By Modupe Gbadeyanka
It is more trouble for leading oil firm in Nigeria, Oando Plc, as the Johannesburg Stock Exchange (JSE) has stopped investors from trading shares of the company.
This comes barely 24 hours after a similar action was taken on Oando Plc by the Securities and Exchange Commission (SEC), which directed the Nigerian Stock Exchange (NSE) to suspend trading on the shares of the firm on its platform.
The JSE explained on Thursday that it took this step following a correspondence from the Nigerian stock market regulator.
“The company has received communication from its primary listing, the Nigerian Stock Exchange (NSE), that the Securities and Exchange Commission (SEC) have issued a directive to immediately suspend the trading of Oando shares, a directive to which the NSE has complied,” the JSE said in its notice.
“The JSE has accordingly suspended trading of the Oando shares with effect from 09:00 a.m. SA time, pending clarification following the review of subsequent correspondence received on 18 October 2017 from the NSE and SEC and will provide a full statement of the Company’s position as soon as possible,” the South African bourse said.
SEC is investigating allegations against Oando bordering on gross financial misappropriation filed by the duo of Alhaji Dahiru Barau Mangal and Ansbury Incorporated.
According to the capital market regulator yesterday, it would conduct a forensic audit on Oando Plc as a result of its findings from the probe, which it described as “weighty.”
SEC said after its comprehensive review of the petitions against Oando Plc, it found out that the company breached provisions of the Investments & Securities Act 2007, and also breached the SEC Code of Corporate Governance for Public Companies.
The capital market regulator further said it “suspected insider dealing,” found out that “related party transactions (were) not conducted at arm’s length,” and found “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 interests 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; 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 Effective from 20 October 2017 and until further directive, The Exchange should implement a technical suspension in the shares of Oando Plc,” SEC said in a statement signed by its management yesterday.
Adedapo Adesanya
[…] stock exchange to suspend trading in the company’s equities and the next year, its stocks were suspended by the Johannesburg Stock Exchange (JSE) over allegations of tampering with financial […]