*Sets Up Consortium Of Investigators For Forensic Audit

*Directs Full, Technical Suspension Of Oando Shares


The Securities and Exchange Commission (SEC), has instituted a comprehensive investigation of infractions found to have been committed by Oando Plc and had directed the full and technical suspension of its shares by the Nigeria Stock Exchange (NSE) as from Friday, 20 October, 2017.

To achieve independent and transparent investigation, SEC has further constituted a consortium of probe panel consisting of auditors, lawyers, stockbrokers and Registrars to carry out forensic audit of Oando Plc.

SEC’s latest action on Oando was contained in a circular to the general public on developments about the company.

Based on two petitions, SEC had earlier carried out preliminary investigation of issues raised in the petition and confirmed weighty infractions as which includes: 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 full text of the circular signed by the SEC management reads: “The Securities and Exchange Commission 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.

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.

However in view of the fact that it is not technologically feasible for the Exchange to effect a technical suspension except after 48 hours, the Commission directed as follows;

1. Effective for forty-eight (48) hours from today, 18 October 2017 to 20 October 2017, The Nigerian Stock 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.