By Uzoma Akobundu
Trading in the shares of Oando PLc has been suspended till further notice, the regulatory bodies- Security and Exchange Commission (SEC) and the Nigeria Stock Exchange (NSE) confirmed on Wednesday, October 18.
The SEC advised the NSE to ensure compliance based on market rules until further notice.
Oando has been mentioned for the wrong reasons of late before SEC and NSE and the regulatory agencies have waded into the barrage of allegations of wrong doings involving the firm and decided to state the records straight.
First, the suspension which may be lifted or extended depending on the outcome of the forensic investigation to be carried out on Oando to determine whether the alleged fraudulent charges such as insider dealing, breach of corporate governance, discrepancies in shareholding structure among others hold water or not.
On October 18, 2017 the NSE released a market bulletin issuing a directive for the suspension of trading in the shares of Oando Plc as follows:
1.Effective for forty-eight (48) hours from today, 18 October 2017 to 20 October 2017, The Exchange should implement a full suspension in the trading of the shares of Oando Plc; and
2.Effective from 20 October 2017 and until further directive, the Exchange should implement a technical suspension in the shares of Oando Plc.
Given the above information, clients would not be able to execute a Buy or Sell mandate on Oando Plc shares till Friday October 20, 2017, of which every transaction done from Friday will be at the same price as there would be no price change on the company shares till the technical suspension is lifted or until a further directive is issued.
The SEC 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.