These are not the best of times for Wale Tinubu led Oando Plc. as the Securities and Exchange Commission (SEC) on Wednesday 18th October, 2017 ordered full suspension of the trading of shares of Oando Plc.
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.
Notice to the General Public on Oando Plc
The Securities & Exchange Commission received two petitions from Alhaji Dahiru Barau Mangal and Ansbury Incorporated. The Commission carried out a comprehensive review of the petitions and made the following findings amongst others;
- 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. Etc.
The Commission’s primary role as apex regulator of the Nigerian Capital Market is to regulate the market and protect the investing public. 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.
To ensure the independence and transparency of the 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.
However in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, the Commission directed as follows;
Effective for forty-eight (48) hours from today, 18 October 2017 to 20 October 2017, The Nigerian Stock Exchange should implement a full suspension in the trading of the shares of Oando Plc; and
Effective from 20 October 2017 and until further directive, The Exchange should implement a technical suspension in the shares of Oando Plc.
Signed Management
October 18th 2017
Oando Plc has been in crisis for some time now 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 described the protesters as “paid, dubious characters,” who are not genuine shareholders of the company.