The Securities and Exchange Commission (SEC) on Tuesday insisted it would go ahead with the conduct a forensic exercise into the activities of Oando Plc. The commission’s took that decision in a letter dated December 5, addressed to the management of Oando.
SEC in the letter assured “the general public of its zero tolerance to infractions in the Nigerian capital market.”
The Director General of SEC, Mounir Gwarzo was suspended last week by the Minister of Finance, Kemi Adeosun.
Immediately, Adeosun’s decision on Gwarzo was linked to the commission’s decision to probe Oando’s activities.
She however denied the allegation, saying Gwarzo’s suspension was to make way for an unhindered investigations into allegations of financial impropriety leveled against him.
Shareholders of Onado also believe Adeosun has interest in the planned probe and have asked President Muhammadu Buhari to sack her.
Also, the House of Representatives on Tuesday set up a committee to probe the the unfolding Oando’s saga, including Adeosun’s decision on Gwarzo.
Adeosun confirmed that she had an audience with the Wale Tinubu-led Oando and felt that Gwarzo should have sanctioned the firm over whatever it had had done wrong rather than the full scale probe. Gwarzo asked her to communicate that feeling of hers in writing. What followed was Gwarzo’s suspension.
Last October SEC directed the NSE to place Oando’s shares on full suspension for two days and place them on a technical suspension afterwards, following its probe into two petitions received from two shareholders of the company – Dahiru Barau Mangal and Ansbury Inc.
The suspension, according to SEC, was to enable it to conduct a forensic audit into the affairs of Oando, which has dual listing on the NSE and JSE.
There were insinuations that following the suspension of Gwarzo, Oando management started to jubilate, and claiming that they told him he would be taught some lessons.
But the insistent on the forensic probe by the new SEC head is said to have unsettled them
once more.
In a terse statement on Tuesday, SEC reiterated its commitment to go ahead with the forensic audit, saying: “This commitment is contained in a letter dated December 5, 2017, addressed to Oando Plc.”
The letter, which was signed by the acting Director-General of SEC, Dr. Abdul Zubair, and noted that the forensic auditors would be at the premises of Oando from Wednesday to undertake the audit.
Zubair was appointed by the federal government last Thursday to replace Gwarzo, following his suspension the day before.
The SEC latest Letter titled, “Re: Forensic Audit into the Affairs of Oando Plc,” read: “Further to our letter to you dated November 27, 2017 and another letter to your lawyers dated November 28, 2017, wherein the Commission had notified Oando Plc of its decision to go ahead with the Forensic Audit, the Commission in the light of recent developments wishes to reiterate the following:
• That the Commission is aware that Suit No: FHC/L/CS/1601/17: OANDO PLC V. SEC & ANOR was struck out on November 23, 2017 by his Lordship Hon. Justice Aikawa of the Lagos Division of the Federal High Court.
• That the Commission is not aware of the existence of any valid or subsisting Order of Court restraining the Commission from proceeding with the Forensic Audit.
“While we acknowledge that a Notice of Appeal has been filed to challenge the judgment of the Federal High Court, this notice does not serve as an Order of Court restraining the Commission from conducting the exercise.
“We wish to restate that our forensic auditors had been directed to commence work since November 27, 2017 and as a result shall be at your premises on any date from Wednesday, December 6, 2017.
“Kindly accord them the necessary assistance.”