Oando Shareholders Threaten to Sue SEC for Lifting Suspension

By Dipo Olowookere

Shareholders of Oando Plc under the aegis of Oando Shareholders Solidarity Group (OSSG) have threatened to take a legal action against the Securities and Exchange Commission (SEC) for lifting the technical suspension earlier placed on shares of the energy group since October 2017.

Addressing newsmen yesterday in Lagos, the group, led by Mr Clement Ebitimi, accused the apex capital market regulator of frustrating the forensic audit of Oando it ordered last year when a panel it set up indicted the management of Oando of allegations of capital market violations levelled against it by two shareholders.

OSSG, alongside other groups, the Proactive Shareholders Association of Nigeria (PROSAN) and Trusted Shareholders Association of Nigeria (TSAN) said on Wednesday that it would kick against lifting of the suspension.

On Thursday, Oando confirmed that the embargo placed on its price movement had been lifted by SEC and the stock gained 10 percent at the close of trades today on the floor of the Nigerian Stock Exchange (NSE), closing at N6.60k per share from the N5.99k it stayed throughout its suspension period.

Speaking on Wednesday during the media briefing, Mr Ebitimi accused the leadership of SEC of showing ineptitude in handling the Oando crisis.

He vowed that his group would institute legal action against SEC and the NSE if the technical suspension on Oando shares was lifted without the conclusion of the forensic audit.

Also, National President of TSAN, Mr Mukhtar Mukhtar, alleged that there was no forensic audit of Oando going on.

“We have discovered that no forensic audit is going on. The agenda of SEC is very clear. They want to buy time. The Acting Director-General is afraid to do his job. How can the management of a company your report has indicted continue in their position?” he queried.

On his part, National Coordinator of PROSAN, Mr Taiwo Oderinde, said, “Contrary to the impression out there, the forensic audit of Oando ordered since last year by SEC is not being done. They are only buying time. Poor and helpless Nigeria shareholders are suffering and dying with SEC doing nothing to help them.

“The problem is SEC. They are not doing their job. SEC report indicted Oando management. The management should be removed for the audit to take place. This is a management that has been in place for over 19 years. After the audit, if they are innocent, they will be restored to their position”.

The shareholders also appealed to the House of Representatives Committee on Capital Market and other Institutions to look into the matter.