The Securities and Change Fee has ordered the Nigerian Inventory Change to droop buying and selling on the shares of Oando Plc.
The fee stated in a round yesterday it had carried out a complete evaluate of the petitions by Alhaji Dahiru Barau Mangal and Ansbury Included and made the next findings amongst others; Breach of the provisions of the Investments and Securities Act 2007; Breach of the SEC Code of Company Governance for Public Corporations; Suspected insider dealing; Associated social gathering transactions not carried out at arm’s size; and Discrepancies within the shareholding construction of Oando Plc. and many others.
“The fee’s major function as apex regulator of the Nigerian capital market is to control the market and shield the investing public. The fee notes that the above findings are weighty and due to this fact must be additional investigated.
“After due consideration, the fee believes that it’s essential to conduct a forensic audit into the affairs of Oando Plc. That is pursuant to the statutory duties of the fee as supplied in Part 13(ok), (n), (r) and (aa) of the ISA 2017,” the round learn partially.
In line with SEC, to make sure the independence and transparency of the train, the forensic audit shall be carried out by a consortium of specialists made up of auditors, attorneys, stockbrokers and registrars.
“To additional make sure that the pursuits of all shareholders of Oando Plc are preserved in the course of the course of the train, the fee directed the Nigerian Inventory Change to put the shares of Oando Plc on technical suspension,” it additional added.
Nonetheless, in view of the truth that it’s not technologically possible for the trade to impact a technical suspension besides after 48 hours, it directed as follows;
“Efficient for 48 hours from at present, 18 October 2017 to twenty October 2017, the Nigerian Inventory Change ought to implement a full suspension within the buying and selling of the shares of Oando Plc; and Efficient from 20 October 2017 and till additional directive, the trade ought to implement a technical suspension within the shares of Oando Plc.”
Exterior auditors of Oando Plc reported sturdy, uncertain concern on the group’s annual monetary assertion. The group has detrimental working capital of over N263bn with present liabilities exceeding present belongings.
Oando closed the 12 months 2016 with constant lack of over N768bn; considerably worse than the year-end 2015. The web loss for the 12 months from persevering with operations in 2016 quantities to N25.8bn as reported within the annual audited monetary assertion.
[Daily Trust]
