The Securities and Exchange Commission (SEC) has ordered full suspension of the trading of shares of Oando Plc for two days and directing the Nigerian Stock Exchange should implement a technical suspension of the shares of the company effective from Friday, October 20.
SEC posted the notice on its website on Wednesday morning, saying it took the decision after it received two petitions from Dahiru Mangal and Ansbury Incorporated.
The Commission explained that it carried out a comprehensive review of the petitions and discovered issues of 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. Among other discrepancies.
It said: “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.”
The commission explained that to ensure the independence and transparency of the audit exercise, the forensic audit shall be conducted by a consortium of experts made up of auditors, lawyers, stockbrokers and Registrars.
“To further ensure that the interest of all shareholders of Oando Plc are preserved during the course of the exercise, the Commission directed the Nigerian Stock Exchange to place the shares of Oando Plc on technical suspension,” it said.
SEC, however, noted that in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, it has directed the Nigerian Stock Exchange to implement a full suspension in the trading of the shares of Oando Plc, effective for 48 hours from Wednesday to Friday 20.
The oil company has, for sometime now, been enmeshed in crisis with some shareholders temporarily disrupting its last Annual General Meeting in Uyo, Akwa Ibom State. The protestimg shareholders asked the CEO, Mr. Wale Tinubu to step down over what they called gross misconduct.