Suspended Oando assuages shareholders, to release offical statement soon

Afolabi Adesola

Oando Plc has reacted to the suspension and forensic audit directives from Nigeria’s Securities and Exchange Commission (SEC).

The energy firm in a statement released via the Nigerian Stock Exchange (NSE) late Wednesday noted that “The Company is currently reviewing subsequent correspondence received from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible.” adding that it remains committed to act in the best interest of its shareholders.

SEC had on Wednesday issued a directive to the NSE to immediately suspend the trading of Oando shares, as a result of weighty findings, following a preliminary investigation and a comprehensive review of petitions brought against Oando.

The SEC revealed it had discovered among 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.” SEC noted

The SEC further noted that “after due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc.

In view of the audit, which the SEC said will be conducted by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars, to ensure the independence and transparency of the exercise, the Commission thus directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension effective for forty-eight (48) hours from 18 October 2017 to 20 October 2017.

The NSE is to also 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.

A full suspension is the halt of trading activities in a listed security for a period. A technical suspension is the interruption of price movement in a listed security for a period so that any dealings in the securities which occur during the period of the suspension will not result in any change in price, which change may have occurred had the suspension not been implemented.