock Exchange to place the shares of Oando Plc on
technical suspension,” it said.
The commission, however, noted that in view of the fact that it is
not technologically feasible for the Exchange to effect a technical
suspension except after 48 hours, it has directed the Nigerian Stock
Exchange to implement a full suspension in the trading of the shares of
Oando Plc, effective for 48 hours from Wednesday to Friday 20.
Meanwhile, effective from Friday and until further directive, SEC
said that the NSE should implement a technical suspension in the shares
of Oando Plc.
Oando plc has in recent time been enmeshed in crisis which led to
attempts made by some shareholders to disrupt its Annual General Meeting
held recently in Uyo, Akwa Ibom State.
The AGM was reportedly disrupted for over ten minutes as the
protesters chanted songs seeking the resignation of the company’s Group
Chief Executive, Wale Tinubu.
The protesters, who stormed the venue under the aegis of “Oando
Shareholders’ Solidarity Group,” said they were protesting in order to
change the management of the company due to alleged gross mismanagement
and abuse of corporate governance.
They also claimed that they had read several reports on the gross
mismanagement of Oando by the present management of the company and
called on Mr. Tinubu to step down and allow a competent hand to manage
the affairs of the company.
The protesters also called on the Securities and Exchange Commission,
SEC and Nigerian Stock Exchange, NSE, to commence the immediate
investigation of the company to determine the true state of the
financial position and corporate practice.
But the oil company in a statement sent to PREMIUM TIMES described
the protesters as “paid, dubious characters,” who are not genuine
shareholders of the company.
In September, the House of Representatives Committee on Capital
Market and other Institutions told the Securities and Exchange
Commission, SEC and Oando Plc to resolve all issues regarding an alleged
N799 billion stakeholders’ liabilities with the oil firm.
The committee’s decision came against the backdrop of a petition forwarded by some aggrieved shareholders of the oil firm.The petitioners claimed that the company has not been paying
dividends to the shareholders since the 2013 financial year, adding that
the “external auditor’s report reported ‘strong doubtful going concern’
over the Group’s annual financial statement.”
According to the petition, “the Group has negative working capital of
over N263 billion consequence of current liabilities above, lighter
than current assets, meaning that the management was unable to service
its obligations financially.”
The petitioners also urged the leadership of the House to “as a
matter of urgency save their investment in Oando Plc, look into these
matters, cause an action to intervene in Oando plc by ordering/remove
the present management, to vacate office, allowing for proper
investigation of the corporate governance abuses, financial
mismanagement as noticed in the published full-year audited financially
statement.”