SEC Affirms Oando’s Suspension Till Further Notice

October 18, 2017

By Abdulquddus Okele InvestAdvocate

Lagos (INVESTADVOCATE)-Nigeria’s Securities & Exchange Commission (SEC) on Wednesday confirmed the suspension of trading on the shares of oil marketing major, Oando Plc from the floors of the Nigerian Stock Exchange (NSE).

SEC said it received two petitions from Alhaji Dahiru Barau Mangal and Ansbury Incorporated and 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 said it’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,” SEC added.
According to the apex regulator, 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,” SEC affirmed.
The Commission added that in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after forty-eight (48) hours, the Commission directed that effective  48 hours from Wednesday, 18 October 2017 to 20 October 2017.
SEC said the NSE should implement a full suspension in the trading of the shares of Oando; and
effective from 20 October 2017 and until further directive, “the Exchange should implement a technical suspension in the shares of Oando Plc,” SEC said.
This is coming on the heels of a petition against the oil marketing major by two petitioners filed with the Commssion alleging gross abuse of corporate governance and financial mismanagement.
The petitions were from Ansbury Inc a non-shareholder of the Oando, but a shareholder in a company domiciled in a jurisdiction outside Nigeria which in turn holds shares in a Nigerian investment company that is a shareholder in Oando and Alhaji Dahiru Mangal  an individual purported to hold a 17.9% interest in Oando.