After its shares have been placed on temporary suspension on the floors of the Nigerian Stock Exchange and Johannesburg Stock Exchange, South Africa, the management of Oando Plc has faulted the processes of ongoing investigations, being conducted by the Securities and Exchange Commission on its operations.
The management alleged that the move of the market’s apex regulator to request for a forensic auditing of the company contradicted some of its actions.
The Chairman of the company and Alake of Egbaland, Oba Adedotun Gbadebo, asked, “How did the SEC arrive at its findings if it cannot be sure of the veracity of those findings, and, more importantly, how did it ascribe the appropriate level of weight to be given to those findings, enough to warrant an immediate suspension, followed by a technical suspension of the shares of the company, especially if those findings are still mere allegations at this point, as the commission has clearly communicated?”
Contrary to the information obtained from the commission that Oando is expected to pay N160million, which is the cost of the forensic audit, the company insisted that such directive would not be tolerated as it would further deplete its shareholders’ funds.
“This must be an error in the light of all its submissions to date, and not in the best use of shareholders’ funds at this time,” the Alake added.
Also, the monarch, who alleged that the commission had denied him audience after several attempts, disclosed that SEC copied both the petitioners, Alhaji Mangal and Ansbury Inc., in its letter to the company.
“It is unheard of and prejudicial for petitioners to be copied on correspondence to the investigated party on findings yet to be concluded. It is unclear how the SEC will respond to the allegations against it on the basis of bias; but one thing is evident, Oando has taken a different and bold stance to challenge the commission,” he said.
Oba Gbadebo alleged bias and lack of adherence to due process in the way and manner the investigation of the allegations levelled against the company were
conducted.
According to Oando, the chairman requested to be allowed to present the company’s case, but was denied audience, while the regulator had granted an audience to Ansbury Inc and gone so far as to offer what is tantamount to legal advice to them.
The management said, “The most recent action taken by the regulator confirms that the commission appears to be working to its own conclusion rather than looking at the facts before it and acting in the best interests of the company and the minority shareholders, who it claims it seeks to protect.
“The prescribed penalties as set out by the regulators for the said infractions do not singularly, or together, warrant the institution of a forensic audit, full or technical suspension of trading of the company’s shares on the Nigerian Stock Exchange.
“We do not believe that the SEC had presented a case strong enough to support the engagement of a forensic auditor, to conduct a forensic audit into the company’s affairs, while highlighting reasons to support the belief.”
